The VCERA Board of Retirement established its investment policy in accordance with retirement law. Specifically, the Board and VCERA management must discharge their investment-related duties pursuant to Government Code section 31595 of the County Employees Retirement Law of 1937:
- Solely in the interest of, and for the exclusive purpose of, providing benefits to participants and their beneficiaries, minimizing employer contributions thereto, and defraying reasonable expenses of administering the system; and
- With the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of a like character with like aims; and
- Shall diversify the investments of the system so as to minimize the risk of loss and to maximize the rate of return, unless under the circumstances it is clearly not prudent to do so.
While VCERA recognizes the importance of preserving capital, it also adheres to the principle that varying degrees of investment risk are generally rewarded with compensating returns in the long run.