Friday, August 10, 2012 – 10:00 a.m.
The pension system for San Bernardino County, California has posted its official performance numbers for the period ending June 30, 2012, and the results weren’t so great for taxpayers or the system’s members.
The investment return for the latest fiscal year was just 1.0%.
But, what’s more alarming is the five-year average return number.
The average annual return for the pension fund, which operates under the name San Bernardino County Employees Retirement Association (SBCERA), for the last five years is 0.0%.
The funds operates under the assumption that it will earn 7.75% annually to pay all benefits and expenses.
When the systems current actuarial analysis is completed this fall, the $6.1 billion fund is expected to be underfunded by more than $2 billion (maintaining the 7.75% assumption rate).
Should the Board of Retirement reduce the investment return assumption, the unfunded liability will further increase.
Bad news…
Perhaps time to do Rhode Island move, take the spikers luxury unearned pensions away. Start with 75 percent of final unembellished compensation.
We all deserve this pension system to remain solvent.
@Carol King
I would love to have 75% of my final compensation,,,right now I am only getting 64%. I like you idea.
I don’t get it, these fricking idiots direct the investments and when they don’t pan out they say oh well and the tax payers just cover the shortfall. These people that are directing these investments need to be fired/replaced for either of the following two reasons, 1. Having no clue about a annual return in a depression (projected 7.75%)or 2. making the wrong decisions that led to a 0.0% return. Can’t even imagine what these fricking jerks are making.
It’s time that Carol King go to nutblog.com and give us all a rest from her inanity.
No, its time we fire the foxes hired to watch the chicken coop. Link investment manager pay to a percent of what they make the retirees.