Please be advised that SDCERS&#8217; physical offices will be closed to the public starting Monday, December 22nd, through Friday, January 2nd. Our offices will reopen on Monday, January 5th, at 9:00 a.m. However, the Call Center will remain open during regular business hours (9:00 a.m. &#8211; noon and 1:00 &#8211; 4:00 p.m. PST) on all days except December 25th and January 1st.

Holiday Office Schedule:

The SDCERS Member Portal will be unavailable on Monday, September 8th, from approximately 8:00 &#8211; 9:00 p.m. (PST) for routine maintenance. We apologize in advance for any inconvenience this may cause and thank you for your patience.

Notice:

SDCERS will be closed on Wednesday, November 11th, in observance of Veterans Day.

Veterans Day Holiday:

SDCERS will be closed on Friday, July 3rd, in observance of the July 4th holiday.

Independence Day Holiday:

SDCERS will be closed on Monday, January 19th, in observance of Martin Luther King, Jr. Day.

MLK, Jr. Day Holiday:

SDCERS will be closed on Thursday, November 27th, in observance of Thanksgiving Day.

Thanksgiving Holiday:

SDCERS will be closed on Monday, February 16th, in observance of Presidents&#8217; Day.

Presidents’ Day Holiday:

SDCERS will be closed on Tuesday, March 31st, in observance of Cesar Chavez Day.

Cesar Chavez Day Holiday:

SDCERS will be closed on Monday, May 25th, in observance of Memorial Day.

Memorial Day Holiday:

SDCERS will be closed on Monday, September 7th, in observance of Labor Day.

Labor Day Holiday:

SDCERS will be closed on Friday, June 19th, in observance of the Juneteenth holiday.

Juneteenth Holiday:

SDCERS will be closed on Friday, December 25th, in observance of the Christmas holiday.

Christmas Holiday:

SDCERS will be closed on Thursday, January 1st, in observance of New Year&#8217;s Day.

New Year’s Day Holiday:

SDCERS will be closed on Thursday, December 25th, in observance of the Christmas holiday.

SDCERS will be closed on Thursday, November 26th, in observance of the Thanksgiving holiday.

SDCERS will be closed on Tuesday, November 11th, for Veterans Day.

SDCERS will be closed on September 1, 2025, due to Labor Day.

SDCERS&#8217; downtown offices will be closed to the public on Friday, July 25th. However, the Call Center will remain open during regular business hours: 9:00 a.m. &#8211; noon and 1:00 &#8211; 4:00 p.m. PST.

The SDCERS Member Portal will be unavailable starting at 5:00 p.m. (PST) on Friday, February 21st, while it undergoes routine maintenance. We anticipate the Portal will become available again on Sunday, February 23rd, on or around 9:00 a.m. (PST). We apologize for any inconvenience this may cause and thank you for your patience.

NOTICE:

On Tuesday, February 18th, SDCERS&#8217; Call Center &amp; Offices Will Be Closed Until 1 p.m. for Staff Training

The IRS experienced a data breach that may have included tax return information of some SDCERS members. <a href="https://www.sdcers.org/news/notice-of-data-event">Click here</a> to learn more.

Notice of Data Event:

Welcome to the San Diego City Employees' Retirement System, where our mission is to deliver accurate and timely benefits to our participants and ensure the Trust Fund's safety, integrity, and growth.

Use the Member Portal to do things like view and update your beneficiaries, estimate your future pension benefit, and (if you're at least six months away from being eligible to retire) begin the retirement application process.

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Our Call Center is open on regular business days from 9:00 a.m. to noon, and 1:00 to 4:00 p.m., at (619) 525-3600. Don't feel like calling? Send us an electronic inquiry via our Contact Us page!

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Check out our fact sheets to learn more about your SDCERS pension benefits!

Don't know what you don't know? Peruse our Frequently Asked Questions section and expand any that you're interested in to see the answer!

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Meet Sam Diego, the bushy-tailed star of our educational videos! Watch a basic overview of how SDCERS and your pension works, learn about the Deferred Retirement Option Plan (DROP), hear about the effect a divorce may have on your pension benefits, and more.

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SDCERS is governed by a 13-member Board of Administration.

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At today’s meeting, SDCERS’ Board of Administration approved a minor adjustment to the measurement period used to calculate DROP interest rates. &nbsp;



Typically, the DROP account and annuity interest rates are calculated based on the weighted composite of a 12-month average, ending September 30th of the current year, of certain U.S. bond and annuity rates (see Board Rules 6.10 and 6.40 for more information). However, due to the ongoing federal government shutdown, some of the bond and annuity rates have only been updated through the end of August 2025.



As a result, staff recommended a slight modification to the measurement period to ensure that the 2026 DROP rates could be calculated in a timely and consistent manner. The Board approved staff’s recommendation such that the weighted composite measurement period is now from September 1st through August 30th each year. Using this adjusted timeframe, the Board subsequently approved the calendar year 2026 DROP account and DROP annuity interest rates. &nbsp;



The new DROP rates will be effective January 1, 2026. The DROP account rate is the interest rate used by SDCERS while a Member is in DROP and the DROP annuity rate is the interest rate used by SDCERS to annuitize the DROP monies of a Member who has exited DROP and selected the DROP annuity option.







2026 DROP Account Interest Rate



Effective January 1, 2026, the annual DROP account interest rate (compounded quarterly) will decrease slightly to 4.2%, compared to the current rate of 4.4%. This interest rate will be compounded quarterly and applied to all active DROP participants’ accounts as long as the participant is actively employed by their plan sponsor on the last day of the quarter in 2026. This rate is subject to change annually, which means a DROP participant’s account may receive a different interest rate every year during their participation period.







2026 DROP Annuity Interest Rate



Port Members will have a different DROP annuity interest rate than City and Airport Members – this is due to the fact that the City and Airport plan documents include a self-imposed limit on the DROP annuity factor, preventing it from exceeding 5.0% if the DROP account rate is less than 5.0%.



Therefore, the DROP annuity interest rate will remain 5.0% for City and Airport Members, and increase slightly to 5.3% for Port Members, compared to the current rate of 5.1%. The applicable interest rate will be applied to the funds remaining in a DROP retiree’s account when they exit DROP, if the retiree chooses to annuitize all or part of their DROP account, and it will be factored into the calculation of their monthly DROP annuity payment. Please note that the 2026 rates apply only to retirees whose DROP retirement date is during calendar year 2026.



Unlike the DROP account interest rate, the DROP annuity rate will not change for an individual member – the rate that is in effect when a member exits DROP is the rate that will be applied to their annuity calculation, regardless of whether or not the DROP annuity rate changes in future years.



Therefore, when you are getting close to your DROP retirement date, your decision to exit DROP before or after the New Year may be affected by the Board’s decision to increase or decrease the DROP annuity interest rate.



However, if you do not plan to annuitize your DROP account upon exiting DROP, then the DROP annuity rate changes are irrelevant to you. <a href="https://www.sdcers.org/news/drop-news-articles">Click here</a> to review your options regarding how you can receive the funds in your DROP account when you exit DROP. <a href="https://www.sdcers.org/news/drop-news-articles-retirement-resources">This article</a> may also be helpful if you are trying to decide when to enter or exit DROP.







Please attend a DROP Exit webinar if you are nearing your target DROP exit date!



The last DROP exit webinar of 2025 will be on November 18th from 11:00 a.m. – 12:30 p.m. As of the date of this article, this webinar has 18 open spots. Please use the following link to register: <a href="https://attendee.gotowebinar.com/register/1215922871961020246" target="_blank" rel="noreferrer noopener">https://attendee.gotowebinar.com/register/1215922871961020246</a>



<ul class="wp-block-list">
<li>If you are unable to attend this webinar and you plan on exiting DROP within the next two months, please <a href="https://www.sdcers.org/about-us/contact-us">contact SDCERS</a> as soon as possible.</li>
</ul>







Please attend a DROP Entry webinar if you are planning to enter DROP soon!



The last DROP entry webinar of 2025 will be on December 2nd from 10:00 a.m. – noon. Please use the following link to register: <a href="https://attendee.gotowebinar.com/register/3569036085761171541" target="_blank" rel="noreferrer noopener">https://attendee.gotowebinar.com/register/3569036085761171541</a>.



<ul class="wp-block-list">
<li>There will be another DROP entry webinar in January that has not yet been scheduled. If you are within 3 months of your DROP entry date and are unable to register for either the December or January webinar, please <a href="https://www.sdcers.org/about-us/contact-us">contact SDCERS</a> and let us know.</li>
</ul>







If you are considering entering or exiting DROP soon, you must begin the process by:



<ul class="wp-block-list">
<li>Going to your <a href="https://members.sdcers.org/" target="_blank" rel="noreferrer noopener">Member Portal</a> account and clicking on either “Online Applications” or “DROP Retirement Application” (whichever is applicable to you) from the left menu, under Tools.</li>



<li>Review the information, make your selections, and submit the initial application online.</li>



<li>Once submitted, you will be contacted by an SDCERS staff member to schedule your personal counseling appointment.</li>
</ul>



At your appointment, you can ask questions and make any changes to your application. Your electronic application is not final and you have not officially scheduled your DROP entry or exit date until you’ve submitted your signed application signature page, which will be given to you by your retirement counselor during or after your appointment.

DROP

News Articles

Press Release

DROP Interest Rates for CY 2026

For the eighth year in a row, SDCERS has been awarded the Public Pension Standards Award for Funding and Administration. The Public Pension Coordinating Council grants this award, which recognizes SDCERS for meeting professional standards for plan funding and administration as set forth in the Public Pension Standards.​


<div class="wp-block-image">
<figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" width="620" height="654" src="https://content.sdcers.org/wp-content/uploads/2025/11/image.png" alt="Public Pension Coordinating Council. Public Pension Standards Award for Funding and Administration 2025. Presented to San Diego City Employees' Retirement System in recognition of meeting professional standards for plan funding and administration as set forth in the Public Pension Standards. Presented by the Public Pension Coordinating Council, a confederation of National Association of State Retirement Administrators (NASRA); National Conference on Public Employee Retirement Systems (NCPERS); National Council on Teacher Retirement (NCTR). Signed by Robert A. Wylie, Program Administrator" class="wp-image-46401" style="width:464px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2025/11/image.png 620w, https://content.sdcers.org/wp-content/uploads/2025/11/image-284x300.png 284w" sizes="auto, (max-width: 620px) 100vw, 620px" /></figure></div>


Recognition Award for Administration SDCERS received the Recognition Award for Administration due to its adherence to the five essential administrative categories:



<ul class="wp-block-list">
<li>Comprehensive Benefit Program. The system must provide a comprehensive benefit program including service retirement benefits, in-service death benefits, disability benefits, vesting, and provisions for granting a cost-of-living adjustment.</li>



<li>Actuarial. An Actuarial Valuation must be completed at least every two years using generally recognized and accepted actuarial principles and practices.</li>



<li>Audit. The system must obtain an unqualified opinion from an independent audit conducted in accordance with government auditing standards generally accepted in the United States.</li>



<li>Investments. The system must follow written investment policies and written fiduciary standards and the system must obtain an annual investment performance evaluation from an outside investment review entity.</li>



<li>Communications. Members must be provided a handbook or summary plan description, regular updates to the documents, and an annual benefit statement. Meetings of the governing board of the system are conducted at least quarterly with adequate public notice.</li>
</ul>



&nbsp;Recognition Award for Funding SDCERS received the Recognition Award for Funding because its three plan sponsors (City of San Diego, Port of San Diego, and San Diego County Regional Airport Authority) consistently pay their Annual Required Contributions as determined by the SDCERS Board.&nbsp;



The Public Pension Coordinating Council (PPCC) is a coalition of three national associations that represent public retirement systems and administrators: <a href="https://www.nasra.org/" target="_blank" rel="noreferrer noopener">National Association of State Retirement Administrators</a> (NASRA), the <a href="http://www.nctr.org/" target="_blank" rel="noreferrer noopener" class="broken_link">National Council on Teacher Retirement</a> (NCTR) and the <a href="http://www.ncpers.org/" target="_blank" rel="noreferrer noopener">National Conference on Public Employee Retirement Systems</a> (NCPERS). Together, these associations represent more than 500 of the largest pension plans in the United States serving most of the nation’s 18+ million employees of state and local governments.

SDCERS Receives the 2025 Public Pension Standards Award for Funding and Administration

SDCERS will be holding its regularly scheduled November 2025 Board and Committee meetings in our usual Board Meeting Room on the 3rd floor of our downtown office building – located at 401 West A Street, Suite 300.



Please note that SDCERS Board and Committee meetings are not held remotely (except as specified below) – Board and Committee members, as well as some SDCERS staff, will be on-site and the public is welcome to attend in person as well. You can find the agendas for the November 2025 meetings <a href="https://board.sdcers.org/onbaseagendaonline" target="_blank" rel="noreferrer noopener">here</a>.



However, as always, you can watch the Business &amp; Governance Committee and/or Board of Administration meeting live by going to the agendas page (linked above) at the start time of the meeting and clicking the “Live Media” button next to the corresponding meeting, which will display once the meeting begins.



Meeting Dates



November 13th – &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disability Committee meeting at 9:00 a.m. PST



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business &amp; Governance Committee meeting at 9:15 a.m. PST



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Committee meeting at 1:00 p.m. PST



November 14th – &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Administration meeting at 9:00 a.m. PST



November 21st –        Audit Committee meeting at 9:00 a.m. PST 



You may request to participate in public comment by attending the relevant meeting in person and providing a completed Request to Speak form to the Board Assistant before the meeting begins.

Board

November 2025 Board & Committee Meetings

SDCERS’ 2025 Annual Membership Meeting will take place in person on October 21st at the Balboa Park Club Santa Fe Room.



(Note: This year’s meeting is happening at the same time as SDPEBA’s City Retiree Health Fair – while the Health Fair is for City retirees only, SDCERS’ Annual Meeting is open to all members.)



The theme of the meeting is: &#8220;More Than A Pension – A Promise.&#8221; Join us for informative presentations addressing your retirement system administrator and learn about the security of your future pension benefits! The presenters will include SDCERS’ CEO, Gregg Rademacher; SDCERS’ Chief Investment Officer, Carina Coleman; SDCERS’ Benefits Administration Director, Sandra Claussen; and SDCERS’ Director of Member Services, Natasha Collura.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="983" height="695" src="https://content.sdcers.org/wp-content/uploads/2025/09/2025-annual-meeting-postcard.png" alt="SDCERS’ 2025
ANNUAL MEMBERSHIP MEETING

More Than a Pension - A Promise.

Location: Balboa Park Club
Santa Fe Room

Date: Tuesday, October 21, 2025
at 11:30 a.m.

All Members: Join us to learn more about your benefits, SDCERS’ investments, and the security of your retirement system.
This year’s Annual Membership Meeting will be held from 11:30 a.m. to 12:30 p.m. (PST) on Tuesday, October 21, 2025. You are invited to attend in person, but you may also view a video of the meeting afterward, which will be added to SDCERS’ YouTube channel." class="wp-image-46319" style="width:790px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2025/09/2025-annual-meeting-postcard.png 983w, https://content.sdcers.org/wp-content/uploads/2025/09/2025-annual-meeting-postcard-300x212.png 300w, https://content.sdcers.org/wp-content/uploads/2025/09/2025-annual-meeting-postcard-768x543.png 768w" sizes="auto, (max-width: 983px) 100vw, 983px" /></figure>



Directions: Balboa Park Club Santa Fe Room, 2144 Pan American Road West. Enter Balboa Park from Park Boulevard and turn west on Presidents Way. The Santa Fe Room is located in the South Palisades area of the park, just north of Puppet Theater and to the left of the Club Ballroom’s entrance.



All stakeholders are invited to attend, and no RSVP or registration is required. The meeting will also be video recorded and uploaded to our <a href="https://www.youtube.com/channel/UCI-yxOhhEDBfsfkjrmWBuMQ/featured" target="_blank" rel="noreferrer noopener">YouTube channel</a> as soon as it is available. We hope to see you all at this year&#8217;s meeting!

Events

SDCERS’ 2025 Annual Membership Meeting – You’re Invited!

SDCERS was one of 157 public pension plans that participated in the National Conference on Public Retirement Systems’ (NCPERS) 2025 study, which invited public pension systems across the continent to share information on plan design, investment allocation, investment returns, actuarial assumptions, and plan governance practices. In recognition of SDCERS’ participation, NCPERS awarded SDCERS with its Certificate of Transparency for the second year in a row! This certificate acknowledges SDCERS’ commitment to furthering an atmosphere of openness between public pension systems and the public. As “transparency” is one of <a href="https://content.sdcers.org/wp-content/uploads/2024/09/Core-Values.pdf?_gl=1*4o9v3k*_ga*MTE2NTM5NzgyMS4xNzU4MTI5MzE0*_ga_XZQLGZ3RSH*czE3NTg3MzAwNTIkbzQkZzEkdDE3NTg3MzAwNzQkajM4JGwwJGgw" target="_blank" rel="noreferrer noopener">SDCERS’ six core values</a>, we were honored to receive this award. SDCERS strives to promote and maintain an open and honest relationship with its members, plan sponsors, and the public.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="600" height="790" src="https://content.sdcers.org/wp-content/uploads/2025/09/2025-ncpers-transparency-award.png" alt="NCPERS Certificate of Transparency. This Certificate of Transparency is awarded to the San Diego City Employees Retirement System for its participation in the 2025 NCPERS Public Retirement Systems Study, which seeks to further open 
disclosure, data collection, and encourage the public's 
understanding of public retirement systems. Signed by Hank Kim, Esq., Executive Director and Counsel." class="wp-image-46310" srcset="https://content.sdcers.org/wp-content/uploads/2025/09/2025-ncpers-transparency-award.png 600w, https://content.sdcers.org/wp-content/uploads/2025/09/2025-ncpers-transparency-award-228x300.png 228w" sizes="auto, (max-width: 600px) 100vw, 600px" /></figure>



NCPERS is the largest trade association for public pensions, representing approximately 500 plans, plan sponsors, and other stakeholders through the U.S. and Canada. As a 501(c)(3) non-profit organization, NCPERS is comprises a network of trustees, administrators, public officials, and investment processionals who collectively oversee approximately $4 trillion in retirement funds.

SDCERS Receives Certificate of Transparency from NCPERS for 2nd Year in a Row

At today’s Board meeting, SDCERS reported a net return of 9.4% for Fiscal Year 2025. As of June 30, 2025, the trust fund’s assets totaled approximately $12.3 billion. SDCERS’ annualized rate of return over the past 10 years is 7.4%, and its return since inception (1988) is 8.7%.



SDCERS’ net return for Fiscal Year 2025 of 9.4% was higher than its assumed rate of return (6.5%), and just above the policy benchmark, which posted a 9.3% return for the year. The policy benchmark is a measure of how the Total Fund would have performed if the actively managed public portions of the portfolio had been completely invested in passive index funds, and if the private portions of the portfolio achieved stated benchmark returns.



Over the course of the Fiscal Year, the portfolio benefitted from outperformance in the Non-U.S. Equity, U.S. Fixed Income, and Diversifying portfolios. This was offset by underperformance in the Global Equity, Private Equity, and Real Estate portfolios. The portfolio performed well, earning double digit returns in Public Equities, Private Debt, and Infrastructure.



Performance can also be measured by comparing returns of other public pension plans, though it is important to remember that different plans have different investment goals, which impact their asset allocations and portfolio structure. SDCERS compares very favorably against its peers over longer time periods – posting returns in the top 39% of the universe over the most recent 10-year period ending June 30, 2025. When factoring in the amount of risk taken to earn investment returns (i.e., the “risk-adjusted” returns), SDCERS ranks in the top 27% compared to other similarly-sized public pension plans over the past 10 years.

Investments

SDCERS’ Final Investment Return for Fiscal Year 2025

SDCERS will be holding its regularly scheduled September 2025 Board and Committee meetings in our usual Board Meeting Room on the 3rd floor of our downtown office building – located at 401 West A Street, Suite 300.



Please note that SDCERS Board and Committee meetings are not held remotely (except as specified below) – Board and Committee members, as well as some SDCERS staff, will be on-site and the public is welcome to attend in person as well. You can find the agendas for the September 2025 meetings <a href="https://board.sdcers.org/onbaseagendaonline" target="_blank" rel="noreferrer noopener">here</a>.



However, as always, you can watch the Business &amp; Governance Committee and/or Board of Administration meeting live by going to the agendas page (linked above) at the start time of the meeting and clicking the “Live Media” button next to the corresponding meeting, which will display once the meeting begins.



Meeting Dates



September 11th – &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disability Committee meeting at 9:00 a.m. PST



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business &amp; Governance Committee meeting at 9:15 a.m. PST



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Committee meeting at 12:30 p.m. PST



September 12th –       Board of Administration meeting at 9:00 a.m. PST



You may request to participate in public comment by attending the relevant meeting in person and providing a completed Request to Speak form to the Board Assistant before the meeting begins.

September 2025 Board & Committee Meetings

The Government Financial Officers Association (“GFOA”) has awarded SDCERS the Certificate of Achievement for Excellence in Financial Reporting for SDCERS’ 2024 Annual Comprehensive Financial Report (“ACFR”) and Popular Annual Financial Report (“PAFR”). This is the 17th year in a row SDCERS has received this recognition!



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="529" height="711" src="https://content.sdcers.org/wp-content/uploads/2025/08/image.png" alt="Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to San Diego City Employees' Retirement System California for its annual comprehensive financial report for the fiscal year ended June 30, 2024; signed by Christopher P. Merrill, Executive Director/CEO" class="wp-image-46128" style="width:388px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2025/08/image.png 529w, https://content.sdcers.org/wp-content/uploads/2025/08/image-223x300.png 223w" sizes="auto, (max-width: 529px) 100vw, 529px" /></figure>



The GFOA is a non-profit professional association serving approximately 15,000 government finance professionals. SDCERS’ ACFR and PAFR were judged by an impartial panel and deemed to have met the high standards of the certificate program, including demonstrating an effective means to disclose and clearly communicate SDCERS’ financial story and to motivate Members and the public to read the ACFR and PAFR.  This award is the highest form of recognition in the area of government accounting and financial reporting. It represents a significant accomplishment by a governmental agency and its management.



SDCERS’ award-winning ACFRs and PAFRs are available online and can be viewed <a href="https://www.sdcers.org/financials-investments/annual-financial-reports">here</a>.

Annual Comprehensive Financial Report (ACFR)

SDCERS Receives Certificate of Achievement for Excellence in Financial Reporting for 17th Consecutive Year

SDCERS’ 2025 Summer SCOOP Newsletter has arrived and should hit mailboxes within the next couple of weeks! For members who have not yet retired or entered DROP (including inactive and deferred vested members), a copy of the newsletter will be included in the envelope with your FY 2025 Annual Member Statement. You can also view an electronic version of current and past issues on our website, <a href="https://www.sdcers.org/resources/newsletters">here</a>. The purpose of our newsletter is to keep you informed about what is currently happening here at SDCERS, along with providing educational content. If you’d like to receive an electronic copy of future SCOOP issues in advance of the mailed copy, you can sign up <a href="https://www.sdcers.org/newsletter-subscription">here</a>.



Along with the Summer Newsletter, SDCERS members who have earned SDCERS service credit, but who have not yet retired or entered DROP, should be receiving their Annual Member Statement in the mail within the next few weeks. This statement contains detailed account information for the fiscal year ending June 30, 2025, which means the information is current as of July 1, 2025. The purpose of the Annual Member Statement is (1) to ensure that your beneficiary designations are correct, and (2) to keep you up-to-date regarding the details of your SDCERS retirement account. You can also download electronic copies of current and past Annual Member Statements via your secure <a href="https://members.sdcers.org/" target="_blank" rel="noreferrer noopener">Member Portal account</a>.



A video detailing the contents of your statement is available <a href="https://www.youtube.com/watch?v=injFImjKah0" target="_blank" rel="noreferrer noopener">here</a>.



Please review the information on your statement carefully. If you have questions about the Personal Information listed, please contact your Payroll Specialist or update your information in SAP (or contact your Human Resources office if you are a Port or Airport member).



<a href="https://www.sdcers.org/about-us/contact-us">Contact SDCERS</a> if you have questions or need to update the Member and Contribution Information or Beneficiary Information, or if you believe there is an error in your statement.



If you have questions about your Annual Member Statement, please contact your Payroll Specialist or call the SDCERS Call Center at 619-525-3600, open Monday-Friday from 9:00 a.m. to noon and 1:00 to 4:00 p.m. (PST). And remember, your most up-to-date account information is always available on the <a href="https://members.sdcers.org/" target="_blank" rel="noreferrer noopener">SDCERS Member Portal</a>.

Summer 2025 SCOOP Newsletter & FY 2025 Annual Member Statements

Asset allocation refers to how pension funds distribute their investments across various asset classes, including equities (stocks), fixed income (bonds), real estate, and alternative investments (like private equity or infrastructure). This is a fundamental component of pension fund management, directly influencing a pension system’s ability to generate returns to help meet future obligations to retirees.



The goal of asset allocation is to balance risk and return in line with the fund’s long-term objectives – for SDCERS, our long-term investment goal is to generate returns that support the long‐term soundness of the fund as determined through the asset-liability study (currently, the fund’s target average return is 6.5%). Since pension systems typically have long investment horizons, they must carefully manage the trade-off between growth and stability. Equities may offer higher long-term returns, but they come with greater short-term volatility. Bonds tend to be more stable but may yield lower returns. Alternative investments, such as private equity, real assets, hedge funds and private credit, can offer a diversified set of risk/reward characteristics to complement traditional equities and bonds.



Asset allocation strategies for public pension plans should be based on several factors, including:



<ul class="wp-block-list">
<li>Demographics: Older populations may require more conservative portfolios, while younger plans can generally take on more risk.</li>



<li>Liability Structure: The fund’s asset growth must be able to meet the timing and size of future pension payouts.</li>



<li>Risk Tolerance and Funding Status: Well-funded plans may afford more conservative allocations, whereas underfunded systems might seek higher returns through more aggressive investments.</li>
</ul>



<ul class="wp-block-list">
<li>Funding Policies: Different funding policies and how they behave to market fluctuations can influence the level of investment risk and illiquidity tolerance of an investment portfolio.</li>
</ul>



Strategic asset allocation sets long-term targets for each asset class with appropriate rebalancing ranges defined in policy to ensure strategic allocations are maintained. Good governance, transparency, and regular reviews are essential to maintaining an effective allocation strategy.



Asset allocation in pension systems is not just a technical exercise—it is a critical tool to ensure the financial sustainability and reliability of retirement benefits for future generations. For this reason, SDCERS’ conducts regular asset-liability studies every 3-5 years along with the SDCERS’ Investments Team performing an annual review of our current asset allocation – <a href="https://content.sdcers.org/wp-content/uploads/2025/07/2025-asset-allocation-review.pdf?_gl=1*1reaf5y*_ga*MTc2NjgxMTU3OS4xNjkzMzM3NDky*_ga_XZQLGZ3RSH*czE3NTIyNTQ2OTEkbzQwNiRnMSR0MTc1MjI1NTU2MyRqNTckbDAkaDA.">SDCERS’ 2025 Asset Allocation Review</a> is available now to view on our website.

Understanding Asset Allocation in Pension Systems

A Power of Attorney (“POA”) is a legal document that allows you to give someone you trust (called your “Attorney in Fact”) the authority to act on your behalf in certain matters. While many people associate it with aging or illness, having a POA on file is important for adults of all ages, especially in unforeseen circumstances – as the saying goes, better to have it and not need it, than to need it and not have it.



Why Is a POA Important?



One of the primary benefits of a POA is ensuring continuity and clarity in decision-making if you are unable to act for yourself due to illness, injury, or absence. Without a POA, loved ones may face delays, legal hurdles, and even costly court proceedings in order to gain authority to manage your affairs. This can be particularly burdensome during emergencies, when time-sensitive decisions may be necessary.



For example, consider an active member who is eligible to retire but continuing to work for their plan sponsor. If this member becomes unexpectedly incapacitated (e.g., falls into a coma, undergoes emergency surgery following an accident, etc.), their Attorney in Fact could actually complete and submit a retirement application on their behalf. This could allow the member to leave behind a greater lifetime monthly death benefit than what their beneficiary would otherwise receive. The catch is that the application must be completed while the member is still alive. Without a POA, the member’s family may not be able to submit an application on the member’s behalf, and a lower death benefit may apply by default instead.&nbsp;&nbsp;



Ultimately, having a POA on file offers peace of mind. It’s not just about protecting yourself—it’s about easing the burden on your family and ensuring that your wishes are respected. SDCERS created a fillable <a href="https://www.sdcers.org/resources/special-durable-power-of-attorney">Special Durable Power of Attorney form</a>, which we encourage all of our members to use. We highly recommend all members take a few minutes to get this set up—it’s a small step that can make a big difference.

Retirement Resources

Why You Should Have a Power of Attorney – No Matter Your Age

SDCERS will be holding its regularly scheduled July 2025 Board and Committee meetings in our usual Board Meeting Room on the 3rd floor of our downtown office building – located at 401 West A Street, Suite 300.



Please note that SDCERS Board and Committee meetings are not held remotely (except as specified below) – Board and Committee members, as well as some SDCERS staff, will be on-site and the public is welcome to attend in person as well. You can find the agendas for the July 2025 meetings <a href="https://board.sdcers.org/onbaseagendaonline" target="_blank" rel="noreferrer noopener">here</a>.



However, as always, you can watch the Business &amp; Governance Committee and/or Board of Administration meeting live by going to the agendas page (linked above) at the start time of the meeting and clicking the “Live Media” button next to the corresponding meeting, which will display once the meeting begins.



Meeting Dates



July 9th –&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Audit Committee Meeting at 9:00 a.m. PST



July 10th – &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disability Committee meeting at 9:00 a.m. PST



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business &amp; Governance Committee meeting at 9:15 a.m. PST



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Committee meeting at 1:00 p.m. PST



July 11th – &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Administration meeting at 9:00 a.m. PST



You may request to participate in public comment by attending the relevant meeting in person and providing a completed Request to Speak form to the Board Assistant before the meeting begins.

July 2025 Board & Committee Meetings

SDCERS’ Board of Administration is the entity responsible for managing the City, Port, and Airport’s pension benefits, as well as for overseeing SDCERS’ investment portfolio. The Board is comprised of 13 members:



<ul class="wp-block-list">
<li>7 members are appointed by the Mayor and confirmed by City Council (note that these Board members, who make up the majority of the Board, are not SDCERS members)</li>



<li>1 active Fire Safety Member (may also be an active Lifeguard Safety Member) elected by active City Fire and Lifeguard Members</li>



<li>1 active Police Safety Member elected by active City and Port Safety Members</li>



<li>2 active City General Members elected by active City, Port, and Airport General Members</li>



<li>1 retired member elected by SDCERS retirees</li>



<li>1 City Management employee appointed by the Mayor</li>
</ul>



All elected Board members serve four-year terms, but are eligible for reelection, while the appointed Board members also serve four-year terms but are limited to two consecutive terms.&nbsp; The City Management Board member serves indefinitely at the Mayor’s discretion, for so long as they are an active City employee.



The Board of Administration Charter details the powers, obligations, and responsibilities of the Board. Further, in 2007, the Board adopted the Board Member Responsibilities and Core Competencies Policy and the Education Policy to ensure that SDCERS’ Board consists of members who are knowledgeable and capable of making informed decisions on behalf of SDCERS participants. These two Board Policies require current Board members to meet certain qualifications and/or pursue educational opportunities that are specifically designed to enhance public pension administration knowledge and understanding. (You can find the most recent versions of SDCERS’ Charters, Policies, and Board Rules on the <a href="https://www.sdcers.org/resources/governing-documents">Governing Documents</a> page.)



SDCERS is extremely proud of its Board and pleased to announce that as of the end of 2024, seven of our Board members successfully completed accredited Board Certification Programs, as follows:



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Board Member</td><td>Organization</td><td>Program</td><td>Year Completed</td></tr><tr><td>Roberta Spoon</td><td>NCPERS</td><td>Accredited Fiduciary Course</td><td>2023</td></tr><tr><td>Chris Brewster</td><td>NCPERS</td><td>Accredited Fiduciary Course</td><td>2024</td></tr><tr><td>Lou Maggi</td><td>NCPERS</td><td>Accredited Fiduciary Course</td><td>2024</td></tr><tr><td>Lisa Marie Harris</td><td>NACD</td><td>Directorship Certification</td><td>2023</td></tr><tr><td>Louie Nguyen</td><td>NACD</td><td>Directorship Certification</td><td>2024</td></tr><tr><td>Louie Nguyen</td><td>Stanford GSB</td><td>Director’s Consortium</td><td>2023</td></tr><tr><td>Paul Kaufman</td><td>Stanford GSB</td><td>Director’s Consortium</td><td>2024</td></tr></tbody></table><figcaption class="wp-element-caption">NCPERS: National Council of Public Employee Retirement Systems NACD: National Association of Corporate Directors Stanford GSB: Stanford Graduate School of Business</figcaption></figure>

SDCERS Board Member Accreditations

At today’s meeting, SDCERS’ Board of Administration approved the annual Cost of Living Adjustment (“COLA”) for Fiscal Year 2026. This COLA will be applied to eligible retirees’ monthly pension payments—including those actively participating in DROP—starting with their July 2025 payment. To qualify for this COLA, your retirement or DROP entry date must be on or before June 30, 2025.







<h4 class="wp-block-heading">How is the COLA Calculated?</h4>



According to San Diego Municipal Code section 24.1505 and section 1301 of the Port and Airport Plans, the COLA is based on the increase in the Consumer Price Index (CPI) between the two previous Decembers, as published by the Bureau of Labor Statistics. Even if the CPI increase is higher, the maximum COLA that can be applied to your pension in any given year is 2.0%.



When the CPI increase exceeds 2.0% (as it does this year), the excess amount is added to a retiree’s “COLA bank.” This is a reserve that can be used in future years when the CPI increase is less than 2.0%.







<h4 class="wp-block-heading">COLA for Fiscal Year 2026</h4>



The CPI increase from December 31, 2023, to December 31, 2024 was 2.9% (rounded to the nearest 0.1%). Therefore:



<ul class="wp-block-list">
<li>Eligible members will receive the maximum 2.0% COLA in July 2025.*</li>



<li>The excess 0.9% will be added to eligible members’ COLA banks.</li>
</ul>



*One retiree in the 1981 retirement plan will receive a COLA of 2.8%



Having this 0.9% in your bank may help ensure that you receive the full 2.0% COLA in future years, even if the published COLA is below that threshold.







<h4 class="wp-block-heading">How the COLA Bank Works</h4>



Let’s say Sam Diego retires or enters DROP in June 2025, with a monthly pension benefit of $5,000. Here&#8217;s how his COLA could be applied over the next several years: <a></a>



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Fiscal Year</td><td>Published CPI Increase</td><td>Applied COLA</td><td>Increased Monthly Pension Benefit</td><td>Remaining COLA Bank</td></tr><tr><td>2026</td><td>2.9%</td><td>2.0%</td><td>$5,100</td><td>0.9%</td></tr><tr><td>2027</td><td>1.4%</td><td>2.0%</td><td>$5,202</td><td>0.3%</td></tr><tr><td>2028</td><td>2.5%</td><td>2.0%</td><td>$5,306</td><td>0.8%</td></tr><tr><td>2029</td><td>1.2%</td><td>2.0%</td><td>$5,412</td><td>0.0%</td></tr><tr><td>2030</td><td>2.1%</td><td>2.0%</td><td>$5,520</td><td>0.1%</td></tr><tr><td>2031</td><td>1.9%</td><td>2.0%</td><td>$5,630</td><td>0.0%</td></tr></tbody></table><figcaption class="wp-element-caption">Please note that this is just a hypothetical illustration and remember that we have no way to predict what the changes in the CPI will be in future years. </figcaption></figure>



Even when the CPI increase is less than 2.0%, Sam can still receive the full 2.0% increase by drawing from his COLA bank. When the CPI increase is higher than 2.0%, the extra is again added to his bank.







<h4 class="wp-block-heading">Important Reminders</h4>



<ul class="wp-block-list">
<li>This article is not advising you to retire or enter DROP before July 1, 2025. There are many personal and financial factors to consider, such as age, projected raises, etc. For a more in-depth, see the March 2024 Pension Corner article.</li>
</ul>



<ul class="wp-block-list">
<li>If you are considering entering DROP before July 1, 2025, remember that your entry date must be the first day of a pay period. That means the last possible date to enter DROP before FY 2026 begins is June 21, 2025 for City members and June 27, 2025 for Port and Airport members.</li>



<li>Apply early! SDCERS recommends submitting your electronic application via your <a href="https://members.sdcers.org/Account/MemberLogin" target="_blank" rel="noreferrer noopener">Member Portal account</a> 3–4 months in advance of your desired retirement or DROP entry date. After you apply, SDCERS will contact you to schedule a counseling appointment, which should take place 1–2 months before your retirement/DROP entry date.</li>
</ul>



Appointments are filling up quickly, so don’t delay—submitting your application early helps ensure you get your preferred appointment date and time.



If you are eligible to receive the Fiscal Year 2026 COLA, the applicable increase will be reflected starting with your July 2025 pension payment.

COLA

Cost of Living Adjustment (“COLA”) for Fiscal Year 2026

At the May 9th Board meeting, SDCERS’ Board President Lisa Marie Harris re-appointed Clifford Schireson as the Board’s Vice President, with the Board unanimously confirming his appointment. The Vice President’s duties include acting as the Board President whenever the Board President is absent or otherwise unable to fulfill their duties, and temporarily assuming the role of Board President until an election can be scheduled in the event the current Board President’s seat becomes vacant. Mr. Schireson will also continue his position as the Chair of the Investment Committee.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="300" height="375" src="https://content.sdcers.org/wp-content/uploads/2024/12/sdcers-4-29-2019-schireson-3550-8x10.jpg" alt="Cliff Schireson SDCERS profile photo" class="wp-image-45302" style="width:240px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2024/12/sdcers-4-29-2019-schireson-3550-8x10.jpg 300w, https://content.sdcers.org/wp-content/uploads/2024/12/sdcers-4-29-2019-schireson-3550-8x10-240x300.jpg 240w" sizes="auto, (max-width: 300px) 100vw, 300px" /></figure>



Congratulations to our Board Vice President and thank you for your continued service! You can see all of the SDCERS Board Members’ biographies, including Mr. Schireson’s, on our <a href="https://www.sdcers.org/about_sdcers/organization/board-members">Board Members</a> page.

Board Vice President Clifford Schireson to Continue Leadership in Second Consecutive Term

SDCERS will be holding its regularly scheduled May 2025 Board and Committee meetings in our usual Board Meeting Room on the 3rd floor of our downtown office building – located at 401 West A Street, Suite 300.



Please note that SDCERS Board and Committee meetings are not held remotely (except as specified below) – Board and Committee members, as well as some SDCERS staff, will be on-site and the public is welcome to attend in person as well. You can find the agendas for the May 2025 meetings <a href="https://board.sdcers.org/onbaseagendaonline" target="_blank" rel="noreferrer noopener">here</a>.



However, as always, you can watch the Business &amp; Governance Committee and/or Board of Administration meeting live by going to the agendas page (linked above) at the start time of the meeting and clicking the “Live Media” button next to the corresponding meeting, which will display once the meeting begins.



Meeting Dates



May 8th – &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disability Committee meeting at 9:00 a.m. PST



                               Business &amp; Governance Committee meeting at 9:15 a.m. PST



                               Investment Committee meeting at 1:00 p.m. PST



May 9th – &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Administration meeting at 9:00 a.m. PST



You may request to participate in public comment by attending the relevant meeting in person and providing a completed Request to Speak form to the Board Assistant before the meeting begins.

May 2025 Board & Committee Meetings

At its March meeting, SDCERS’ Board of Administration unanimously voted for Lisa Marie Harris to continue her position as Board President for her second consecutive one-year term. Lisa Marie’s second term will begin with the May 2025 meeting, at which time she will present her recommendation for Board Vice President.



<figure class="wp-block-image size-medium"><img loading="lazy" decoding="async" width="240" height="300" src="https://content.sdcers.org/wp-content/uploads/2024/07/b6d72cfaa4c0a88993f573d4ed102d9c-240x300.jpg" alt="Lisa Marie Harris Board President a older black lady wearing dreds in a white suit with pearls" class="wp-image-37717" srcset="https://content.sdcers.org/wp-content/uploads/2024/07/b6d72cfaa4c0a88993f573d4ed102d9c-240x300.jpg 240w, https://content.sdcers.org/wp-content/uploads/2024/07/b6d72cfaa4c0a88993f573d4ed102d9c.jpg 400w" sizes="auto, (max-width: 240px) 100vw, 240px" /></figure>



Congratulations to our Board President! You can see all of the SDCERS Board Members’ biographies, including Lisa Marie&#8217;s, <a href="https://www.sdcers.org/about_sdcers/organization/board-members" target="_blank" rel="noreferrer noopener">on this page</a>.

Board President Lisa Marie Harris to Continue Leadership in Second Term

As of 5:00 p.m. (PST) on January 30th, voting concluded in the elections for SDCERS&#8217; two active General Board Member seats and one active Fire Safety Board Member seat. All active General Members (City, Port, and Airport) were eligible to vote in the General Board Member elections, while all active City Fire and Lifeguard Members were eligible to vote for one of the Fire Safety Board Member candidates. Thank you to all who participated in these elections!



The candidates who received the majority of votes for the General Board Member seats are Bret A. Bartolotta and Kent J. Morris.



The candidate who received the majority of votes for the Fire Safety Board Member seat is Paul Lotze.



The results of these two elections were certified by the SDCERS Board at today’s meeting.



Congratulations to our newly elected Board Member, Kent J. Morris, as well as our two reelected Board Members, Bret A. Bartolotta and Paul Lotze. Their terms will begin on April 1, 2025 and end March 31, 2029. We thank you in advance for your service on SDCERS’ Board of Administration!

Results of Board Member Elections

SDCERS will be holding its regularly scheduled March 2025 Board and Committee meetings in our usual Board Meeting Room on the 3rd floor of our downtown office building – located at 401 West A Street, Suite 300.



Please note that SDCERS Board and Committee meetings are not held remotely (except as specified below) – Board and Committee members, as well as some SDCERS staff, will be on-site and the public is welcome to attend in person as well. You can find the agendas for the March 2025 meetings <a href="https://board.sdcers.org/onbaseagendaonline" target="_blank" rel="noreferrer noopener">here</a>.



However, as always, you can watch the Business &amp; Governance Committee and/or Board of Administration meeting live by going to the agendas page (linked above) at the start time of the meeting and clicking the “Live Media” button next to the corresponding meeting, which will display once the meeting begins.



Meeting Dates



March 12th –&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Audit Committee meeting at 9:00 a.m. PST



March 13th – &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disability Committee meeting at 9:00 a.m. PST



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business &amp; Governance Committee meeting at 9:15 a.m. PST



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Committee meeting at 12:30 p.m. PST



March 14th – &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Administration meeting at 9:00 a.m. PST



You may request to participate in public comment by attending the relevant meeting in person and providing a completed Request to Speak form to the Board Assistant before the meeting begins.

March 2025 Board & Committee Meetings

When it comes to retirement or entering DROP, timing is important. One consideration when choosing your date is the effect of retiring/entering DROP before or after the beginning of a new fiscal year (July 1st).



The main benefit of retiring or entering DROP right before the start of a new fiscal year is that you will receive the next fiscal year’s annual cost of living adjustment (“COLA”) almost immediately. Everyone who retires or enters DROP before July 1st in any given year is eligible to receive that year’s COLA on their July pension payment, which usually increases their base pension benefit by 1-2% (maximum of 2% per year). However, if you retire or enter DROP on or after July 1st, you won’t receive a COLA until the July of the following year, when the next fiscal year begins.



For example, let’s say your base pension benefit is $3,000 per month. If you retire on June 30, 2025 and the COLA effective July 1, 2025 is 2%, you’ll receive an additional $60 on each month’s pension check from July 2025 through June 2026, which comes to an additional $720 for the year. That’s $720 you’d miss out on if you chose to retire on July 1, 2025. (Note: The Fiscal Year 2026 COLA, effective July 2025, will be decided at the May 9, 2025 Board meeting – you can check our website the following week, which will have an article on the front page announcing what the July 2025 COLA will be.)



On the flip side, it’s possible that waiting until after a new fiscal year has begun to retire or enter DROP could be more financially beneficial for you. The logic behind this possibility lies in your pension benefit formula:



Retirement Factor&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service Credit&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Final Compensation



Retirement Factor: Depending on your plan tier, most members will have a higher retirement factor if they retire/enter DROP at an older age. Remember that retirement factors are prorated in quarterly increments, so if your plan tier’s factor increases between age 62 and 63, for example, it will be slightly higher if you retire at age 62 ¼ compared to age 62.



Service Credit: The longer you continue to work before you retire, the more service credit you will accrue. Generally, more service credit results in a higher pension benefit.



Final Compensation: Lastly, if you recently received a salary increase, working longer while receiving that higher salary can increase your final compensation. Looking at the pension benefit formula, you can see that an increased final compensation will result in a greater pension benefit. However, the main thing to remember about your final compensation is that you must receive the higher salary for at least several months in order for it to have a noticeable effect on your pension benefit amount.



The “Final Compensation” used in your pension benefit calculation is your highest pensionable salary averaged over either one or three years, depending on your plan tier. Therefore, if you began receiving your increased salary in the beginning of the calendar year, you may want to keep working for at least several months into the new fiscal year in order to see a significant difference in your benefit amount. In order for your increased salary to be used in full when calculating your benefit, you’d have to continue working for one or three years from the date of your salary increase, again depending on your plan tier. See <a href="https://www.sdcers.org/news/news-articles-pension-retirement-resources">this article</a> for a more in-depth discussion about final compensation.



One more possible benefit of retiring or entering DROP after the start of a new fiscal year has to do with your cost of living (“COL”) annuity and interest applied to member contributions.* Your member contributions receive annual compounded interest, currently at a rate of 6.5%, applied every June 30th. However, your contribution account does not receive that year’s interest if you are retired or participating in DROP before July 1st. Depending on your specific circumstances and the COLA for that year, waiting to retire or enter DROP until after the interest has been applied to your contributions may increase your COL annuity to such an extent that the higher COL annuity, combined with the other potential benefits of waiting as discussed above, could be more financially beneficial to you than the COLA would be. If this is true in your case, it could make more sense to retire or enter DROP on or after July 1st. (Note: The same logic applies to your Surviving Spouse Annuity, if you select the Maximum Benefit (Single) retirement benefit option – see the <a href="https://www.sdcers.org/resources/learn_about/retirement-benefit-option">Retirement Benefit Options Fact Sheet</a> for more information.)



*<a href="https://www.sdcers.org/plan_summaries/city-safety-police-members-hired-on-or-after-august-1-2012">City police officers hired on or after August 1, 2012</a> and <a href="https://www.sdcers.org/plan_summaries/port-general-members-hired-on-or-after-january-1-2024">Port General 2024 Members</a> do not receive the COL annuity.



To be clear, the financial pros and cons of retiring/entering DROP before vs. after the start of a new fiscal year depend on multiple factors and your individual circumstances. There is no one size fits all regarding retirement/DROP entry date – it is a very personal decision and should be made after careful consideration of all relevant factors. This article is intended to inform you of some factors to consider when deciding whether to retire/enter DROP before or after July 1st of a given year.



Also, if you are considering entering DROP, please be reminded that your DROP entry date must be on the first day of a pay period – the last day to enter DROP before the beginning of Fiscal Year 2026 will be June 21, 2025 for City members and June 27, 2025 for Port and Airport members. Please submit your service retirement or DROP entry application via your <a href="https://members.sdcers.org/Account/MemberLogin" target="_blank" rel="noreferrer noopener">Member Portal</a> account soon if you are thinking about retiring or entering DROP before July 1st, so you can schedule a counseling appointment in May or early June – don’t procrastinate! (We generally recommend submitting your electronic application 3-4 months before your target retirement or DROP entry date, and then scheduling your counseling appointment to take place 4-8 weeks in advance of that date.)

Pension

Retiring Before vs. After the Beginning of a New Fiscal Year

Update: The SSA recently published<a href="https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html?tl=10" target="_blank" rel="noreferrer noopener" class="broken_link"> FAQs on their website</a> regarding the Social Security Fairness Act. 



On January 5, 2025, President Biden signed the Social Security Fairness Act, thereby repealing the Windfall Elimination Provision (“WEP”) and Government Pension Offset (“GPO”) and boosting social security benefits for nearly 3 million retired public service members. Since 1983, these two laws have required social security benefits to be reduced for retired public employees whose pensions derived from an employer that did not pay into Social Security and, in certain cases, their surviving spouses.



The WEP and GPO have impacted many City retirees and beneficiaries over the last few decades, because most City employees have not paid into Social Security since 1978. Therefore, if a City retiree became eligible for social security benefits due to prior or subsequent employment that did pay into Social Security, the WEP may have required their social security benefits to be reduced because of their City pension benefit. Further, the GPO often reduced the social security benefits of a City retiree’s spouse or widow. The Social Security Fairness Act ends this practice, which means all Social Security-eligible City retirees and their spouses/widows will receive their full social security benefits moving forward, without any reductions.



The repeal of the WEP and GPO is retroactive to January 1, 2024. At this time, the Social Security Administration (“SSA”) is evaluating how to implement the new legislation and they will provide more information on their website, <a href="http://www.ssa.gov" target="_blank" rel="noreferrer noopener" class="broken_link">www.ssa.gov</a>, as soon as it is available. If you are already entitled to social security benefits, you do not need to take any action at this time except to verify that the SSA has your current mailing address and direct deposit information. If you are a City retiree, or the spouse or widow of a City retiree, and eligible for social security benefits, please contact the SSA for more information: 1 (800) 772-1213.



Please be advised that SDCERS will not have any additional information on this topic, as we are not involved in either the implementation of the WEP/GPO or in the repeal of these laws.

Social Security Fairness Act Ends Social Security Reductions for Certain City Retirees & Beneficiaries

If you are a City retiree enrolled in a sponsored healthcare plan and/or receiving a City retiree health reimbursement, the “Other Items” section of your SDCERS pension pay advices may look a little different moving forward due to the recent transition of City retiree health administration to an external company (the City of San Diego Retiree Health Service Center.) A similar article was published earlier this month, explaining the changes on your December 2024 pay advice with respect to certain health-related reimbursements and deductions. However, starting with your January 2025 pay advice, there may be further changes. This article breaks down what the health-related items on your pension pay advice may look like depending on your circumstances.



If you are enrolled in a sponsored health plan, your monthly premium will continue to be paid directly to your healthcare provider by the City of San Diego Retiree Health Service Center. If you have a City retiree health allowance that covers the full amount of your premium, you will not see any information about your healthcare premium or allowance on your SDCERS monthly payment advice:



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="500" height="626" src="https://content.sdcers.org/wp-content/uploads/2025/01/deduction-equals-reimbursement.png" alt="" class="wp-image-45722" style="width:305px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2025/01/deduction-equals-reimbursement.png 500w, https://content.sdcers.org/wp-content/uploads/2025/01/deduction-equals-reimbursement-240x300.png 240w" sizes="auto, (max-width: 500px) 100vw, 500px" /><figcaption class="wp-element-caption">Example SDCERS pension pay advice showing no information about healthcare premiums or reimbursements when the member’s reimbursement covers the full amount of that month’s premium.</figcaption></figure>



However, you will see the line item “SD Retiree Health Deduction” if you are enrolled in a sponsored health, vision, or dental plan and the entire premium is not covered by your retiree health allowance, or if you have no retiree health allowance. If you have an approved reimbursement request for a private healthcare plan or Medicare reimbursement, you will also see the line item “SD Retiree Health Reimbursement.” Please note that the deduction amount and reimbursement amount are separate line items and do not offset each other.



In the following example, the retiree is enrolled in the Kaiser Senior Advantage plan and is covering their spouse as a dependent. The retiree has also submitted a reimbursement request for their Medicare Part B premium of $185.00. This retiree’s Option A health allowance reimburses the employee-only portion of their Kaiser premium ($217.03) – this premium amount and allowance amount does not appear on their SDCERS pension advice. However, they will still see a deduction of $217.03 labeled as “SD Retiree Health Deduction” – this is the amount the retiree must pay to cover their spouse on their Kaiser plan, which is not reimbursable under Option A. Finally, there will be a $185.00 reimbursement line item on their pay advice, which is the amount the retiree is reimbursed for their Medicare Part B premium.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="502" height="627" src="https://content.sdcers.org/wp-content/uploads/2025/01/sd-retiree-health-deduction-sd-retiree-health-reimb-1.png" alt="" class="wp-image-45720" style="width:309px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2025/01/sd-retiree-health-deduction-sd-retiree-health-reimb-1.png 502w, https://content.sdcers.org/wp-content/uploads/2025/01/sd-retiree-health-deduction-sd-retiree-health-reimb-1-240x300.png 240w" sizes="auto, (max-width: 502px) 100vw, 502px" /><figcaption class="wp-element-caption">“SD Retiree Health Deduction” replaces the item(s) that used to appear as “Insurance” and “Insurance Allowance.”   “SD Retiree Health Reimbursement” replaces the reimbursement(s) that used to appear as “Privately Secured Reimbursement,” “Annual Privately Secured,” and/or “Medicare Reimbursement.”</figcaption></figure>



You will see a “SD Retiree Health Deduction” on your pay advice if you are participating in a sponsored plan, but the total  monthly premium is not covered by your City retiree health allowance. This may be because you are only enrolled in a vision or dental plan, which is not eligible for reimbursement with your allowance, you have a dependent enrolled on your plan, or possibly because you have exceeded your fiscal year health reimbursement allowance. For example, if you have Option B and have already been reimbursed your annual allowance for the fiscal year, you will not receive any further health reimbursements until your Option B allowance resets the following July 1st.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="499" height="624" src="https://content.sdcers.org/wp-content/uploads/2025/01/sd-retiree-health-deduction-1.png" alt="Image of a partial SDCERS pension pay advice showing only &quot;SD Retiree Health Deduction&quot; under the Other Items section. " class="wp-image-45683" style="width:309px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2025/01/sd-retiree-health-deduction-1.png 499w, https://content.sdcers.org/wp-content/uploads/2025/01/sd-retiree-health-deduction-1-240x300.png 240w" sizes="auto, (max-width: 499px) 100vw, 499px" /><figcaption class="wp-element-caption">You may have a “SD Retiree Health Deduction” on your pay advice if your monthly premium was not eligible for reimbursement.</figcaption></figure>



Finally, you will see “SD Retiree Health Reimbursement” on your pay advice if you are eligible for a City retiree health allowance and either of the following apply:



<ol class="wp-block-list">
<li>You are participating in a health insurance plan other than a sponsored retiree health plan and have submitted a valid request for reimbursement for that premium; and/or</li>



<li>You have submitted a valid request for reimbursement of a Medicare premium.</li>
</ol>



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="500" height="583" src="https://content.sdcers.org/wp-content/uploads/2025/01/sd-retiree-health-reimbursement.png" alt="Image of a partial SDCERS pension pay advice showing only &quot;SD Retiree Health Reimbursement&quot; under the Other Items section. " class="wp-image-45684" style="width:300px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2025/01/sd-retiree-health-reimbursement.png 500w, https://content.sdcers.org/wp-content/uploads/2025/01/sd-retiree-health-reimbursement-257x300.png 257w" sizes="auto, (max-width: 500px) 100vw, 500px" /><figcaption class="wp-element-caption">You may have a “SD Retiree Health Reimbursement” if you have submitted an eligible request for reimbursement of a non-sponsored health plan or Medicare plan premium.</figcaption></figure>



These changes are because the City Retiree Health Service Center is now handling the administration of your City retiree healthcare benefits. While SDCERS will continue processing deductions and reimbursements, we will not have any information about the specific amounts being deducted or reimbursed. You will have to contact the City Retiree Health Service Center directly for that information. If you have an Option C health reimbursement account, or another similar account for health reimbursements, and you need additional documentation showing a more detailed breakdown of health-related deductions in order to apply for reimbursement, you may find this on your <a href="http://sdretireehealth.com/" target="_blank" rel="noreferrer noopener">City Retiree Health Service Center account</a>.



If you need assistance finding this information or if you have specific questions about your 2025 healthcare enrollment or reimbursements, please contact the City Retiree Health Service Center at (855) 380-5898, open on regular business days from 5:00 a.m. to 3:00 p.m. (PST), or via email at <a href="mailto:info@SDRetireeHealth.com">info@SDRetireeHealth.com</a>.

City Retirees: How Health-Related Items Will Display on Pension Pay Advices Moving Forward

All IRS Form 1099-R’s for tax year 2024 were mailed on January 13th. This means all SDCERS retirees and beneficiaries who received a payment from SDCERS in calendar year 2024 should be receiving their 2024 1099-R forms via U.S. mail over the next couple of weeks. To access your 1099-R form sooner, please log in to your <a href="https://members.sdcers.org/" target="_blank" rel="noreferrer noopener">Member Portal</a> account, click on “Tax Reporting” on the left, and select “2024 1099R” to download an electronic copy. You can also update your tax withholding preferences on your Member Portal by clicking on “Tax Withholding.” <a href="https://content.sdcers.org/wp-content/uploads/2025/01/2024-guide-to-tax-withholding-on-portal.pdf" target="_blank" rel="noreferrer noopener">This guide</a> explains how to update your tax withholding preferences.



For a detailed explanation of the pertinent information in your 1099-R, as well as answers to frequently asked questions regarding this tax form, please review our <a href="https://www.sdcers.org/resources/learn_about/form-1099r-explained">1099-R Fact Sheet</a>. If you have additional questions, please contact the Call Center at (619) 525-3600, open on regular business days from 9:00 a.m. to noon and 1:00 to 4:00 p.m. PST, or you may submit your questions electronically via our <a href="https://www.sdcers.org/about-us/contact-us">Contact Us</a> web form.

1099R

2024 1099-R Tax Forms

Elections have begun for SDCERS&#8217; two active General Board Member seats and one active Fire Safety Board Member seat. All active General Members (City, Port, and Airport) are eligible to vote for up to two candidates who will represent them on SDCERS&#8217; Board for the next four years, starting in May 2025. All active City Fire and Lifeguard Members are eligible to vote for one of the Fire Safety Board Member candidates.



If you are in any of the above-mentioned membership classifications, a ballot was mailed to you on January 2nd. Each letter explains the voting process, lists information about the candidates, and contains a unique validation number.&nbsp;Please retain this letter, as you will need your unique validation number in order to cast your vote.&nbsp;If you have not received a ballot, or if you received the ballot but no longer have access to it, please contact the elections help line at 1-866-720-4357, open Monday – Friday, between 6:00 a.m. and 2:00 p.m. PST. You can also email&nbsp;<a href="mailto:SDCERShelp@electionservicescorp.com">SDCERShelp@electionservicescorp.com</a>. 



The candidates for the two General Board Member seats are:



1) Bret A. Bartolotta



2) Kent J. Morris



3) Stanley F. Martinez 



The candidates for the Fire Safety Board Member seat are:



1) Paul W. Lotze



2) Tim Robles



 Votes may be cast by phone or online at <a href="https://vote.escvote.com/SDCERS" target="_blank" rel="noreferrer noopener">https://vote.escvote.com/SDCERS</a> – specific information about the voting process is contained in your ballot, along with the unique validation code you will need in order to submit your vote. All votes must be submitted by 5:00 p.m. PST on January 30, 2025.

Voting is Open for Active General and Fire Safety Board Member Elections

Last year, the Internal Revenue Service (“IRS”) began notifying individuals by mail about an IRS contractor named Charles Edward Littlejohn (“contractor”) who had been criminally charged with the unauthorized inspection or disclosure of tax return or return information between the years of 2018 to 2020 (the “Event”).



Recently, the IRS issued a second wave of notification letters which indicated that “the Government’s analysis of the material received from the contractor indicates that your information that was disclosed was narrow in scope and limited to information returns (e.g., Forms 1099, Schedule K-1, etc.) issued by the business to a taxpayer, including issuer/recipient Taxpayer Identification Numbers, (Social Security Number (SSN) and Employer Identification Number (EIN)), name, address, and other information from the information returns.” The San Diego City Employees’ Retirement System (“SDCERS”) received one of these letters from the IRS. The IRS has notified the individuals whose information was involved directly via U.S. Mail.



The IRS has not provided SDCERS with the names of the persons whose data was involved in this incident. Therefore, SDCERS will be unable to tell an individual whether or not their information was disclosed.



Please know that even though this incident did not occur while the data was in SDCERS possession, we are still treating the incident seriously. As such, in addition to the direct notification provided by the IRS, and to ensure that our members are as informed as possible, we are providing additional notice of this data event to our members.



We encourage you to remain vigilant against incidents of identity theft and fraud by reviewing their account statements and monitoring free credit reports for suspicious activity and to detect errors. Individuals may contact the three major credit reporting agencies for advice on how to obtain free credit reports and how to place fraud alerts and security freezes on credit files. The relevant contact information is below.



Under U.S. law individuals are entitled to one free credit report annually from each of the three major credit reporting bureaus. To order a free credit report, visit <a href="http://www.annualcreditreport.com/" target="_blank" rel="noreferrer noopener">www.annualcreditreport.com</a> or call, toll-free, 1-877- 322-8228. Individuals may also contact the three major credit bureaus directly to request a free copy of their credit report.



Individuals have the right to place a “security freeze” on their credit report, which will prohibit a consumer reporting agency from releasing information in the individual’s credit report without his/her express authorization. The security freeze is designed to prevent credit, loans, and services from being approved in the individual’s name without the person’s consent. However, individuals should be aware that using a security freeze to take control over who gets access to the personal and financial information in their credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application made regarding a new loan, credit, mortgage, or any other account involving the extension of credit. Pursuant to federal law, individuals cannot be charged to place or lift a security freeze on their credit report. Should an individual wish to place a security freeze, please contact the major consumer reporting agencies listed below:



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Experian P.O. Box 9554 Allen, TX 75013 1-888-397-3742 <a href="http://www.experian.com/freeze/center.html" target="_blank" rel="noreferrer noopener">www.experian.com/freeze/center.html</a></td><td>TransUnion P.O. Box 160 Woodlyn, PA 19094 1-800-916-8800 <a href="http://www.transunion.com/credit-freeze" target="_blank" rel="noreferrer noopener" class="broken_link">www.transunion.com/credit-freeze</a></td><td>Equifax P.O. Box 105788 Atlanta, GA 30348-5788 1-800-685-1111 <a href="http://www.equifax.com/personal/credit-report-services" target="_blank" rel="noreferrer noopener">www.equifax.com/personal/credit-report-services</a></td></tr></tbody></table></figure>



In order to request a security freeze, individuals will need to provide the following information:



<ol class="wp-block-list">
<li>The individual’s full name (including middle initial as well as Jr., Sr., II, III, etc.);</li>



<li>Social Security number;</li>



<li>Date of birth;</li>



<li>If the individual has moved in the past five (5) years, provide the addresses where the individual has lived over the prior five years;</li>



<li>Proof of current address, such as a current utility bill or telephone bill;</li>



<li>A legible photocopy of a government-issued identification card (state driver’s license or ID card, military identification, etc.);</li>



<li>If a victim of identity theft, include a copy of either the police report, investigative report, or complaint to a law enforcement agency concerning identity theft.</li>
</ol>



As an alternative to a security freeze, individuals have the right to place an initial or extended “fraud alert” on their file at no cost. An initial fraud alert is a one-year alert that is placed on a consumer’s credit file. Upon seeing a fraud alert display on a consumer’s credit file, a business is required to take steps to verify the consumer’s identity before extending new credit. If an individual is a victim of identity theft, that person is entitled to an extended fraud alert, which is a fraud alert lasting seven years. Should an individual wish to place a fraud alert, please contact any one of the agencies listed below:



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Experian P.O. Box 9554 Allen, TX 75013 1-888-397-3742 <a href="http://www.experian.com/fraud/center.html" target="_blank" rel="noreferrer noopener">www.experian.com/fraud/center.html</a></td><td>TransUnion P.O. Box 2000 Chester, PA 19016 1-800-916-8800 <a href="http://www.transunion.com/fraud-victim-resource/place-fraud-alert" target="_blank" rel="noreferrer noopener" class="broken_link">www.transunion.com/fraud-victim-resource/place-fraud-alert</a></td><td>Equifax P.O. Box 105069 Atlanta, GA 30348 1-888-766-0008 <a href="http://www.equifax.com/personal/credit-report-services" target="_blank" rel="noreferrer noopener">www.equifax.com/personal/credit-report-services</a></td></tr></tbody></table></figure>



Individuals can further educate themselves regarding identity theft, fraud alerts, security freezes, and the steps they can take to protect themselves, by contacting the consumer reporting agencies, the Federal Trade Commission, or their state Attorney General.



The Federal Trade Commission can be reached at: 600 Pennsylvania Avenue NW, Washington, DC 20580, <a href="http://www.identitytheft.gov/" target="_blank" rel="noreferrer noopener">www.identitytheft.gov,</a> 1-877-ID-THEFT (1-877-438-4338); TTY: 1-866-653-4261. The Federal Trade Commission also encourages those who discover that their information has been misused to file a complaint with them. Individuals can obtain further information on how to file such a complaint by way of the contact information listed above. Individuals have the right to file a police report if they ever experience identity theft or fraud. Please note that in order to file a report with law enforcement for identity theft, the individual will likely need to provide some proof that they have been a victim. Instances of known or suspected identity theft should also be reported to law enforcement and their state Attorney General.



If an individual has questions or needs assistance, please call the external support center (Cyber Scout) at 1-833-799-4249, Monday through Friday, 5:00 AM-5:00 PM PST, excluding U.S. holidays.

Notice of Data Event

SDCERS will be holding its regularly scheduled January 2025 Board and Committee meetings in our usual Board Meeting Room on the 3rd floor of our downtown office building – located at 401 West A Street, Suite 300.



Please note that SDCERS Board and Committee meetings are not held remotely (except as specified below) – Board and Committee members, as well as some SDCERS staff, will be on-site and the public is welcome to attend in person as well. You can find the agendas for the January 2025 meetings <a href="https://board.sdcers.org/onbaseagendaonline" target="_blank" rel="noreferrer noopener">here</a>.



However, as always, you can watch the Business &amp; Governance Committee and/or Board of Administration meeting live by going to the agendas page (linked above) at the start time of the meeting and clicking the “Live Media” button next to the corresponding meeting, which will display once the meeting begins.



Meeting Dates



January 9th – &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disability Committee meeting at 9:00 a.m. PST



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business &amp; Governance Committee meeting at 9:15 a.m. PST



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Committee meeting at 12:30 p.m. PST



January 10th – &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Administration meeting at 9:00 a.m. PST



You may request to participate in public comment by attending the relevant meeting in person and providing a completed Request to Speak form to the Board Assistant before the meeting begins.

January 2025 Board & Committee Meetings

In a long-awaited decision for millions of active and retired public employees, President Biden is expected to sign the Social Security Fairness Act on January 6, 2025. This historic piece of legislation will effectively repeal the Windfall Elimination Provision (“WEP”) and Government Pension Offset (“GPO”) – two laws that, since 1983, have required social security benefits to be reduced for both retired public employees whose pensions derived from an employer that did not pay into Social Security and, in certain cases, their surviving spouses.



The WEP and GPO have impacted many City retirees and beneficiaries over the last few decades, because most City employees have not paid into Social Security since 1978. Therefore, if a City retiree becomes eligible for social security benefits due to working for a different employer that does pay into Social Security, the WEP would reduce their social security benefits because of their City pension benefit. Further, the GPO could potentially reduce the social security benefits of a City retiree’s spouse or widow. The Social Security Fairness Act will end this practice, which means all Social Security-eligible City retirees and their spouses/widows will receive their full social security benefits moving forward, without any reductions.



The repeal of the WEP and GPO will be retroactive to January 1, 2024. At this time, the Social Security Administration (“SSA”) is evaluating how to implement the new legislation, if signed into law, and they will provide more information on their website, <a href="http://www.ssa.gov" target="_blank" rel="noreferrer noopener" class="broken_link">www.ssa.gov</a>, as soon as it is available. If you are already entitled to social security benefits, you do not need to take any action at this time except to verify that the SSA has your current mailing address and direct deposit information. If you are a City retiree, or the spouse or widow of a City retiree, and you are eligible for social security benefits, please contact the SSA for more information: 1 (800) 772-1213. 



Please be advised that SDCERS will not have any additional information on this topic, as we are not involved in either the implementation of the WEP/GPO or in the repeal of these laws.

Legislation Expected to Pass to End Social Security Reductions for Certain City Retirees & Beneficiaries

If you are a City retiree enrolled in a sponsored healthcare plan and/or receiving a City retiree health reimbursement allowance, you may have noticed your December pension pay advice looked a little different.



Pay advices for City retirees used to show healthcare premium payments listed as “Insurance,” and healthcare allowances added to their pension payment as “Insurance Allowance” –



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="364" height="295" src="https://content.sdcers.org/wp-content/uploads/2025/01/health-items-on-pay-advices-1-previous-version-of-deduction-and-reimbursement-1.png" alt="Example of old version of pension pay advice, with an &quot;Insurance Allowance&quot; reimbursement and identical &quot;Insurance&quot; deduction under the &quot;Other Items&quot; section." class="wp-image-45496" style="width:275px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2025/01/health-items-on-pay-advices-1-previous-version-of-deduction-and-reimbursement-1.png 364w, https://content.sdcers.org/wp-content/uploads/2025/01/health-items-on-pay-advices-1-previous-version-of-deduction-and-reimbursement-1-300x243.png 300w" sizes="auto, (max-width: 364px) 100vw, 364px" /><figcaption class="wp-element-caption">Old version of SDCERS pension pay advice, with an &#8220;Insurance Allowance&#8221; reimbursement and identical &#8220;Insurance&#8221; deduction.</figcaption></figure>



Beginning with your December 2024 pension pay advice, you will no longer see the healthcare premium and allowance information –



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="365" height="293" src="https://content.sdcers.org/wp-content/uploads/2025/01/health-items-on-pay-advices-2-new-version-of-deduction-and-reimbursement-1.png" alt="Example of new version of pension pay advice, with a blank space next to &quot;Insurance Allowance&quot; and &quot;Insurance&quot; under the &quot;Other Items&quot; section." class="wp-image-45497" style="width:277px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2025/01/health-items-on-pay-advices-2-new-version-of-deduction-and-reimbursement-1.png 365w, https://content.sdcers.org/wp-content/uploads/2025/01/health-items-on-pay-advices-2-new-version-of-deduction-and-reimbursement-1-300x241.png 300w" sizes="auto, (max-width: 365px) 100vw, 365px" /><figcaption class="wp-element-caption">Example of new version of pension pay advice &#8211; the &#8220;Insurance Allowance&#8221; reimbursement and &#8220;Insurance&#8221; deduction amounts are not shown.</figcaption></figure>



However, if you are covering a dependent on your health plan, or if you are enrolled in a sponsored dental or vision plan, you will see the deduction for those premiums, listed as “SD Retiree Health Deduction” –



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="364" height="236" src="https://content.sdcers.org/wp-content/uploads/2025/01/health-items-on-pay-advices-3-dependent-deduction-example-1.png" alt="Example of new version of pension pay advice, showing the deduction amount for dependent coverage under the &quot;Other Items&quot; section, itemized as &quot;SD Retiree Health Deduction.&quot;" class="wp-image-45498" style="width:278px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2025/01/health-items-on-pay-advices-3-dependent-deduction-example-1.png 364w, https://content.sdcers.org/wp-content/uploads/2025/01/health-items-on-pay-advices-3-dependent-deduction-example-1-300x195.png 300w" sizes="auto, (max-width: 364px) 100vw, 364px" /><figcaption class="wp-element-caption">Example of new version of pension pay advice, showing the deduction amount for dependent coverage under the &#8220;Other Items&#8221; section, itemized as &#8220;SD Retiree Health Deduction.&#8221;</figcaption></figure>



From now on, you will no longer see a deduction for sponsored healthcare plan premiums, nor will you see the allowance. Also, starting in January 2025, you will no longer see the “Medicare Reimbursement” listed on your pension pay advices if applicable to you – instead, you will see this reimbursement listed as “SD Health Reimbursement.”



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="417" height="381" src="https://content.sdcers.org/wp-content/uploads/2025/01/health-items-on-pay-advices-4-medicare-reimbursement-example.png" alt="Example of old version of pension pay advice, showing the &quot;Medicare Reimbursement&quot; line item and amount under the &quot;Other Items&quot; section." class="wp-image-45499" style="width:280px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2025/01/health-items-on-pay-advices-4-medicare-reimbursement-example.png 417w, https://content.sdcers.org/wp-content/uploads/2025/01/health-items-on-pay-advices-4-medicare-reimbursement-example-300x274.png 300w" sizes="auto, (max-width: 417px) 100vw, 417px" /><figcaption class="wp-element-caption">Example of old version of pension pay advice, showing the &#8220;Medicare Reimbursement&#8221; line item and amount. Starting in January 2025, this line item will show as &#8220;SD Health Reimbursement&#8221; instead.</figcaption></figure>



These changes are because the City Retiree Health Service Center is now handling your healthcare premiums. If you have specific questions about your 2025 healthcare enrollment, please call (855) 380-5898.

Health

City Retirees: Changes to Health-Related Items on Pension Pay Advices

SDCERS’ physical offices located in downtown San Diego will be CLOSED from Monday, December 23, 2024 through Friday, January 3, 2025. However, SDCERS staff will be working remotely and the Call Center will remain open during its usual business hours – 9:00 a.m. to noon, and 1:00 to 4:00 p.m. (PST), except for the December 25th and January 1st holidays, on which we will be fully closed. You can reach the Call Center at (619) 525-3600. You may also use our <a href="https://www.sdcers.org/about-us/contact-us">Contact Us</a> page to submit electronic inquiries, to which staff will generally respond within three business days.



Please do not visit our physical offices between December 23rd and January 3rd, as they will be closed to the public.



Reminder: SDCERS’ offices and Call Center will be closed on Christmas Day and New Years Day, as it is for all observed U.S. holidays.

SDCERS’ Physical Offices CLOSED December 23, 2024 Through January 3, 2025

SDCERS is proud to announce it has received the Municipal&nbsp;Information System Association of California (MISAC)&nbsp;Quality Information Technology Practices Award for the seventh year in a row.&nbsp;MISAC is a collaborative organization of California local government IT professionals with the goal of promoting leadership, information sharing, and access to resources to enhance local government services and effectiveness.&nbsp;Membership includes cities, towns, public safety, special districts, and other local governmental agencies/districts.&nbsp;



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="907" height="699" src="https://content.sdcers.org/wp-content/uploads/2024/12/2024-misac-award.png" alt="Quality IT Practices Award - 2024. This Certificate is awarded to San Diego City Employees' Retirement System in recognition of quality information technology practices. MISAC - Municipal Information Systems Association of California. Signed by Miguel Guardado, MISAC State Board President; and Bryon Horn, Awards Committee Chairman, on September 24, 2024" class="wp-image-45009" style="width:533px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2024/12/2024-misac-award.png 907w, https://content.sdcers.org/wp-content/uploads/2024/12/2024-misac-award-300x231.png 300w, https://content.sdcers.org/wp-content/uploads/2024/12/2024-misac-award-768x592.png 768w" sizes="auto, (max-width: 907px) 100vw, 907px" /></figure>



The award qualifications follow the NIST SP800-53P standards.&nbsp; NIST is the National Institute of Standards and Technology that defines a framework to reduce cybersecurity risks within an organization.&nbsp; This framework is adopted by most federal and government agencies.&nbsp; To qualify for the award, agencies respond using the control catalog covering NIST standards of low, moderate and high.&nbsp; Those agencies who meet a high percentage of the controls are recognized with the MISAC Quality in IT Practices award.&nbsp;



Receiving MISAC Quality IT Practices Award is an honor and tribute to the dedication and performance of SDCERS’ IT staff and contractors.

SDCERS’ IT Department Receives 2024 MISAC Quality IT Practices Award

At today’s meeting, SDCERS’ Board of Administration voted to approve staff’s recommended DROP account and DROP annuity interest rates for the next calendar year – meaning these rates will be effective January 1, 2025. The DROP account rate is the interest rate used by SDCERS while a Member is in DROP and the DROP annuity rate is the interest rate used by SDCERS to annuitize the DROP monies of a Member who has exited DROP and selected the DROP annuity option. These rates are calculated annually using publicly available indexes as of September 30th of each year. (See Board Rule 6.10(c) and 6.40(b), and the <a href="https://board.sdcers.org/OnBaseAgendaOnline/Documents/DownloadFileBytes/Deferred%20Retirment%20Option%20Plan%20Interest%20Rate%20Review.docx.pdf?documentType=1&amp;meetingId=1752&amp;itemId=70057&amp;publishId=15617&amp;isSection=False&amp;isAttachment=True" target="_blank" rel="noreferrer noopener">SDCERS CEO’s memorandum</a> presented at the January 2022 Board meeting for more information about how these rates are calculated.)



2025 DROP Account Interest Rate



Effective January 1, 2025, the annual DROP account interest rate (compounded quarterly) will increase to 4.4%, compared to the current rate of 4.2%. This interest rate will be compounded quarterly and applied to all active DROP participants’ accounts as long as the participant is actively employed by their plan sponsor on the last day of each quarter in 2025. This rate is subject to change annually, which means a DROP participant’s account may receive a different interest rate every year during their participation period.



2025 DROP Annuity Interest Rate



For the first time, Port Members will have a different DROP annuity interest rate than City and Airport Members – this is due to the fact that the City and Airport plan documents include a self-imposed limit on the DROP annuity factor, preventing it from exceeding 5.0% if the DROP account rate is less than 5.0%.



Therefore, the DROP annuity interest rate will increase to 5.0% for City and Airport Members and 5.1% for Port Members, compared to the current rate of 4.6%. The applicable interest rate will be applied to the funds remaining in a DROP retiree’s account when they exit DROP, if the retiree chooses to annuitize all or part of their DROP account, and it will be factored into the calculation of their monthly DROP annuity payment. Please note that the retiree’s DROP exit date must be during calendar year 2025 in order for the 5.0% (or 5.1% for Port Members) annuity factor to apply.



Unlike the DROP account interest rate, the DROP annuity rate will not change for an individual member – the rate that is in effect when a member exits DROP is the rate that will be applied to their annuity calculation, regardless of whether or not the DROP annuity rate changes in future years. Therefore, when you are getting close to your DROP retirement date, your decision to exit DROP before or after the New Year may be affected by the Board’s decision to increase or decrease the DROP annuity interest rate. However, if you do not plan to annuitize your DROP account upon exiting DROP, then the DROP annuity rate changes are irrelevant to you. <a href="/category/drop" target="_blank" rel="noreferrer noopener">Click here</a> to review your options regarding how you can receive the funds in your DROP account when you exit DROP.



Please attend a DROP Entry webinar if you are planning to enter DROP soon! As of the date of this article, the December 9th DROP entry webinar from noon – 2:00 p.m. has 20 open spots – please use the following link to register: <a href="https://attendee.gotowebinar.com/register/2868100713073285977" target="_blank" rel="noreferrer noopener">https://attendee.gotowebinar.com/register/2868100713073285977</a>. There will be another webinar in January that has not yet been scheduled. If you are within 3 months of your DROP entry date and are unable to register for either the December or January webinar, please <a href="https://content.sdcers.org/about_sdcers/contact-us/">contact SDCERS</a> and let us know.



Please attend a DROP Exit webinar if you are nearing your target DROP exit date! The next DROP exit webinar will be November 18th from 12:00 p.m. – 1:30 p.m., and you can register using the following link: <a href="https://attendee.gotowebinar.com/register/3654125083095859036" target="_blank" rel="noreferrer noopener">https://attendee.gotowebinar.com/register/3654125083095859036</a>. Depending on demand, there may be another DROP exit webinar in December. If you are within 3 months of your DROP exit date and are unable to attend the November webinar, please <a href="https://content.sdcers.org/about_sdcers/contact-us/">contact SDCERS</a> and let us know.



If you are considering entering or exiting DROP soon, you must begin the process by first going to your <a href="https://members.sdcers.org/" target="_blank" rel="noreferrer noopener">Member Portal</a> account and clicking on either “Online Applications” or “DROP Retirement Application” (whichever is applicable to you) from the left menu, under Tools. Review this information, make your selections, and submit the initial application online. Once received, you will be contacted by an SDCERS staff member to schedule your personal counseling appointment. At your appointment, you can ask questions and make any changes to your application. Your electronic application is not final and you have not officially scheduled your DROP entry or exit date until you’ve submitted your signed application signature page, which will be given to you by your retirement counselor during or after your appointment.

DROP Interest Rates for CY 2025

At its November 15, 2024 meeting, SDCERS’ Board of Administration approved payment of the Annual Supplemental Benefit for eligible retirees and continuance beneficiaries. The Annual Supplemental Benefit is paid in years when the fund’s investment earnings are sufficient to qualify, according to a set formula defined in the plan documents.



In addition, the Corbett Settlement Increase (“Corbett benefit”) is paid to eligible retirees and continuance beneficiaries in years that the Annual Supplemental Benefit is paid. If you are eligible for one or both of these benefits, payment will be included in your November 2024 monthly pension payment.



There are minimum service credit requirements to qualify for the Annual <a href="/resources/learn_about">Supplemental </a>benefit (5 or 10 years, depending on hire date and plan sponsor.) City Members hired on or after July 1, 2005, Port Members hired on or after October 1, 2005, and Airport Members hired on or after October 3, 2006 are not eligible for the Annual Supplemental Benefit.



Payment amounts are determined by years of service credit (not including reciprocal service credit).&nbsp; The amount per year of service credit is $30, $45, $60, or $75 per year of service credit depending on year of retirement. Continuance beneficiaries of eligible retirees will be paid an amount using the same ratio as their monthly benefits bear to the monthly benefit received by their respective deceased retired spouse.



The eligibility requirements for the Annual Supplemental Benefit and Corbett benefit are described in our <a href="/resources/faqs#Supplemental-Benefits" rel="noopener">FAQs</a> under “Annual Supplemental Benefit, Corbett, COLA, COL Annuity.” Here, you will also find a more detailed description of how these benefits are calculated.



In addition to the requirements outlined in the FAQ’s, in order to be eligible for the 2024 Annual Supplemental Benefit, a retiree or continuance beneficiary must have been (1) alive, and (2) eligible to receive a monthly pension benefit payment on October 1, 2024. If an eligible retiree died on or after October 1, 2024, the retiree’s continuance beneficiary is not eligible for their own Annual Supplemental Benefit this year. In this case, the retiree’s Annual Supplemental Benefit payment will be included in the $2,000 Retiree Death Benefit and Other Payable Monies, which is paid to the beneficiary(ies) designated to receive that death benefit.

Annual Supplemental Benefit & Corbett

SDCERS Board Approves Annual Supplemental Benefit for 2024

SDCERS’ Board of Administration consists of 5 elected members, each of whom serve a four-year term before elections are held again. The four-year terms for SDCERS’ active Fire Safety Board Member, Paul Lotze, and two General Board Members, Bret Bartolotta and Thomas Battaglia, are ending March 31, 2024. Therefore, SDCERS has begun the elections to fill these seats.



Nominations are open for these elections and all nominations and petition signatures must be submitted by 5:00 p.m. (PST) on December 11, 2024. All active City General and Fire/Lifeguard Safety Members are eligible to run for the appropriate seat and have been mailed a letter, which contains a unique validation number and instructions explaining how to self-nominate and/or sign a nominee’s petition. Please retain this letter, as you will need your unique validation number in order to submit a nomination or sign an existing nominee&#8217;s petition. &nbsp;If you are an active City General, Fire, or Lifeguard Member interested in serving on SDCERS’ Board, please be sure to self-nominate by the deadline; all other members in these two categories, please be sure to sign the nomination petition(s) of any candidate(s) you support! Each nominee must have at least 10 electronic signatures from members in the appropriate membership category on their nomination petition in order to move forward in the election.



If you are an active City General, Fire, or Lifeguard Member and have not received your nominations letter by November 15, 2024; if you lost your letter; or if you have any questions about the nomination process, please email&nbsp;<a href="mailto:SDCERShelp@electionservicescorp.com">SDCERShelp@electionservicescorp.com</a> or call 1-866-720-4357, Monday – Friday, 6:00 a.m. – 2:00 p.m. PST.&nbsp; All nominations and signatures must be submitted by 5:00 p.m. PST on December 11, 2024. At that time, if there is only one nominee for the Fire Safety seat with at least 10 petition signatures (the minimum requirement to move forward), a Fire Safety Member election will not be necessary. Similarly, if there are only two nominees for the active General Member seat with at least 10 petition signatures each, then a General Member election will not be necessary. However, if there are competing nominations for either seat, then we will proceed with the election(s) and all members who are eligible to vote will receive another letter with further instructions.&nbsp;

Nominations Open for Upcoming Active City General and Fire Board Member Elections

SDCERS will be holding its regularly scheduled November 2024 Board and Committee meetings in our usual Board Meeting Room on the 3rd floor of our downtown office building – located at 401 West A Street, Suite 300.



Please note that SDCERS Board and Committee meetings are not held remotely (except as specified below) – Board and Committee members, as well as some SDCERS staff, will be on-site and the public is welcome to attend in person as well. You can find the agendas for the November 2024 meetings <a href="https://board.sdcers.org/onbaseagendaonline" target="_blank" rel="noreferrer noopener">here</a>.



However, as always, you can watch the Business &amp; Governance Committee and/or Board of Administration meeting live by going to the agendas page (linked above) at the start time of the meeting and clicking the “Live Media” button next to the corresponding meeting, which will display once the meeting begins.



Meeting Dates



November 14th – &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disability Committee meeting at 9:00 a.m. PST



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business &amp; Governance Committee meeting at 9:15 a.m. PST



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Committee meeting at 12:30 p.m. PST



November 15th – &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Administration meeting at 9:00 a.m. PST



You may request to participate in public comment by attending the relevant meeting in person and providing a completed Request to Speak form to the Board Assistant before the meeting begins.

November 2024 Board & Committee Meetings

Retiree health open enrollment for City of San Diego retirees will run from November 1st – 30th.



IMPORTANT: SDCERS is NOT administering City Retiree Health Open Enrollment this year – please do not send any enrollment or disenrollment forms to us!



Instead, please register your account with the City&#8217;s new retiree health administrator, the City of San Diego Retiree Health Service Center, at&nbsp;<a href="http://sdretireehealth.com/" target="_blank" rel="noreferrer noopener">SDRetireeHealth.com</a>. See&nbsp;<a href="https://content.sdcers.org/wp-content/uploads/2024/11/bos-portal-instructions-flier.pdf" target="_blank" rel="noreferrer noopener">this guide</a>&nbsp;for instructions.&nbsp;



You will need access to this account in order to participate in Open Enrollment electronically and, starting in 2025, to submit reimbursement requests if you have retiree health benefits through the City of San Diego (not including Option C trust accounts). If you need further assistance, please contact the City Retiree Health Service Center at <a href="tel:(855)-380-5898">(855)-380-5898</a>, open on regular business days from 5:00 a.m. to 3:00 p.m. (PST), or via email at <a href="mailto:info@SDRetireeHealth.com">info@SDRetireeHealth.com</a>.



The calendar year 2025 City retiree health booklets have been mailed to all eligible City retirees and beneficiaries, and an electronic version of the booklet is also available <a href="https://content.sdcers.org/wp-content/uploads/2024/09/city-retiree-health-2025-open-enrollment-booklet.pdf" target="_blank" rel="noreferrer noopener">here</a>, as well as on your <a href="http://sdretireehealth.com/" target="_blank" rel="noreferrer noopener">City Retiree Health Service Center account</a> – please also register and log in to your account in order to submit enrollment and disenrollment forms. If you would like hard copies of these forms mailed to you, please contact the City Retiree Health Service Center (see phone and email contact information above). All enrollment and disenrollment forms must be received by the City Retiree Health Service Center by 3:00 p.m. (PST) on November 30th.



As always, if you do not wish to make any changes to your current healthcare coverage, you do not need to take any action during open enrollment and your coverage will remain the same, although the premiums may change. There are no new plans this year and no significant changes to existing plans in terms of coverage.



If you are comparing different plans and trying to decide which is best for you, don’t forget about CareCounsel! CareCounsel Member Care Specialists are available for your healthcare inquiries and concerns. You can call them at <a href="tel:(888) 227-3334">(888) 227-3334</a> or e-mail <a href="mailto:staff@carecounsel.com">staff@carecounsel.com</a> Monday – Friday, 6:30 a.m. to 5:00 p.m. PST. CareCounsel also provides helpful videos on their website that may answer your questions about Medicare, here: <a href="https://carecounsel.com/medicare.html" target="_blank" rel="noreferrer noopener">https://carecounsel.com/medicare.html</a>.

Open Enrollment

Calendar Year 2025 City Retiree Health Open Enrollment

For the seventh year in a row, SDCERS has been awarded the Public Pension Standards Award for Funding and Administration. The Public Pension Coordinating Council grants this award, which recognizes SDCERS for meeting professional standards for plan funding and administration as set forth in the Public Pension Standards.​


<div class="wp-block-image">
<figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" width="565" height="563" src="https://content.sdcers.org/wp-content/uploads/2024/11/image-1.png" alt="Public Pension Coordinating Council. Public Pension Standards Award for Funding and Administration 2024. Presented to San Diego City Employees' Retirement System in recognition of meeting professional standards for plan funding and administration as set forth in the Public Pension Standards. Presented by the Public Pension Coordinating Council, a confederation of National Association of State Retirement Administrators (NASRA); National Conference on Public Employee Retirement Systems (NCPERS); National Council on Teacher Retirement (NCTR). Signed by Alan H. Winkle, Program Administrator" class="wp-image-44900" style="width:419px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2024/11/image-1.png 565w, https://content.sdcers.org/wp-content/uploads/2024/11/image-1-150x150.png 150w, https://content.sdcers.org/wp-content/uploads/2024/11/image-1-300x300.png 300w" sizes="auto, (max-width: 565px) 100vw, 565px" /></figure></div>


Recognition Award for Administration SDCERS received the Recognition Award for Administration due to its adherence to the five essential administrative categories:



<ul class="wp-block-list">
<li>Comprehensive Benefit Program. The system must provide a comprehensive benefit program including service retirement benefits, in-service death benefits, disability benefits, vesting, and provisions for granting a cost-of-living adjustment.</li>



<li>Actuarial. An Actuarial Valuation must be completed at least every two years using generally recognized and accepted actuarial principles and practices.</li>



<li>Audit. The system must obtain an unqualified opinion from an independent audit conducted in accordance with government auditing standards generally accepted in the United States.</li>



<li>Investments. The system must follow written investment policies and written fiduciary standards and the system must obtain an annual investment performance evaluation from an outside investment review entity.</li>



<li>Communications. Members must be provided a handbook or summary plan description, regular updates to the documents, and an annual benefit statement. Meetings of the governing board of the system are conducted at least quarterly with adequate public notice.</li>
</ul>



&nbsp;Recognition Award for Funding SDCERS received the Recognition Award for Funding because its three plan sponsors (City of San Diego, Port of San Diego, and San Diego County Regional Airport Authority) consistently pay their Annual Required Contributions as determined by the SDCERS Board.&nbsp;



The Public Pension Coordinating Council (PPCC) is a coalition of three national associations that represent public retirement systems and administrators: <a href="https://www.nasra.org/" target="_blank" rel="noreferrer noopener">National Association of State Retirement Administrators</a> (NASRA), the <a href="http://www.nctr.org/" target="_blank" rel="noreferrer noopener" class="broken_link">National Council on Teacher Retirement</a> (NCTR) and the <a href="http://www.ncpers.org/" target="_blank" rel="noreferrer noopener">National Conference on Public Employee Retirement Systems</a> (NCPERS). Together, these associations represent more than 500 of the largest pension plans in the United States serving most of the nation’s 18+ million employees of state and local governments.

SDCERS Receives the 2024 Public Pension Standards Award for Funding and Administration

The Government Financial Officers Association (“GFOA”) has awarded SDCERS the Certificate of Achievement for Excellence in Financial Reporting for SDCERS’ 2023 Annual Comprehensive Financial Report (“ACFR”) and Popular Annual Financial Report (“PAFR”). This is the 16th year in a row SDCERS has received this recognition!


<div class="wp-block-image">
<figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" width="543" height="726" src="https://content.sdcers.org/wp-content/uploads/2024/11/image.png" alt="Government Finance Officers Association; Certificate of Achievement for Excellence in Financial Reporting; Presented to: San Diego City Employees' Retirement System; California; For its Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023; Signed Christopher P. Merrill, Executive Director/CEO" class="wp-image-44892" style="width:419px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2024/11/image.png 543w, https://content.sdcers.org/wp-content/uploads/2024/11/image-224x300.png 224w" sizes="auto, (max-width: 543px) 100vw, 543px" /></figure></div>


The GFOA is a non-profit professional association serving approximately 15,000 government finance professionals. SDCERS’ ACFR and PAFR were judged by an impartial panel and deemed to have met the high standards of the certificate program, including demonstrating an effective means to disclose and clearly communicate SDCERS’ financial story and to motivate Members and the public to read the ACFR and PAFR. This award is the highest form of recognition in the area of government accounting and financial reporting. It represents a significant accomplishment by a governmental agency and its management.



SDCERS’ award-winning ACFRs and PAFRs are available online and can be viewed <a href="/financials-investments/annual-financial-reports/">here</a>.

SDCERS Receives Certificate of Achievement for Excellence in Financial Reporting for 16th Consecutive Year

SDCERS’ 2024 Annual Membership Meeting will take place in person on October 25th at the Balboa Park Club Ballroom.



The theme of the meeting is: &#8220;You take care of San Diego. We take care of you.&#8221; Join us for informative presentations addressing your retirement system administrator, learn about the security of your future pension benefits, and win candy prizes! The presenters will include SDCERS’ Board President, Lisa Marie Harris; SDCERS’ CEO, Gregg Rademacher; SDCERS’ Chief Investment Officer, Carina Coleman; SDCERS’ Benefits Administration Director, Sandra Claussen; and SDCERS’ Director of Member Services, Natasha Collura.



<figure class="wp-block-image size-full is-style-default"><img loading="lazy" decoding="async" width="700" height="492" src="https://content.sdcers.org/wp-content/uploads/2024/10/2024-annual-membership-meeting-postcard-e1728666772775.png" alt="You take care of san diego, we take care of you. SDCERS' 2024 Annual Membership Meeting to be held in person at the Balboa Park Club Ballroom at 11 am on Friday, October 25, 2024. All Members: Join us to learn more about your benefits, SDCESR' investments, and the security of your retirement system." class="wp-image-44271" style="object-fit:cover"/></figure>



Directions: Balboa Park Club Ballroom, 2144 Pan American Road West. Enter Balboa Park from Park Boulevard and turn west on Presidents Way. The Ballroom is located in the South Palisades area of the park, just north of Puppet Theater.



 All stakeholders are invited to attend, and no RSVP or registration is required. The meeting will also be video recorded and uploaded to our <a href="https://www.youtube.com/channel/UCI-yxOhhEDBfsfkjrmWBuMQ/featured" target="_blank" rel="noreferrer noopener">YouTube channel</a> as soon as it is available. We hope to see you all at this year&#8217;s meeting! ​

SDCERS’ 2024 Annual Membership Meeting – You’re Invited!

At the September Board meeting, SDCERS reported a net return of 7.2% for Fiscal Year 2024. As of June 30, 2024, the trust fund’s assets totaled approximately $11.3 billion. SDCERS’ annualized rate of return over the past 10 years is 6.7%, and its return since inception is 8.6%.



SDCERS’ net return for Fiscal Year 2024 of 7.2% was higher than its assumed rate of return (6.5%), but below the policy benchmark, which posted an 8.9% return for the year. The policy benchmark is a measure of how the Total Fund would have performed if the actively managed public portions of the portfolio had been completely passively invested in index funds, and if the private portions of the portfolio achieved stated benchmark returns.



Differences in the portfolio’s composition relative to the policy benchmark, as well as managers’ selection of specific assets within specific asset classes, hurt SDCERS’ relative returns. Specifically, SDCERS did not meet its benchmark for FY 2024 primarily due to the Fund’s overweight to specific areas within Private Equity, which underperformed in a difficult fundraising and exiting environment.



While Private Equity enjoyed fantastic returns in 2021 and 2022, the asset class was challenged in 2023 and into 2024 as a result of the Fed’s interest rate hiking cycle, which created a less favorable environment for Initial Public Offerings amidst higher borrowing costs. SDCERS’ overweight to private equity hurt returns from both an allocation and selection effect, as private equity as an asset class underperformed, and also from a selection effect, as private equity holdings within SDCERS’ portfolio underperformed the private equity benchmark by 9.7% due to valuation write-downs and a larger growth equity tilt.



Performance can also be measured in comparison to returns of other public pension plans, though it is important to remember that different plans have a variety of circumstances impacting their asset allocations and, in turn, their return targets. SDCERS compares very favorably against its peers over longer time periods – posting returns in the upper second quartile of the universe over the most recent10-year period ending June 30, 2024. Over the past 20 years, SDCERS’ return is in the top quartile of similarly-sized public pension plans. SDCERS’ risk-adjusted return, which takes into account reward for risk undertaken, is in the top quartile compared to similarly-sized public pension plans over the past 5 and 10 years.

SDCERS’ Final Investment Return for Fiscal Year 2024

If you are a City of San Diego retiree, you are likely used to SDCERS managing your City retiree health benefits – this includes administering City Retiree Health Open Enrollment every year and processing health-related reimbursements. Although SDCERS has assumed the role of the City’s retiree health administrator for many years, this is not actually part of SDCERS’ mandate as the City’s pension plan administrator. After much collaboration and discussion, SDCERS and the City determined that it was in the best interest of the retirees to transition City retiree health to an outside vendor that specializes in benefits administration.&nbsp; This change is an enhancement to the City’s retiree health program and our goal is to provide retirees with the highest level of service available in the industry.



Therefore, in 2023, the City issued a Request for Proposals for the administration of retiree health benefits processing. We are pleased to announce that the City has selected Benefit Outsourcing Solutions as our new benefits administration partner, which will be operating under the name “City of San Diego Retiree Health Service Center” (“City Retiree Health Services”). SDCERS is committed to making this transition as smooth as possible and to providing you with timely information and updates.



Important Dates and Transition Details



<ul class="wp-block-list">
<li>November 1 – 30, 2024: City Retiree Health Services will begin accepting enrollment and disenrollment forms during the Annual Open Enrollment period. You will receive the calendar year 2025 Annual City Retiree Health Open Enrollment Booklet via U.S. mail in late October and an electronic version will be available online by October 31st. City Retiree Health Services will also provide information about how to enroll or disenroll online, although you may still submit paper forms if you would like. Please contact City Retiree Health Services in November if you need assistance enrolling or disenrolling in a plan. As always, if you are not making any changes to your health plan, then you do not need to take any action at this time.</li>



<li>January 1, 2025: City Retiree Health Services will begin administering retire health plan reimbursements, including reimbursements for privately secured healthcare plans and Medicare premiums.&nbsp;Starting in January 2025, contact City Retiree Health Services directly for any questions on these topics.</li>
</ul>



Please continue to contact SDCERS for questions regarding retiree health plan reimbursements through December 31, 2024.



What Will Stay the Same



<ul class="wp-block-list">
<li>All sponsored healthcare, dental, and vision providers and plans will remain unchanged for the calendar year 2025, although the premiums may be different. Look for the Annual Open Enrollment Booklet, which will be mailed in mid-October 2024.</li>



<li>If you choose not to make any changes during Open Enrollment, your current plans will remain in effect through 2025. No action is required on your end.</li>



<li>Payment for sponsored dental and vision plan premiums, as well as sponsored healthcare plan dependent coverage, will continue to be deducted from your monthly SDCERS pension payment.</li>



<li>Reimbursements for privately secured healthcare premiums and Medicare premiums will continue to be paid through your monthly SDCERS pension payment.</li>



<li>Continue to update your contact information via your SDCERS Member Portal – any changes made through the Member Portal will be reflected in City Retiree Health Services’ files as well.</li>
</ul>



What Will Change



<ul class="wp-block-list">
<li>Starting January 1, 2025, all new reimbursement requests and sponsored healthcare, dental, and vision plan enrollments and disenrollments will be processed through City Retiree Health Services.</li>



<li>Also beginning in January 2025, eligible retirees may begin applying for Medicare Part A reimbursements, retroactive to January 1, 2024.</li>



<li>If you are currently paying $174.70 per month for your Medicare Part B premium, additional verification is no longer required. However, if your current monthly Part B premium is different (e.g., due to IRMAA or low-income subsidy), then you must send verification documentation to City Retiree Health Services.</li>



<li>Beginning November 1, 2024, you can visit City Retiree Health Services’ website to review your retiree healthcare benefit information. You will not be able to register your account until you have received a letter from City Retiree Health Services with additional registration information and instructions.</li>
</ul>



In the coming weeks, you will receive a letter from City Retiree Health Services outlining these changes and providing contact information. Please be sure to open any letters you receive from City Retiree Health Services, as they will contain important information about your retiree healthcare benefits and plans. &nbsp;



We understand that transitions such as this can be stressful and you may have questions or concerns. We want to reassure you that SDCERS is working closely with City Retiree Health Services to ensure a smooth transition of your retiree health benefits administration. To stay up to date about this transition, visit the <a href="https://content.sdcers.org/resources/city-retiree-health/">City Retiree Health page</a> – this page will be updated periodically as we receive updates from City Retiree Health Services.



If you wish to speak to an SDCERS representative over the phone, please be advised that SDCERS anticipates callers will experience increased hold times between October and December. Therefore, we encourage you to utilize the Contact Us page on our website or send inquiries directly to <a href="mailto:health@sdcers.org">health@sdcers.org</a> rather than calling the main line. Electronic inquiries will generally be answered within three business days. Thank you in advance for your patience!

City Retiree Health Transitioning To New Administrator

SDCERS will be holding its regularly scheduled September 2024 Board and Committee meetings in our usual Board Meeting Room on the 3rd floor of our downtown office building – located at 401 West A Street, Suite 300.   Please note that SDCERS Board and Committee meetings are not held remotely (except as specified below) – Board and Committee members, as well as some SDCERS staff, will be on-site and the public is welcome to attend in person as well. You can find the agendas for the September 2024 meetings <a href="https://board.sdcers.org/onbaseagendaonline">here</a>.   However, as always, you can watch the Business &amp; Governance Committee and/or Board of Administration meeting live by going to the agendas page (linked above) at the start time of the meeting and clicking the “Live Media” button next to the corresponding meeting, which will display once the meeting begins.     Meeting Dates September 12th –        Disability Committee meeting at 9:00 a.m. PST                                     Business &amp; Governance Committee meeting at 9:15 a.m. PST                                     Investment Committee meeting at 12:30 p.m. PST   September 13th –        Board of Administration meeting at 9:00 a.m. PST   You may request to participate in public comment by attending the relevant meeting in person and providing a completed Request to Speak form to the Board Assistant before the meeting begins.

September 2024 Board & Committee Meetings

SDCERS was one of 157 public pension plans that participated in the National Conference on Public Retirement Systems’ (NCPERS) 2024 study, which invited public pension systems across the continent to share information on plan design, investment allocation, investment returns, actuarial assumptions, and plan governance practices. In recognition of SDCERS’ participation, NCPERS awarded SDCERS with its Certificate of Transparency. This certificate acknowledges SDCERS’ commitment to furthering an atmosphere of openness between public pension systems and the public. As “transparency” is one of&nbsp;<a href="https://content.sdcers.org/wp-content/uploads/2024/09/Core-Values.pdf">SDCERS’ six core values</a>, we were honored to receive this award. SDCERS strives to promote and maintain an open and honest relationship with its members, plan sponsors, and the public.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="450" height="594" src="https://content.sdcers.org/wp-content/uploads/2024/09/2024-ncpers-transparency-award.png" alt="NCPERS Certificate of Transparency. This Certificate of Transparency is awarded to the San Diego City Employees Retirement System for its participation in the 2024 NCPERS Public Retirement Systems Study, which seeks to further open 
disclosure, data collection, and encourage the public's 
understanding of public retirement systems. Signed by Hank Kim, Esq., Executive Director and Counsel." class="wp-image-42979" style="width:450px" srcset="https://content.sdcers.org/wp-content/uploads/2024/09/2024-ncpers-transparency-award.png 450w, https://content.sdcers.org/wp-content/uploads/2024/09/2024-ncpers-transparency-award-227x300.png 227w" sizes="auto, (max-width: 450px) 100vw, 450px" /></figure>



NCPERS is the largest trade association for public pensions, representing approximately 500 plans, plan sponsors, and other stakeholders through the U.S. and Canada. As a 501(c)(3) non-profit organization, NCPERS is comprises a network of trustees, administrators, public officials, and investment processionals who collectively oversee approximately $4 trillion in retirement funds.

SDCERS Receives Certificate of Transparency from NCPERS

At the July 12th Board meeting, SDCERS’ new Board President, Lisa Marie Harris, appointed Clifford Schireson to her previous position of Vice President, with the Board unanimously confirming his appointment. The Vice President’s duties include acting as the Board President whenever the Board President is absent or otherwise unable to fulfill their duties, and temporarily assuming the role of Board President until an election can be scheduled in the event the current Board President’s seat becomes vacant. Mr. Schireson will also continue his position as the Chair of the Investment Committee.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="115" height="155" src="https://content.sdcers.org/wp-content/uploads/2024/09/sdcers-4-29-2019-schireson-3550-8x10.jpg" alt="Clifford Schireson Board Vice President" class="wp-image-42703" style="object-fit:cover;width:200px;height:250px"/></figure>



Please join us in welcoming our new Vice President! Mr. Schireson’s biography can be found on our <a href="https://www.sdcers.org/about_sdcers/organization/board-members">Board Members</a> page. You can also watch the July 12, 2024 Board meeting <a href="https://board.sdcers.org/OnBaseAgendaOnline/Meetings/ViewMeeting?id=2118&amp;doctype=1">here</a>.

SDCERS’ Board Welcomes New Vice President

As SDCERS staff teleworks for a portion of each week, there may not always be a retiree health staff member available in the office to assist members in person. Moving forward, please submit your retiree health documentation to SDCERS via our Retiree Health mailbox at <a href="mailto:health@sdcers.org">health@sdcers.org</a>. As always, please ensure any attachments are in PDF format, or your email may be blocked by our firewalls.   If you require immediate, in person assistance, you must travel to SDCERS’ downtown offices on a Tuesday or Thursday (not including holidays) between 9:00 a.m. and 4:00 p.m. You are encouraged to call ahead to confirm availability of a retiree health staff member. SDCERS’ Call Center is open on regular business days from 9:00 a.m. – noon, and 1:00 – 4:00 p.m.   Also, if you have a retiree health reimbursement plan through your City employment, your annual reimbursement allowance may have changed for fiscal year 2025. See <a href="https://content.sdcers.org/wp-content/uploads/2024/09/FY-2025-City-Retiree-Health-Allowances-Chart.pdf" target="_blank" rel="noreferrer noopener">this chart</a> for updated City retiree health reimbursement allowances, which vary depending on your specific health reimbursement plan. City retiree health reimbursement allowances are based on a fiscal year calendar (July 1st – June 30th each year) and the annual allowances listed in the document linked above are effective as of July 1, 2024 and will reset on June 30, 2025.

Important Notice Regarding City Retiree Health &  FY 2025 Retiree Health Reimbursement Allowances

SDCERS will be holding its regularly scheduled July 2024 Board and Committee meetings in our usual Board Meeting Room on the 3rd floor of our downtown office building – located at 401 West A Street, Suite 300.   Please note that SDCERS Board and Committee meetings are not held remotely (except as specified below) – Board and Committee members, as well as some SDCERS staff, will be on-site and the public is welcome to attend in person as well. You can find the agendas for the July 2024 meetings <a href="https://board.sdcers.org/onbaseagendaonline">here</a>.   However, as always, you can watch the Business &amp; Governance Committee and/or Board of Administration meeting live by going to the agendas page (linked above) at the start time of the meeting and clicking the “Live Media” button next to the corresponding meeting, which will display once the meeting begins.     Meeting Dates July 10th –                  Audit Committee meeting at 9:00 a.m. PST   July 11th –                  Disability Committee meeting at 9:00 a.m. PST                                     Business &amp; Governance Committee meeting at 9:15 a.m. PST                                     Investment Committee meeting at 12:30 p.m. PST   July 12th –                  Board of Administration meeting at 9:00 a.m. PST   You may request to participate in public comment by attending the relevant meeting in person and providing a completed Request to Speak form to the Board Assistant before the meeting begins.

July 2024 Board & Committee Meetings

IMPORTANT: These changes only apply to (1) all City of San Diego members and (2) Port Safety members who were hired on or after January 1, 2013.   Member contributions are the mandatory pre-tax deductions on a member’s biweekly paycheck that are deposited into the SDCERS Trust Fund, where they earn interest and ultimately fund each member’s individual pension benefit. Contributions are calculated as a percentage of the member’s pensionable salary on each paycheck. The percentage is determined according to the member’s plan tier and age of entry into SDCERS. Contribution rates are adjusted by SDCERS’ Board, as recommended by SDCERS’ actuary, based on requirements in the City of San Diego Charter and the Public Employees’ Pension Reform Act of 2013.    At its May 2024 meeting, SDCERS’ Board of Administration approved new member contribution rates, which will go into effect on July 1, 2024 for all Port Safety Members hired on or after January 1, 2013, and all City of San Diego members. You can view your current contribution rate chart by going to “<a href="/resources/retirement_plan_summaries">Retirement Plan Summaries</a>” and clicking on your employer and date range corresponding to your initial hire date. You can also see how your contribution rate changed by reviewing<a href="https://content.sdcers.org/wp-content/uploads/2024/10/Differences-Between-FY24-and-FY25-Contribution-Rates-by-Plan-Tier.pdf" target="_blank" rel="noreferrer noopener"> the chart corresponding to your plan tier</a> and locating your entry age. (Note: If you log in to your <a href="https://members.sdcers.org/Account/MemberLogin">Member Portal</a> account and go to “SDCERS Account Information,” you can find your entry age there.) Most members will experience slightly increased contribution rates – this is due to changes in certain actuarial assumptions. The aggregate average across the board increase was approximately 1 percentage point.   According to the most recent annual valuation, the most significant change to the economic assumptions was an increase in the annual cost of living adjustment (“COLA”), from 1.90% to 2.00%. In addition, the price inflation and wage inflation assumptions were updated. Previously, the price inflation assumption and the wage inflation assumption were both 3.05%. Under the revised assumptions, the price inflation assumption is 3.00% and the wage inflation assumption is 3.25%, which is price inflation plus productivity. There were other minor adjustments to the demographic assumptions, including a change to the assumed mortality improvement scale to better anticipate future improvements in life expectancy. Overall, the new assumptions increase the expected cost to the system; therefore, members and their plan sponsors must contribute more while they are working in order to keep the system properly funded, given the added cost due to these new assumptions.

Contribution Rates

New Member Contribution Rates for FY 2025

If you receive anything in the mail from the Social Security Administration (“SSA”) or Centers for Medicare &amp; Medicaid Services (“CMS”), it is extremely important that you open it immediately! &nbsp; A small number of SDCERS’ retirees have experienced issues related to their Medicare Part B premiums. The affected retirees were required to pay their Medicare Part B premiums directly to CMS because they either 1) do not receive a monthly Social Security benefit, or 2) do receive a monthly Social Security benefit, but the amount is not enough to cover their Medicare Part B premiums. However, these retirees failed to make timely payments for their Part B premiums to CMS, resulting in the loss of their Medicare Part B coverage, and were subsequently either disenrolled from a sponsored Medicare Supplemental plan or they were switched to a much more expensive non-Medicare plan, with the higher monthly premiums owed retroactively to the date they lost their Medicare coverage.&nbsp;&nbsp; &nbsp; If you fail to pay your monthly or quarterly Medicare Part B premiums in full and on time, you may become delinquent, causing your Medicare coverage to be at risk. Note that we have received reports from retirees stating that they never received information from the SSA regarding unpaid premiums before their Medicare coverage was terminated! Medicare may not send monthly or quarterly invoices – if you are paying all or a portion of your Medicare Part B premiums directly to CMS, it is imperative that you periodically check with the SSA to confirm your premiums are paid in full and on time. &nbsp; If you have concerns about your status with Medicare, you should contact Social Security online at <a href="http://www.SSA.gov" class="broken_link">www.SSA.gov</a>, go in person to any Social Security Office, or contact Social Security by phone at (800) 633-4227. &nbsp; &nbsp;If you have not yet started your Medicare application process, please contact your local SSA office or visit <a href="http://www.SSA.gov" class="broken_link">www.SSA.gov</a> to find out if you are eligible and see information on how to apply. &nbsp; Please evaluate your healthcare coverage options carefully! Enrolling in a Medicare insurance plan may reduce your costs.&nbsp; However, note that you should not enroll in Medicare Part D (Prescription Drug Coverage) if you are enrolling in a health plan that already includes prescription drug coverage, because enrolling in Part D may result in the termination of your current health insurance coverage. &nbsp; Health plan experts are available at CareCounsel to assist retirees, free of charge, with any health plan questions including questions about Medicare – email <a href="mailto:staff@carecounsel.com">staff@carecounsel.com</a> or call (888) 227-3334 Monday – Friday, open from 6:30 a.m. to 5:00 p.m. PST. CareCounsel also provides helpful videos on their website that may answer your questions about Medicare: <a href="https://carecounsel.com/medicare.html">https://carecounsel.com/medicare.html</a>.

Important Reminder RE Medicare Medical Insurance Premiums

SDCERS is excited to announce Lisa Marie Harris as the SDCERS Board of Administration’s President.  Lisa Marie will be serving a one-year Presidential term with the possibility to serve a second one-year term.  Lisa Marie previously served two terms as the Board Vice-President with service as interim President and interim Investment Committee Chair.   Former Board President, Paul Kaufmann, served with distinction during his two one-year terms and confidently passed the gavel to Lisa Marie’s capable hands upon unanimous support from the entire board.  We look forward to her continued leadership in her new position. 



<figure class="wp-block-image size-medium"><img loading="lazy" decoding="async" width="240" height="300" src="https://content.sdcers.org/wp-content/uploads/2024/07/b6d72cfaa4c0a88993f573d4ed102d9c-240x300.jpg" alt="Lisa Marie Harris Board President a older black lady wearing dreds in a white suit with pearls" class="wp-image-37717" srcset="https://content.sdcers.org/wp-content/uploads/2024/07/b6d72cfaa4c0a88993f573d4ed102d9c-240x300.jpg 240w, https://content.sdcers.org/wp-content/uploads/2024/07/b6d72cfaa4c0a88993f573d4ed102d9c.jpg 400w" sizes="auto, (max-width: 240px) 100vw, 240px" /></figure>



Congratulations to our&nbsp;Board Vice President! You can see all of the SDCERS Board Members’ biographies, including Lisa Marie&#8217;s, <a href="https://www.sdcers.org/about_sdcers/organization/board-members">on this page</a>.

Lisa Marie Harris Elected as New Board President

At today’s meeting, SDCERS’ Board of Administration approved the Cost of Living Adjustment (“COLA”) that will be applied to eligible SDCERS retirees’ (including active DROP participants) monthly pension benefit amount beginning with their July 2024 payment. Your pension benefit will receive a COLA for Fiscal Year 2024 if your retirement or DROP entry date is on or before June 30, 2024. &nbsp; Per San Diego Municipal Code section 24.1505 and section 1301 of the Port and Airport Plans, the COLA is calculated every year based on the change in the cost of living between the two previous Decembers, as published by the Bureau of Labor Statistics Consumer Price Index (“CPI”), United States – All items. However, the maximum allowable increase in any given year is 2.0%. &nbsp; In years where the COLA is greater than the maximum 2.0% (such as this year), the amount over 2.0% is added to what is called a “COLA bank.” A retiree’s COLA bank accumulates based on their fiscal year of retirement (or DROP entry), and each annual retiree group has its own COLA bank. In years that the CPI’s published COLA is less than 2.0%, each retiree group’s COLA bank may be able to increase the actual COLA received by the retiree up to a maximum of 2.0%, if that retiree group’s COLA bank has accrued enough funds from previous years where the published COLA was greater than 2.0%. &nbsp; According to the CPI, the change in cost of living between December 31, 2022 and December 31, 2023 was 3.4% (rounded to the nearest 1/10th of a percent). This means that everyone who is retired or participating in DROP as of June 30, 2024 will receive the maximum 2.0% COLA increase to their pension benefit, and bank the additional 1.4%.



(Note: The two members in the City&#8217;s 1981 plan tiers will have a 2.4% COLA for FY 2025.)&nbsp;



This means that those who receive the fiscal year 2025 COLA and add the additional 1.4% to their COLA banks will be able to use the amount accrued in their COLA bank in future years, such that they would still receive a 2.0% increase even if the published COLA is less than 2.0%. Let’s look at a theoretical scenario to really see the significance – but please remember that we have absolutely no way of predicting what the CPI’s published COLA will be in future years, and this is therefore very much a hypothetical example: &nbsp; If Sam Diego retires or enters DROP in June of 2024 and his monthly pension benefit is $5,000:



<figure class="wp-block-image"><img decoding="async" src="https://content.sdcers.org/wp-content/uploads/2024/12/fy2025-cola-bank-example.png?width=700&amp;height=207" alt="Table: Column 1 - Fiscal Year: 2025, 2026, 2027, 2028, 2029, 2030. Column 2 - Published COLA: 3.4%25, 1.4%25, 2.5%25, 1.2%25, 2.1%25, 1.8%25. Column 3 - Applied COLA: 2%25, 2%25, 2%25, 2%25, 2%25, 2%25. Column 4 - Increased Monthly Pension Benefit: $5,100; $5,202; $5,306; $5,412; $5,520; $5,630. Column 5 - Remaining COLA Bank: 1.4%25, 0.8%25, 1.3%25, 0.5%25, 0.6%25, 0.4%25."/></figure>



You can see how the 1.4% addition to Sam’s COLA bank right off the bat can help ensure his benefit receives the maximum 2.0% increase in future years, when the published COLA is less than 2.0%. In the example above, we assumed that the published COLA applicable to fiscal years 2026-2030 was always between 1.2% and 2.5%. Note that if the published COLA is less in any given years, more would be subtracted from Sam’s COLA bank for those years. Conversely, in any years where the published COLA is greater than 2.0%, the amount above 2.0% would be once again added to his bank.   This article is not an attempt to persuade you to retire or enter DROP before July 1, 2024 – there are certainly other factors to consider, such as your age, upcoming salary increases, etc. (please review <a href="/category/retirement-resources">this article</a> discussing factors to consider before deciding when to retire, or <a href="/category/drop">this article</a> discussing considerations when deciding upon a DROP entry date). However, it’s always worth noting when the published COLA is greater than 2.0%, as this may factor into your decision to retire or enter DROP before the beginning of the next fiscal year. (Note: You must enter DROP on the first day of a pay period – please consult your payroll specialist to confirm your pay period start dates in June.)   If you are eligible to receive a fiscal year 2025 COLA, the applicable increase will be reflected in your July 2024 pension payment.

Cost of Living Adjustment (“COLA”) for Fiscal Year 2025

SDCERS will be holding its regularly scheduled May 2024 Board and Committee meetings in our usual Board Meeting Room on the 3rd floor of our downtown office building – located at 401 West A Street, Suite 300. &nbsp; Please note that SDCERS Board and Committee meetings are not held remotely (except as specified below) – Board and Committee members, as well as some SDCERS staff, will be on-site and the public is welcome to attend in person as well. You can find the agendas for the May 2024 meetings <a href="https://board.sdcers.org/onbaseagendaonline">here</a>. &nbsp; However, as always, you can watch the Business &amp; Governance Committee and/or Board of Administration meeting live by going to the agendas page (linked above) at the start time of the meeting and clicking the “Live Media” button next to the corresponding meeting, which will display once the meeting begins. &nbsp; &nbsp; Meeting Dates May 9th – &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disability Committee meeting at 9:00 a.m. PST &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business &amp; Governance Committee meeting at 9:15 a.m. PST &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Committee meeting at 12:30 p.m. PST &nbsp; May 10th – &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Administration meeting at 9:00 a.m. PST &nbsp; You may request to participate in public comment by attending the relevant meeting in person and providing a completed Request to Speak form to the Board Assistant before the meeting begins.

May 2024 Board & Committee Meetings

Please remember that SDCERS staff teleworks for a portion of each week, and there may not always be a retiree health staff member available in the office to assist members in person. Moving forward, if you would like to speak with a retiree health staff member in person, you must travel to SDCERS’ downtown offices on a Tuesday or Thursday (excluding holidays) between 9:00 a.m. and 4:00 p.m.



You are encouraged to call ahead to confirm availability of a retiree health staff member, especially if you are requesting to have your documents reviewed. SDCERS’ Call Center is open on regular business days from 9:00 a.m. – noon, and 1:00 – 4:00 p.m.



You can also reach SDCERS’ retiree health staff via email, at <a href="mailto:health@sdcers.org">health@sdcers.org</a>.

Reminder Regarding City Retiree Health

When was the last time you thought about your SDCERS beneficiary designations? Over a year ago? Five years? The day you enrolled in SDCERS? Maybe never? Beneficiary designations may seem like a chore you can put off or do once and forget about, but the truth is you should review your beneficiary designations at least once a year to make sure they reflect your current circumstances. For example, beneficiary designations probably aren’t the first thing on your mind when you get married or divorced, have a child, or lose a loved one, but these are all defining life events that may affect who you want to receive your pension benefits when you die.



Active Members (meaning those who are actively employed by the City, Port,* or Airport and contributing to SDCERS, but are not in DROP) are eligible to leave one of three types of death benefits if they die before retiring or entering DROP, and the eligibility requirements are very specific for two of the three types. Importantly, if you die without having designated your surviving spouse as your sole pre-retirement death benefit beneficiary, then your surviving spouse will not be eligible to receive the lifetime Death While Eligible or Industrial Death Benefit, even if all other eligibility requirements are satisfied. Below is a summary of the death benefits provided to Active Members, but please review the <a href="/resources/learn_about/death-benefits">Death Benefits Fact Sheet</a> for more in-depth information.   *General Port employees hired or rehired on or after January 1, 2009 (and are not in the General 2024 Plan) must complete five consecutive years of Port employment after each hire or rehire date before they become Members of SDCERS and are eligible to leave a death benefit.   Active Death Benefit – Paid upon the death of a Member who is not yet eligible to retire and whose death is not related to work. This benefit is a refund of the Member’s retirement contributions, plus interest, and up to six months of one year’s salary. This benefit is a set amount determined by a formula contained in the applicable retirement plan document, and it is not a lifetime benefit. The benefit will be paid to the Member’s designated beneficiary(ies). If no beneficiary has been named, SDCERS will pay this benefit to the Member’s estate or, if the estate is not required to be probated, then distributed in the following order of priority: 1) surviving spouse, 2) children, 3) parents, 4) siblings, or 5) next of kin.   Death While Eligible Benefit – Paid upon the death of a Member who is already eligible to retire when they die and whose death is not related to work. The monthly value of this benefit is approximately 50% of what the Member would have received as a monthly pension benefit if they had retired on the date of death, paid in the form of:



<ul class="wp-block-list">
<li>
A lifetime monthly payment to the surviving spouse who is married to the Member and named as the primary beneficiary at the time of the Member’s death,
</li>



<li>
Or, if there is no surviving spouse, then paid in equal shares to the Member’s minor children until each child reaches the age of 18 (or 21 for Port and Airport Members).
</li>
</ul>



Please note that if the Member leaves behind a spouse who was not named as the sole beneficiary, the surviving spouse will not be eligible to receive the lifetime benefit, even if all other eligibility requirements are satisfied. However, if the Member leaves behind minor children, then the children will be eligible to receive this benefit until they turn 18 (or 21 for Port and Airport Members), regardless of the Member’s beneficiary designation. &nbsp; Industrial Death Benefit – Paid upon the death of a Member who is not yet eligible to retire and whose death is due to proven work-related causes. The annual value of this benefit is approximately 50% of the Member’s salary, which is paid in the form of:



<ul class="wp-block-list">
<li>
A lifetime monthly payment to the surviving spouse who is married to the Member and named as the primary beneficiary at the time of the Member’s death,
</li>



<li>
Or if there is no surviving spouse, then paid in equal shares to the Member’s minor children until each child reaches the age of 18 (or 21 for Port and Airport Members).
</li>
</ul>



Please note that if the Member leaves behind a spouse who was not named as the sole beneficiary, the surviving spouse will not be eligible to receive the lifetime benefit, even if all other eligibility requirements are satisfied. However, if the Member leaves behind minor children, then the children will be eligible to receive this benefit until they turn 18 (or 21 for Port and Airport Members), regardless of the Member’s beneficiary designation. &nbsp; As you can imagine, it may take a while to sort out who gets what if you die without updating your beneficiary designations. Luckily, designating a beneficiary is quick, easy, and you can do it from home by logging in to your SDCERS Member Portal account and clicking “Beneficiary Information” from the left menu. (If you don’t already have a Member Portal account, you can register <a href="http://members.sdcers.org/" target="_blank" rel="noopener">here</a>.)



<figure class="wp-block-image"><img decoding="async" src="https://content.sdcers.org/wp-content/uploads/2024/12/portal-screenshot-beneficiaries.png?width=1000&amp;height=413" alt="Screenshot of SDCERS Member Portal, showing where the beneficiary information page is located and examples of three beneficiary designations."/></figure>



You will be able to name beneficiaries to receive different types of death benefits depending on if you are active, in DROP, or retired. You can designate both a Primary and an Alternate beneficiary. When you die, your Primary is first in line to collect the death benefit, while your Alternate receives the benefit only if the Primary is already deceased. For some death benefits, you can name multiple beneficiaries and designate a specific percentage of the benefit to each person. If you choose to do this, make sure your percentages add up to 100%. Lastly, you may also designate a trust to receive any death benefit that is not a continuance or an annuity.

Active Members – Keep Your Beneficiary Designations Updated!

SDCERS will be holding its regularly scheduled March 2024 Board and Committee meetings in our usual Board Meeting Room on the 3rd floor of our downtown office building – located at 401 West A Street, Suite 300. &nbsp; Please note that SDCERS Board and Committee meetings are not held remotely (except as specified below) – Board and Committee members, as well as some SDCERS staff, will be on-site and the public is welcome to attend in person as well. You can find the agendas for the March 2024 meetings <a href="https://board.sdcers.org/onbaseagendaonline">here</a>. &nbsp; However, as always, you can watch the Business &amp; Governance Committee and/or Board of Administration meeting live by going to the agendas page (linked above) at the start time of the meeting and clicking the “Live Media” button next to the corresponding meeting, which will display once the meeting begins. &nbsp; &nbsp; Meeting Dates March 6th –&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Audit Committee meeting at 9:00 a.m. PST &nbsp; March 7th – &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disability Committee meeting at 9:00 a.m. PST &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business &amp; Governance Committee meeting at 9:15 a.m. PST &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Committee meeting at 12:30 p.m. PST &nbsp; March 8th – &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Administration meeting at 9:00 a.m. PST &nbsp; You may request to participate in public comment by attending the relevant meeting in person and providing a completed Request to Speak form to the Board Assistant before the meeting begins. &nbsp; &nbsp;

March 2024 Board & Committee Meetings

When it comes to retirement or entering DROP, timing is everything. One consideration when choosing your date is the effect of retiring or entering DROP before versus on June 30th (or earlier) compared to July 1st (or later) of any given year.   The main benefit of retiring or entering DROP towards the end of a fiscal year is that you will receive the next fiscal year’s cost of living adjustment (“COLA”) much sooner than if you wait to retire or enter DROP until the beginning of the next fiscal year. Everyone who retires or enters DROP before July 1st in any given year is eligible to receive that year’s COLA on their July pension payment, which usually increases your base pension benefit by 1-2% (maximum of 2% per year). However, if you retire or enter DROP on or after July 1st, you won’t receive a COLA until the July of the following year, when the next fiscal year begins. For example, let’s say your base pension benefit is $3,000 per month. If you retire on June 30, 2024 and the COLA effective July 1, 2024 is 2%, you’ll receive an additional $60 on each month’s pension check from July 2024 through June 2025, which comes to an additional $720 for the year. That’s $720 you’d miss out on if you chose to retire on or after July 1, 2024. (Note: The fiscal year 2025 COLA, effective July 2024, will be decided at the May 10, 2024 Board meeting – you can check SDCERS’ website the following week, which will have an article on the front page announcing what the July 2024 COLA will be.)   On the flip side, it’s possible you could increase your base pension benefit by waiting until after a new fiscal year has begun to retire or enter DROP. The logic behind this conclusion lies in your pension benefit formula: Retirement Factor x Final Compensation x Service Credit. First, retiring at an older age may grant you a higher retirement factor – remember that retirement factors are prorated in quarterly increments, so if your plan tier’s factor increases between age 62 and 63, for example, it will be slightly higher if you retire at age 62 ¼ compared to age 62. Second, the longer you continue to work before you retire, the more service credit you will accrue. In general, more service credit means a higher pension benefit. Lastly, if you recently received a salary increase, working longer while receiving that higher salary can increase your final compensation. Looking at the pension benefit formula, you can see that an increased final compensation will result in a greater pension benefit.   However, the thing to remember about your final compensation is that you must receive the higher salary for at least several months in order for it to have a noticeable effect on your pension benefit amount. The “Final Compensation” used in your pension benefit calculation is your highest pensionable salary averaged over either one or three years, depending on your plan tier. Therefore, if you only began receiving your increased salary in the beginning of the calendar year, you may want to keep working for at least several months into the new fiscal year in order to see a significant difference in your benefit amount. In order for your higher salary to be used in full when calculating your benefit, you’d have to continue working for one or three years from the date of your salary increase, again depending on your plan tier.   One more possible benefit of retiring or entering DROP after the start of a new fiscal year has to do with your cost of living (“COL”) annuity and interest applied to member contributions.* Your member contributions receive annual interest, currently at a rate of 6.5%, applied every June 30th. However, your contribution account do not receive that year’s interest if you are retired or participating in DROP before July 1st. Depending on your specific circumstances and the COLA for that year, waiting to retire or enter DROP until after the interest has been applied to your contributions may increase your COL annuity to such an extent that the higher COL annuity, combined with any other applicable benefits of waiting as discussed above, could be more financially beneficial to you than the COLA would be. If this is true in your case, it could make more sense to retire or enter DROP on or after July 1st. (Note: The same logic applies to your Surviving Spouse Annuity, if you select the Maximum Benefit (Single) retirement benefit option – see the <a href="/resources/learn_about/retirement-benefit-option">Retirement Benefit Options Fact Sheet</a> for more information.)   *Police officers hired on or after August 1, 2012 and <a href="/resources/retirement_plan_summaries/san-diego-port">Port General 2024 Members</a> do not receive the COL annuity.   To be clear, the financial pros and cons of retiring or entering DROP before vs. after the start of a new fiscal year depend on multiple factors and your individual circumstances. There is no one size fits all regarding retirement/DROP entry date – it is a very personal decision and should be made after careful consideration of all relevant factors. This article is intended to inform you of some possible benefits of retiring before or after July 1st of a given year. Also, if you are considering entering DROP, please be reminded that your DROP entry date must be on the first day of a pay period – the last day to enter DROP before the beginning of Fiscal Year 2025 will be June 22, 2024 for City members and June 28, 2024 for Port and Airport members. Please submit your service retirement or DROP entry application via your <a href="https://members.sdcers.org/Account/MemberLogin?ReturnUrl=%2f">Member Portal</a> account soon if you are thinking about retiring or entering DROP before July 1st, so you can schedule a counseling appointment in May or early June – don’t procrastinate!

All IRS Form 1099-R’s for tax year 2023 were mailed on January 16th. This means all SDCERS retirees and beneficiaries who received a payment from SDCERS in calendar year 2023 should be receiving their 2023 1099-R forms via U.S. mail over the next couple of weeks. To access your 1099-R form sooner, please log in to your <a href="https://content.sdcers.org/wp-content/uploads/2024/12/2024-guide-to-tax-withholding-on-portal.pdf" target="_blank" rel="noreferrer noopener">Member Portal</a> account, click on “Tax Reporting” on the left, and select “2023 1099R” to download an electronic copy. You can also update your tax withholding preferences on your Member Portal by clicking on “Tax Withholding.” <a href="https://content.sdcers.org/wp-content/uploads/2024/12/2024-guide-to-tax-withholding-on-portal.pdf" target="_blank" rel="noreferrer noopener">This guide</a> explains how to update your tax withholding preferences.   For a detailed explanation of the pertinent information in your 1099-R, as well as answers to frequently asked questions regarding this tax form, please review our <a href="/resources/learn_about/form-1099r-explained">1099-R Fact Sheet</a>. If you have additional questions, please contact the Call Center at (619) 525-3600 or submit your questions electronically via our <a href="https://www.sdcers.org/about-us/contact-us">Contact Us</a> web form.

2023 1099-R Tax Forms

Friday, SDCERS said a bittersweet goodbye to our Deputy Chief Executive Officer, Marcelle Voorhies Rossman, who retired after attending her last SDCERS Board meeting as part of our staff. Marcelle gave more than 23 years of her career to the City of San Diego, and about 10 of those years were spent on SDCERS’ team. After many years leading our Benefits Administration Division, Marcelle spent the last six years as our Deputy CEO, overseeing not only Benefits Administration, but also Member Services, Finance, Retiree Health, Disability Retirement, and Death Benefits. Her knowledge of actuarial science and her expertise when it comes to organizing and analyzing spreadsheets is unparalleled. In recent years, Marcelle took the lead working with the City to facilitate the reversal of Proposition B, a huge undertaking that required near-constant attention and coordination across multiple City departments.



<img decoding="async" style="width: 300px; height: 375px;" src="https://content.sdcers.org/wp-content/uploads/2024/12/marcelle-rossman.jpg?width=300&amp;height=375" alt="Portrait of Marcelle Voorhies Rossman">​ &nbsp; While Marcelle’s upbeat attitude, motivational leadership style, and institutional knowledge will be sorely missed, we know she has trained her team well and prepared SDCERS staff to fill in the hole she leaves behind. Please join us as, with mixed emotions, we congratulate our esteemed Deputy CEO on her well-earned retirement.

Farewell, Marcelle

SDCERS will be holding its regularly scheduled January 2024 Board and Committee meetings in our usual Board Meeting Room on the 3rd floor of our downtown office building – located at 401 West A Street, Suite 300. &nbsp; Please note that SDCERS Board and Committee meetings are not held remotely (except as specified below) – Board and Committee members, as well as some SDCERS staff, will be on-site and the public is welcome to attend in person as well. You can find the agendas for the January 2024 meetings <a href="https://board.sdcers.org/onbaseagendaonline">here</a>. &nbsp; However, as always, you can watch the Business &amp; Governance Committee and/or Board of Administration meeting live by going to the agendas page (linked above) at the start time of the meeting and clicking the “Live Media” button next to the corresponding meeting, which will display once the meeting begins. &nbsp; Meeting Dates January 11th – &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disability Committee meeting at 9:00 a.m. PST &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business &amp; Governance Committee meeting at 9:15 a.m. PST &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Committee meeting at 12:30 p.m. PST &nbsp; January 12th – &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Administration meeting at 9:00 a.m. PST &nbsp; You may request to participate in public comment by attending the relevant meeting in person and providing a completed Request to Speak form to the Board Assistant before the meeting begins.

January 2024 Board & Committee Meetings

The Government Financial Officers Association (“GFOA”) has awarded SDCERS the Certificate of Achievement for Excellence in Financial Reporting for SDCERS’ 2022 Annual Comprehensive Financial Report (“ACFR”) and Popular Annual Financial Report (“PAFR”). This is the 15th year in a row SDCERS has received this recognition!



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="604" height="747" src="https://content.sdcers.org/wp-content/uploads/2023/12/2022-acfr-award.png" alt="" class="wp-image-44241" style="width:404px;height:auto" srcset="https://content.sdcers.org/wp-content/uploads/2023/12/2022-acfr-award.png 604w, https://content.sdcers.org/wp-content/uploads/2023/12/2022-acfr-award-243x300.png 243w" sizes="auto, (max-width: 604px) 100vw, 604px" /></figure>



The GFOA is a non-profit professional association serving approximately 15,000 government finance professionals. SDCERS’ ACFR and PAFR were judged by an impartial panel and deemed to have met the high standards of the certificate program, including demonstrating an effective means to disclose and clearly communicate SDCERS’ financial story and to motivate Members and the public to read the ACFR and PAFR.&nbsp; This award is the highest form of recognition in the area of government accounting and financial reporting. It represents a significant accomplishment by a governmental agency and its management.



SDCERS’ award-winning ACFRs and PAFRs are available online and can be viewed <a href="https://content.sdcers.org/financials-investments/annual-financial-reports/" target="_blank" rel="noreferrer noopener">here</a>.

SDCERS Receives Certificate of Achievement for Excellence in Financial Reporting for 15th Consecutive

SDCERS is proud to announce it has received the Municipal&nbsp;Information System Association of California (MISAC)&nbsp;Quality Information Technology Practices Award for the sixth year in a row.&nbsp;MISAC is a collaborative organization of California local government IT professionals with the goal of promoting leadership, information sharing, and access to resources to enhance local government services and effectiveness.&nbsp;Membership includes cities, towns, public safety, special districts, and other local governmental agencies/districts.&nbsp;



<img decoding="async" style="width: 600px; height: 463px;" src="https://content.sdcers.org/wp-content/uploads/2024/12/2023-misac-award.png?width=600&amp;height=463" alt="Quality IT Practices Award - 2023. This Certificate is awarded to San Diego City Employees' Retirement System in recognition of quality information technology practices. MISAC - Municipal Information Systems Association of California. Signed by Ed Miranda, MISAC State Board President; and Bryon Horn, Awards Committee Chairman, on September 26, 2023">​



The award qualifications for 2023 changed to follow the National Institute of Standards and Technology (NIST) SP800-53P standards. The NIST standards is a set of recommended security and privacy controls followed for federal information systems and organizations. Agencies respond using the control catalog covering the standards of low, moderate and high. Those agencies that achieve a minimum of 80% of the controls are recognized with the MISAC Quality in IT Practices award.&nbsp; &nbsp; Receiving MISAC Quality IT Practices Award is an honor and tribute to the dedication and performance of SDCERS’ IT staff and contractors.