Policies and Governance

Overview

Policies and Governance

California Retirement Law Book

The 2018 edition of 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

2018 Retirement Law Book

Bylaws

The Sacramento County Employees’ Retirement System 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.

SCERS Board of Retirement Bylaws

Administrative Policies

Access Criminal History for SCERS Employment 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 to maintain the highest levels of fiduciary responsibility.

Access Criminal History for SCERS Employment Policy

Appeal of SCERS’ Administrative Decision Policy

The purpose of this policy is to provide 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.

Appeal of SCERS' Administrative Decision Policy

Compensation Earnable Policy for Overtime and CTO-Expired – Discussion Draft

The purpose of this discussion draft policy is to require the exclusion of overtime and expired compensatory time off (CTO-expired) from compensation earnable when applied to allowances and pay differentials earned by legacy SCERS members.

Compensation Earnable Policy for Overtime and CTO-Expired - Discussion Draft

Frequently Asked Questions

Compensation Policy

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.

Compensation Policy

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.

Conflict of Interest Code

Delegation of Authority for Contracts and Claims Policy

The purpose of this policy is to provide for the efficient and effective management of SCERS by delegating authority from the Board to the SCERS Chief Executive Officer to enter into contracts and to settle or otherwise dispose of claims as specified.

Delegation of Authority for Contracts and Claims Policy

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.

Estimated Benefit Payment Policy For Service Retirement Requests By Deferred, Reciprocal Members

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.

Facilitating Communications by Third Parties to Retirees and Beneficiaries Policy

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).

Final Compensation Review Policy

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.

Interest Crediting and Unallocated Earnings Policy

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.

Member Contribution Underpayment Collection Policy

Membership Policy

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.

Membership Policy

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.

Post Retirement Employment Policy

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.

Privacy and Confidentiality Policy

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.

Protection of Individual Records Policy

Service Credit Policy – Discussion Draft

The purpose of this discussion draft policy is to establish that service credit cannot exceed one (1) year in a 365-day period.

Service Credit Policy - Discussion Draft

Frequently Asked Questions

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.

Statement of Actuarial Funding Policy

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).

Subrogation Claims Policy

 

Board Policies

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.

Board Education Policy

Board Meetings Audio Recordings Policy

The purpose of this policy is to provide for the making, use, retention, and destruction of audio recordings of meetings of the Board of Retirement of SCERS as permitted by statute.

Board Meetings Audio Recordings Policy

 

Investment Policies

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 Master Investment Policy and Objectives

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.

Diversifying Asset Category Investment Policy Statement

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.

Growth Asset Category Investment Policy Statement

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.

Opportunities Investment Policy Statement

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.

Real Return Investment Policy Statement

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.

Board and Staff Trading Policy

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.

Directed Brokerage Transactions and Commissions Recapture Policy

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.

Fiduciary Standard Policy

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.

Placement Agent Policy

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.

Prime Broker and Counterparty Risk Policy

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.

Representation on Advisory Committees Policy

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.

Securities Litigation Policy