Board Education Policy

PURPOSE

The purpose of this policy is to ensure that all SCERS Board Members have access to the information necessary in the areas of pension fund administration and investment of pension fund assets to prudently and effectively carry out their fiduciary and statutory duties, to encourage all Board Members to seek and participate in current educational opportunities, and to comply with statutory training requirements.

POLICY

Board Members are required to complete 24 hours of Board Member education within the first two 2 years of assuming office, and for every subsequent 2-year period thereafter. Relevant subjects include, but are not limited to, the following:

• Fiduciary responsibilities;
• Effective governance practices;
• Institutional investment practices, asset allocation principles and investment program management;
• Actuarial analysis;
• Pension funding policy;
• Benefits structure and administration;
• Fiscal and financial management (2-hour requirement every 2 years);
• Regulatory and legal consideration;
• Sexual harassment prevention (2-hour requirement every 2 years)
• Ethics (2-hour requirement every 2 years).

APPLICATION

Education and Training Opportunities

Board Members may receive education through various formats including, but not limited to, the following:

• External conferences, seminars, workshops, roundtables or similar programs;
• Courses and programs conducted by and/or through academic institutions;
• In-house educational presentations at regular or special SCERS Board Meetings;
• Programs related to professional licensing requirements or obtaining/maintaining professional credentials;
• Online or in-person training courses mandated by law, such as ethics or sexual harassment prevention;
• Electronic media, including video and Internet-based education; and
• Relevant periodicals, journals, textbooks, or similar materials.

Prior to their first Board meeting, new Board Members are required to attend an orientation meeting with SCERS Staff that focuses on the subject areas noted in this Policy.

On an ongoing basis, SCERS Staff will identify appropriate external educational opportunities and make information regarding such educational opportunities available to the SCERS Board. Standards for evaluating the appropriateness of a potential educational opportunity will include:

• The extent to which the opportunity is expected to provide Board Members with the skills and knowledge they need to carry out their roles and responsibilities;
• The timeliness and relevance of the education opportunity;
• The extent to which the opportunity meets the requirements of this Policy; and
• The cost-effectiveness of the education opportunity in light of travel, lodging, program cost and related expenses. 

Throughout their tenure, Board Members are strongly encouraged to participate in external training programs offered by the State Association of County Retirement Systems (SACRS) and the California Association of Public Retirement Systems (CALAPRS). Participation in external training programs constitutes “official duties” for elected Board Members who are employees of the county or a district, in that their Board duties shall normally take precedence over any other duties as matter of law.

Other Eligible Opportunities

Board Members may also identify and propose external educational opportunities. The Chief Executive Officer (CEO) will utilize his/her best professional judgment to determine the appropriateness of any such proposed opportunities. In making that determination, the CEO shall consider the four factors set forth in the previous paragraph and the fiduciary status of the trustees. In particular, the CEO shall consider whether the proposed educational opportunity presents any appearance of impropriety, due to factors such as geographic location, venue, the nature of the education, and travel/lodging costs. Upon request, the CEO’s determination about the appropriateness of the educational opportunity may be reviewed by the SCERS Board. 

Board Members may also gain credit for educational activity based on writing an article for a qualified publication, or teaching or presenting educational information at a qualified conference or program, on the subjects noted in this Policy. Whether an article or presentation qualifies as an educational opportunity under this Policy will be determined, in the first instance, by the CEO. Upon request, such a determination may be reviewed by the SCERS Board.

The CEO will utilize his/her best professional judgment to determine the number of hours an educational opportunity qualifies for under this Policy. Upon request, a determination regarding the number of hours the education opportunity qualifies for may be reviewed by the SCERS Board.

Reporting

SCERS will maintain a record of Board Members compliance with the Board Education Policy. An annual compliance report and a copy of this Policy will be posted on the SCERS website.

AUTHORITIES

California Government Code Sections 31522, 31522.8, 53234-53235.2, 53238-53238.4, 53237-53237.5

RESPONSIBILITIES

Executive Owner: Chief Executive Officer

POLICY HISTORY

SCERS Policy No. 004