Forum Post: California County Pension fraud: How do we get my data to the Courts and return the money to the public?
Posted 12 years ago on Dec. 3, 2011, 6:35 a.m. EST by sbmagic
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Hello my name is Larry Mendoza and I am here to expose corruption and fraud with the Santa Barbara County Employees Retirement Systems S.B.C.E.R.S. pension fund. Through my research I can prove that it is mathematically impossible for the SBCERS pension fund to currently have any type of negative fund value and or future deficit. Furthermore when you apply the factual data over the previous 26 year period, the SBCERS pension fund should currently have a surplus.
Here is another posting from my blog, i hope it proves my case.
These 3 attachments are all I need to prove fraud with the SBCERS pension fund. Simply follow my instructions and see for yourself @ http://santabarbaracriminalcourtcorruption.blogspot.com/2011/08/these-3-attachments-are-all-i-need-to.html S.B.C.C.C. The place where COMMON SENSE never goes out of style!
So what is the mathematical equation I am trying to prove here? Well If the SBCERS pension fund started out in 1986 as 100% funded. And Santa Barbara County also contributed the required minimum percentage of payroll for the last 26 years. Then the pension investment returns earned the 8% assumption rate for the last 26 years, can we all agree the pension fund would currently be 100% in a perfect world?
But what if the fund again started at 100% funded in 1986 and earned an additional 20% above the yearly 8% assumption rate for 26 years. And then the County over contributed by 48% above the normal contribution minimum for 26 years what would we have then? Can we all agree we would have an extremely over funded pension, because that is exactly what we have and I can prove it.
My research shows that in both 1986 and 1991 Santa Barbara County reported to the Municipals Securities Market on Wall Street that the SBCERS pension was at least 100% funded. The data I found from Santa Barbara County records show that for last 26 years the County’s pension’s investments have earned a yearly return average that exceeds 9.55%. Finally based on a 2009 pension cost history sheet produced by the Santa Barbara retirement board, I found that Santa Barbara County has been over funding the SBCERS pension by an unbelievable 48% above the required minimum. So now I ask, how can Santa Barbara County elected officials currently claim that the County pension fund has a 1 Billion dollar future unfunded liability? It is MATHMATICALLY IMPOSSIBLE based on the data I have just shared with you!
My research data comes from 3 sources, The California State Controller’s Office, Santa Barbara County and Retirement Board and the Municipals Securities Market on Wall Street. Truth be told Santa Barbara County elected officials are ultimately the providers of all data my three sources posses.
Keep On sbmagic. Law of attrition will prevail.
Thank You, with the documentation I have I am ready for charges to be filed if I could get an agency that would do their job!
Thank you for your comments about my concerns. I hope to have a simple video to share within days.
We need a better understanding of of both past and present Santa Barbara County Employees Retirement System (S.B.C.E.R.S.) reported Pension Values. I have researched this issue for two years now and my findings differ from Santa Barbara elected officials by almost 2 BILLION DOLLARS! If you want to better understand the current SBCERS pension crisis you have to know where to look and what you are looking at.Santa Barbara County has attempted to deal with the PENSIONS unfunded liability for the past 24 years by contributing an additional 55% (yearly average) above the required normal level. While at the same time the pension now reports earning an outstanding 8.5% yearly compound return on investments for the same time period. The current pension deficit values just do not seem possible based on those two factors alone, but wait I have more.
To verify the 8.5% 24 year compound average returns on investments go to the 2011 Valuation report @ http://sbcers-trustee.com/Documents/2011-10-26-002b-BOR-ActuarialValuationJune30,2011.pdf And review the SBCERS Pensions 24 year Compound Investment Return average found on page 26. I wonder why that data was not included in the just released 2011 COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 2011 which you can find @ http://sbcers-trustee.com/Documents/2011-12-14-013c-BOR-2011CAFR.pdf
http://www.countyofsb.org/uploadedFiles/SBC/RPAAC/C%20-%20Employer-Employee%20History%20of%20Costs.pdf Page six of this report represents the Employer Cost History for the SBCERS Pension paid by the County. This pension cost history document was created and used in 2009. Based on the contribution levels claimed under the “Normal’ and ‘Unfunded’ levels in this document, I was able to determine that Santa Barbara County has been contributing above the normal rate by a 24 yearly average of 55%. This document also gives past funding and unfunded levels starting with December 31st 1986. Based on other documents I am about to share with you we cannot trust the reported values in this 2009 History of Cost report.
I was able to find on Wall Street and verified through our State Controller’s archived audits. That Santa Barbara County elected officials originally reported to both that the SBCERS pension was at least 100% funded in 1986 and 1991. So if the SBCERS pension fund was a 100% funded in either of those years we now have a few serious problems. As you can clearly see in this document taken from a 1991 bond offering by Santa Barbara County the values being reported differ greatly from the 2009 cost history above for 12/86 and 12/88. http://magicinsantabarbara.files.wordpress.com/2011/08/92bondmarketsbcountyfullyfundedpension.png The next issue that has been created because of my irrefutable findings is again with the values being reported in the 2009 Employer Pension Cost History. This chart reports funding ratios that drastically differ from those found in the State Controllers archived reports. The 2009 history of cost chart shows that on 12/31/86 our SBCERS pension was only 67.10% funded yet the archived State Controllers Audit shows the fund to be 102% funded. The 2009 report claims the pension was only 67.20% funded on 12/88 while the archived Controllers Audit for shows a 91.00% funded value. Again we have another huge discrepancy between the two sources for 12/31/90. The 2009 document shows a 61.40% funded vs. the Controllers reported 82.9% level. Please keep in mind that regardless of the differences in values and funded levels the same source provided all the different figures, our Santa Barbara County Elected Officials. The change in values clearly occurred between 1995/96 and 1996/97. Review this 1995/96 State Controllers report found @ http://magicinsantabarbara.files.wordpress.com/2011/07/1995-962.pdf . All the data in it matches the higher values found with the State Controller and Wall Street. However just one year later again in State Controllers report @ . http://magicinsantabarbara.files.wordpress.com/2011/07/1996-971.pdf . The SBCERS pension values now magically match with this 2009 history of cost document. http://www.countyofsb.org/uploadedFiles/SBC/RPAAC/C%20-%20Employer-Employee%20History%20of%20Costs.pdf . So why was the pension values and funded levels retroactively altered and by whom?
If you take the time to review the documents and follow along with my concerns in order I am sure you will come to have the same concerns as I. In review I am questioning how If you start with a 100% fully funded pension value. Then you contribute yearly 155% of the normal required contribution rate. While earning an outstanding 8.5% compounded yearly return on investments be anything but currently fully funded and with a huge reserve. IT IS JUST MATHEMATICALLY IMPOSSIBLE TO BE ANYTHING ELSE!
S.B.C.C.C. The place where COMMON SENSE never goes out of style!
Publish your research in a serious peer-reviewed journal. This will force you to tighten up your research and make it presentable. Then, find a law firm willing to work pro bono on your case. If what you say it true and you have sufficient proof, it shouldn't be too hard to find people willing to work on your case for free. Lawyers must accept a certain amount of pro bono cases each year. Good luck! Going in court is not fun, and very tiresome. You have long years ahead of you.