Plan Investments - While investments provide the primary means of paying benefits, your benefit is guaranteed regardless of investment performance. In other words, it is the employer who bears the risk of investment performance.
The investments of the plan are managed by the Board of Retirement in accordance with the Board approved Investment Policy. The Board of Retirement uses professional staff and independent, third party investment consultants to assist in overseeing plan assets. The assets are allocated among different asset classes to meet the expected return at the lowest overall expected risk. The current asset classes are as follows:
U.S. Equities (stocks)
• U.S. Fixed Income (bonds)
• International Equities
• International Bonds
• Real Estate
• Private Equity
• Hedge Funds
Please refer to the current Comprehensive Annual Financial Report (CAFR) for more specific information related to SBCERA investments. Printed copies of the annual CAFR may be requested by calling the SBCERA office.
Interest Earnings - Your account is credited interest on June 30 and December 31 of each year based on the previous six month’s balance and in accordance with the Board of Retirement Interest Crediting & Excess Earnings Allocation Policy. While interest and account balances do impact refunds and survivor benefits, your service credit, age at retirement and highest consecutive 12 months compensation are the key factors that determine your retirement benefit.
For additional financial information please view the SBCERA Snapshot.