FROM: Debby Cherney, Chief Executive Officer
Barbara Hannah, Chief Counsel
SUBJECT: Review SBCERA Organizational Chart and Reporting Responsibilities
RECOMMENDATION:
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Review SBCERA Organizational Chart and Reporting Responsibilities.
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BACKGROUND:
At its June 4, 2026 Board Meeting, the Board requested a presentation on the SBCERA Organizational Chart to discuss alignment of departments.
According to Article 1 Section 2 of the SBCERA By-Laws, “the CEO shall be the administrator of the Association and shall be responsible for the management of the retirement office including, but not limited to, the retirement fund, operating budget, appointment and management of personnel and the other day-to-day activities of the Association… and to hire, evaluate, and terminate employees to the extent provided for in an Employment Resolution or similar document approved by the Board and take such actions as are appropriate to carry out any other decision made or approved by the CEO pursuant to a delegation of authority granted by the Board to the CEO for such decision.”
According to Article 1 Section 3 of the SBCERA By-Laws, “the Chief Counsel may hire, evaluate, and terminate subordinate attorneys and legal support staff to the extent provided for in an Employment Resolution or similar document approved by the Board.”
In the wake of the 2023 Impasse proceedings with SEIU Local 721, the Board approved Terms and Conditions of Employment in December 2023, which complement the Employment Resolution, which terms were also adopted for unrepresented employees. The represented then decertified their representation by SEIU Local 721 in March 2024. No additional resolutions or terms have been adopted by the Board and these remain our guiding documents. Copies of the Board action items from December 2023 are attached as Exhibits B and C, respectively. A link to the SBCERA By-Laws can be found here: <https://sbcera-int.policystat.com/policy/18156777/latest/>
In practice, the departments and organizational units are listed below with operational oversight:
|
Department/Organizational Unit |
Operational Oversight |
By-Laws |
|
Administration |
Chief Executive Officer |
CEO |
|
Communications |
Chief Communications Officer |
CEO |
|
Disability Unit |
Chief Counsel |
CEO |
|
Fiscal Services |
Chief Financial Officer |
CEO |
|
Facilities |
Chief Information Officer |
CEO |
|
Human Resources & Risk Mgmt. |
Chief Human Resources Officer |
CEO |
|
Information Services |
Chief Information Officer |
CEO |
|
Investments |
Chief Investment Officer |
CEO |
|
Legal Services |
Chief Counsel |
Chief Counsel |
|
Member Services |
Chief of Member Services |
CEO |
|
Survivor Benefits Unit |
Chief Counsel |
CEO |
Disability and Survivor Benefits Units:
In 2018, the CEO moved the Disability Retirement Unit (DRU) under the leadership of the Chief Counsel. This decision was grounded in the Chief Counsel’s deep knowledge of the disability retirement process and opportunities she identified to improve service times and outcomes. The Chief Counsel has developed a team that has significantly shortened application processing times, has entirely digitized the process, and continues to receive high marks from members.
In 2024, the Board approved the creation of the Survivor Benefits Unit (SBU) at the request of the CEO. The CEO determined it was best to have the SBU led by the Chief Counsel. This decision was grounded in the Chief Counsel’s success with the DRU, and that members of the DRU were already handling the processing of survivor benefits in situations of active member deaths. Once we hired the SBU Manager, Retiree and beneficiary deaths were transitioned from Member Services to the SBU.
Hiring of employees into these units is coordinated through SBCERA’s Human Resources (HR) team. As with all departments in SBCERA, the department chief is involved in hiring at different levels, depending on the level of employee who is being hired. A Manager level employee would be primarily interviewed and selected by the department Chief, while employees below that level would be primarily interviewed and recommended for selection by the department Manager. A chief may or may not be involved in the interviews led by Managers, depending on the specific recruitment. In all instances, the process is shepherded by the HR team.
Functional day-to-day supervision is handled similarly. Both the managers of the Dru and SBU report to Chief Counsel. In the event there are performance issues of any significance with any employees, the HR team is involved at an appropriate level depending on the situation. If the department Chief and managers, in consultation with HR, determine that a change in employment status is warranted, in all instances, the CEO is informed, and typically SBCERA’s outside employment counsel is consulted. This framework is a consistent expectation of all chiefs/departments of SBCERA.
By placing the DRU and SBU at the direction of the Chief Counsel, the CEO is using the provisions of the By-Laws which allow her to delegate responsibilities. Article 1, Section 2 of the SBCERA By-Laws provides that “The CEO may delegate any of the duties or powers conferred by these By-Laws, except where these By-laws explicitly prohibit such delegation.”
The existing organization chart and reporting practices have been working well. Maintaining the status quo preserves the CEO’s ability to adjust the Organization Chart and reporting responsibilities as may be needed or warranted from time to time to be achieve service levels, achieve operational efficiencies, and prudently manage resources.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Quality Employer and Workplace
STAFF CONTACT:
Debby Cherney
ATTACHMENTS:
Exhibit A: SBCERA 2026-27 Organizational Chart
Exhibit B: Board item: Terms and Conditions of Employment
Exhibit C: Board item: Unrepresented Employees