Imperial County retirement board approves GASB 67 correction, updates investment policy and names conference delegates

The Imperial County Employees Retirement System board on March 19 approved a revision to its GASB 67 financial reporting schedules, adopted changes to its investment policy statement, and named voting delegates for the spring conference, all by unanimous voice votes.

The revisions to the GASB 67 schedules correct a misallocation of market‑value assets between safety and general employers, which changed several employer‑level expense and allocation lines but did not change the systemwide funding valuation. The board heard from the plan’s actuarial consultant and voted to approve the corrected GASB 67 schedules so employers can use the revised GASB 68 schedules for their own financial reports.

Board members said the correction was small in dollar terms but important for accurate financial reporting. The actuarial presenter told trustees “there's no change to the funding report,” and auditors with Brown Armstrong confirmed a footnote in next year’s audited financials would suffice rather than a revised audit.

Votes at a glance

- Approval of minutes (02/19/2025 adjourned meeting): moved by Suzanne C. Bermudez; second by David H. Prince; outcome: approved (voice vote).

- Revision to GASB 67 report (allocations between safety and general employers): motion by David H. Prince; second by Suzanne C. Bermudez; outcome: approved (unanimous voice vote). Key details from the presentation: system net pension liability for the plan as a whole remained $126,000,000; an asset over‑allocation of about $30,000 was corrected, which increased one employer’s expense line from $8,531,000 to $8,537,000. Auditor Brown Armstrong advised a footnote to next year’s audited results rather than a reissued audit.

- Appointment of voting delegate and alternate for the spring conference: motion to nominate Scott as voting delegate and David H. Prince as alternate; moved by Norma Kaye; second by Patricia Lizarraga; outcome: approved (voice vote).

- Adoption of changes to the investment policy statement (implementing Verus’ recommended asset allocation targets and ranges): motion by David H. Prince; second by Patricia Lizarraga; outcome: approved (voice vote).

- Formation of an ad hoc committee for the board’s triennial review of bylaws and governance policies (nominated members: Carl L. Armstrong, Jennifer Benavides, Jose Landeros; committee also to include Trish, Scott and Angie for scheduling): motion by Norma Kaye; second by Suzanne C. Bermudez; outcome: approved (voice vote).

Why it matters

GASB 67 and GASB 68 schedules are used for governmental financial reporting and for employer financial statements; correcting the allocation between safety and general employers ensures each employer’s financial reporting reflects the same market values the plan uses for public reporting. Separately, the investment policy changes will reset asset allocation targets and ranges that guide manager allocations, and the governance review committee will perform a triennial review of board bylaws and policies.

What the board said and next steps

Trustees pressed for clarity on whether the correction would change employer or member contribution rates; the actuarial consultant and staff said the correction affects financial reporting schedules only and does not change the funding valuation or approved contribution rates set at the December meeting. The board adopted the revised GASB 67 schedules and directed staff to incorporate the adopted investment policy changes into the policy manual. Staff will notify employers and reflect the new targets in next month’s policy target table.