About Us 
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, 1999.
Your plan is in a very healthy condition. As of July 1, 1999 members are receiving 4.00% interest semiannually compounded (8.16% annually). This fiscal year plan assets grew from $828,643,938 to $901,273,449 at market value.
The Retirement Board continued to increase its exposure to international equities towards its goal of 10% of total assets. The mix of investment management expertise of Dodge and Cox (fixed income and equities) and Putnam Institutional Management (international equities) resulted in a rate of return of 11.0% for the year. The Retirement Board added yet another investment manager with a mandate to invest in Small Capitalization equities. The winning manager was Trust Company of the West (TCW) and the first portion of funding the 10% allocation was invested in July, 1999.
Excess earnings reflected in the June 30, 1999 statements are being utilized to shore up the funding ratio of the plan, reduce employer contributions and provide additional ad hoc, non-vested benefits to retirees. Additional retiree benefits effective in 1999 included a graduated Association payment of a retiree=s health insurance ($16 per year of service to a maximum $320 per month); an increase of the death benefit from $1,000 to $5,000; and a special cost of living increase for those who retired before April, 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 desiring to see the full audited financial report may visit the Retirement Division of the Treasurer/Tax Collector=s Office.
Tom Watson, Administrator
Stanislaus County Employees? Retirement Association
INVESTMENTS
| BONDS |
MARKET VALUE |
| U.S. Government | $55,440,205 |
| Corporate Bonds | 146,017,679 |
| Federal Agency Bonds. |
141,280,519 |
| TOTAL BONDS |
$342,738,403 |
| STOCKSTechnology. | $102,596,765 |
| Capital Equipment | 24,609,500 |
| Energy. | 53,958,259 |
| Basic Industry | 71,636,901 |
| Consumer | 90,077,625 |
| Finance | 63,351,645 |
| Transportation. | 17,853,750 |
| Utilities. Total Domestic Stocks International (Putnam) TOTAL STOCKS | 12,978,000 437,062,445 73,377,065 $510,439,510 |
| ASSETS | DEFINEDBENEFITPENSION PLAN |
POSTEMPLOYMENTHEALTH BENEFITS |
TOTAL |
| Cash and Cash Equivalents. | $ 32,765,181 | $ 4,516,248 | $ 37,281,429 |
| RECEIVABLES: Bond Interest | 3,729,036 | 513,999 | 4,243,035 |
| Stock Dividends Securities Transactions | 591,619 4,642,494 | 81,547 639,907 | 673,166 5,282,401 |
| Contributions | 393,760 | 54,275 | 448,035 |
| 1.95in blank 196.55pt 257.75pt 317.5pt\'>TOTAL RECEIVABLES | 9,356,909 | 1,289,728 | 10,646,637 |
| OTHER CURRENT ASSETS: | |||
| Prepaid Health Insurance | --- | 167,470 | 167,470 |
| INVESTMENTS (Stated at Mkt. Value): | |||
| Bonds Government. | 48,724,215 | 6,715,990 | 55,440,205 |
| Bonds Corporate. | 128,329,192 | 17,688,487 | 146,017,679 |
| Bonds Real Estate Mortgage | 124,165,889 | 17,114,630 | 141,280,519 |
| 1.95in blank 196.55pt 257.75pt 317.5pt\'>TOTAL BONDS | 301,219,296 | 41,519,107 | 342,738,403 |
| Stocks-Domestic Stocks-International Total Stocks TOTAL INVESTMENTS. TOTAL ASSETS | 384,116,984 64,488,215 448,605,199 749,824,495 $791,946,585 | 52,945,461 8,888,850 61,834,311 103,353,418 $109,326,864 | 437,062,445 73,377,065 510,439,510 853,177,913 $901.273.449 |
| Accrued Expenses Accounts Payable TOTAL PAYABLES | $ -1.311.474 1,311,474 | $ ---- ---- ---- | $ ---- 1,311,474 1,311,474 |
| NET ASSETS HELD IN TRUST FOR PENSION AND POST-EMPLOYMENT HEALTH BENEFITS | $790,635,111 | $109,326,864 | $899,961,975 |
STATEMENT OF CHANGES IN PLAN NET ASSETS
FOR THE YEAR ENDED JUNE 30, 1999
| FAIR VALUE | |||
| DEFINEDBENEFITPENSION PLAN |
POSTEMPLOYMENTHEALTH BENEFITS |
TOTAL | |
| Additions: | |||
| Contributions: Employer | $ 5,337,664 | $ --- | $ 5,337,664 |
| Plan members. | 9,348,912 | --- | 9,348,912 |
| 1.95in blank 196.55pt 257.75pt 317.5pt\'>Total contributions | 14,686,576 | --- | 14,686,576 |
| Net appreciation (depreciation)in fair value of assets | 20,857,079 | - | 20,857,079 |
| Interest | 26,374,617 | - | 26,374,617 |
| Dividends | 7,867,047 | - | 7,867,047 |
| Gain (Loss) on saleof bonds/stocks | 32,622,570 | 32,622,570 | |
| Other Revenue Net investment income | 419,891 88,141,204 | - - | 419,891 88,141,204 |
| Total Additions | 102,827,780 | - | 102,827,780 |
| Deductions: Benefits | 24,712,566 | 3,519,023 | 28,231,589 |
| Refunds of contributions. | 1,279,841 | --- | 1,279,841 |
| Administrative expenses Investment expenses | 665,983 1,332,330 | -- --- | 665,983 1,332,330 |
| 1.95in blank 196.55pt 257.75pt 317.5pt\'>Total deductions | 27,990,720 | 3,519,023 | 31,509,743 |
| Net increase (decrease) | 74,837,060 | (3,519,023) | 71,318,037 |
| Transfer of assets | (38,428,385) | 38,428,385 | --- |
| Net assets held in trust for pension and health benefits:(at market value) Beginning of year,End of year - market value | 754,226,436 $790,635,111 | 74,417,502 $ 109,326,864 | 828,643,938 $899,961,975 |
| Number of Active Members | 3,749 |
| Number of Retired-for-Service Members. | 1,404 |
| Number of Disability Retirements | 251 |
| Number of Survivors Death Benefits | 28 |
| Members Retired During the Year Ending June 30, 1999 | 101 |
| Retired Members Deceased During the Year Ending June 30, 1999 | 44 |
| Death Benefits Paid During the Year Ending June 30, 1999 | 3 |
| Deferred Retirements | 550 |