The SFERS Pension Plan is a qualified defined benefit plan funded through employee and employer contributions and investment earnings. The Plan provides for its Miscellaneous and Safety members service retirement benefits calculated using a formula based on Age at Retirement, Years of Service and Final Compensation. The SFERS Pension Plan provides for the following benefits upon separation: service and disability retirement; refund or vesting allowance; and pre- and post-retirement death benefits to survivors. Select the appropriate member group to get detailed provisions for each type of benefit (Miscellaneous or Safety).
Each year, the Retirement System conducts an actuarial valuation of its assets and liabilities in order to assess the funded status of the System and to determine appropriate levels of City contributions to the Fund for the next Fiscal Year. Plan assets are valued using a 5-year smoothing of investment return greater than or less than the expected investment return of 7.58%. The actuarial funding methods used are:
- Entry Age Normal Cost method
- Unfunded liability due to benefit increases amortized as a level percentage of payroll over 20 years
- Unfunded liability due to actuarial gains and losses, assumption changes and miscellaneous items amortized as a level percentage of payroll over 15 years.
The Retirement System takes great pride in maintaining a level of assets necessary to meet the promise of providing benefits into perpetuity for its members. With prudent investment strategies and annual actuarial valuations, SFERS has sustained a history of sufficient funding levels to meet benefit obligations over many years.
SFERS Annual Actuarial Funded Status Periods as of July 1
Funded Ratio (%)