Thursday, November 5, 2015 – 09:00 a.m.
If San Bernardino County leaders want a reason to push back at union demands for salary and benefit increases they now have it.
The county will have to once again fork over millions more in pension contributions next year.
The San Bernardino County Employees Retirement Association (SBCERA), the county’s pension fund, is reporting that it lost 3.1% in the first quarter.
Uncertainty over interest rates and a see-sawing stock market contributed to the hefty loss.
Currently, SBCERA needs to earn 7.5% annually, known as the actuarial investment return hurdle, to merely break even.
But in reality, and to the funds credit, SBCERA performed well against its peers. But, once again, it’s a poor investment climate!
However, what is alarming is the three year average annual return (8.2%) an five year (8.5%) numbers have been falling down to earth over the past two years.
The longer-term ten year figure is already down to 5.3% and is ranked at a poor 71 out of 100. (1 being the highest and 100 being lowest performing pension fund in its comparable peer group)
It’s an interesting dynamic given the current political-labor climate.
To read the Investment Summary Report by NEPC, LLC, click the following link:
Time to trim the fat off the TOP, right it’s a NO BRAINER now…
But go ahead and stick around to get convicted of a felony involving dereliction of duty and violation of the public trust (HI FBI), then stand to LOOSE THAT FAT PUBLIC PENSION too (aka PULLING A RIZZO)(!-:)