Monday, November 28, 2016 – 12:15 p.m.
The pension system for San Bernardino County, California, took another hit in its latest fiscal year.
The county pension fund, San Bernardino County Employees Retirement Association (SBCERA), now sits at 76.82% funded as of June 30, 2016. This means the fund can payout roughly 76.8 cents of every pension dollar promised.
It’s a number that is down from 80.98% from the year ago period.
Translated. The system’s unfunded actuarial accrued liability (UAAL) increased from $1.94 billion to $2.47 billion.
That’s billion with a “B”.
The aforementioned numbers are based upon the actuary’s own market valuation analysis. This means that the figures apply actual market value of the underlying investments in the pension fund as of June 30, 2016.
SBCERA’s investments, whether real estate, equity or debt, are marked to market on June 30 of each year and compared to the dollar amount of pension obligations. ANy shortfall is refereed to as an unfunded liability.
The fund and county would rather tout the actuarial valuation analysis figures because they paint a rosier picture by delaying the recognition of losses for a few years, all in the hope that they’ll go away or shrink.
The table is listed on page vi of the SBCERA annual actuary’s report.
You can read and download the report here: SBCERA – Actuarial Valuation and Review – 06302016
The losses, if they continue or remain, will require the county general fund to increase its annual contribution to support the system.