Funded Status Improves to 82.5%
SCERS continues to make progress on meeting its long-term benefit obligations. The SCERS Board approved the on November 5, 2018, which showed the SCERS funded status increased from 80.4% to 82.5%, on a market value basis, as of June 30, 2018. The unfunded liability is approximately $2 billion and is projected to be eliminated within 20 years.
The SCERS Board also adopted 2019-20 contribution rates. The employer contribution rates are increasing as expected due to the discount rate change last year when the Board adopted a more conservative long-term investment assumption of 7%. The aggregate employer rate increased from 24.46% to 26.85% of payroll.