San Bernardino County Employees' Retirement Association

By Laws

Article VI. - Benefits

1. Benefit Payments
   Benefit payments are made monthly.  For members retiring after March 6, 2003, benefit payments will be made via electronic fund transfers, only. Unless otherwise determined by the Board or the Executive Director, voluntary deductions as described in Government Code section 31452.5, and approved by the Board, and withholding tax shall not be in such an amount as to reduce the net monthly payment to an amount less than $10.00.
   
   
2. Cost of Living Allowances and Adjustments
   1. Pursuant to Government Code section 31874, the San Bernardino County Board of Supervisors, through San Bernardino County Ordinance 2764, approved an annual cost of living allowance for every retirement allowance, optional death allowance or annual death allowance, not to exceed 2% per year in accordance with the provisions of Government Code section 31870, effective April 1, 1984.
      
      
   2. Pursuant to Article 16.6 of the 1937 Act, the San Bernardino County Board of Supervisors, through San Bernardino County Ordinance 2019, approved an annual cost of living adjustment of 7% for all retired members who were members on or before August 18, 1975.
      
      
3. Article 8.5 - Discretionary Subsidy
   Pursuant to Article 8.5 of the 1937 Act, a subsidy may be paid from the "excess earnings" of the fund, when "excess earnings" are available.  This discretionary subsidy is not a vested benefit and the amount paid, if any, shall be determined on an annual basis by the Board.
   
   
4. Collection of Overpayment
   In situations where overpayments of benefits are made, such as when the Association continues to make payments to beneficiaries who are no longer eligible for benefits, when there is an error in the calculation of benefits, or when benefits are incorrectly paid, the Executive Director will make every effort to collect the overpayment.
   1. For amounts less than $50, the Executive Director shall make no demand and write off the account.
      
      
   2. For amounts between $50 and $300, the Executive Director is authorized to write off the amount after collection efforts have been completed.  Litigation will normally not be commenced as the costs of filing and prosecuting the suit would exceed the amount that could be recovered.
      
      
   3. For amounts between $300 and $5,000, the Executive Director would have discretion, after collection efforts have been completed to either write off the account or commence litigation.
      
      
   4. For amounts over $5,000, the Executive Director is required, after collection efforts have been completed, to commence litigation or seek Board approval to write off the account.
      
      
5. Public Safety Officer Benefits
   
   1. Pursuant to the Pension Protection Act of 2006 (26 U.S.C. 402(1)) a retired Public Safety Officer (PSO), as that term is defined by section 1204(9)(A) of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796b(9)(A) and 71 Fed. Reg. 46028 (August 10, 2006) et. al., may elect to have pension benefits up to a specified maximum amount, as set by Congress, excluded from income for federal tax purposes, if that amount is directly paid by the pension fund to an insurer for qualified health insurance premiums.
      
      
   2. An active SBCERA member, not on deferred status, who retires out of a qualifying PSO position, may elect after retirement to receive this benefit by submitting a written application on forms provided by the SBCERA Executive Director directing SBCERA to pay part of the retired member's pension benefits to an insurer for qualified health premiums.  In no event will the retired member directly receive the monies used to pay the qualified health premiums.
      
      
   3. The PSO benefit is an annual election and is automatically renewed each year unless otherwise revoked or changed in writing during the retiree open enrollment period.

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