RECCSF Bulletin 9 2011


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RECCSF Bulletin 9 2011

  1. 1. Retirement Committee ReportBy Jean S. Thomas, mance has reacted only slightly Other Items of InterestHerb Meiberger, CFA, and to the market craziness; i.e., • The CCSF Charter requiresStephen Herold although “best available” July that surviving spouses and 2011 earnings were a negative surviving domestic partnersTaking the Long View 1%, Plan value at 7/29/2011 who receive monthly pension As we reported in the last stayed about the same as at benefits do not retain thoseissue, fiscal year 2010/11’s 6/30/2011’s $15.3B. benefits if they re-marry orpreliminar y and unaudited enter into another domesticperformance figures were: Plan San Francisco Deferred pa r tnership. Accordingly,value, about $15.3B; earnings, Compensation Plan’s last year SFERS mailed aover 20%. (Official performance (SFDCP) Stable Value Certification of Continuationfigures will be available in Octo- Portfolio…Precautionary of Eligibility to all survivingber or November after auditors Policy Revisions spouses and surviving do-finish their review and actuaries Attention, retirees who are in- mestic partners. (Responsedetermine whether sufficient “ex- was excellent; almost ev- vested in SFDCP’s Stable Value eryone returned the forms.)cess earnings” exist to support Portfolio! In response to Standard SFERS will continue the cer-a supplemental, earnings-based and Poor’s recent downgrade of tification forms program. OneCOLA in FY 2011/12.) SFERS’ US government and certain third of the list will be sent in2010/11 reported earnings com- agency debt from AAA to AA+, October/November 2011; thepare favorably with two of the and to avoid disruption in the remaining two-thirds will benation’s largest public pension portfolio, SF Deferred Comp split between 2012 and 2013.pla ns for t he sa me per iod: management has asked Advised More info on this to come.California Public Employees’ Asset Group (the fund manage- • Further to the “Pension Re-Retirement System (CalPERS) ment company) for a temporary form” ballot propositions, asearned about 20%; and Califor- exception to investment policy. discussed in the July/Augustnia State Teachers’ Retirement This exception provides that at Bulletin, the only two changesPlan (CalSTRS), about 23%. least one nationally recognized to the City/Public Employ- T he S F E R S p o r t fol i o i s rating agency—such as Moody’s ees Committee amendmentdesigned to withstand volatili- or Standard and Poor’s—will be are: 1) If both Adachi andty—so worries, if any, about its used to determine the overall City/Employees Committeesoundness are unfounded. How- credit quality of the portfolio amendments win on Nov. 8,ever, whether the glory days of and/or as a standard for future the charter amendment withsuperior earnings will continue purchase of A A A securities. the highest votes will prevail,in the short term is anyone’s The SFERS Board’s Deferred and no combining of provi-guess, especially given US and Compensation Committee will sions from each amendmentEuropean financial troubles, review all policy revisions at its will occur; 2) In order for thestubborn high unemployment, September 2011 meeting. supplemental COL A to beetc. To date, SFERS perfor- paid, SFERS must be 100% funded on the market valueSmart Shopping Check with the Better Business of assets (not the actuarial value, as was in previous ver-continued from Page 6 Bureau for past complaints sions). At this point, we don’tdeed keep food cold), and some against a seller or manufacturer know the rationale behindare written. Federal law does before you buy. this change—stay tuned.not require written warranties, Happy Shopping! • Be sure to read SFERS news-but most come with major pur- letter, Milestones, sent in latechases. Understand them and Looking for financial advice? As July. If you’ve misplaced yoursave them in a safe place. “Ex- a benefit of being a member at San copy, it’s on the SFERS’ web-tended warranties” are actually Francisco Federal Credit Union, site: contracts that you have you can have access to BALANCE,to pay for (warranties are free). a complimentary financial educa- Questions? Comments? Con- tion and counseling service. Call tact Herb at;To determine if you really need (415) 775-5377, option 4, or visit Jean at, weigh the cost of the service for more com or (415) 665-4149; Stephencontract against projected main- information about membership andtenance and repair bills. at, or (415) BALANCE. 664-1201. Nervous about a purchase? Page 7