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Annual Report 2002

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, 2002.

Your plan is in a very healthy condition. As of July 1, 2002 members are receiving 4.00% interest semiannually compounded (8.16% annually). This fiscal year plan assets declined from $984,546,448 to $925,692,674 at market value.

The Retirement Board continued to diversify the investment management and has developed a new asset allocation. Dodge and Cox will manage 47.7% of the portfolio in fixed income securities as well as 25.8% of the portfolio in large cap value equities.Putnam Institutional Management will invest 10.1% of the portfolio in international equities. Small cap growth equities are managed by Trust Company of the West (TCW) and are targeted for a 3.7% allocation. The remaining 12.6% 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, 2002. 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 2002 included a graduated Association payment of a retiree=s health insurance premium of $18.00 per year of service up to a maximum of $360 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
$211,331,829
Corporate Bonds
$173,665,505
TOTAL BONDS
$384,997,334
 STOCKS  
Technology
$52,825,983
Capital Goods & Services
$24,088,461
Energy
$30,179,281
Materials & Services
$88,131,828
Consumer
$112,498,254
Financial
$62,392,014
Transportation
$17,010,670
Utilities
$20,566,379
Miscellaneous Common Stock
$518,232
   
Total Domestic Stocks
International (Putnam)
TOTAL STOCKS
$408,211,102
$80,208,514
$488,419,616


STATEMENT OF PLAN NET ASSETS JUNE 30, 2001


   
FAIR VALUE
 
 ASSETS
DEFINED BENEFIT PENSION PLAN
POST EMPLOYMENT HEALTH Benefit
    TOTAL      
Cash and Cash Equivalents
$  43,502,073
$  5,841,046
$  49,343,119
RECEIVABLES:Bond Interest
   4,549,546
   610,870
  5,160,416
Stock Dividends
Securities Transactions
  632,015
9,168,431
  84,861
1,231,050
  716,876
10,399,481
Contributions
1,079,243
144,910
1,224,153
TOTAL RECEIVABLES
15,429,235
2,071,691
17,500,926
INVESTMENTS
(At Fair Value):
     
Bonds Government
186,315,191
25,016,638
211,331,829
Bonds Corporate
153,107,660
20,557,845
173,665,505
TOTAL BONDS
339,422,851
45,574,483
384,997,334
Stocks-Domestic Stocks-International

Total Stocks

TOTAL INVESTMENTS TOTAL ASSETS

359,888,663
70,713,743
430,602,406
770,025,257
$828,956,565
48,322,439
9,494,771
    57,817,210
103,391,693
$111,304,430
408,211,102
80,208,514
488,419,616
873,416,950
$940,260,995

LIABILITIES

PAYABLES:

Accrued Expenses.

Accounts Payable

TOTAL PAYABLES

$             ---

14,568,321
14,568,321

$              ---

                --
                --
$             ---
14,568,321
14,568,321
NET ASSETS HELD IN TRUST FOR PENSION AND POST-EMPLOYMENT HEALTH BENEFITS.
$814,388,244
$111,304,430
$925,692,674

 

STATEMENT OF CHANGES IN PLAN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2001


   
Fair Value
 
 
DEFINED
BENEFIT
PENSION
       PLAN      
POST
EMPLOYMENT
HEALTH
   BENEFITS  
      TOTAL     
Additions:      
Contributions: Employer
$11,340,678
$     ---
$11,340,678
Plan members.
13,939,517
    _______---
13,939,517
Total contributions
25,280,195
     ______ ---
25,280,195
       
Net appreciation (depreciation)in fair value of assets
(76,532,001)
 ---
(76,532,001)
Interest.
25,390,357
---
25,390,357
Dividends.
7,571,009
               ---
7,571,009
Gain (Loss) on sale of bonds/stocks.
2,812,619
 
2,812,619
    Other Revenue     Net investment income.
97,700

(40,660,316)

    _ ---
               ---
97,700

(40,660,316)

   Total Additions
(15,380,121)

 

       ---
(15,380,121)

 

Deductions: Benefits
32,262,615

5,855,439

 

38,118,054
Refunds of contributions.
1,547,588
       -
1,547,588
Administrative expenses Investment expenses
991,686
2,725,553
      90,772

              -

1,082,458
2,725,553
Total deductions.
37,527,442
5,946,211
43,473,653
 
      
      
      
Net increase (decrease).
52,907,563
(5,946,211)
(58,853,774)
Transfer of assets
(90,771)

 

90,771
       ---
       
Net assets held in trust for pension and health benefits:(at market value)Beginning of year,End of year - market value.

 

867,386,578
$814,388,244
   117,159,870
$111,304,430
984,546,448
$925,692,674

 

STATISTICS

Number of Active Members.
  4,507
Number of Retired-for-Service Members
1,615
Number of Disability Retirements
314
Number of Survivors Death Benefits
34
Deferred Retirements
648