SCERA Reviews Results for FY 2012/2013, and Sets Business Plan for the Coming Year

Published:  April 18, 2013

Fiscal Year 2012/2013 included major projects resulting from the passage and implementation of statewide pension reform legislation and from investment asset allocation changes focused on reducing risk/increased downside protection while maintaining the return potential of the fund. The pension reform changes were the most significant pension legislative changes in decades and resulted in extensive staff and counsel analysis, policy development, system changes and increased benefits counseling demands to assist members in understanding the changes and impact on their retirement benefit. The investment asset allocation changes were the result of comprehensive risk modeling and educational sessions on potential asset allocation changes to meet the Board’s objectives. The approved asset allocation changes resulting from this analysis included new allocations to Unconstrained Bonds and Bank Loans, and extensions of the fund’s investments in Farmland and GMO’s Global Asset Allocation strategy. In addition, continued progress was made on SCERA systems and processes that support the administration of the pension fund.

SCERA Administrator Gary Bei presented the review, plus a look forward to the Business Plan the coming year in a PowerPoint presentation (508 kB), and a narrative review (31 kB) that provides on project results for FY 2012/2013 in each of the major functional areas of SCERA, at the April 18th Board meeting.