County taxpayers will pay more than one-third of a billion dollars within the next several weeks to cover the cost of pensions for the county’s retirees in the upcoming 2026-27 fiscal year.
This week, the board of supervisors, at the urging of County Chief Executive Officer Luther Snoke, directed Auditor-Controller/Treasurer/Tax Collector Ensen Mason to make an advance payment of the county’s estimated fiscal year 2026-27 annual contribution to the board of retirement within 30 days after the commencement of the county’s fiscal year July 1.
According to a report/recommendation bearing a date of June 23, 2026 from Snoke to the board of supervisors but which was authored by Matthew Erickson, the county’s chief financial officer, “The total County General Fund retirement contribution for 2026-27 is estimated to be $370,564,500 discounted by $12,549,051 after a reduction for the foregone estimated treasury earnings of $7,585,517, for a net savings of $4,963,534 for the prepayment amount of $358,015,449.”
The report stated, “Under Government Code Section 31582(b) the Board of Supervisors can authorize the Auditor Controller/Treasurer/Tax Collector to make an advance payment of all or part of the County’s estimated annual retirement contribution, provided that the payment is paid within 30 days after the commencement of the County’s fiscal year. The County has taken advantage of this advance payment option in the past, prepaying the General Fund contribution to the San Bernardino County Employees’ Retirement Association (SBCERA) for the entire fiscal year. The prepaid amount is discounted by SBCERA, resulting in savings to the General Fund.”
According to the Snoke/Erickson report, “SBCERA has calculated a discount of $12,549,051 to the General Fund for year 2026-27. The County Administrative Office analyzed the financial impact of prepaying the retirement contribution and has determined that the County will benefit from the transaction. The estimated retirement contribution of $370,564,500 and related discount amount of $12,549,051 are projected values. While the prepayment is expected to generate an estimated net savings of $4,963,534, these savings are subject to investment risk. Any benefit or loss realized between the projected discount and the actual returns by SBCERA as a result of the retirement advance payment will be incorporated into the county’s future employer’s contribution rates, thus ultimately accruing to the county.”
In 2025-26, the total county general fund retirement contribution was $343,660,700 discounted by $11,042,157 after a reduction for the foregone estimated treasury earnings of $7,195,492, for a net savings of $3,846,665 for the prepayment amount of $332,618,543.
In 2024-25, the total county general fund retirement contribution was $344,267,200, discounted by $11,121,253 after a reduction for the foregone estimated treasury earnings of $7,533,998, for a net savings of $3,587,255 for the prepayment amount of $333,145,947.
In 2023-24 the total county general fund retirement contribution was $327,921,300, discounted by $10,706,708 after reduction for the foregone estimated treasury earnings of $5,839,028 for a net savings of $4,867,680 for the prepayment amount of $317,214,592.
In 2022-23 the total county general fund retirement contribution was $323,661,600 discounted by $10,623,608 (for a simple interest discount rate of 2.53%, after reduction for the foregone estimated treasury earnings of $2,433,080) for the prepayment amount of $313,037,992.
In 2021-22 the total county general fund retirement contribution was $327,506,400 discounted by $10,806,432 (for a simple interest discount rate of 3.07%, after reduction for the foregone estimated treasury earnings of $751,580) for the prepayment amount of $316,699,968.
In 2020, in the midst of the COVID Crisis, the county electing to make an advance payment of half of its estimated annual retirement contribution. Its total general fund retirement contribution that year was calculated at $299,386,600. Half of the estimated County General Fund retirement contribution for 2020-21 was $149,693,300, discounted by $4,782,230 (for a simple interest discount rate of 2.64%, after reduction for the foregone estimated treasury earning of $827,682) for the prepayment amount of $144,911,070.
In 2019-20 the total county general fund retirement contribution was $265,419,200, discounted by $8,252,097 (for a simple interest discount rate of 2.10%, after reduction for the foregone estimated treasury earning of $2,665,531) for the prepayment amount of $257,167,103.
In 2018-19, the total county general fund retirement contribution was $262,463,800, discounted by $8,205,753 (at a simple interest discount rate of 3.13%) for the prepayment amount of $254,258,047.
In 2017-18, the total county general fund retirement contribution was $222,388,000, discounted by $7,236,227, at a simple interest discount rate of 3.25%, for a prepayment amount of $215,151,773
In 2016-17, the total county general fund retirement contribution was $211,164,300, discounted by $7,373,705, at an interest discount rate of 3.49%, for a prepayment amount of $203,790,595.
In 2015-16, the total county general fund retirement contribution was $218,014,200, discounted by $7,696,277, at an interest rate of 3.53%, for a prepayment amount of $210,317,923.”
With the exception of 2016-17, the county’s retirement costs have been escalating.
In 2011, the county made a $132,263,097 prepayment to the board of retirement to cover the cost of pensions for retired employees during the 2011-12 fiscal year, reflecting a prepayment discount of $5,299,603 from the $137,562,700 owed by the county as its annual contribution to the retirement fund that year.
In 2012, the county made a $154,626,037 prepayment to the board of retirement to cover the cost of pensions for retired employees during the 2012-13 fiscal year, reflecting a prepayment discount of $5,907,863 from the $160,533,900 owed by the county as its annual contribution to the retirement fund through June 30 of 2013.
In 2013 the county made a $172,478,057 prepayment to the board of retirement to cover the cost of pensions for retired county employees during the 2013-14 fiscal year, reflecting a prepayment discount of $6,589,943 from the $179,068,000 owed by the county as its annual contribution to the retirement fund through June 30 of 2014.
In 2014-15, the county made a $182,185,164 prepayment to the board of retirement to cover the cost of pensions for retired employees during the 2014-15 fiscal year, reflecting a prepayment discount of $6,922,236 from the $189,107,400 owed by the county as its annual contribution to the retirement fund that year.
Of note is that in past years, it was the county treasurer-tax collector/auditor-controller who made the recommendation to the board of supervisors to make the retirement fund prepayment. This year, because tension between Treasurer-Tax Collector/Auditor-Controller Ensen Mason broke out into open hostility with four of the members of the board of supervisors opposing his reelection in the June 2 Primary balloting and his resultant loss to his opponent, Rancho Cucamonga City Councilman Ryan Hutchison, much of Mason’s authority has been commandeered by the office of the county’s chief executive officer. It was thus Snoke who made the prepayment recommendation to the board of supervisors.
-Mark Gutglueck