DATE: October 6, 2026
TO: Board of Supervisors
SUBMITTED BY: Donald C. Kendig, CPA, Retirement Administrator
SUBJECT: June 30, 2026, Projected Funded Status of the Fresno County Employees’ Retirement Association of 101%
RECOMMENDED ACTION(S):
TITLE
Receive and file a June 30, 2026, Fresno County Employees’ Retirement Association (FCERA) Projected Funded Status report.
REPORT
Based on the Retirement Administrator’s evaluation of the plan’s funded status using asset and liability growth projections, FCERA is projected to reach a 101% funded status, the first time in possibly the plan’s formation that funding would exceed 100%. This item is countywide.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action to receive and file this informational report.
DISCUSSION:
The attached June 30, 2026, FCERA Projected Funded Status report outlines FCERA’s actuarial liabilities and their growth over the last 15 years, and during the latest fiscal year, the Retirement Administrator undertook the task of forecasting the funded status of FCERA based on its growth in assets and liabilities.
For the fiscal year ended June 30, 2026, the Retirement Administrator projects a funded status of 101% based on the market value of assets.
No period has been identified in which FCERA’s plan appears to have exceeded 100% funding, even with the issuance of pension obligation bonds (“POBs”) in 2004 that raised the funding of the plan to just under 100%.
In fact, FCERA’s funded status decreased for over a decade through the great financial crisis due to market moves, the increased cost of longevity, and the reduction of the assumed rate of return used to discount FCERA’s liabilities. Despite difficulty, the Board of Retirement and the Board of Supervisors have been steadfast in properly funding the plan.
The 101% funded status is stronger than that of peer plans, reflecting an assumed rate of return of 6.5% and the most advanced (conservative) longevity assumption published. As a result, the plan is less likely to experience late adjustments to its funded status than peer plans should they adopt similar conservative funding assumptions.
This projection is still subject to change based on a variety of factors and has not yet been verified by an actuary. The projection does not assume any changes affecting pension plan costs reported in accordance Generally Accepted Accounting Principles (GAAP) that require computation using an actuarial cost method in accordance with generally accepted actuarial principles. The Board of Retirement is still following the actuarial valuation provided by The Segal Group, Inc., FCERA’s actuary, which was approved by the Board of Supervisors on March 17, 2026.
ATTACHMENTS INCLUDED AND/OR ON FILE:
June 30, 2026, FCERA Projected Funded Status Report
CAO ANALYST:
Paige Benavides