Policies and Governance
California Retirement Law Book
The Retirement Law Book contains the following:
- State of California County Classification (Government Code Section 28020)
- County Employees Retirement Law of 1937 (CERL)
- California Public Employees’ Pension Reform Act of 2013 (PEPRA)
- Other Government Code Sections Applicable to CERL Systems
The Sacramento County Employees’ Retirement System (SCERS) was established under the CERL and provisions of Sacramento County Ordinance No. 283 passed April 30, 1941 and last amended February 27, 2018.
These Bylaws as adopted pursuant to Government Code Sections 31525, 31526, and 31527 are intended to be the rules and regulations governing the operation of the Retirement Board and the administration of the Retirement System.
Disability Retirement Procedures
The of SCERS govern the submission, review, and evaluation of Applications; the adjudication of Contested Applications; and the Board’s decisions on Applications and judicial review thereof, in accordance with the County Employees’ Retirement Law of 1937 (Government Code Sections 31450 et seq.), applicable case law, and SCERS Bylaws.
Appeal of SCERS’ Administrative Decision Policy
This policy provides SCERS members and/or their related parties as defined herein with due process procedures and timeline for disputed matters in SCERS’ administrative decisions affecting such persons.
CEO Delegated Authority Policy for Expenses
This policy provides for the efficient and effective management of SCERS by delegating authority from the Board to the SCERS Chief Executive Officer to approve payments and to settle or otherwise dispose of claims as specified.
CEO Performance Evaluation Policy
The purpose of the Chief Executive Officer (CEO) Performance Evaluation Policy is to provide a documented process for the Board to follow when assessing the CEO’s performance, providing him/her with feedback, and determining his/her compensation.
Compensation Earnable Policy for Overtime, CTO-Expired, and CTO-Over-Max
The purpose of this policy is to require the exclusion of overtime pay and compensatory time off (CTO) paid in excess of a member’s regularly scheduled work hours (including CTO-expired and CTO-over-max) from compensation earnable when applied to allowances and pay differentials earned by legacy SCERS members.
The purpose of this policy is to establish a sound compensation policy to address SCERS’ personnel needs that, along with an effective job classification system and the requisite authority to establish the necessary and appropriate staff size, structure and compensation, provide the cornerstone for SCERS’ ability to successfully carry out its mission.
Conflict of Interest Code
The purpose of this policy is to establish the Conflict of Interest Code for SCERS as required by the Political Reform Act (Government Code Section 81000, et seq.) for state and local agencies.
Declining Employer Payroll Policy
The purpose of this policy is to establish guidelines by which SCERS ensures that a participating employer of SCERS, who may experience an actual or anticipated material decline in the payroll attributable to its SCERS active members, will continue to satisfy its obligation to timely pay all unfunded actuarial accrued liability (UAAL) attributable to the prior and future service of active, retired, and deferred SCERS members who are or were the participating employer’s employees, and their beneficiaries.
Dissolution of Marriage Documents Policy
The purpose of this policy is to obtain the necessary dissolution of marriage documents for purposes of filing a completed retirement application.
Electronic Signatures Policy
The purpose of this policy is to authorize SCERS to accept electronic signatures, as permitted by Government Code section 31527(i).
Estimated Benefit Payment Policy for Service Retirement Requests by Deferred, Reciprocal Members
This policy establishes a mechanism for deferred, reciprocal members to begin receiving monthly benefit payments from SCERS after a fixed period, regardless of whether or not their final retirement systems report wages and other data within expected timeframes.
Facilitating Communications by Third Parties to Retirees and Beneficiaries Policy
The purpose of this policy is to provide when, how, and why SCERS will facilitate written communication by third parties with SCERS’ retirees and beneficiaries through the use of individually identifying retiree and beneficiary information such as names and addresses.
Felony Forfeiture Policy
The purpose of this policy is to establish due process protections in determining whether a member’s conviction falls within the scope of the felony forfeiture statutes as set forth in Government Code sections 7522.72 and 7522.74.
Final Compensation Review Policy
This policy reviews the authorities and standards that Staff relies on to assess the final average salary of a retiring member and exclude any elements of compensation that are paid to enhance a member’s retirement, as required by the California Public Employees’ Pension Reform Act of 2013 (PEPRA).
Interest Crediting and Unallocated Earnings Policy
This policy sets the goals, priorities, and methods for applying available earnings to the reserves of SCERS, as determined by the SCERS Board of Retirement.
Member Contribution Underpayment Collection Policy
The purpose of this policy is to set forth procedures for handling the underpayment of member contributions discovered during the retirement application process.
The purpose of this policy is to establish an employee’s eligibility for membership in SCERS. This policy shall be operative beginning January 1, 2019.
Post-Retirement Employment Policy
The purpose of this policy is to outline the parameters and guidelines regarding post-retirement employment of SCERS retirees by employers participating in SCERS.
Privacy and Confidentiality Policy
The purpose of this policy provides a comprehensive plan to enable SCERS to meet its commitment to protect the privacy of its members; to protect the security of SCERS, its employees, and its assets; and to comply with relevant legal requirements.
Protection of Individual Records Policy
The purpose of this policy is to clarify what records continue to be protected from disclosure as “individual records” by Government Code Section 31532.
Ratification of Retirements Policy
The purpose of this policy is to authorize the SCERS Chief Executive Officer, or designate, to approve service retirement applications and to ratify these actions at the monthly Board meetings.
Records Retention Policy
The purpose of this policy is to establish a procedure concerning the retention and disposal of SCERS’ records, pursuant to Government Code section 31537.
Service Credit Policy
The purpose of this policy is to establish that service credit cannot exceed one (1) year in a 12-month period.
Staff Background Check Policy
The purpose of this policy is to authorize SCERS to access summary criminal history information prior to employing any person as an important preventive measure for safeguarding confidential information and SCERS’ financial and other assets, and maintaining the highest levels of fiduciary responsibility.
Statement of Actuarial Funding Policy
The purpose of this policy is to record the funding objectives and policies set by the Board of Retirement for SCERS, which helps ensure future benefit payments for members of SCERS. In addition, this document records certain policy guidelines established by the Board of Retirement to assist in administering SCERS in a consistent and efficient manner.
Subrogation Claims Policy
The purpose of this policy is to establish guidelines and procedures for the recovery of a portion of the benefits payable by SCERS because of an injury to, or the death of, a member of SCERS proximately caused by the act of any person(s) other than the member’s employer from such person(s).
Terminating Employer Policy
The purpose of this policy is to establish the funding obligations of employers that terminate their participation in SCERS. This policy is made pursuant to California Government Code Sections 31453, 31454, 31564, and 31564.2 of the County Employees’ Retirement Law of 1937.
Board Education Policy
The purpose of this policy is to establish a Board Education Policy consistent with statutory requirements and the Board’s Fiduciary Duty of Care or Prudence.
SCERS Master Investment Policy and Objectives
The Master Investment Policy Statement is designed to establish broad policies that will guide SCERS’ investment program, including Investment Philosophies, Investment Objectives, Plan Governance, Investment Strategy, Risk Management and Portfolio Monitoring.
SCERS Diversifying Asset Category Investment Policy Statement
The Diversifying asset category seeks to achieve the following investment objectives:
- Help preserve capital in periods of market distress, particularly in periods of low and falling growth.
- Enhance diversification by exhibiting low or negative correlation with both equity and credit markets.
- Maintain a positive return profile over time.
SCERS Growth Asset Category Investment Policy Statement
The Growth asset category seeks to achieve the following investment objectives:
- Attractive returns that tend to be generated during a high growth and low/moderate inflationary environment, and which tend to be correlated to equity and credit risk factors.
- A combination of capital appreciation, income, and cash flow generation.
- Moderate levels of diversification within the asset category.
SCERS Opportunities Investment Policy Statement
The role of the Opportunities program is to enhance risk adjusted returns by investing in tactical opportunities across asset classes.
SCERS Real Return Investment Policy Statement
The Real Return asset category and its underlying asset classes seek to achieve the following investment objectives:
- Attractive returns on a real (net of inflation) basis and a hedge against inflation risk.
- Moderate income and cash flow generation.
- Diversification for SCERS’ portfolio, including low or negative correlation to equities and nominal bonds.
- Greater consistency in the return distribution and muted downside risk.
Board and Staff Trading Policy
The purpose of this policy is to ensure SCERS Trustees and employees comply with fiduciary responsibility and the federal securities laws regarding insider trading.
Cash Management Policy
The purpose of this policy is to identify processes and tools to assist SCERS in the management of cash, monitoring of liquidity, and the management of liquidity risk.
Directed Brokerage Transactions and Commissions Recapture Policy
The purpose of this policy is to provide direction to SCERS public equity investment managers in the conduct of investment trades to control commission costs while maintaining the manager’s primary and foremost requirement to obtain best net execution.
Fiduciary Standard Policy
The purpose of this policy is to establish the standard of care to which an investment manager, investment fund, or any other entity or person offering to invest SCERS’ assets must agree in writing prior to receiving SCERS assets, or receiving SCERS’ commitment to provide assets, for investment.
Placement Agent Policy
The purpose of the Placement Agent Policy is to enhance the transparency of the investment decision-making process by requiring broad, timely, and updated disclosure of the existence of any relationships between SCERS’ investment managers and individuals or entities serving as a compensated representative of the investment manager for the purpose of securing an investment by SCERS.
The purpose of the Third Party Representation and Fee Sharing Policy is to help ensure that SCERS’ investment decisions are made solely on the merits of the investment opportunity, are reasonably prudent from a fiduciary perspective, and are consistent with SCERS’ Investment Policy and Objectives.
Prime Broker and Counterparty Risk Policy
The purpose of this policy is to establish guidelines for assessing, mitigating, managing, and monitoring the counterparty risks associated with investment managers’, particularly absolute return managers’, use of prime brokers.
Proxy Voting Policy
The purpose of this policy is to establish procedures to ensure the voting of proxies for public equity securities, to meet the fiduciary duties required by California Government Code Sections 7450 and 7451.
Representation on Advisory Committees Policy
The purpose of this policy is to establish guidelines and procedures for SCERS Trustees or staff serving on advisory committees of limited partnership in which SCERS is a participating limited partner.
Securities Litigation Policy
The purpose of this policy is to establish guidelines and procedures for SCERS to monitor securities class action proceedings, and determine and facilitate the appropriate level of participation by SCERS in securities class action litigation to recover damages for investment losses caused by the malfeasance of persons and entities associated with a SCERS investment.