The Comprehensive Annual Financial Report (CAFR)
provides in-depth information about the operations and financial
position of ACERA. Readers will find the CAFR helpful in
understanding ACERA’s commitment to financial integrity and
member services. Responsibility for both accuracy of the data,
and the completeness and fairness of the presentation, rests with
ACERA’s management. It is our intent to ensure that the
presentation of financial information is accurate and fair, and
all material disclosures have been made.
ACERA’s actuary is the analytical backbone of our financial security. Our actuarial firm, Segal Co., uses data to place a value on ACERA’s financial commitments to its members as well as a value on the current holdings.
ACERA’s non-vested benefits are subject to available funds in the Supplemental Retiree Benefit Reserve (SRBR). The SRBR receives regular earnings and half of any interest income above our 7.25% annual projection, a process known as “gain sharing.”
ACERA’s administrative expenses are paid from the earnings of
the retirement fund. California law caps annual
administrative expenses at 0.21% of the Actuarial Accrued
Liability. The liability is calculated by ACERA’s actuary, and is basically the
total amount owed to plan members for retirement benefits, now
and in the future.