|
|
CAFRsComprehensive Annual Financial Reports
ARCHIVED AT -
http://CAFR1.com/1trillion.html Government says their Pensions are 1 trillion Short? Well, looks like it may be time for an education lesson! by Walter Burien - CAFR1.com 02/21/10 If you said you were $40 short on your monthly food budget,
what is the first question that comes to mind? ANS: What is your monthly food budget.. If your food budget was $400 you are short 10%, if $80 then
you are short 50%.. Big difference between the two. This media "promotion" of
1 trillion dollars short has two big pieces of the picture intentionally
omitted. 1. What is the "collective" totals under management that they
say they are 1 trillion dollars short on? 2. What is the actuarial projection being used whereby they
say they are 1 trillion dollars short? EXAMPLE: If you
wanted $100,000 a year at retirement, how much money do you need
to put to the side that pays you $100,000 of investment return twenty
years from now? The key factor here is the projected rate of return you
anticipate getting from your fund balance. Lets say we use an actuarial
projection of a 10% rate of return. That means we must have $1,000,000 (1
million dollars) put aside and at a 10% annual return
that gives us our $100,000 a year. But if we projected getting a 5% rate
of return that would now make the figure $2,000,000 (2 million dollars). Let's
take it one step further. Let's use an actuarial projection of 2.5%, that means
we would need $4,000,000 (4 million dollars) Well, there is a big difference between 1 million dollars and
4 million dollars. So, under the example above if we at the start used a
projection of a 2.5% rate-of-return, had built our balance up
with contributions and investment return over ten years to $2,000,000 (2
million dollars) we would be 50% short on our "projected" need to meet our
retirement using a 2.5% projected rate of return. Well here's the kicker.. if "in reality" we were getting a 10%
rate of return and adjusted our
"actuarial projection" accordingly, we would be 100% over funded.....
Get it??? Only $1,000,000 (1 million dollars) needed. So the ONLY issue when government says they are 1 trillion
dollars short is: What are the actuarial projections being used
vs . THE REAL RATE of return being accomplished combined with their
standing fund balance? It is VERY important to look at 1, 3, 5, 10, 15, 20 years of
performance results to establish a correct actuarial projection that should be
used per "projected" rate of return. Keep in mind the local governments own
those funds NOT the employees. The employees bought a ticket to ride under
contract. They get a set amount at retirement not a penny more. If performance
on the fund was up by two or three
times what was needed the employees do not get 1c extra, they just have their
ticket to ride under specific terms from point "A" to point "B". The actuarial projections used by the local governments are
designed to build up a "power base" for those local governments.
With hundreds of billions of dollars under management in each state that
is a lot of grease to grease the skids for Corporate acquisitions; real-estate
development; massive loans granted; and bond offerings backed. Here the
incentive for the local governments is to fudge the actuarial projections used
to build up a much bigger power base. Additionally in doing so they
give the impression of being short and thus get more money from the
employee and take more tax revenue from the public... On the State level their are many different local government
retirement funds. Usually there will be one State retirement fund (usually the
largest) and many other local government retirement funds. They are separate
from each other but many network together under specialty "private" associations
that in consult direct them all as a monopoly of no equal. As an example from one state New Jersey, here are a few of the
primary State funds that are active or closed but still under management. Many
local governments from within the state may or may not be participating in these
State funds. Other local governments in the state may be managing their own on
the local level. When a local government says they are short, again look closely
at the actuarial projections used vs. the real rate of returns accomplished over
several years. As a rule government employees are just told the actuarial
projection used, they are NOT told the real rate of return accomplished... The
employees may be told 7% when 16% or 18% may be the reality... as was the case
in Washington, Oregon, and Arizona from 1990 to 1999. New Jersey Alternate Benefit Program ("ABP") <http://www.state.nj.us/treasury/pensions/abp1.shtml>
Alternate Contribution Tax Sheltered Program ("ACTS") <http://www.state.nj.us/treasury/pensions/acts.shtml>
Central Pension Fund ("CPF") <http://www.state.nj.us/treasury/pensions/closed.shtml#CPF>
Consolidated Police and Firemen's Pension Fund ("CPFPF") <http://www.state.nj.us/treasury/pensions/closed.shtml#CPFPF>
Judicial Retirement System ("JRS") <http://www.state.nj.us/treasury/pensions/jrs1.shtml>
New Jersey Pensions and Benefits Home Page <http://www.state.nj.us/treasury/pensions/index.html>
New Jersey Treasury, Division of Pension & Benefit <http://www.state.nj.us/treasury/pensions/>
Police and Firemen's Retirement System ("PFRS") <http://www.state.nj.us/treasury/pensions/pfrs1.shtml>
Prison Officers' Pension Fund ("POPF") <http://www.state.nj.us/treasury/pensions/closed.shtml#POPF>
Public Employees' Retirement System ("PERS") <http://www.state.nj.us/treasury/pensions/pers1.shtml>
State Employees' Deferred Compensation Plan ("NJSEDCP") <http://www.state.nj.us/treasury/pensions/fact32.htm>
State Employees' Tax Savings Program ("Tax $ave") <http://www.state.nj.us/treasury/pensions/taxsave.shtml>
State Police Retirement System ("SPRS") <http://www.state.nj.us/treasury/pensions/sprs1.shtml>
Supplemental Annuity Collective Trust ("SACT") <http://www.state.nj.us/treasury/pensions/fact35.htm>
Teachers' Pension and Annuity Fund ("TPAF") <http://www.state.nj.us/treasury/pensions/tpaf1.shtml>
Collective totals are massive. Most of the large State pension
funds put out a CAFR (Comprehensive Annual Financial Report) for each of their
pension funds listing the extensive holdings / investments of each fund. And per issue #1 above, collective totals from all local and
federal pension / retirement funds from the thousands of "separate" accounts, a
good estimate of collective totals would be somewhere between 26 to 30 trillion
dollars. I note as these funds grew and were invested over the last
eight decades they drove the economy by their capital investment. Did
favoritism; fraud; and market manipulations occur as these funds grew? Oh yes,
and some examples came to light (very few) and most went in and out with the
tide as normal operations masked. Bottom line? LOOK
AND LEARN...., Do not be played for an easy mark (this applies to both
taxpayers AND government employees) The only way to see if you are getting
played with false actuarial projections applied is to look first hand and see
for yourself. You do NOT ask foxes if they are eating hens from the hen house.
The only time you may get a straight answer there is if you are a fox yourself
and are part of the pack. I hope the above also gives you a better understanding of what
the site TaxRetirement.com brought forward per the TRF (Tax Retirement Funds).
Here the same type of massive investment funds can build with the sole objective
being to phase out all taxation generated therefrom. Not lowering taxation but
eliminating it. This can be done utilizing the exact same fund managers
currently handling government pensions to accomplish the purpose of tax
elimination. If you catch the gist of this can you see how through capital
reinvestments coming from the TRFs we then can have a long term"economic
stimulus package" of no equal and no taxation? In fact government pensions can
be included in with the TRFs and benefits paid therefrom... as well as
eliminating all taxation.. Time for a "real" change..? Hopefully you get it and
comprehend how this can happen.. The government syndicate needs to be brought under control and
have a means of operation that directly benefits the people from the wealth
amassed. The principle of operation
of the TRFs does just that and allows for transparency and true good intent to
come to play.. Truly yours, Walter Burien - CAFR1.com P. O. Box 2112 Saint Johns, AZ 85936 Tel. (928) 445-3532 PS: Make the investment wealth of government directly benefit
the people and taxation be gone! TRF now! ------------------------ Any local government can be restructured to meet their annual
budget needs "Without" taxes. TRF (Tax Retirement Funds <http://taxretirement.com/>
) paying for every City, County, State’s annual budgetary needs! ------------------------ To automatically subscribe to CAFR1 NATIONAL
Posts - http://cafr1.com/phplist/?p=subscribe ------------------------ To automatically unsubscribe to CAFR1 NATIONAL
Posts -
http://cafr1.com/phplist/?p=unsubscribe ------------------------ CAFR1 needs help in this corner:
http://CAFR1.com/DNT.html
CAFRs Comprehensive Annual Financial Reports (CAFR), state government |
               |
|
Modified Tuesday, November 02, 2010 Copyright @ 2010 by Fathers' Manifesto & Christian Party |
