PURPOSE

This policy provides for the efficient and effective management of SCERS by delegating authority from the Board to the SCERS Chief Executive Officer (CEO) to approve payments and to settle or otherwise dispose of claims as specified.

POLICY

The Board hereby delegates and/or confirms its delegation of authority to the CEO, on behalf of and in the name of SCERS, to approve payments for such goods and services as the CEO determine to be reasonably necessary as defined below.

A.    Delegated Authority up to $75,000

The CEO may, without prior Board approval, approve transactions and/or enter into goods and services contracts that do not obligate SCERS to pay more than $75,000 per vendor in a fiscal year. Under this authority, the CEO may (without limitation) approve payments for:

• Goods and services from any vendor as the CEO deems necessary and appropriate, including goods and services for which the County of Sacramento has approved vendors;
• Expenses arising from SCERS-related litigation, including expenses arising from court judgments, settlements, attorney’s fees, and litigation costs; and
• Recruitment costs for exempt positions, excluding signing bonuses.

B.    Delegated Authority for Contract Amendments

The CEO has the authority to amend existing Board-approved contracts for goods and services that do not obligate SCERS to pay more than $75,000 per vendor in a fiscal year.

C.    Delegated Authority in Excess of $75,000

With written approval of the Board President (which may include approval by electronic mail or facsimile transmission), the CEO may approve payments and/or enter into goods and services contracts or contract amendments that do not obligate SCERS to pay more than $150,000 per vendor in a fiscal year.

D.    Exception to Delegated Authority

The CEO has the authority to approve payments and secure services and service providers up to an amount that the CEO deems necessary and appropriate for the following items:

• Evaluating disability retirement applications;
• Charges from County departments;
• Insurance costs (e.g., fiduciary insurance); and
• Emergency management costs in response to a force majeure event or a government-declared state of emergency impacting SCERS and its employees and members.

APPLICATION

Any approved expenses and contracts or contract amendments for goods and services entered into pursuant to this policy shall comply with the budget adopted by the Board.

SCERS’ General Counsel shall review any contracts or contract amendments entered into pursuant to this delegation of an amount or complexity, as determined by the CEO or his or her designee, to warrant such review, and any claims settled pursuant to this delegation.

The CEO shall provide a quarterly report to the Board of any approved expenses and contracts or contract amendments entered into pursuant to Sections A through C of this policy for an amount greater than $5,000.

BACKGROUND

The CEO has been appointed by the Board in accordance with Government Code Sections 31522.1 and 31522.2 and is responsible for the management of SCERS including the retirement fund, operating budget, appointment and management of personnel, and the other day-to-day activities of the retirement system.

The CEO serves as Secretary of the Retirement Board in its management of the retirement system. Pursuant to Government Code Sections 31522.2 and 31590, the CEO has authority on behalf of the Board: to sign or authorize all warrants, checks, and electronic fund transfers drawn on the retirement fund, and to sign all documents, including contracts, necessary to carry out any decision, including investment decisions, made or approved by the Board; to negotiate and sign contracts with vendors, consultants, and payees of the system as required by contract or applicable law; and any other decision made or approved by the CEO pursuant to a delegation of authority granted by the Board to the CEO for such decisions.

RESPONSIBILITIES

Executive Owner:     Chief Executive Officer

POLICY HISTORY