County of Sonoma’s annual State of the Retirement System report

The annual report, which was recommended by the Sonoma County Civil Grand Jury in 2015, is published by the Sonoma County Board of Supervisors to promote transparency and accountability in pension oversight. The Board of Supervisors has made it a priority to reduce unfunded pension liabilities in order to preserve funding for essential services and maintain the health of the pension system during market downturns.

Since 2015, the Board of Supervisors has worked to reduce the County’s long-term costs by making early payments on the unfunded liability. By the end of the 2023-24 fiscal year, the County made $24.2 million in early payments on the unfunded liability, a policy decision that will avoid an estimated $19.4 million in interest costs over the next 20 years. 

The County of Sonoma has reduced its unfunded pension liability by 34 percent since 2021, the result of robust investment returns and decisions by the Board of Supervisors to pay down the County’s unfunded liability, according to the seventh annual State of the Retirement System report presented to supervisors today.

The pension plan is independently managed by the Sonoma County Employees’ Retirement Association, which has a separate governing board. Annual returns have averaged 7.9 percent over the past 30 years.

The County’s pension obligation bond debt service and unfunded pension liability – the gap between the assets in the pension plan for County employees and the amount owed to retirees – declined to $409 million by June 30, down from $619 million in 2021.

The Board of Supervisors’ commitment to making early payments on the County’s pension debt is saving taxpayers millions of dollars in interest costs while strengthening a pension system that serves more than 12,000 current, former and retired employees and their families.

“By tackling our pension debt head-on, we’re ensuring that today’s workers and tomorrow’s taxpayers aren’t burdened by yesterday’s obligations,” said Supervisor Chris Coursey, who serves on the Sonoma County Employees’ Retirement Association board of trustees. “This progress is the result of intentional, disciplined choices over many years. It positions us to uphold our commitments to employees and retirees while continuing to deliver County services our residents rely on.”

The State of the Retirement System report includes detailed information about annual pension costs, projected future expenses, SCERA’s membership data, and historical investment returns. This year, the County also published a new Pension System Overview explaining how the retirement system is governed and funded, how benefits are calculated, and how pension costs are shared between the County and its employees.

The County’s retirement system serves current and former employees of the County of Sonoma, Sonoma Water, the Community Development Commission, the Sonoma County Superior Court, the Sonoma County Transportation Authority, and the Sonoma Valley Fire District. More than 67 percent of the County’s current workforce was hired after 2012, when state pension reforms took effect that reduced benefits and increased the retirement age.

The seventh annual State of the Retirement System report and the new Pension System Overview are available on the County website. 

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Media Contact: 
Ted Appel, Communications Specialist 
publicaffairs@sonomacounty.gov
(707) 565-3040 
575 Administration Drive, Suite 104A
Santa Rosa, CA 95403