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Annual Report 2000

TO RETIREMENT ASSOCIATION MEMBERS

Your Retirement Association has been in existence since July 1, 1948. The enclosed figures will show you the progress we have made during the year ending June 30, 2000.

Your plan is in a very healthy condition. As of July 1, 2000 members are receiving 4.00% interest semiannually compounded (8.16% annually). This fiscal year plan assets grew from $901,273,449 to $939,335,834 at market value. The Retirement Board continued to diversify the investment management and has developed a new asset allocation.Dodge and Cox will manage 38% of the portfolio in fixed income securities as well as 27% of the portfolio in large cap value equities.Putnam Institutional Management will invest 10% of the portfolio in international equities.Small cap growth equities are managed by Trust Company of the West (TCW) and are targeted for a 10% allocation.The remaining 15% allocation has been awarded to MFS Institutional Investors and was initially funded in July, 2000.

There were no excess earnings for the year ended June 30, 2000.Part of the contingency reserve for market value fluctuations was utilized to be able to continue to grow reserves by the assumed rate of 4.00% semiannually.Prior year excess earnings, however, have been set aside to help reduce employer contributions and fund ad hoc, non-vested benefits to retirees.These additional benefits for 2000 included a graduated Association payment of a retiree=s health insurance premium of $16.50 per year of service up to a maximum of $330 per month; the death benefit of $5,000; and a special cost of living increase for those who retired before April 1, 1981 and experienced unusually high inflation in the late 1970's and early 1980's.

The accompanying financial statement is from audited records in accordance with Governmental Accounting Standards Board Statement Number 25.Any member desiringto see the full audited financial report may visit the Retirement staff on the 5th Floor (Suite 5800) of Tenth Street Place.

Tom Watson, Retirement Administrator

Stanislaus County Employees’ Retirement Association INVESTMENTS

BONDS
MARKET VALUE
U.S. Government
     $178,153,324
Corporate Bonds
      150,520,633
Other Bonds-Foreign
          4,029,760
TOTAL BONDS
     $332,703,717
 STOCKS
Technology
    $77,048,367
Capital Goods & Services
        40,025,806
Energy
        49,966,313
Materials & Services
        91,068,800
Consumer
        94,871,971
Financial
        67,763,921
Transportation
        17,399,000
Utilities
Total Domestic Stocks
International (Putnam)
TOTAL STOCKS
     21,367,003
   459,511,181
     114,860,646
   $574,371,827


STATEMENT OF PLAN NET ASSETS JUNE 30, 2000


   
FAIR VALUE
 
 ASSETS
DEFINED BENEFIT PENSION PLAN
POST EMPLOYMENT HEALTH Benefit
    TOTAL      
Cash and Cash Equivalents
$  21,468,923
$  2,943,632
$  24,412,555
RECEIVABLES:Bond Interest
   4,180,121
   573,142
   4,753,263
Stock Dividends Securities Transactions
  945,234
1,215,096
  129,602
166,603
  1,074,836
1,381,699
Contributions
561,015
76,922
637,937
TOTAL RECEIVABLES
6,901,466
946,269
7,847,735
INVESTMENTS
(At Fair Value):
     
Bonds Government
156,671,845
    21,481,479
178,153,324
Bonds Corporate
132,371,065
     18,149,568
150,520,633
Bonds Other
3,543,857
485,903
4,029,760
TOTAL BONDS
292,586,767
40,116,950
332,703,717
Stocks-Domestic Stocks-International

Total Stocks

TOTAL INVESTMENTS TOTAL ASSETS

404,103,965
101,010,910
505,114,875
797,701,642
$826,072,031
55,407,216
 13,849,736
    69,256,952
109,373,902
$113,263,803
459,511,181
114,860,646
574,371,827
907,075,544
$939,335,834

LIABILITIES

PAYABLES:

Accrued Expenses.

Accounts Payable

TOTAL PAYABLES

$             ---
      2,042,551
      2,042,551

$              ---

                --
                --
$             ---
    2,042,551
     2,042,551
NET ASSETS HELD IN TRUST FOR PENSION AND POST-EMPLOYMENT HEALTH BENEFITS.
$824,029,480
$113,263,803.
$937,293,283

 

STATEMENT OF CHANGES IN PLAN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2000


   
Fair Value
 
 
DEFINED
BENEFIT
PENSION
       PLAN      
POST
EMPLOYMENT
HEALTH
   BENEFITS  
      TOTAL     
Additions:      
Contributions: Employer
$5,899,393
$     ---
$ 5,899,393
Plan members.
10,139,886
    _______---
10,139,886
Total contributions
16,039,279
     ______ ---
16,039,279
       
Net appreciation (depreciation)in fair value of assets
(69,346,056)
 ---
69,346,056)
Interest.
25,732,110
---
25,732,110
Dividends.
9,350,351
               ---
9,350,351
Gain (Loss) on sale of bonds/stocks.
92,743,621
 
92,743,621
    Other Revenue     Net investment income.
50,915

    58,530,941

    _ ---
               ---
50,915
   58,530,941
   Total Additions
74,570,220

 

       ---
74,570,220
Deductions: Benefits
26,983,836
      5,145,956
32,129,792
Refunds of contributions.
1,728,978
       -
1,728,978
Administrative expenses Investment expenses
789,133
     2,511,009
      80,000 

              -

869,133
    2,511,009
Total deductions.
32,012,956
      5,225,956
37,238,912
 
      
      
      
Net increase (decrease).
42,557,264
(5,225,956)
37,331,308
Transfer of assets
(9,162,894)
9,162,894
       ---
       
Net assets held in trust for pension and health benefits:(at market value)Beginning of year,End of year - market value.
790,635,111
$824,029,481
   109,326,864
$ 113,263,802
899,961,975
$937,293,283

 

STATISTICS

Number of Active Members.
  4,045
Number of Retired-for-Service Members
1,465
Number of Disability Retirements
286
Number of Survivors Death Benefits
29
Members Retired During the Year Ending June 30, 1999
100
Retired Members Deceased During the Year Ending June 30, 1999
70
Death Benefits Paid During the Year Ending June 30, 1999
4
Deferred Retirements
602