The magic of compound interest is why someone retroactively changed ten years worth of SBCERS pension data. I have the documents to prove that statement!

The magic of compound interest is why someone retroactively changed ten years worth of SBCERS Pension data. I have the documents to prove that statement!

 
I really hope yesterday’s posting about the “Magic” of compound interest not only caught your eye but finally opened them as well. Now I did make one mistake when it came to the compounding factor with yesterdays examples and I have corrected that for today’s posting. I am well aware that what I am presenting here is extremely elementary but I think that growth pattern visuals that we get from my mathematical calculations get the idea across just fine. Today’s posting is very short from the aspect of me sharing my view on the 10.10% number. However today’s posting is HUGE and LOADED with web locations of numerous pension reports and data, that I am just sharing with you all.

New compound interest examples;

Starting balance of $10,000.00 a monthly contribution of $100.00 at an interest rate of (20 year assumption rate used by Santa Barbara County)8.10% compounded Semiannually for 20 years = Final Savings Balance: $112,793.72

Starting balance of $10,000.00 a monthly contribution of $100.00 at an interest rate of 10.10% compounded Semiannually for 20 years

Final Savings Balance: $158,154.31

The point of this example is to show just how much of an impact a 2% can be, in this case around 29.00% of additional earnings. Please keep in mind that the 8.10% depending on our starting pension funding level could keep the fund solvent. So am I correct in thinking that our elected County officials think the 10.10% returns should be considered a failure? We will get back to this later.

Now as I have mentioned many times before Santa Barbara County has been over contributing to the tune of 55.00% above the normal contribution rate for the same 20 year period that it has been earning the 10.10% returns on assets. So again I apologize for my simplistic view but I added an additional 55.00$ to the contribution column and then reran the same calculations as above, the results might shock you?.

Starting balance of $10,000.00 a monthly contribution of $155.00 at an interest rate of 8.10% compounded Semiannually for 20 years

= Final Savings Balance: $146,273.67 vs the return of 112,793.72 with just the 100.00 contribution

Starting balance of $10,000.00 a monthly contribution of $155.00 at an interest rate of 10.10% compounded Semiannually for 20 years

= Final Savings Balance: $201,894.74 vs the return of 158,154.31 with just a 100.00 monthly contribution.

Now only just recently did I really start concentrating on the impact a 10.10% return on assets for 20 years would have on our SBCERS pension funds total value. And to be honest the more I think about that number the more I am puzzled as to why our elected county officials have been down playing or hiding this data from us all. However last June I did question why the leaders of our S.B.C.E.R.S. would require and produce 5 different valuations and audits to give us the great news about the 10.10% in June of 2007? Well that’s not quite true, you see in none of these reports does anyone attempt to share with us the huge benefits and additional earnings that the 10.10% returns produced. I wonder if they were just having a hard time counting all that MONEY? I am also confused about 2006 and all the fuse there as well, like the Mercer reports. Now let’s be honest here I thought it would be allot harder to find TWO BILLION DOLLARS but honestly we all ready have! You have to remember I can also produce county documents that say we started at 100% funded until someone in 1996/97 retroactively changed ten years worth of data. I mean they literally went back and devalued our SBCERS pension for ten years ending in 1986 and I can prove it!

https://magicinsantabarbara.wordpress.com/2011/06/15/how-many-different-reports-and-valuations-can-we-have-for-our-2007-sbcers-pension-fund/

How many different reports and Valuations can we have for our 2007 SBCERS Pension Fund Value?

Posted on June 15, 2011 by magicinsantabarbara

2007 Experience Study Review EFI Click here to open pdf file

2007 Investigation of Experience Study Revised 01/2008 Click here to open pdf file

2007 SBCERS Valuation Addendum (Milliman)

2007 SBCERS Actuarial Valuation

2007 SBCERS CAFR

2007 Actuarial Valuation Revised Sept 2008

I am trying to provide as much information as possible to the public in hopes that others might do their own research. Below is one just example of the kind of data made available by me and posted on my blow.

http://santabarbaracriminalcourtcorruption.blogspot.com/2011/07/california-public-retirement-systems.html

Saturday, July 2, 2011

California Public Retirement Systems Annual Audit Reports 2007-08 – 1997-98. Also Past Fund Values from 1996-97 – 1978-79 for 5 California County Pensions; Los Angeles(LACERA), Santa Barbara(SBCERS) Ventura(VCERA), Kern(KCERA), and Contra Costa(CCCERS) County

Please click on any orange highlight and that PDF file will open for your review.

California Public Pension Funds Yearly Audits from the Office of the California State Controller. Pubic Pension Reports County by County and City by City @

http://www.sco.ca.gov/ard_locrep_retirement.html

California Public Retirement Systems Annual Reports

Fiscal Year 2007-08

Fiscal Year 2006-07

Fiscal Year 2005-06

Fiscal Year 2004-05

Fiscal Year 2003-04

Fiscal Year 2002-03

Fiscal Year 2001-02

Fiscal Year 2000-01

Fiscal Year 1999-00

Fiscal Year 1998-99

Fiscal Year 1997-98

Fiscal Year 1996-97 (Summary)

Please Keep in Mind that 19 additional years of Audits are available through the California State Controllers office upon request.

Recently I did make such a request for the following 5 California County Pension Funds ; Los Angeles, Santa Barbara, Contra Costa, Kern and Ventura. I have now uploaded these archived pension files dating from 1996-97 back to 1978-79 and made them available for everyone to review here on my blog.

LACERA, SBCERS, CCCERS, KCERA, VCERA

1996-97 Fund Values for 5 California County Public Pensions; Los Angeles(LACERA), Santa Barbara(SBCERS) Ventura(VCERA), Kern(KCERA), and Contra Costa(CCCERS) County

1995-96

1994-95

1993-94

1992-93

1991-92

1990-91

1989-90

1988-89

1987-88

1986-87

1985-86

1984-85

1983-84

1982-83

1981-82

1980-81

1979-80

1978-79

It may be easier to use my other blog posting to click and open each year pdf file.@ https://magicinsantabarbara.wordpress.com/2011/07/02/california-public-retirement-systems-annual-audit-reports-2007-08-1997-98-also-past-fund-values-from-1996-97-1978-79-for-5-california-county-pensions-los-angeleslacera-santa-barbarasbcers/

To Order Publications

[Copying and mailing charges may apply]

By E-mail: Please complete the E-mail Inquiry Form.

By Regular Mail:

For State and Local Government Annual Financial Reports:

Office of State Controller John Chiang

Division of Accounting and Reporting

P.O. Box 942850

Sacramento, CA 94250

For Annual Audit Reports or Audit Guides:

Office of State Controller John Chiang

Division of Audits

http://sbcers-trustee.com/Documents/2011-12-14-013c-BOR-2011CAFR.pdf

SBCERS COMPREHENSIVE ANNUAL FINANCIAL REPORT

Fiscal Year Ended June 30, 2011
http://sbcers-trustee.com/Documents/2011-10-26-002b-BOR-ActuarialValuationJune30,2011.pdf

Santa Barbara County Employees’ Retirement System

ACTUARIAL VALUATION June 30, 2011
http://www.sbcgj.org/2011/PostEmployBenefits.pdf

Santa Barbara County Grand Jury report Post Employment Benefits
Complicated and Costly
http://www.sbcgj.org/2011/responses/PostEmployBenefits-CSFD.pdf

The following is our response to the Santa Barbara County Grand Jury report of June, 2011 titled
“Local Government Post Employment Benefits in Santa Barbara County – Complicated

and Costly.”
http://www.countyofsb.org/uploadedFiles/sbcers/2010%20Valuation.pdf

Santa Barbara County Employees’ Retirement System

ACTUARIAL VALUATION June 30, 2010

http://sbcers-trustee.com/Documents/2011-04-27-013c-BOR-SBCERSCAFR6-30-2010.pdf

SBCERS COMPREHENSIVE ANNUAL FINANCIAL REPORT

Fiscal Year Ended June 30, 2010
http://sbcers-trustee.com/Documents/2011-03-23-003c-Actuarial-Valuation-of-OPEB.pdf

Santa Barbara County Employees’ Retirement System
Actuarial Valuation of Post Employment Benefits Other than Pensions

as of June 30, 2010
http://sbcers-trustee.com/Documents/20100428-012a-BOR-ActuarialAudit.pdf

That the Board: Authorize staff to issue a Request for Proposal for actuarial audit services in conjunction with Milliman’s upcoming Investigation of Experience and Actuarial Valuation for the period ending 6/30/10.

http://sbcers-trustee.com/Documents/20101004-002a-BOR-EconomicAssumptionsTransmittal.pdf

Receive preliminary report and presentation from Milliman, the System’s Actuary,

regarding their findings on economic assumptions (part of the Investigation of Experience from July 1, 2007, through June 30, 2010), and consider modifications to the economic actuarial assumptions.

http://sbcers-trustee.com/Documents/20101215-002b-InvestigationOfExperienceFY%27s%2707-%2710.pdf

Santa Barbara County Employees’ Retirement System

2010 INVESTIGATION OF EXPERIENCE

For the period July 1, 2007 to June 30, 2010
http://sbcers-trustee.com/Documents/2010-02-24-RRubalcavaPublicCommentHandout.pdf

Response to 2009 selection of alternative 2 as it pertains to the UAAL balance.

http://sbcers-trustee.com/Documents/20101004-002d-BOR-InvestigationOfExperienceEconomicAssumptionsPresentation-Milliman.pdf

SBCERS Board Meeting

October 4, 2010 Presentation

Investigation of Experience Economic Assumptions

http://www.countyofsb.org/uploadedFiles/sbcers/ActuarialValuation20090630.pdf

Santa Barbara County Employees’ Retirement System

ACTUARIAL VALUATION June 30, 2009

http://www.sbcgj.org/2009/responses/SBCERS-update.pdf

SBCERS 2009 response to the SBCGJ. Also past pension values for other California County Pensions
http://sbcers-trustee.com/Documents/2010-03-24-010-BOR-OPEBValuation.pdf

Santa Barbara County Employees’Retirement System

Actuarial Valuation of Post Employment Benefits Other than Pensions  as of June 30, 2009

http://sbcers-trustee.com/Documents/2010-06-23-017-BOR-CAFR20092FINAL.pdf

SBCERS COMPREHENSIVE ANNUAL FINANCIAL REPORT

Fiscal Year Ended June 30, 2009

http://sbcers-trustee.com/Documents/20101004-002b-BOR-EconomicAssumptionsHistory.pdf

SBCERS HISTORY OF ECONOMIC ASSUMPTIONS
1981-2009

http://sbcers-trustee.com/Documents/20090624-012-BOR-GrandJuryReport.pdf

Santa Barbara County Grand jury report 2009

http://sbcers-trustee.com/Documents/010%20-%20BOR%20-%20Actuarial%20Valuation.pdf

Santa Barbara County Employees’ Retirement System

ACTUARIAL VALUATION

June 30, 2008

http://www.countyofsb.org/uploadedFiles/sbcers/SBCERS%20CAFR%202008%282%29.pdf

SBCERS COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2007
http://www.countyofsb.org/sbcers/fnp/sbcersCAFR2007.pdf

SBCERS COMPREHENSIVE ANNUAL FINANCIAL REPORT

Fiscal Year Ended June 30, 2007

http://www.countyofsb.org/sbcers/fnp/2007FinalValuation.pdf

Santa Barbara County Employees’ Retirement System
ACTUARIAL VALUATION June 30, 2007
https://magicinsantabarbara.files.wordpress.com/2011/06/2007-actuarial-valuation.pdf

Santa Barbara County Employees’ Retirement System

ACTUARIAL VALUATION June 30, 2007
http://www.countyofsb.org/sbcers/fnp/2007ExperienceStudyRevised.pdf

Santa Barbara County Employees’ Retirement System

2007 INVESTIGATION OF EXPERIENCE

For the period July 1, 2003 to June 30, 2007

Revised January 2008
http://www.countyofsb.org/sbcers/fnp/2007ValuationAddendum.pdf

Addendum to the June 30,2007 Actuarial Valuation of the Santa Barbara County Employees’ Retirement System (SBCERS), presented at the February 27, 2008 Board Meeting.

https://magicinsantabarbara.files.wordpress.com/2011/06/2007-experience-study-review.pdfSBCERS REVIEW OF ACTUARIAL EXPERIENCE STUDY

DECEMBER 19, 2007

BOB MCCRORY& GRAHAM SCHMIDTEFI ACTUARIES

http://www.countyofsb.org/uploadedFiles/SBC/RPAAC/2006%20Evaluation%20of%20Retirement%20System.pdf

Mercer SBCERS Retirement System Evaluation November 7th 2006

http://www.countyofsb.org/auditor/publications/RetirementSystemEvaluationFinal.pdf

Mercer SBCERS Retirement System Evaluation Part 2

http://www.countyofsb.org/sbcers/fnp/sbcersCAFR2006.pdf

SBCERS Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2006

http://www.countyofsb.org/uploadedFiles/SBC/RPAAC/2006%20Actuarial%20Valuation.pdf

Santa Barbara County Employees’ Retirement System

2010 INVESTIGATION OF EXPERIENCE For the period July 01 2003 to June 30, 2006

https://magicinsantabarbara.wordpress.com/2011/06/15/county-of-santa-barbara-office-of-the-auditor-controller-county-retirement-cost-white-paper-by-robert-geis-c-p-a/

County of Santa Barbara Office of the Auditor Controller County Retirement (SBCERS) Cost “White Paper” by Robert Geis C.P.A. 2006

http://www.countyofsb.org/uploadedFiles/SBC/RPAAC/2005%20Actuarial%20Valuation%20.pdf

Santa Barbara County Employees’ Retirement System

ACTUARIAL VALUATION June 30th 2005

http://www.countyofsb.org/sbcers/fnp/sbcers%20CAFR%202005.pdf

SBCERS Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2005

http://www.countyofsb.org/uploadedFiles/SBC/RPAAC/2004%20Actuarial%20Valuation.pdf

Santa Barbara County Employees’ Retirement System

ACTUARIAL VALUATION June 30th 2004

http://www.countyofsb.org/sbcers/fnp/sbcers%20CAFR%202004.pdf

SBCERS Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2004

http://www.countyofsb.org/uploadedFiles/SBC/RPAAC/2003%20Actuarial%20Valuation.pdf

Santa Barbara County Employees’Retirement System

ACTUARIAL VALUATION

June 30th 2003

http://www.countyofsb.org/uploadedFiles/SBC/RPAAC/2003%20Experience%20Studyv2.pdf

Santa Barbara County Employees’ Retirement System
2010 INVESTIGATION OF EXPERIENCE

For the period January 31st, 2001 to June 30, 2003

http://www.countyofsb.org/sbcers/fnp/sbcers2003.pdf

SBCERS Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2003

http://www.countyofsb.org/uploadedFiles/SBC/RPAAC/2002%20Actuarial%20Valuation.pdf

Santa Barbara County Employees’Retirement System

ACTUARIAL VALUATION

December 31st 2002

http://www.countyofsb.org/sbcers/fnp/sbcers2002.pdf

SBCERS Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2002

http://www.countyofsb.org/uploadedFiles/SBC/RPAAC/2001%20SBCERS%20CAFR.pdf

SBCERS Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2001

http://www.countyofsb.org/uploadedFiles/SBC/RPAAC/2000%20Actuarial%20Valuation.pdf

Santa Barbara County Employees’Retirement System

ACTUARIAL VALUATION

December 31st 2000

http://www.countyofsb.org/uploadedFiles/SBC/RPAAC/2000%20SBCERS%20CAFR.pdf

SBCERS Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2000

S.B.C.C.C. The place where COMMON SENSE never goes out of style!

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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