The Board of Retirement exercises authority and control over the management of the Plan in setting policy.
The nine-members of the Board of Retirement are responsible for establishing StanCERA’s bylaws and policies in accordance with applicable local, state and federal laws.
Investment Related Policies
StanCERA’S Investment Process
The nine-member Board of Retirement is responsible for establishing StanCERA’s investment policy objectives in accordance with applicable local, state and federal laws. The Board exercises authority and control over the management of the plan by setting policy. StanCERA’s staff executes that policy, either internally or through the use of prudent external experts.
The Board oversees and guides the plan subject to the following basic fiduciary responsibilities:
- To act solely in the interest of, and for the exclusive purpose of providing economic benefits to participants and their beneficiaries.
- To act with the care, skill, prudence and diligence of a prudent expert in the investment of plan assets.
- To diversify the investments of the plan so as to minimize the risk of loss and to maximize the rate of return, unless under the circumstances it is clearly prudent not to do so. Diversification is applicable to the deployment of the assets as a whole.
The following information deals with the Retirement Association’s policy for refunding contributions to members who have terminated employment, and elect to have their contributions returned to them.
StanCERA’s practice is to attempt to refund terminating members following two (2) complete payroll cycles with no payroll activity. StanCERA usually process refund checks on the Monday following a payday.
A terminating member must meet these conditions before a refund:
- They must have fully terminated their employment. (Under IRS guidelines, StanCERA cannot refund employees who switch from full-time to part-time employment).
- They must complete all paperwork and return it to StanCERA at least one week prior to the anticipated refund date.
- They cannot have any payroll activity in the two payroll cycles prior to being refunded. (They cannot be paid on the prior two checks).
- Additionally, we generally do not process refund requests in the months of January and July.
While we try to process refund requests as fast as possible, we do not promise a refund date until the check is written. Sometimes unexpected events prohibit us from processing an individual’s refund. Government Code §31628 requires that refunds be made within six months of termination.
Below is a typical example of StanCERA’s refund policy.
- Thu 03/12 – Employee terminates employment and works their last day.
- Fri 03/13 – Week #1 of the bi-weekly payroll cycle ends.
- Fri 03/20 – Week #2 of the bi-weekly payroll cycle ends.
- Wed 04/03 – Employee receives their final paycheck.
- Tue 04/09 – Employee turns in their completed paperwork to StanCERA.
- Wed 04/17 – First payroll cycle paid which employee received no paycheck.
- Wed 05/01 – Second payroll cycle paid which employee received no paycheck.
- Fri 05/03 – Employee is refunded their Retirement contributions.