REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 29, 2025
FROM
DEBBY CHERNEY, Chief Executive Officer, San Bernardino County Employees’ Retirement Association
SUBJECT
Title
Retirement Contribution Rates 2025-26
End
RECOMMENDATION(S)
Recommendation
Approve adjustments to the Retirement Contribution Rates for County, Board-Governed entities, and other entities, effective various dates, as follows:
1. Decrease County retirement contribution rate for Tier 1 General Members from 24.21% to 23.42% of compensation earnable.
2. Decrease County retirement contribution rate for Tier 2 General Members from 21.57% to 20.84% of pensionable compensation.
3. Decrease County retirement contribution rate for Tier 1 Safety Members from 61.41% to 56.04% of compensation earnable.
4. Decrease County retirement contribution rate for Tier 2 Safety Members from 52.82% to 47.24% of pensionable compensation.
5. Decrease Superior Court retirement contribution rate for Tier 1 General Members from 26.06% to 22.49% of compensation earnable.
6. Decrease Superior Court retirement contribution rate for Tier 2 General Members from 23.42% to 19.91% of pensionable compensation.
7. Decrease South Coast Air Quality Management District retirement contribution rate for Tier 1 General Members from 42.00% to 39.49% of compensation earnable.
8. Decrease South Coast Air Quality Management District retirement contribution rate for Tier 2 General Members from 37.45% to 35.17% of pensionable compensation.
9. Decrease San Bernardino County Transit Authority retirement contribution rate for Tier 1 General Members from 34.98% to 13.93% of compensation earnable.
10. Decrease San Bernardino County Transit Authority retirement contribution rate for Tier 2 General Members from 29.80% to 9.79% of pensionable compensation.
11. Decrease Other General (Non-County/Special Districts) retirement contribution rate for Tier 1 General Members from 34.98% to 32.29% of compensation earnable.
12. Decrease Other General (Non-County/Special Districts) retirement contribution rate for Tier 2 General Members from 29.80% to 26.73% of pensionable compensation.
13. Decrease Other General Local Agency Formation Commission retirement contribution rate for Tier 1 General Members from 28.34% to 25.30% of compensation earnable.
14. Decrease Other General Local Agency Formation Commission retirement contribution rate for Tier 2 General Members from 23.16% to 19.74% of pensionable compensation.
15. Decrease Other General Law Library retirement contribution rate for Tier 1 General Members from 33.06% to 30.65% of compensation earnable.
16. Decrease Other General Law Library retirement contribution rate for Tier 2 General Members from 27.88% to 25.09% of pensionable compensation.
17. Revise the employee retirement contribution rates for General Members and Safety Members as set forth in Exhibit III.
18. Increase the General Member employee survivor benefit contribution rate for employer and employee from $0.90 to $0.91 each per bi-weekly pay period.
(Presenter: Debby Cherney, Chief Executive Officer, 885-7980)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of these adjustments will ensure the retirement fund remains on a sound actuarial basis as required by law. The adjustments to the retirement contribution rates detailed in the Recommendations have been incorporated into the 2025-26 budget process. According to information provided by County Finance and Administration, it is projected that total County retirement contributions will see a decrease by an estimated $34.7 million from 2024-25 to 2025-26, which includes a $30.5 million decrease to the County, and a $4.2 million decrease to San Bernardino County Fire Protection District and Special Districts. Of this amount, it is estimated that County General Fund departments will see decreases of approximately $12.7 million in the use of Discretionary General Funding (Net County Cost) in 2025-26.
BACKGROUND INFORMATION
In accordance with the provision of California Government Code (GC) section 31453, the San Bernardino County Employees’ Retirement Association (SBCERA) Board of Retirement shall, at least 45 days prior to the beginning of the succeeding fiscal year, recommend to the Board of Supervisors (Board) changes in the rates of contributions to fund the County Retirement Plan (Plan) on a sound actuarial basis. Per GC section 31581 “the board of supervisors shall…add to the appropriation for salaries and wages and include therein an appropriation determined pursuant to [GC] sections 31453, 31453.5 and 31454.”
Contribution rates are established for two tiers of members:
• Tier 1 - Members with SBCERA membership dates prior to January 1, 2013.
• Tier 2 - Members who are new to SBCERA on or after January 1, 2013, or had more than a six-month break in service from a prior public retirement system and were ineligible for or did not establish reciprocity.
The contribution rates in the Recommendations were determined based on a report on the actuarial valuation of the Plan, which was completed as of June 30, 2024. The SBCERA Board of Retirement adopted the actuary’s recommendations on November 8, 2024. Copies of the actuarial valuation were provided to the County Administrative Office and the Board in November of 2024.
While the Board is not the governing body for SBCERA, SBCERA presents certain matters directly to the Board since the interests of the County and SBCERA are intertwined in the County Employees Retirement Law of 1937, including the adoption of these contribution rates.
Effective 2025-26 the San Bernardino County Transit Authority will have a separate contribution rate due to voluntarily paying off their unfunded liability, which resulted in a reduction of their employer contribution rate.
The contribution rates in the Recommendations are effective June 28, 2025 (Pay Period 15/25), with the exception to the following SBCERA participating employers:
• Barstow Fire Protection District: Effective June 22, 2025
• South Coast Air Quality Management District: Effective June 23, 2025
• California State Association of Counties: Effective June 23, 2025
• Law Library for San Bernardino County: Effective July 1, 2025
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by San Bernardino County Employees’ Retirement Association (Debby Cherney, Chief Executive Officer, Barbara M.A. Hannah, Chief Counsel, and Amy McInerny, Chief Financial Officer, 885-7980) on April 7, 2025; County Counsel (Julie Surber, Principal Assistant County Counsel, 387-5455) on April 8, 2025; Finance (Garrett Baker, Administrative Analyst, 387-3077) on April 7, 2025; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on April 14, 2025.