Thank you for your ongoing donations. They are greatly appreciated as they help offset our operating expenses, allowing us to continue our work serving you. CLICK HERE to donate today!
PROTECT OUR BENEFITS IS AN ORGANIZATION WHOSE GOALS ARE TO ENHANCE THE DIGNITY AND QUALITY OF LIFE OF ALL SAN FRANCISCO AND COUNTY RETIREES AND PRESERVE THEIR HEALTH AND RETIREMENT BENEFITS.
FROM THE EXECUTIVE BOARD OF PROTECT OUR BENEFITS
SAN FRANCISCO HEALTH SERVICE SYSTEM
SFHSS has just completed a 2020 Audit Report and a 2021 Audit Plan. The report addressed: 2020 Audit Performance, 2020 Audit Findings, 2021 and Beyond-Revised Approach, and 2021 Continuous Monitoring and Audit Plan.
Building upon the lessons learned from the audits conducted, SFHSS will conduct ongoing monitoring of the existing regulatory and accrediting body organizational standards. The SFHSS 2021 audit plan will focus on monitoring contract compliance and the pre-implementation audits of new self-funded plans.
THE AMERICAN RESCUE PLAN ACT OF 2021 (HR 1319) -this bill provides additional relief to address the continued impact of COVID-19 on the economy, public health, state and local governments, individuals, and businesses.
Over the next several months, in consultation with Aon, staff will continue to learn about the Medicare plan landscape including employer-sponsored plans (e.g., “group insurance” plans) and individual market plans. Ultimately, evaluation of our learnings and development of our go-forward recommendations by June 2021 will be guided by this four-pillar framework: Quality, Costs, Benefits Administration, and Legal and Policy Guardrails.
SAN FRANCISCO EMPLOYEE RETIREMENT SYSTEM (SFERS)
In March 2021 SFERS portfolio gained 0.98%. Our Private Equity book returned 3.98%, backed by write-ups to public market equivalents after the recent surge in stock prices and due to a strong IPO market. In the first quarter of 2021 the Barclays Aggregate U.S. Bond index lost -3.37%, its worst quarterly return in 40 years. The loss was due to rising interest rates, as the 10-year U.S. Treasury rate rose from less than 1% to over 1.5%. During the quarter investors became concerned about the magnitude of federal spending and its impact. As a result, interest rates moved higher which pressured bond prices lower.
With nine months of FY2020-21 in the books, SFERS investments have returned 21.80%. Our Public Equity and Private Equity portfolios have posted especially high returns, surging 34.34% and 34.33%-within one basis point of one another fiscal year, driven by very high-returns in our technology, biotech, and China managers, and more recently by strong returns, in international equities, small stocks, and non-tech related sectors.
SFERS Fixed Income book has gained 1.38% this fiscal year while our Real Assets portfolio is now up 1.39%. Last spring COVID-19 negatively impacted Real Assets more than any other asset class and treasury bonds performed exceptionally well. Since then, the economy gradually beginning to recover, treasuries have lagged as interest rates have moved higher. Real Assets have also lagged due to uncertainty about when travel will resume (impacting energy demand), where people will choose to stay when traveling (impacting hotels), and the future of where work will be conducted (impacting office). The recovery in our Real asset’s portfolio from COVID-19 is taking longer than our other asset classes, but over time travel and demand for energy should return to approximately their previous base.
PROTECT OUR BENEFITS BOARD
Here is hoping to find you and family safe, vaccinated and well. This COVID thing is like the dinner guest who came for dinner and over-stayed it’s welcome. Slowly we are starting to see things re-opening and trying to get back to normal. But at this stage what is back to normal? If this recall petition for Gov. Newsom goes through, who knows what that will do for the State and the economy. POB has not forgotten our mission to look out for the CCSF Retirees whether it be through health or retirement benefits.
UNITED WE STAND, DIVIDED WE FALL
Your continuing contributions and support are greatly appreciated and are tax deductible. Please mail them to Protect Our Benefits Trust, P.O. 210250, San Francisco, Ca. 94121-0250 or CLICK HERE to donate today!