ACERA’s administrative expenses are paid from the earnings of the retirement fund. California law caps annual administrative expenses at 0.21% of the Actuarial Accrued Liability. The liability is calculated by ACERA’s actuary, and is basically the total amount owed to plan members for retirement benefits, now and in the future.
ACERA’s fiscal year is the calendar year. For fiscal year 2019, the Board of Retirement has approved a budget of $21.2 million. In accordance with Section 31580.2(a) of the 1937 Act, $12.5 million is authorized to be excluded from the administrative cap. The result is that ACERA is $8.7 million under the statutory administrative cap. The 2019 Approved Expense Budget is attached to this page.