CAFR - sdcera

F I N A N C I A L / N O T E S T O T H E B A S I C F I N A N C I A L S T A T E M E N T S
1. DESCRIPTION OF PLAN
San Diego County Employees Retirement Association (SDCERA, Association or Plan) is a public
employee retirement system established by the County of San Diego (County) on July 1, 1939,
and is administered by a Board of Retirement (Board) to provide retirement, disability, death and
survivor benefits for its employees under the County Employees Retirement Act of 1937. SDCERA,
with its own governing board, is an independent governmental entity separate and distinct from
the County of San Diego. SDCERA is a related organization of the County of San Diego. SDCERA’s
basic financial statements are included in the County’s basic financial reports as a pension trust fund.
SDCERA is a cost sharing, multiple-employer defined benefit plan for San Diego County and
four participating agencies located in San Diego County. SDCERA’s financial statements may be
obtained by writing to SDCERA, 2275 Rio Bonito Way, Suite 200, San Diego, California 92108, or
by calling 619-515-0130.
All employees of the County of San Diego (other than hourly, emergency, temporary, provisional,
seasonal and employees who work less than half time) are members of SDCERA. Membership
begins with the first biweekly payroll period in the month following employment. Members are
vested after five years of service.
There are two types of membership:
SAFETY MEMBERS
Permanent or interim employees engaged in the performance of active law enforcement are
considered Safety members and are not covered by Social Security. Court Service Officers
and Probation officers were added to Safety membership in 1998 and 1999, respectively.
GENERAL MEMBERS
All eligible employees not classified as Safety members, hired after January 1, 1958, are
considered General members and are covered by Social Security. Employees who worked
for the County prior to January 1, 1958, who did not choose to join the integrated plan, are
covered only by the County Employees Retirement System as it was established under the
County Employees Retirement Law of 1937.
TIER STRUCTURE
General and Safety Members eligible to enter the system prior to October 1, 1978, were designated
as Tier I members. On August 15, 1978, by ordinance, the County Board of Supervisors established
a second tier (Tier II) of retirement benefits for employees entering the retirement system on
or after October 1, 1978. On March 8, 2002, the County Board of Supervisors eliminated Tier
II for General and Safety members. Tier A was established for General members, and Safety members
were consolidated into a new formula.
All General members were converted to Tier A unless they elected to opt out of Tier A during the
one-time opt-out period offered prior to March 8, 2002. When Tier II was eliminated, all deferred
general members with Tier II service credit and active members who elected to opt out of Tier A
were converted to Tier I. Tier I is closed to new entrants. Tier I members who retire at or after age
57 with ten years of credited service are eligible for retirement benefit, payable for life, in an
amount equal to 2% of their final compensation for each year of credited service or at a slightly
higher percentage as the retirement age advances beyond 57. Final compensation is the average
compensation subject to retirement during any 26 consecutive pay periods elected by the member.
22 COMPREHENSIVE ANNUAL FINANCIAL REPORT 2007