Thursday, January 21, 2016 – 09:30 a.m.
San Bernardino County’s pension fund, San Bernardino County Employees Retirement Association (SBCERA), will pay out a 2% across-the-board cost of living (COLA) adjustment effective April 1, 2016.
It’s the first 2% across-the-board increase after two years of lower adjustments.
It’s also the maximum amount allowed by law.
In 2014, the fund paid a COLA of 1.0% and in 2015 paid 0.5%.
The increase comes as the fund is preparing to announce second-quarter performance numbers that are likely to be well below the funds actuarial hurdle needed to pay benefits and expenses.
Continuing stock and bond market volatility is likely to continue to suppress the funds earnings for the current fiscal year.
The performance will likely spur the fund to, once again, increase the county’s annual pension payments into the system.
SBCERA remains one of the better performing funds in its asset size category. But market conditions have had an impact.
SBCERA cost of living adjustments are determined by the Los Angeles-Riverside Consumer Price Index (CPI) compiled by the U.S. Department of Labor – Bureau of Labor Statistics.
In the 2015 calendar year, the index came in at exactly 2.0%.