Friday, July 20, 2012 – 08:00 p.m.
The weak investment climate has stung another California public employee pension fund.
Sources say the pension system for San Bernardino County, California earned an estimated 0.75% in its latest fiscal year ending June 30, 2012.
The county system, known as the San Bernardino County Employees Retirement Association’s (SBCERA), has an established benchmark that assumes the fund will earn an annual rate of return of 7.75%.
The system’s five-year average return number looks something like 0.95%. A number devastated by the events of 2008 and 2009.
Any under-performance hits the funds financial stability.
This new development comes as county supervisors are about to propose a series of reforms to pension benefits and putting in place a requirement that all employees pay into the system.
According to the retirement plans consolidated annual financial report, as of June 30, 2011, the system had an unfunded liability of $1,705,139,000. The highest in its history.
Now that amount is expected to exceed $2,000,000,000 when a new calculation is completed by the system’s actuary Segal and Company.
The bad news will undoubtedly place more pressure on county officials to increase contributions to support the plan, which has already fallen well below the 80% funded level, considered adequate for any pension system.
The new results will place the plan somewhere in the low 70-75% range, with the expectation it will fall below 70% next year.
A funding level of 40% or less is considered insolvent.
It’s uncertain if the Board of Retirement is considering following the California Public Employees Retirement System (Calpers) in moving to drop the benchmark assumption rate to 7.50%.
In another related story, Supervisor Janice Rutherford will put forth a proposal asking retired county employes to die sooner than they had planned. “This should free up another 15-20 million and allow the current board members to redirect these funds to pet projects in our districts.” “Biane got a library and I want something too” said Rutherford. If employees refuse, RUtherford would like to piggyback on Supervisor Derry’s ballot initiative. Perhaps the public can make those pesky retirees die sooner!
Meanwhile, Supervisors in Riverside County continue to marvel at how easily unions gave into pension reform once employees were offered some other form of compensation. Hmmmm
BOS can take salary haircut and stop paying marginal administrators $185,000 per year. Rollback the prices of your lil pigeons.
Tell us what you are going to do the pension savings.
“stop paying marginal administrators $185,000 per year. Rollback the prices of your lil pigeons.”
How true! Overhaul! How about starting with a Classification Compliance Audit, audit and review all administrators job duties and responsibilities.
If their salaries decrease, too bad, they can cut back and live within their means, or resign!
Devilroux did it to the little people, desk audits and boom steps down the classification ladder.
He can multitask, have secret negotiations on eminent domain, violate Brown Act, if the County still recognizes Brown Act. Somebody should ask the Legal Beagle.
Careful, CEO may take over county in governmental coup.
You pin pointed the problem, Devereaux, he is the elephant in the room that the board of supervisors tend to TIMIDLY tip toe around…and if he is not addressed he will run the ship (SBC) to the ground!
This is the perfect storm for the board of supervisors to GATHER THEIR COURAGE and rethink the hiring and misguided leadership of Devereaux.
Devereaux has NO vision or mission he brought with him for our county, if he claims he has, that’s untrue, just ask any county employee if they identify with HIS vision or mission; they will respond WHAT VISION OR MISSION- all he does is crack the whip!
Devereaux is arrogant, ignorant, and ABSOLUTELY REPLACEABLE, all he knows is that HE RULES, AND FEELS HE KNOWS MORE THAN THE REST OF YOU!
REALLY?
Question him, and you will see HE KNOWS NO MORE THAN THE OBVIOUS- WE NEED SOMEONE TO LOOK BEYOND THE OBVIOUS!
It’s time for the board to start researching for a MUCH NEEDED replacement at the helm; there is much at stake here, the county needs to come together with one mind set.
Devereaux has failed at BUILDING A TEAM, motivation or inspiration…
why is he such a failure at that?
Because he did NOT EARN his position…it was HANDED to him as a political favor!
So it’s time for the board of supervisors to put the past behind them… REPLACE THIS POLITICAL APPOINTEE.
County supervisors should start rebuilding the county by hiring a NEW leader that can bring back economic stability, political, physical and social well-being to our county!
Devilreaux is a cancer. Cut it out.
Anon #6
Yes, SBC has long ago been diagnosed as having a cancer known by the name of Devereaux. The symptoms have been quite painful and uncomfortable to those Deverreaux works with directly, but his actions, and the pain, reaches deep and affects more intensely those who do not have direct contact with Devereaux.
Cut it out? Yes, to REMOVE the Devereaux cancer IS the best chance for a cure.
Who will be the surgeon responsible for the removal?
There is no one more fitting than Gary Ovitt. It has been gnawing Ovitt’s gut at how Luck had him bypassed, and spared being a John Doe, while Mark Kirk is struggling. Well, Ovitt can get peace by undoing the wrong that he was so instrumental in bringing on to SBC; bringing Deveraux on board as a political appointee. There is no need or time to argue, we all saw how it was played out behind the scenes and his role in it, it’s water under the bridge now Gary, let’s just clean house.
7: indeed, Oviitt is completely to blame for the cancer devilreau. Oviitt will go down in local history as stupid,ignorant,corrupt,filthy and cancer bringing. What a disgrace. The criminal Oviitt should roast in hell right along with his devil friend.
#8 – Slow down, take it easy pal!
We get your point…that Ovitt is definitely no saint here! But he may not go down in history as you state, even a great many saints have changed directions after spending most of their lives being thoroughly wicked.
BTW- Devereaux is a scoundrel, don’t put it past him to be secretly monitoring his employees with devises in order to hear what you are all “SQUAWKING ABOUT.”
JUST TELL HIM FLAT OUT … “YOUR FIRED!”
His number two in command is more than qualified, and able, to effectively take over on short notice, while a search for a replacement is active.
I’m so glad to see some of you getting to the root of the problem. Truly, the county can institute all the reform in the world, but if the cause of the ailment is not rooted out then the sickness will continue to re-surface. While Devilreaux and Ovitt are rightly mentioned, What was not mentioned was a little plane ride Devilreaux took a few years back with Biane as a guest of colonies partner Richards. This was prior to Devilreaux’s being hired into his county position. The point is that these people along with these developers have caused a whirlwind of grief, so if you are going to start cutting out cancers, make sure to cut deep enough to include the developers that acted as king makers in installing these vile, gutless, conscienceless creatures that have crippled the county political structure. These political leaders were not installed to lead and look out for the citizenry, but were placed in their relative positions to benefit business interests at tax payer’s expense.
It’s not mentioned because because SBC is in a state of emergency, and perhaps at a turning point.
In fact, SBC’s destiny will be determined depending on WHO we elect, and HOW we handle the issues on the table of this VERY PRESENT sinking ship.
So why waste time harboring resentments and mentioning something that is ALREADY BEING DEALT WITH, in the proper legal forums.
In light of the tremendous PRESENT challenges ahead for San Bernardino County, this juvenile joy ride was foolish, not a major crime, they should be ashamed, not locked in jail; they did not toss a body over the ocean or deliver 100 pounds of heroin for the Mexican mafia that resides within James Ramos’ reservation!
I am so happy about pension reform.