Sacramento officials announced on Mar. 26 that they are seeking public input on how a possible future surplus from the Sacramento City Employees’ Retirement System (SCERS) should be used to benefit the community.
The initiative is significant because SCERS, which has been closed to new participants since 1977, currently serves just over 700 retirees and beneficiaries and has only one active employee. All city employees hired after 1977 participate in the California Public Employees’ Retirement System instead.
As of July 1, 2025, SCERS is reported to be overfunded, with about $1.10 in assets for every $1.00 in liabilities. City officials said that once all benefits have been paid out and there are no remaining beneficiaries, a surplus could remain within the system.
To ensure these funds are used in ways that reflect local priorities, the city is inviting residents to participate in a community survey hosted on Polco. Possible uses for any future surplus include investments in housing, economic development projects, support for small businesses, homelessness services, public safety initiatives, or allocation to Sacramento’s general fund.
“These funds represent a unique, one-time opportunity, and we want to ensure that any future surplus reflects the priorities and needs of Sacramento residents,” said City Treasurer John Colville.
Officials emphasized that any potential surplus would not become available until all current obligations have been met—a process expected to take years—but gathering feedback now will help guide responsible planning.
