What is they 2010 value for our SBCERS pension fund?

Well I felt really good about yesterdays posting and based on all the positive feed back rightfully so. I sill worry at times that even with all the research I put into my postings I must do a better job of presenting my concerns to all of you. So that it is worthy of your time and effort to not only read it but that it stirs your thoughts into motion about the subject matter. I feel so strongly that we all must demand accountability and answers from our California Public pension system that I have continued to invest additional long hours into further research. I feel that the negative impact the pension crisis has over California’s economy should make it a priority with everyone. Regardless if you live in San Jose and work hard for public education, or live in Santa Barbara and have a special passion for treating the mentally ill. Our pension system is choking off any funds from ever reaching your interest group and will continue to do so for years to come. We must stop allowing politicians to do our thinking for us and show them that we can think for ourselves. Which brings me back to the pension issue and why I believe we have additional avenues we could explore. So this weekend will be about two or three postings from me that will use a common sense approach in reviewing the data and presenting it to you. For example below I have added a column to the chart that gives us an updated value for each County. I feel I can highlight the differences between Counties and their performances in a manner that will be quite alarming. The “Fund Balance” column represents the county pension value from 06/30/2000. The “updated value” column I have added reflects the value for the date specified in the box. I stumbled across these updateed values from a file I found on the Internet @ http://www.sbcgj.org/2009/response/SBCERS-update.pdf So I will continue below the chart and start reviewing our SBCERS fund and what jumps out at me.

 

Annualized Returns for Period ending 6/30/00 http://www.sbcgj.org/2000/aud_fin.htm

1st box COUNTY ACTIVE PARTICIPANTS

2nd box FUND BALANCE (market value)

3rd number represents 1 YR RATE OF RETURN

4th number represents 3 YR RATE OF RETURN

5th number represents 5 YR RATE OF RETURN

finally number represents most recent Updated value

Los Angeles 88,420 $30.3 billion 15.2% 14.6% 15.7% 38.7 Billion 06/2008

Orange 20,357 $4.8 billion 11.85% 12.70% 14.46% 6.4 Billion 06/2008

San Diego 16,910 $3.7 billion 15.75% 14.59% 16.02% 8.4 Billion 06/2008

San Bernardino 15,529 $3.6 billion 9.74% 12.70% 14.12% 6.1 Billion 06/2008 Sacramento 10,547 $3.3 billion 9.54% 13.19% 15.41% 5.7 Billion 06/2008

Alameda 9,859 $3.8 billion 10.88% 13.10% 15.36% 3.8 Billion 12/31/07

Contra Costa 8,475 $2.5 billion 6.6% 13.0% 15.7% 3.7 Billion 12/31/2008

Kern 6,853 $1.4 billion 9.43% 11.4% 13.62% 2.Billion 06/2009

Ventura 6,840 $2.1 billion 7.2% 12.9% 14.8% 2.9 Billion 06/2008

Fresno 5,899 $1.3 billion 8.4% 11.8% 14.0% 2.2 Billion 06/2009

San Joaquin 4,835 $1.3 billion 7.93% 10.17% 13.71% No new data

Santa Barbara 4,500 $1.2 billion 6.7% 12.1% 14.5% 1.6 Billion 06/30/2010

San Mateo 4,400 $1.2 billion 6.8% 10.5% 15.3% 1.6 Billion 11/2009

Stanislaus 4,281 $900 million 6.58% 10.86% 13.49% 1.05Billion 06/2009

Sonoma 4,236 $928 million 8.78% 12.92% 15.81% 1.07Billion 12/2008

Marin 2,885 $955 million 10.7% 12.7% 15.2% 1.5 Billion 06/2007

 

Notes: 1. Fund balance information provided by Wagerman Associates 2. Rate of return Information on provided by retirement investment administrators of individual counties 3. Rates of return are gross and do not include management fees Well as you can see the SBCERS fund value starts out at 1.2 Billion dollars on 06/30/2000, than we fast forward to a fund value of 1.6 Billion dollars on 06/30/2010 this value was taken from the 2010 SBCERS CAFR report. At first glance one would see a modest gain of 400 Million dollars over the 10 year span. Based on our economy one might never give it a second thought but hold on there tiger. You see over the last ten years our county and its employees have contributed hundreds of millions of dollars as well as some very significant years with high returns on it’s investments. Over the last tens years ( I may be guilty of rounding off) County employee and employer contributions equaled……………… …600 Million The 2010 SBCERS CAFR shows a 1 year investments return of ………188 Million Between 2003 and 2007 return on investments equals about……………637 million Our SBCERS fund Loses between 2008 and 2009 were equal to ……… (-540 Million) Leaving us with a grand total that should be about……………………..2.085 BILLION DOLLARS Santa Barbara County Employees’ Retirement System 2007 INVESTIGATION OF EXPERIENCE For the period July 1, 2003 to June 30, 2007 Revised January 2008 SBCERS Plan Assets where as follows 2007 $ 1,806,930,876 (at this point the pension was 100% funded) 2006 $ 1,628,958,000 2005 $ 1,476,188,000 2004 $ 1,346,619,000 2003 $ 1,169,417,000 Please keep in mind that in 1999 an additional 180 million dollars had been removed from the SBCERS pension under the guise of excessive returns! This 180 million dollar reduction represented a 15.5% reduction of assets held in trust for the SBCERS fund. So what else can I present to the public that would also challenge both the fund value and funded ratio I am not that bright so I tend to repeat myself when I think I am onto something good and that is that the math just will not allow for a Billion dollar future under funded SBCERS pension liability. My next posting will provide some charts and graphs that reflect the SBCERS investments have performed as required to keep the fund solvent.

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About magicinsantabarbara

Our Santa Barbara Criminal and Civil Superior Courts often abuse’s us with illegal and unjust judgments and convictions. So I investigate, law enforcement, judge’s, elected officials and our California Public Pensions trying to expose the corruption we are being forced to accept. We must always respect and support those who practice the law in an even and ethical manner and demand it from those who do not. Here you can find data for SBCERS, VECRA, LACERA .pensions as well as others.
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