[{"_1":2,"_111":-5,"_112":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6467347,"mediaKeyId","5798637-4ed0ffb67973334f8f444b45874885f2","parentId",5798637,"title","Investment office reports multi‑year gains, higher growth exposure and top‑quartile peer rankings","audioSeconds",9831,"startMs",543000,"endMs",10374000,"viewUrl","/Search/View?dp=1&key=5798637-4ed0ffb67973334f8f444b45874885f2&start=543&end=10374","thumbnailUrl","https://assets.pipeline.soar.com/5798637-4ed0ffb67973334f8f444b45874885f2/thumbnail_543000.jpg","articleUrl","/articles/6467347/San-Jose/Santa-Clara-County/California/Investment-office-reports-multiyear-gains-higher-growth-exposure-and-topquartile-peer-rankings","mediaUrl","https://secure.pipeline.soar.com/6467347-1bf150253dcb2cc1641e6562c2cf9e89/orig.mp4?Expires=1770675168&Signature=eWTVTaIL1d7b2-PcsEEmsTmcI2INSWEwXctKNmoo0ddZKV9EoaFoEFRGXyZMnSTDoAdQ3jKTs6ypiWOZqNS5wLeP0V2jRfiEnnfW~xpMveJkS8mTywlbWPgOCney3bb2LHCzVico77HCdTLWhanpxWKPXRQLWtsLqEsdo8AmjDAQZ8kANzR1xVpuK~KD-3T28YLBVtilKz1yqgrBH~MVcFpj0psP0NE5pp~uU9~~~eKjt7NNqfQ0v9t~8ncrSoR2KHclsqFyjYeQ6rNI2Pl7s-juzFxXqxupenhitTPlvoVmIxS9dSS3gBQkU5htFSL5j8oITkN0LLCE4Ipq0FNu4w__&Key-Pair-Id=KUT5TJCACFTXG","author","San Jose CA","date","2025-09-20T09:51:09Z","article","The board received a report from the investment office summarizing seven years of performance and an asset‑allocation shift toward growth assets.

Investment staff said 5‑ and 7‑year returns improved materially from the 2018 baseline. Representative figures presented: five‑year returns moved to about 9.8% and seven‑year returns to about 8.1% (presenter cited June 2018 as a low base). Staff said peer ranking moved from the bottom percentile in 2018 to roughly the top 20% for both five‑ and seven‑year windows.

Staff attributed performance gains to a deliberate increase in growth exposure (equities and private growth strategies). The growth allocation rose from a roughly 50% starting point in 2018 to about 76% today, funded largely from reduced fixed‑income exposure and commodity positions. Presenters emphasized this higher growth posture when describing the plan’s risk‑budgeting approach and said they view a 75%–76% growth baseline as a reasonable starting point for further tactical adjustments.

Investment staff noted cumulative net investment gains in the last seven years of roughly $1.5 billion on top of contributions and that the plan’s market value grew from about $2.07 billion (July 2018) to approximately $3.6 billion in 2025. Staff said they would continue to balance liquidity needs for benefit payments against long‑term return targets and that they retain delegated authority for certain tactical allocations within board limits.

Why this matters: The change in asset mix materially affects expected returns and funding trajectory; trustees discussed maintaining an appropriate liquidity cushion for benefit payments and retaining flexibility for tactical reallocations around large market moves.

Follow up: Staff will return with implementation details as part of the strategic‑planning and annual budget process and will continue reporting performance versus the policy benchmark.","mediaType","Video","parentTitle","SSEP 18, 2025 | Federated City Employees' Retirement Plan Board","oneSentenceSummary","Investment staff reported multi‑year returns that moved the plan from a bottom‑percentile ranking in 2018 to the top 20% among peers, attributed to a higher growth allocation and active manager choices; staff recommended using a higher growth allocation as a baseline for strategic planning.","taxTitle","San Jose , Santa Clara County, California","taxId",2857,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6467352,"CEO frames ‘state of the pension’ as funding, demographics and modernization priorities",1997,1141000,3138000,"/Search/View?dp=1&key=5798637-4ed0ffb67973334f8f444b45874885f2&start=1141&end=3138","https://assets.pipeline.soar.com/5798637-4ed0ffb67973334f8f444b45874885f2/thumbnail_1141000.jpg","/articles/6467352/San-Jose/Santa-Clara-County/California/CEO-frames-state-of-the-pension-as-funding-demographics-and-modernization-priorities","https://secure.pipeline.soar.com/6467352-03fd3467ae50dde6faca1646c213d7db/orig.mp4?Expires=1770675168&Signature=OUU4~c7V0Cf8Eyx63-yI9VzAmh-UjKg3UfhmAU4AopE71-YVXcdXg5CeR6yxZQiUUwrMy6SqYZYg8ceT17~vvDVrehR-6ZvvpE8IdE20pXZCKh5lOCjCwFVDOD20AJywspqd8Ko1HopfewoPXVPdLvIzMQtnWYmj5ndc1Je5JbQX4JXNHlHqGZTUbNUjJ2Y-zr4COxSxb2zET7~q~qrFf1S71PhBe8bFqOIpNiSHnvYcNKSbDTOnPDYMxJcs4Q2Uu8K2cS6nDzEMSOj6iaw6TQL8EMOh56dDVpJR8MvWi~jMBJtgFLFH8OpHwOuWNa08WvybVWbdRWaS9E8n2hnCSA__&Key-Pair-Id=KUT5TJCACFTXG","CEO John Flynn presented a “state of the pension” review to the Federated board that combined ten‑year membership and funding data with a proposal to use strategic planning to guide the system’s priorities.

Flynn reviewed basic plan economics and trends: fiscal‑year‑to‑date pension plan returns were cited at 4.14% and health care returns at 5.26%. Using actuarial and benefits data from the plan, Flynn said the city contributed about $218 million in 2024 while the plan paid out roughly $256 million in benefits that year. He cited a National Conference on Public Employee Retirement Systems (NCPERS) study that estimates each pension dollar can have a multiplier effect on local economic activity and said Federated‑paid benefits generate significant local activity; he gave an illustrative figure of about $1.2 billion of economic activity located in San Jose from benefits paid (the presentation layered several proration steps to reach that figure).

On membership and demographics, Flynn said the plan’s active population has grown about 40% over the prior 10‑year period, inactive members have nearly doubled, and retirees rose about 22%; total plan membership increased roughly 39% over the decade. Flynn and trustees discussed the lower support ratio that results when retirees outnumber active employees, and that such demographic trends increase the share of assets required for immunized cash flows to meet benefit payments.

Flynn reviewed contribution and benefit trends: employer contributions rose from roughly $102 million to $218 million over the 10‑year span; employee contributions also rose in nominal dollars; benefits paid increased from about $150 million to $250 million annually in that window. He noted administrative costs had grown and pointed to several drivers including wage inflation and new functions such as cybersecurity staffing.

On funded status and assumptions, Flynn said a preliminary draft funding ratio estimate for 2025 is ~65% (preliminary and subject to actuarial assumption setting). He reviewed the plan’s discount‑rate history and said the board has held the discount rate at 6 5/8% since 2020; he walked trustees through how changing the discount rate affects historical comparators.

Flynn closed by proposing strategic‑planning pillars — sustainability (investments and governance), engagement (member and stakeholder communications), education (trustee and member education), operational excellence (staffing and process improvement) and security/modernization (cybersecurity and system automation). He recommended targeted staffing for business‑led modernization and suggested the board identify priorities to feed into an annual work plan and budget process.

Why this matters: The presentation tied high‑level funding and demographic trends to near‑term operational choices — staffing, automation, and allocation to cash flows — that affect the plan’s ability to meet benefit obligations.

Follow up: Trustees asked staff to bring modeling on alternative support‑ratio scenarios and to include modernization and staffing needs in the strategic‑planning interviews and work plan.","CEO John Flynn reviewed 10‑year trends in membership, contributions and funding, said preliminary 2025 funding ratio is about 65%, and outlined strategic pillars including sustainability, engagement, education, operational excellence and modernization.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6467357,"Security consultants warn trustees: phishing and third‑party risk are top threats; board urged to adopt frameworks and exercises",2922,3508000,6430000,"/Search/View?dp=1&key=5798637-4ed0ffb67973334f8f444b45874885f2&start=3508&end=6430","https://assets.pipeline.soar.com/5798637-4ed0ffb67973334f8f444b45874885f2/thumbnail_3508000.jpg","/articles/6467357/San-Jose/Santa-Clara-County/California/Security-consultants-warn-trustees-phishing-and-thirdparty-risk-are-top-threats-board-urged-to-adopt-frameworks-and-exercises","https://secure.pipeline.soar.com/6467357-0efe1572f5d07da49daffec4ddc711c7/orig.mp4?Expires=1770675168&Signature=iyCNsKLM~xg~rwnbyOaduFLLi6Ki8pAn~9Ey2H6nOY597vO0BAPN~6RX8US2Fvhe-U4k0LDbEx9Qq8kb90BtI~GJzlGKZf5Ia2ZWVLHzXzGX3FzFT0OMreRGi87OLI9h~4iJT2EE2AgljmTPM6maSm8Lbn-2f32upRW1S2~9SbCvkzzF41Yr392xc0FJPrXk4ZkSW8B2m5YqsMEt-GsRVA0p9qiymasBttrNztFrtgUH1YpROOJeZZ9ZbusPb~6CGbnwo4~iJlU8pjHrR1H6BTnr4EgZiDiXK88ugsMazLqp09dHt9VBFGMygvyujpdXRQXyStlQzXmWs6J4~mehUw__&Key-Pair-Id=KUT5TJCACFTXG","Lineage Secure consultants presented a cybersecurity briefing at the Federated City Employees Retirement System Board meeting, telling trustees that public pension funds are high‑value targets and urging trustees to adopt governance practices that reduce the risk of data breaches and financial fraud.

Peter Dewer, president of Lineage Secure, and Jake Long, who previously worked on the PensionGold platform, outlined common attack vectors such as social engineering and business‑email compromise and explained that attackers increasingly use AI and automation to craft convincing messages. They said attackers study public materials — including board minutes, strategic plans and trustee contact information — to craft targeted attacks.

The presenters recommended a trustee‑level focus on governance: adopt a recognized cybersecurity framework (for example, NIST’s Cybersecurity Framework), require regular role‑based staff training and phishing simulations, conduct tabletop incident‑response exercises and verify third‑party vendor controls through SOC reports and contractual requirements. They noted that multi‑factor authentication (MFA) reduces risk but is not a panacea — identity management and checks on high‑value transactions are essential.

The presenters also discussed ransomware risk and recovery options such as immutable backups and air‑gapped recovery environments. They advised testing incident response plans so that staff understand responsibilities and reporting lines before a real incident occurs. Trustees asked about specific controls for fund operations (for example, protecting capital‑call and payment flows) and whether the city’s centralized IT arrangement and insurance coverage are sufficient; presenters recommended clarifying responsibilities in an MOU with the city and keeping proof of vendor controls up to date.

Why this matters: Pension plans hold sensitive member records and execute high‑value financial transactions. Trustee oversight of cybersecurity practices — including asking the right questions of staff and vendors and requiring tested incident‑response plans — reduces the likelihood of successful fraud or data breaches.

Board next steps: Trustees asked staff to consider tabletop exercises that include city IT and vendor participation, to review vendor SOC reports and contract language and to revisit training cadence and reporting to the board.","Lineage Secure presenters told the Federated board that pension funds are high‑value targets and recommended board oversight of cybersecurity through frameworks, tabletop exercises, identity controls and role‑based staff training.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6467362,"Federated board approves CEO and CIO merit increases, renews custodian banking contract and clears consent",355,737000,1092000,"/Search/View?dp=1&key=5798637-4ed0ffb67973334f8f444b45874885f2&start=737&end=1092","https://assets.pipeline.soar.com/5798637-4ed0ffb67973334f8f444b45874885f2/thumbnail_737000.jpg","/articles/6467362/San-Jose/Santa-Clara-County/California/Federated-board-approves-CEO-and-CIO-merit-increases-renews-custodian-banking-contract-and-clears-consent","https://secure.pipeline.soar.com/6467362-d50dd8825e6aae7dd2a290074d79f5e5/orig.mp4?Expires=1770675168&Signature=NRr9U3gvtph9Fvefa7sLOgqildRG77-o2qFuS4xOn8bQGOtBfQ7j-HoNBhTq1ReLPwxDAluCvvW3FmnmUh5rpWn63JlGN3njtQvUvXM-c7d0Y~JRwSAb8PEwWAzjlYBhBX44Oyw-KCU8ST15zbcWmPGaCSsTX-c6YkS6rRBdcp302tgwGJc2e1NbVwQ~lNXEAIgTkZg7eiRTtX2EE~7ws0S~EO7EIbSt7R9WVmurM1Iao0fM41X5412JnTO9Xzs~h~2utKKlImk36eXe6hSz8sZaG8SgVJqqtE0TEQGMmDqtDLu6h47v8pdDc91xvpJqs56euQylDdc3emdLBy25Kg__&Key-Pair-Id=KUT5TJCACFTXG","The Federated City Employees Retirement System Board on a unanimous voice vote approved a package of personnel and operational items including merit pay increases for its two senior executives and a five‑year renewal of custodian banking services.

The board voted to give CEO John Flynn a 4% merit increase and five additional executive days for the fiscal year. Trustee Avasti moved the motion and Trustee Abbott seconded; the motion passed unanimously. The board approved the same package for the chief investment officer (CIO) — a 4% merit increase and five executive days — on a motion by Trustee Abbott, seconded by Vice Chair Chandra, and again by unanimous vote.

The board approved a five‑year renewal of its custodian banking services after the Investment Committee recommended the contract. Trustee Wagner moved the contract approval; Trustee Lindner seconded. Board members discussed the vendor market and implementation issues during the Investment Committee review before the vote; the motion passed on a unanimous voice vote.

Separately, the board voted to waive the “sunshine” deadline for two late attachments related to agenda items 5.c.5 and 1.6.c and later approved the consent calendar following a closed session with no reportable action.

Why this matters: The merit actions formalize compensation decisions the board described as recognition of “strong” first‑year performance. The custodian contract renewal secures core operational infrastructure used for custody, recordkeeping and settlement; the board said there are only a few providers in that market and recommended continuity.

What happened next: Staff will document the approved increases and the contract extension. Trustees asked staff to continue reporting on investment performance and to bring any material vendor risks to the board between meetings.

Votes at a glance
- Waive sunshine for late attachments (items 5.c.5 and 1.6.c): motion made and seconded; voice vote in favor; outcome — approved.
- Consent calendar: motion by Trustee Litton; second by Vice Chair Chandra; outcome — approved, unanimous.
- Custodian banking services contract (renewal / five‑year extension): motion by Trustee Wagner; second by Trustee Lindner; outcome — approved, unanimous.
- CEO merit increase and five executive days (FY): motion by Trustee Avasti; second by Trustee Abbott; outcome — approved, unanimous.
- CIO merit increase and five executive days (FY): motion by Trustee Abbott; second by Vice Chair Chandra; outcome — approved, unanimous.

Board remarks and process notes: Chair Horowitz opened the personnel discussion and trustees repeatedly praised the executives’ first‑year performance before moving to motions. Public comment on unrelated items took place earlier in the meeting and closed before these votes.","At its September meeting the Federated City Employees Retirement System Board unanimously approved 4% merit increases and five executive days each for the CEO and CIO, renewed custodian banking services for five years, and passed the consent calendar after closed session.","actionData","errors"]

Article not found

Investment office reports multi‑year gains, higher growth exposure and top‑quartile peer rankings

CEO frames ‘state of the pension’ as funding, demographics and modernization priorities

Security consultants warn trustees: phishing and third‑party risk are top threats; board urged to adopt frameworks and exercises

Federated board approves CEO and CIO merit increases, renews custodian banking contract and clears consent