Funding Remains Strong
The funded status for the Sacramento County Employees’ Retirement System (SCERS) increased to 82.6 percent, as of June 30, 2019, according to the annual actuarial valuation approved by the Board of Retirement on November 20, 2019.
The fund was helped by a 2018-19 fiscal year investment return of 7.2 percent, finishing the fiscal year with approximately $9.8 billion in assets. SCERS continues to manage an unfunded liability of $2.1 billion over a 20-year period to ensure sufficient assets are in place to support long-term benefit obligations.
The SCERS Board also adopted employer and employee contribution rates for 2020-21. Employer contributions will increase modestly as expected, as part of the Board’s decision in 2017 to adopt a lower investment assumption but phase in the impact over three years. This will be the last year of the three-year phase-in. The average employer contribution rate will increase to 29.4 percent in 2020-21 from 26.8 percent in 2019-20.
Employee contributions will remain stable in 2020-21, at an average of 11.6 percent.
Contribution rates will be reflected in the July 2020 pay period, and vary by employer and retirement tier. Details can be found on the Contribution Rate page.