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A recent analysis by Teamsters Local 1932 concludes that the Board of Trustees of the San Bernardino County Employees’ Retirement Association has lowered the Assumed Rate of Return on Investments going forward as asset managers and fund consultants roll in the dough. According to SBCERA’s 2017 annual report, total asset manager fees skyrocketed more than 75% between 2016 and 2017. In just one year, fees increased: 616% for Equity Managers — 46% for Fixed Income Managers — 22% for Real Estate Managers — 63% for Alternative Managers

During this same period, fees for SBCERA’s actuarial and custodial services also jumped 71% and 53% respectively. Were these services competitively bid? Who approved the contracts? Are the fee increases performance based? If so, will lower benchmarks generate additional windfalls for Wall St. firms? BEFORE COUNTY EMPLOYEES ARE FORCED TO PAY MORE IN CONTRIBUTIONS, WE WANT ANSWERS. 

This development occurs as Teamsters Local 1932 and SBCERA continue to work toward institutionalizing formal dialogue between our union and SBCERA before any decisions regarding rates are made in the future. On April 5, 2018, members hundreds of working people stood together to tell the Board of Trustees at SBCERA that they would no longer be allowed to raise rates without hearing about it from the people they’d be affecting. If the Trustees do not take steps to address this issue in meetings to come, we will back with member power — louder and stronger than we were on April 5th.

SBCERA has never been challenged on their decisions by the working people of San Bernardino County. Our union will hold them accountable.

 

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