SBCERA

Monday, May 2 , 2016 – 12:00 p.m.

It’s time for the San Bernardino County Employees Retirement Association (SBCERA) to face reality regarding what it will make on investments in the future.

Once again, the county employees pension fund has been struggling to hit it’s required investment return target for the 2015-16 fiscal year, which ends on June 30, 2016.

So far, for the fund’s fiscal year through March 31, 2016, the actual investment return was -3.6%. That’s negative 3.6 percent.

In other words. The fund will again fall short of it’s projected target.

SBCERA’s five year average return number is -6.2%. The ten year number is +4.5%.

The problem?

The fund bases all of it’s contribution rates on a  projected annual return of  7.5%.

SBCERA, defined-benefit pension plan, currently has a fund balance that is short some $2 billion from what is required to fund all future benefit payments.

Keeping the projected return rate so high does nothing but keep the county from contributing more money into the system to keep it properly funded.

The fund needs to plan for a reduction in its assumed return rate to 6.5%

Regardless of whether or not the fund takes action to do what’s prudent, the county and it’s employees will still be forced to pay in more money.