REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 23, 2026
FROM
LUTHER SNOKE, Chief Executive Officer, County Administrative Office
SUBJECT
Title
Annual Employer Retirement Contribution Advance Payment
End
RECOMMENDATION(S)
Recommendation
Direct the Auditor-Controller/Treasurer/Tax Collector to make an advance payment of $358,015,449 to the San Bernardino County Employees’ Retirement Association within 30 days after the commencement of the fiscal year for San Bernardino County’s estimated annual retirement contribution for 2026-27.
(Presenter: Matthew Erickson, County Chief Financial Officer, 387-4811)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Foster Sustainable Development Through Strategic Partnerships.
FINANCIAL IMPACT
The total County General Fund retirement contribution for 2026-27 is estimated to be $370,564,500 discounted by $12,549,051 after a reduction for the foregone estimated treasury earnings of $7,585,517, for a net savings of $4,963,534 for the prepayment amount of $358,015,449.
BACKGROUND INFORMATION
Under Government Code Section 31582(b) the Board of Supervisors can authorize the Auditor-Controller/Treasurer/Tax Collector to make an advance payment of all or part of the County’s estimated annual retirement contribution, provided that the payment is paid within 30 days after the commencement of the County’s fiscal year. The County has taken advantage of this advance payment option in the past, prepaying the General Fund contribution to the San Bernardino County Employees’ Retirement Association (SBCERA) for the entire fiscal year. The prepaid amount is discounted by SBCERA, resulting in savings to the General Fund.
SBCERA has calculated a discount of $12,549,051 to the General Fund for year 2026-27. The County Administrative Office analyzed the financial impact of prepaying the retirement contribution and has determined that the County will benefit from the transaction.
The estimated retirement contribution of $370,564,500 and related discount amount of $12,549,051 are projected values. While the prepayment is expected to generate an estimated net savings of $4,963,534, these savings are subject to investment risk. Any benefit or loss realized between the projected discount and the actual returns by SBCERA as a result of the retirement advance payment will be incorporated into the County’s future employer’s contribution rates, thus ultimately accruing to the County.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Julie Surber, Principal Assistant and Kristina Robb, Deputy County Counsel, 387-5455) on June 4, 2026; and County Finance and Administration (Amanda Trussell, Principal Administrative Analyst, 387-4773) on June 4, 2026.