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.