Jason Morrish

The board reviewed the Investment Performance Report for real estate, covering the quarter ended December 31, 2025, as presented by the Townsend Group. Key discussion points included an analysis of SCERS' real estate portfolio performance, current asset allocation relative to target goals, and the breakdown of Core versus Non-Core investment strategies. The session also addressed performance attribution, geographic and property type diversification, and an in-depth discussion regarding the system's affordable housing exposure and its impact on the overall portfolio.

The Board of Retirement received and filed the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024. The agenda item included a review of the audited financial statements and auditor reports prepared by the independent auditor, confirming a clean opinion. The discussion covered various financial highlights, including the growth in fiduciary net position, net pension liability metrics, investment performance returns, and trends in member and employer contributions.

The Board discussed the implementation of the California Supreme Court decision in the Alameda case regarding the definition of 'compensation earnable' under the Public Employees' Pension Reform Act of 2013. The Board issued an order requiring the exclusion of five specific pay items from the compensation earnable and pensionable compensation for members who retired or will retire on or after January 1, 2013. The directive mandates prospective and retroactive corrections to member benefits and contributions, including the refund of over-collected contributions and adjustments to future retirement allowances.

The Board reviewed and filed the State Association of County Retirement Systems (SACRS) Legislative Update. The discussion covered state budget processes, the impact of the 2026 election cycle on legislative priorities, and a comprehensive review of various legislative bills concerning public pension systems. Specific topics included proposals regarding deferred retirement programs, pensionable compensation limits, adjustments to safety retirement formulas, trustee per diem rates, and definitions within the Brown Act.

The board addressed various administrative and investment matters. Key discussions included legislative updates on proposed assembly bills, an overview of current and upcoming requests for proposals, and a review of the strategic management plan. The investment team provided insights on portfolio rebalancing, real estate program leadership, and reviewed total fund investment performance for the fourth quarter. Additionally, the board processed disability retirement applications and discussed legal counsel updates regarding existing litigation in closed session.