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Supplemental Retiree Benefit Reserve
(SRBR)

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, 2016), the SRBR was valued at $874 million, which is projected to fund benefits until 2039, 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. 

 

 

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