old windmill at John Muir HouseWinter 2009 snow

WELCOME!

CONTRA COSTA COUNTY
EMPLOYEES' RETIREMENT ASSOCIATION

  

 
 
Special Notice for Members:

Due to the increased volume of benefit estimates and retirements, we are unable to process some member requests in our customary timeframe. One example is responding to benefit statement questions and/or corrections that have been submitted by members.

Be assured, you have not been forgotten; we will address your concerns as soon as possible. However, we must prioritize our work to maximize effectiveness with our current limited staffing.

You will be contacted as soon as your requests have been researched.

The Retirement Office Staff appreciates your patience; we thank you for your consideration during this busy time.
Retirement Association Investment Update
At a recent County Board of Supervisors’ meeting, mention was made of CCCERA’s investment returns in light of the stock market’s volatility of the past few weeks. Below is a review of our returns for recent periods, ending June 30, 2011.
  1. Our returns for the one year period ending June 30, 2011 are approximately +23%. Our returns for the 6 month period ending June 30, 2011 are approximately +6%. (CCCERA’s fiscal year end is on a calendar year basis as opposed to the County’s fiscal year basis.) For the calendar year 2010 CCCERA’s total return was +14%.

  2. Even with the current market volatility, since the beginning of the calendar year, the retirement system’s investments have returned an estimated +1.5% through August 15, 2011.

  3. CCCERA’s allocation to domestic stocks is roughly one-third of the assets of the total fund. Thus, a drop in the domestic market of 10% will not result in an overall drop of 10% for CCCERA funds. Generally, using the returns for the stock market as a gauge for the returns of the total CCCERA portfolio results in inaccurate estimations. Diversification is an important element of our investment strategy, which spreads the risk over a variety of assets to minimize the impact of market volatility in a specific sector.

  4. CCCERA uses a 5 year smoothing period for market gains and losses. This process decreases the volatility of employer contribution rates going forward, by recognizing both gains and losses over a longer period of time, effectively producing rates that will vary less from period to period, assisting the employer with future budgeting. This also means we do not need to meet the 7.75% assumed rate of return every single year, nor do we expect to achieve this every year. Some years our returns are higher than this figure; in some years, our returns are lower than the assumed rate of return. Defined benefit pension systems take a long view of investment returns.

It is important to remember, the 7.75% assumed rate of return is a long-term investment rate, not a “target” for each year in question.

Although recent fluctuations in world markets are unprecedented in modern economic memory, they are not game changers for CCCERA. We continue to invest prudently in a carefully considered, diversified portfolio. Our success is measured in generations, not days, months, or years.

The December 31, 2010 Actuarial Valuation and Review was presented by The Segal Company at our August 10, 2011 Board meeting. Click the link above to be directed to this report. This report provides additional information on experience, funding levels, and contribution rates for each employer group participating in CCCERA.

The current actuarial asset allocation can be found by clicking this link.

As always, we invite all interested parties to attend our educational sessions and Board meetings.

The Summer edition of FYI is posted on the Publications Page (link on the left menu bar). This edition of FYI includes information on the retirement process, what forms you may need, and the time frame for processing.
Benefit your future. . .today

As a member of CCCERA, you are investing in your most valuable asset, your future. Whether you are beginning your working life or have extensive public service,contributions to your CCCERA retirement account ensure financial security that will benefit you (and in some cases, your survivors) long after you complete your career.

CCCERA is a "defined benefit" retirement plan. This means your future retirement benefit is not based on how much you and your employer contribute, investment returns or other factors that could cause your pension value to fluctuate.

Defined benefit pensions are based on a formula set by law, in this case the County Employees' Retirement Act of 1937, which was adopted by Contra Costa County in 1945. The Association is administered by the Board of Retirement to provide service retirement, disability, death and survivor benefits to County employees and 16 other participating agencies.

We invite you to explore your membership benefits through this website, our publications, or Group Counseling program. CCCERA staff is also available to answer your questions by telephone Monday through Friday, from 9 a.m. to 4 p.m. (The office is closed between Noon and 12:30 p.m. for lunch.)