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.
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.
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Dec. 3, 2011