Agendas & Minutes 
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| 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 |
|
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. 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
|
|
|||
|
DEFINED
|
POST
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 |