Highlights

April 2012 Cost of Living Adjustment (COLA)

The Board of Retirement has determined that there will be a 2.5% cost of living increase in benefit allowances as of April 1, 2012.  As a result, retirees and beneficiaries will see an increase in their April benefit, which is paid on May 1.  The increase is calculated based on the 2011 increase in the Annual Average Consumer Price Index for the Los Angeles-Riverside-Orange County area.  The COLA for those with an initial retirement date of April 1, 1988, or prior will be supplemented by 0.5% from their Accumulated Carry-Over (“COLA bank”) for a total increase of 3%.  Members who retired under General Plan 2 are ineligible for the COLA.

New General Investment Consultant

The Board of Retirement selected a new General Investment Consultant on February 8, 2012.  Through an RFP process that began last summer, the Board evaluated the qualifications and philosophies of ten candidate firms and selected Meketa Investment Group to act as its General Consultant.  Meketa replaces Pension Consulting Alliance which had acted in this capacity since 1991.

Meketa serves as an independent investment fiduciary and will assist the Board of Retirement in setting and achieving investment objectives for SBCERS’ $2Billion trust fund.  The consultant provides expert analysis and advice in setting its asset allocation, selecting and evaluating investment managers, and monitoring the results of our investment program.  Meketa was established in 1974 and currently serves 68 full service institutional clients with aggregate assets of approximately $83 billion.  Among its public institutional clients are CalPERS, Arizona State Retirement System, and San Jose Federated City Employees’ Retirement System. 

SBCERS retains separate discretionary consultants for its Private Equity (Hamilton Lane) and Real Estate (ORG) portfolios.