Mayor Pat Morris and his cronies on the San Bernardino City Council who blame the City’s financial troubles on public safety pensions had an icy cold glass of water splashed on their propaganda today.
CalPERS – the retirement system for San Bernardino’s Police Officers and Fire Fighters, reported this morning that it’s investment portfolio earned a 12.5% rate of return for the fiscal year that ended on June 30, 2013.
That return is 1.5% higher than CalPERS had expected.
According to the news release issued by CalPERS:
CalPERS assets at the end of the fiscal year stood at more than $257.8 billion.
The gain was led by strong performances by CalPERS global public equity and real estate investments. Investments in domestic and international stocks returned 19 percent, outperforming the CalPERS custom public equity benchmark by nearly one percentage point. Investments in income-generating real properties like office, industrial and retail assets returned 11.2 percent, outperforming the Pension Fund’s real estate benchmark by 1.4 percent.
Mayor Morris and others who often bash the retirement benefits provided to San Bernardino’s Police Officers and Fire Fighters should also note:
CalPERS 12.5 percent return is well above the Fund’s discount rate of 7.5 percent, the long-term return required to meet current and future obligations. CalPERS 20-year investment return is 7.6 percent, while its return since 1988 is 8.5 percent.
Once again we see that the facts do not support the rhetoric expounded by Mayor Morris.
Morris continues to bash San Bernardino’s Police Officers and Fire Fighters while failing to take responsibility for failed policies that have driven San Bernardino into the ground and into bankruptcy.