SamCERA nominated for investments award
SamCERA was honored recently to be among three public pension plans nationwide nominated for Mid-Sized Plan of the Year, an award presented by The Money Management Letter.
SamCERA was nominated because of changes the Retirement Board made in 2009 to further diversify the investments of the plan.
According to The Letter, “The $1.8 billion San Mateo County Employees Retirement System began investing in global equity and bond mandates in 2009 to give managers more latitude to seek out the best securities and achieve stronger returns. SamCERA also made a 15% allocation to Treasury inflation-protected securities and a 7.5% allocation to the Public Private Investment Program to further diversify its bond portfolio and protect against inflation.”
The fund has also, “...cut its equity exposure, raised bonds and real estate ... made a 0.5% allocation to cash... brought in fundamental managers AXA Rosenberg, BlackRock and others, reducing its reliance on quantitative strategies that had been impacted by the market crisis.”
In the 2009 calendar year SamCERA took part in the rebound in the financial markets earning 19% on its fund. These earnings come at the right time, although the fund still has a long way to go before it reaches the asset value it attained before the start of the recession.
The Arizona Public Safety Personnel Retirement
System and the Dallas Police and Fire Pension Fund were also nominated for the
award, which the Dallas system eventually won. We are pleased that the SamCERA board was recognized for its proactive approach and hard work.
New trustees appointed to board
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| Eric Tashman | Lauryn Agnew |
Two new trustees were appointed to the Board of Retirement in November.
Lauryn Agnew is a Principal at Seal Cove Financial and serves as Chair of the investment committees at United Way of the Bay Area and the Girls Scouts of Northern California, and also serves on the Finance Committee for the Immaculate Conception Academy in San Francisco. Her term on the retirement board will expire June 30, 2012. Ms. Agnew had prior service on the Board of Retirement from 1989 to 1998. During that time she served as Board Chair and as Chair of the Investment Committee.
Eric Tashman is a public finance partner in the San Francisco office of law firm Sidley Austin where he is head of the firm's West Coast public finance practice group. His term expires June 30, 2012.
The two new trustees replace James Hooley and Emily Tashman.
Ms. Agnew and Mr. Tashman were appointed by the Board of Supervisors.
The supervisors appoint four of the nine positions on the retirement board. Four other positions are elected from the membership including two from the general membership, one from the safety membership and one from the retired membership.
In addition, the members elect a safety alternate and a retired alternate. One member of the board is the County Treasurer. The Treasurer’s constitutional alternate may attend board meetings in his/her place.
Internet trustee elections planned
SamCERA and the Elections Division are planning to allow you to vote on the Internet for the next trustee elections to be held in June 2010. All previous elections have been by paper ballot. The hope is that an Internet election will increase turnout, which has been about 20% of eligible voters for recent elections.
After substantial research, SamCERA has concluded that an Internet election will be not only secure, but probably more secure than paper ballot elections. It will also be green (less paper and less gas burning delivery involved), and more convenient for voters (no more envelope sealing, walking to the mailbox, etc.) There will still be some thinking involved, but you will still be able to view statements from each candidate to help out with that.
The official Notice of Election is below
What should I do if I am getting divorced?
Divorce is always a difficult experience. SamCERA wants to help you with decisions about your retirement if you must go through a divorce. Here is some important information:
The service credit you earned during the period of your marriage is community property and may be divided into two separate accounts at the time of your divorce.
If you are separated, but not divorced, your spouse is still entitled to survivor benefits until you name a new beneficiary. You may not designate a new beneficiary without your spouse’s written consent.
If you become involved in dissolution of marriage proceedings, your attorneys need to know the following:
· The San Mateo County Employees' Retirement Association must be joined by Order of the Court.
· SamCERA requires a copy of any court order which addresses the disposition of SamCERA retirement credits or accounts.
· A typical court order will split the member's service credit and contributions into two separate accounts at the time of the divorce. This allows each party to make independent decision about their SamCERA retirement. Please contact SamCERA for a copy of the Dissolution of Marriage Guidelines which describes this program and includes Model Domestic Relations Orders.
· A sample model order is available on SamCERA’s web site. http://www.samcera.org/forms/OrderA.doc
· Service
credit, contributions and interest reflecting a former spouse’s community
property interest, as defined in a Domestic Relations Order, may be withdrawn
from the member’s account and deposited into a new account in the name of the
former spouse. If the former spouse chooses to retire, the benefit will be
based on the member’s highest average compensation at the time of retirement,
the service credit in the former spouse’s account and the former spouse’s age
at retirement.
If the former spouse withdraws the funds, the member may repurchase the service
credit.
· SamCERA is not governed by ERISA.
· SamCERA will not provide a preliminary estimate of benefits to a former spouse without a petition for dissolution of marriage showing both marriage and separation dates.
· Your Domestic Relations Order must be in a form that is acceptable to SamCERA; therefore, it is very important that you contact us very early in the process.
· You will not be permitted to retire or withdraw your contributions until SamCERA has received an acceptable copy of all court documents that address your SamCERA retirement.
If you have any questions, please contact SamCERA at (650) 599-1234.
Want to purchase or upgrade service?
Would you like to purchase your extra help time, redeposit withdrawn contributions or upgrade your Plan 3 service?
SamCERA’s open enrollment for these actions is now underway. Open enrollments for purchases and upgrades occur twice each year. So if you don’t make a purchase now you can make it later. But the earlier you pay for a purchase or upgrade the less it is likely to cost, since interest is part of the cost calculation.
Please also note that California law and IRS rules place restrictions on the timing and the payment methods for purchases and upgrades of service. Please pay close attention to the deadlines as noted below.
Here are the process deadlines for the first half of 2010
To start the purchase process, complete either the Plan 3 upgrade, Extra Help or Redeposit form located on SamCERA’s website: www.samcera.org or call 650-599-1234 to have a form sent to you.
Once you have completed the request, please return it to:
SamCERA
100 Marine Parkway, Suite 125
Redwood Shores, CA 94065
Or Pony: RET141, Or Email: sthompson@samcera.org
SamCERA must receive your request by 5 p.m., May 6, 2010. [Any requests for purchase agreements received after that date will be put on the list for the next purchase cycle beginning in August 2010.]
All members who meet the above deadline will receive their cost quotes from SamCERA by June 1, 2010.
Signed purchase agreements and payments must be received in SamCERA’s office by 5 p.m. on June 10, 2010.
Avoid the rush! Send your forms in early!
Note: The deadlines above do not apply to purchases of Additional Retirement Credit (ARC). Deadlines for ARC are set separately for each member who applies.
Upcoming SamCERA-sponsored classes and workshops
Listed below are all the SamCERA-sponsored training opportunities through the end of April.
Please note that the April 8th classes will be held at the San Mateo Medical Center.
To attend the Ready to Retire workshop, please email samcera@samcera.org.
For all other classes, sign up through the “Private Site” on the County’s Learning Management System (LMS) at https://sanmateocounty.cyberu.com/client/sanmateocounty/default.aspx. (Your user name is an x followed by your nine-digit employee ID number (example: x000012345).
March 25, 2010, Courses
HOW TO RESEARCH AND SELECT STOCKS
(RECOMMENDED FOR THOSE WHO DESIRE DETAILED KNOWLEDGE ON HOW TO MAKE MORE INFORMED STOCK SELECTIONS)
Instructor: PATTI O’HEALY
Date: 3/25, 2010 • Time: 8:30 AM-10:30 AM
Session Length: 2 HOURS
Location: SAMCERA BOARD ROOM, 100 MARINE PARKWAY, REDWOOD SHORES
Registration: SIGN UP THROUGH THE COUNTY’S LEARNING MANAGEMENT SYSTEM
Through real life exercises and interactive discussion, participants who attend this course will gain a more in-depth understanding of how to research, study, and invest in stocks. Each participant receives a 50-plus page stock selection guide, which reviews each topic covered and provides resources and a glossary for future use.
SELECTING MUTUAL FUNDS FOR YOUR PORTFOLIO
(RECOMMENDED FOR THOSE WHO DESIRE A GREATER UNDERSTANDING OF HOW TO SELECT MUTUAL FUNDS)
Instructor: PATTI O’HEALY
Date: 3/25, 2010 • Time: 11:30 AM-1:30 PM (BROWN BAG LUNCH SESSION)
Session Length: 2 HOURS
Location: SAMCERA BOARD ROOM, 100 MARINE PARKWAY, REDWOOD SHORES
Registration: SIGN UP THROUGH THE COUNTY’S LEARNING MANAGEMENT SYSTEM
Participants attending this course will gain more in-depth knowledge of important factors when selecting mutual fund investments. By using real life examples and exercises, participants will attain important skills for future investment selections. Each participant will receive a 55-page workbook, which reviews each topic covered, and provides resources and a glossary for future use.
MANAGING YOUR INVESTMENT PORTFOLIO
(RECOMMENDED FOR THOSE WHO DESIRE BROADER KNOWLEDGE ON HOW TO MANAGE THEIR INVESTMENT PORTFOLIO)
Instructor: PATTI O’HEALY
Date: 3/25, 2010 • Time: 2:30 PM-4:30 PM
Session Length: 2 HOURS
Location: SAMCERA BOARD ROOM, 100 MARINE PARKWAY, REDWOOD SHORES
Registration: SIGN UP THROUGH THE COUNTY’S LEARNING MANAGEMENT SYSTEM
Participants who attend this course will learn how to structure, build, and monitor an investment portfolio to achieve their financial goals while minimizing risk. Each participant receives a 50-plus page workbook, which reviews each topic covered and provides resources and a glossary for future use.
APRIL 1, 2010, Course
READY TO RETIRE - RETIREMENT WORKSHOP
(Please call or e-mail SamCERA directly to enroll for this workshop.)(RECOMMENDED FOR THOSE EMPLOYEES WITHIN 1 YEAR OF RETIREMENT)
Instructor: ELIZABETH LENGUYEN
Date: 4/1/2010 • Time: 10:00 AM-11:00 AM
Session Length: 1 HOUR
Location: SAMCERA BOARD ROOM, 100 MARINE PARKWAY, REDWOOD SHORES
Registration: PLEASE EMAIL SAMCERA@SAMCERA.ORG
If you are thinking of retiring within a year, then make plans to attend this workshop. We will discuss retirement pension estimates and the retirement application process. A representative from the Benefits Department will also be present to answer any questions regarding retiree health benefits.
April 8, 2010, Courses
BUILDING YOUR WEALTH (RETIREMENT PLANNING FOR MID CAREER)
(RECOMMENDED FOR THOSE WHO WANT TO TAKE CHARGE OF THEIR FINANCIAL FUTURE DURING THE EARLY TO MIDDLE YEARS OF THEIR CAREER)
Instructor: KEITH DORNEY
Date: 4/8, 2010 • Time: 8:30 AM-10:30 AM
Session Length: 2 HOURS
Location: SAN MATEO MEDICAL CENTER, EDUCATION CLASSROOM 1
Registration: SIGN UP THROUGH THE COUNTY’S LEARNING MANAGEMENT SYSTEM
Participants who attend this course will be able to set up a plan and stay on track for retirement without short-changing other financial goals, evaluate tax implications of various investments, and consider the option of early retirement. Each participant receives a 50-plus page guide to be used in class and for future reference.
ESTATE PLANNING: UNDERSTANDING THE BASICS
(RECOMMENDED FOR THOSE WHO WANT TO BETTER PREPARE NOW FOR THEIR FUTURE)
Instructor: KEITH DORNEY
Date: 4/8, 2010 • Time: 11:30 AM-1:30 PM (BROWN BAG LUNCH SESSION)
Session Length: 2 HOURS
Location: SAN MATEO MEDICAL CENTER, EDUCATION CLASSROOM 1
Registration: SIGN UP THROUGH THE COUNTY’S LEARNING MANAGEMENT SYSTEM
Participants who attend this course will have a greater understanding of the estate planning process in general. Participants will learn about an easy 3-step process to set up an estate plan. In addition, this course will help simplify the terminology and jargon used by the financial planning and legal profession. Each participant will receive a 50-plus page workbook, which reviews each topic covered and provides resources and a glossary for future use.
CREATING AND MANAGING WILLS & TRUSTS
(RECOMMENDED FOR THOSE WHO WANT TO BETTER UNDERSTAND HOW TO CREATE AND MANAGE WILLS AND TRUSTS)
Instructor: KEITH DORNEY
Date: 4/8, 2010 • Time: 2:30 PM-4:30 PM
Session Length: 2 HOURS
Location: SAN MATEO MEDICAL CENTER, EDUCATION CLASSROOM 1
Registration: SIGN UP THROUGH THE COUNTY’S LEARNING MANAGEMENT SYSTEM
Participants who attend this course will gain important skills to better understand the importance of estate planning and understanding probate and estate taxation in order to set up and manage trusts more effectively. Each participant will receive a 50-page workbook, which reviews each topic covered and provides resources and a glossary for future use.
April 22, 2010, Courses
ORGANIZING AND MANAGING YOUR FINANCES
(RECOMMENDED FOR THOSE WHO WANT TO ORGANIZE AND TAKE BETTER CONTROL OF THEIR FINANCES)
Instructor: KEITH DORNEY
Date: 4/22, 2010 • Time: 8:30 AM-10:30 AM
Session Length: 2 HOURS
Location: SAMCERA BOARD ROOM, 100 MARINE PARKWAY, REDWOOD SHORES
Registration: SIGN UP THROUGH THE COUNTY’S LEARNING MANAGEMENT SYSTEM
Participants who attend this course will be better able to assume responsibility for their financial future. By participating in informative and interactive exercises, participants will develop an action plan for achieving all their financial goals. Each participant will receive a 65-plus page workbook, which reviews each top covered and provides resources and a glossary for future use.
GETTING OUT OF DEBT AND DEVELOPING SMART CREDIT HABITS
(RECOMMENDED FOR THOSE WHO WANT TO TAKE BETTER CONTROL OF THEIR FINANCES)
Instructor: KEITH DORNEY
Date: 4/22, 2010 • Time: 11:30 AM-1:30 PM (BROWN BAG LUNCH SESSION)
Session Length: 2 HOURS
Location: SAMCERA BOARD ROOM, 100 MARINE PARKWAY, REDWOOD SHORES
Registration: SIGN UP THROUGH THE COUNTY’S LEARNING MANAGEMENT SYSTEM
Participants attending this course will gain valuable knowledge and skills needed to build and maintain a good credit record. Each participant will receive a 40-plus page workbook which reviews each subjected covered and provides listings of additional resources for future use.
HOW TO CHOOSE FINANCIAL PROFESSIONALS
(RECOMMENDED FOR THOSE WHO WOULD LIKE GREATER KNOWLEDGE AND ABILITY TO MAKE MORE INFORMED DECISIONS WHEN CHOOSING FINANCIAL PROFESSIONALS)
Instructor: KEITH DORNEY
Date: 4/22, 2010 • Time: 2:30 PM-4:30 PM
Session Length: 2 HOURS
Location: SAMCERA BOARD ROOM, 100 MARINE PARKWAY, REDWOOD SHORES
Registration: SIGN UP THROUGH THE COUNTY’S LEARNING MANAGEMENT SYSTEM
Participants who attend this course will gain important skills to better screen and select financial advisers/planners, portfolio managers, brokers and brokerage firms, tax professionals, attorneys, and insurance agents. Each participant will receive a 50-plus page workbook, which reviews each covered and provides a resource guide and glossary for future use.
Consumer Price Index yields 1/2% COLA
The Bay Area experienced very low inflation during 2009 according to the U.S. Bureau of Labor Statistics, resulting in a ½% (0.5%) cost of living adjustment (COLA) for most SamCERA retirees and beneficiaries. The increase will be effective on all April 2010 payments.
The COLA is calculated according to California law, which requires it to be based on the change in the annual Consumer Price Index (CPI) for the San Francisco-Oakland-San Jose area as determined by the federal Bureau of Labor Statistics. The law also requires the amount to be rounded to the nearest one-half of one percent.
This year the Bay Area CPI as validated by SamCERA’s actuarial firm, Milliman, Inc., showed a 0.73% increase. Per law this number was rounded to 0.5%. Probation members who retired on or before April 1, 2008, and General and Safety members who retired on or before April 1, 1971, have a COLA bank and will receive higher amounts.
See the chart below for COLA amounts based on date of retirement, plan and employment category.
Inflation, as measured by the Bay Area CPI, has been a very regular occurrence since SamCERA first opened its doors in 1944. (See the chart below.) But the opposite of inflation—deflation—can occur bringing with it a negative COLA. Deflation has only occurred once in SamCERA’s history. In 1955 the CPI declined by approximately 0.8%. Benefits were unchanged because COLAs did not exist in 1955.
Today, however, if we were to experience deflation in the Bay Area, the law calls for a decrease in retirement benefits. That has never happened for SamCERA or any other California pension system operating under the same laws—until this year. We know of at least one county system that saw deflation in their area in 2009 and is required to reduce retirement payouts beginning in April.
Deflation-driven reductions in retirement payments would occur in the same manner as increases. The negative COLA would be based on the Bay Area CPI as determined by the federal Bureau of Labor Statistics. However, by law, benefits can never be reduced below the amount the member received when they first retired.
Is deflation likely to occur in the Bay Area? Not any time soon, according to most economists. In fact, most economists expect that, as usual, inflation is much more likely than deflation during the next several years.
Most convenient Social Security office is online
By Linda Zamfino
Social Security Administration, Office of the Area Director in Oakland, CA.
You probably don’t need anyone to tell you that times are tough for many people right now. The past year has seen a recession-driven increase in applications for Social Security retirement and disability benefit applications. These increases translate into busier offices and telephone lines.
So if you need information, or want to apply for Social Security benefits, visit the most conveniently located office Social Security has: our online office at www.socialsecurity.gov. There, you can apply online for retirement, spouses, and disability benefits. There’s no need to fight the traffic to visit an office or wait for an appointment. Our website makes it simple, allowing you to apply for Social Security retirement benefits in as little as 15 minutes.
If you’re not certain you’re ready to apply, we have online resources that can help you decide. Our Retirement Estimator will allow you to enter different scenarios to come up with the retirement plan best for you. You can find it at www.socialsecurity.gov/estimator.
Or if you worked for the state, local or federal government and did not pay Social Security taxes while employed with the government, instead of the Retirement Estimator, you can use our pension offset calculator to compute your Social Security benefits. You can find the calculator at: www.socialsecurity.gov/retire2/anyPiaWepjs04.htm. You can also find information about the pension offset at: www.socialsecurity.gov/pubs/10045.html and www.socialsecurity.gov/pubs/10007.html
A Disability Starter Kit makes it easy to prepare for your disability application. The kit explains the documentation and information you’ll be required to share on the application, and includes checklists and worksheets to help take the mystery out of applying. You can find the Disability Starter Kit at www.socialsecurity.gov/disability on the left-hand side of the page.
There are other things you can do online, such as applying for a replacement Medicare card, and requesting an SSA-1099 for tax purposes. You can learn about these and other online services at www.socialsecurity.gov/onlineservices.
When
you are ready to apply for Social Security benefits, everything you need is at
your fingertips. Just visit www.socialsecurity.gov/applyonline.
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