MAJOR PENSION RELATED REPORTS
Here are the reports that clearly spell out the problem that our political representatives have failed to address. These reports demonstrate that Marin is on a path to insolvency that will result in cutbacks in services and/or higher taxes. The status quo is simply not sustainable.
CSPP Reports
Pension Roulette - A Comparative Analysis of the Pension and Retiree
Benefits of Marin County and its Municipalities
This landmark six month study of the financial impacts of over a billion dollars in unfunded retiree benefits on Marin County and its towns and cities was release in September 2013. The first-of-its kind report, which provides five key indicators of financial stress and a comparison of public and private defined benefit plans, is a model for cities and counties across the United States that are looking to understand how massive unfunded retiree debts have accumulated and their constraining effect on government services. The report estimates the unfunded retiree debt for the County and its towns and cities at $1.2 billion to $2.3 billion based on assumed pension investment returns. It shows that all cities and towns as well as the county fail to meet what is considered a healthy funding ratio of 80% for their retiree liabilities using an optimistic return on pension investments of 7.5%. When a more conservative figure of 4.8% is used, the average funding ratio drops below 50%.
Download the Report
Download Press Release.
Download the Report
Download Press Release.
Pension Roulette Part 2
Do You Feel Lucky
This follow up report to Pension Roulette demonstrates the dire financial condition of Special Districts in Marin County as well as the Golden Gate Bridge District. The report, which studied the following Special Districts, concludes that the pension plans and retiree benefits they offer are exorbitant and dangerously underfunded.
- Marin Municipal Water District (MMWD)
- North Marin Water District (NMWD)
- Novato Fire Protection District (NFPD)
- Marinwood Community Services District (MCSD)
- Golden Gate Bridge Highway & Transportation District (GGB)
Downloads:
Press Release
Report
Summaries of Pension Roulette 1 and 2
- Marin Municipal Water District (MMWD)
- North Marin Water District (NMWD)
- Novato Fire Protection District (NFPD)
- Marinwood Community Services District (MCSD)
- Golden Gate Bridge Highway & Transportation District (GGB)
Downloads:
Press Release
Report
Summaries of Pension Roulette 1 and 2
Marin Civil Grand Jury Reports
Pension Enhancements: A Case of Government Code
Violations and A Lack of Transparency
Public Release Date April 16, 2015
The Marin Civil Grand Jury released a report that could easily be the biggest financial scandal in Marin's history.
In its investigation of just four government bodies, the Grand Jury found that Marin County, City of San Rafael, Novato Fire Protection District, and the Southern Marin Fire Protection District granted no less than thirty-eight pension enhancements from 2001- 2006, each of which appears to have violated disclosure requirements and fiscal responsibility requirements of the California Government Code.
The report states:
"One result of these pension enhancements is that they contributed to the increase of the unfunded pension liability of MCERA; this unfunded liability increased from a surplus of $26.5 million in 2000 to a deficit of $536.8 million in 2013. This increase may expose
the citizens of Marin County to additional tax burdens to cover the unfunded costs and may place the future financial viability of the pension plans at significant risk. Additionally, such an impact may impair the governments’ ability to provide the broad range of essential services that citizens are expecting; instead those funds may be used to pay for employee pensions."
Report
In its investigation of just four government bodies, the Grand Jury found that Marin County, City of San Rafael, Novato Fire Protection District, and the Southern Marin Fire Protection District granted no less than thirty-eight pension enhancements from 2001- 2006, each of which appears to have violated disclosure requirements and fiscal responsibility requirements of the California Government Code.
The report states:
"One result of these pension enhancements is that they contributed to the increase of the unfunded pension liability of MCERA; this unfunded liability increased from a surplus of $26.5 million in 2000 to a deficit of $536.8 million in 2013. This increase may expose
the citizens of Marin County to additional tax burdens to cover the unfunded costs and may place the future financial viability of the pension plans at significant risk. Additionally, such an impact may impair the governments’ ability to provide the broad range of essential services that citizens are expecting; instead those funds may be used to pay for employee pensions."
Report
Novato Fire Protection District Board
A Cautionary Tale
Public Release Date May 1, 2014
In May 2013, the Marin County Civil Grand Jury received a complaint against the Board of Directors (BOD) of the Novato Fire Protection District (NFPD). The request for investigation alleged, “...over the last six years, the Board of Directors of the Novato Fire District have either by failure to act, ignorance, arrogance, or inexperience, expended taxpayer money in a frivolous manner with no regard for maintaining essential services, following internal policies, California law or governmental transparency.” After the 2013-2014 Grand Jury was sworn in they opened an investigation into these charges.
Marin's Retirement Health Care Benefits:
The Money Isn't There
Public Release Date June 13, 2013
This Grand Jury investigated government entities’ provisions to meet growing retiree medical health care costs for current employees and for those already retired. The investigation discloses that the 40 government entities (the County, cities and towns, special districts and school districts) we surveyed have a collective liability of about $577 Million but have set aside only about $55 Million. Taxpayers and customers thus face future increased costs of $522 Million or nearly 91% of the liability to pay for the benefits that have been promised but have not yet been provided for.
Report
Report
Public Sector Pensions : A Perspective
Public Release Date June, 7, 2011
During the financial fiasco of 2008 and 2009, the Marin County Employees’ Retirement Association’s (MCERA) net assets held in trust for pension benefits declined by $386,542,100, a 25.5% drop, due to investment losses. Employer pension costs have increased dramatically, with, for example, San Rafael now paying 50% of payroll, or nearly 20% of General Fund revenue, just to fund its annual pension obligation. Rapid increases in pension costs are disruptive and result in government lay-offs and reductions in services. This report focuses primarily on three issues:
• the effect of volatility in investment returns on pension plan costs and government budgets, and measures that would reduce that effect,
• supplemental payments (those not specifically provided in the terms of the employee’s retirement plan), and
• public visibility into MCERA.
Reports and Responses
• the effect of volatility in investment returns on pension plan costs and government budgets, and measures that would reduce that effect,
• supplemental payments (those not specifically provided in the terms of the employee’s retirement plan), and
• public visibility into MCERA.
Reports and Responses