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!
http://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.@ http://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
http://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.
http://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
http://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. Thee place where COMMON SENSE never goes out of style!
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