Supplemental Retiree Benefit Reserve
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 7.6% annual projection, a process known as “gain sharing.”
ACERA’s actuary annually determines the value of the SRBR. ACERA policy aims to keep the SRBR above a projected 15-year sustainability level, and the Board may modify or eliminate non-vested benefits to attain this goal. In the most recent SRBR valuation (as of December 31, 2015), the SRBR was valued at $854 million, which is projected to fund benefits until 2038, or 22+ years.
The following chart depicts the history of SRBR sustainability projections by ACERA’s actuary. Projections use data as of December 31 of each year depicted. (Beginning with the data from 2011, ACERA’s actuary has made two projections in the spring and fall of the following year.)