Hello my name is Larry Mendoza and I am here to expose corruption and fraud with the Santa Barbara County Employees Retirement Systems S.B.C.E.R.S. pension fund. Through my research I can prove that it is mathematically impossible for the SBCERS pension fund to currently have any type of negative fund value and or future deficit. Furthermore when you apply the factual data over the previous 26 year period, the SBCERS pension fund should currently have a surplus.
So what is the mathematical equation I am trying to prove here? Well If the SBCERS pension fund started out in 1986 as 100% funded. And Santa Barbara County also contributed the required minimum percentage of payroll for the last 26 years. Then the pension investment returns earned the 8% assumption rate for the last 26 years, can we all agree the pension fund would currently be 100% in a perfect world?
But what if the fund again started at 100% funded in 1986 and earned an additional 20% above the yearly 8% assumption rate for 26 years. And then the County over contributed by 48% above the normal contribution minimum for 26 years what would we have then? Can we all agree we would have an extremely over funded pension, because that is exactly what we have and I can prove it.
My research shows that in both 1986 and 1991 Santa Barbara County reported to the Municipals Securities Market on Wall Street that the SBCERS pension was at least 100% funded. The data I found from Santa Barbara County records show that for last 26 years the County’s pension’s investments have earned a yearly return average that exceeds 9.55%. Finally based on a 2009 pension cost history sheet produced by the Santa Barbara retirement board, I found that Santa Barbara County has been over funding the SBCERS pension by an unbelievable 48% above the required minimum. So now I ask, how can Santa Barbara County elected officials currently claim that the County pension fund has a 1 Billion dollar future unfunded liability? It is MATHMATICALLY IMPOSSIBLE based on the data I have just shared with you!
My research data comes from 3 sources, The California State Controller’s Office, Santa Barbara County and Retirement Board and the Municipals Securities Market on Wall Street. Truth be told Santa Barbara County elected officials are ultimately the providers of all data my three sources posses.
Below is the 26 year average return for their SBCERS investment returns and a link to its location on the web. Take a look at it, check my figures and tell me what you come up wih.
Santa Barbara County Employees’
Retirement System
Exhibit 7b: Net Return on Assets vs. Increase in Consumer Price Index
Column 1 Net Return at Market Value
Column 2 Net Return at Actuarial Value
Column 3 Increase in Consumer Price Index.
………1…………....2…………....3
1986.18.6%**……………………………1.8%
1987.14.0%***........................................3.7%
1988 1.9% …………………………….4.0%
1989 17.6%.................................... 5.2%
1990 10.8%.................................... 4.7%
1991 9.7%...................................... 4.7%
1992 18.5% …………………………..3.1%
1993 13.2%.................................... 3.0%
1994 -0.7%..................................... 2.5%
1995 17.7%.................................... 3.0%
1996 15.6%.................................... 2.8%
1997 19.9% …………………….…….2.3%
1998 18.9% …………………………..1.7%
1999 10.5%.................................... 2.0%
2000 6.4%...................................... 3.7%
2001 -4.3% ………………………..…3.2%
2002 -5.4% ………………………..…1.1%
2003 4.6%...................................... 2.1%
2004 15.7%.............. 2.9%............. 3.3%
2005 9.9% ………..….5.0% ……..…2.5%
2006 10.6%.............. 7.8%............. 4.3%
2007 16.6% …….....11.7%............. 2.7%
2008 -7.2% ………….9.2%............. 5.0%
2009 -19.2%............ -9.6%............ -1.4%
2010 13.4% ……….13.2%............. 1.1%
2011 21.8%......................................2.9%
26-Year Compound Average Net Return at Market Value 9.58%
26-Year Consumer Price Index Average 2.8%
* Based on All Urban Consumers - U.S. City Average,
** Only available data for investment return yield for 1986 was book value which was 24.2%
*** Only available data for investment return yield for 1987 was book value which was
16.6%. I have found that Book Value on average tends to be lower than Market Value but I played it safe for this example..
This data can be. Found @
Here is the investment return data ending June 2011for the SBCERS pension. Which I found in a recently released brochure advertising the current opening for a Chief Executive Officer for our Santa Barbara County Employees Retirement System. As of June 30, 2011, the SBCERS total portfolio contained $1.96 billion of plan net assets. The total investment portfolio experienced a $349.9 million increase in value during the previous one-year period. For the year ending in June 30, 2011, the fund generated a return of 21.8% net of fees. What I find extremely odd is that Santa Barbara County elected Officials have yet to publicize these extraordinary returns to the public through the media, why do you suppose that is?
Here is a link to the Brochure where you will find the 2011 earnings at the top of page 3 as presented by the SBCERS retirement board..@
http://docs.google.com/viewer?a=v&q=cache:zaAkp7a_OoYJ:www2.co.fresno.ca.us/9200/attachments/agendas/2011/110211/Item%252017%2520110211%2520Alliance%2520Resourse%2520Consulting%2520Attachment.pdf+ceo+open+for+sbcers+2011&hl=en&gl=us&pid=bl&srcid=ADGEESj9OQplzijd1lhxym4LfKEK_RLj--TE9C2DCge8CvFGBLBtqUyICrnlW4-qWlSVf8j2rqYqlmF44p67-5cPFIXQx1FZED3GnSk7-2tKKR8ulgLoZFgT9EYKG6o7X-V6iS-Tf7eN&sig=AHIEtbRkrCSnhloFeHpwmjEz_eTXJGeFxA
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