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 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, 2018), the SRBR was valued at $919 million, which is projected to fund benefits through 2039, or 21+ 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.