Investments & Financials

SCERS is more than a pension provider—it is also a long-term investor, responsible for safeguarding the assets that fund retirement benefits for thousands of members. As a defined benefit system, SCERS guarantees benefits under law, and that guarantee is supported by careful investment and financial management. 

Authority and Fiduciary Responsibility 

The authority for this work comes directly from the California Constitution. Article XVI, Section 17 provides that “Notwithstanding any other provisions of law or this Constitution, the Retirement Board of a public pension or retirement system shall have plenary authority and fiduciary responsibility for investment of monies and administration of the system….” It further states that “the Retirement Board of a public pension or retirement system shall have sole and exclusive fiduciary responsibility over the assets….” 

This means the SCERS Board of Retirement has both the legal authority and the fiduciary duty to manage assets prudently and in the exclusive interest of members and beneficiaries. 

Investment Policy and Strategic Asset Allocation 

To carry out this responsibility, SCERS maintains a comprehensive Master Investment Policy Statement, which guides all investment activity. A central element of the policy is strategic asset allocation—the process of determining how much of the fund to invest in different asset classes such as equities, bonds, real estate, and alternative investments. 

The goal of this allocation is to provide an optimal mix of assets that can generate returns aligned with the system’s long-term liabilities. Equally important, the policy emphasizes maximum diversification, so that poor performance in one asset class or geographic region does not threaten the health of the overall system. 

Transparency and Reporting 

SCERS’ investment program is reviewed regularly and reported publicly through annual, quarterly, and specialized reports. These include the Investment Year in Review and Annual Investment Plan, Quarterly Investment Performance Reports, and Alternative Asset Fee disclosures. Together, they provide members and the public with a clear view of how retirement assets are managed today and how they are being positioned for the future. 

For more information, members can review the Master Investment Policy Statement, which sets forth SCERS’ guiding principles, investment philosophies and objectives, investment governance, and strategic asset allocation.