Tuesday, November 27, 2018

Pension lies of Raimondo, Magaziner and NEA Bob Walsh exposed ...retirees misled

         The Data shows that Rhode Islander taxpayers and teachers have been fed lies by Gina Raimondo, Bob Walsh and Seth Magaziner. The evidence is overwhelming that Rhode Island pension Assets have been badly mismanaged from 2011 to and through 2018. Both Gina Raimondo and Seth Magaziner have performed in the bottom 20% of their peers managing our money. They also finished in the bottom 5% for low expense ratio. They have spent enormous amounts on Wall Street management fees ,in fact double the rest of the Treasurers in the United States.The evidence is real and documented ,but since the Rhode Island media spoon feeds the spin directly from Raimondo and Magaziner ,without fact checking, you get the Government spin.
    This blog seeks to tell citizens the truth because our Media is incapable of telling the truth. 

       For illustration purposes , I have attached a segment from the State of Virginia CAFR 2017 that expressly states the improvement in Virginians  funding ratio over the last 4 years. 
       Rhode Island funding ratio on the other hand has  DECLINED after reform and during this record bull market from roughly 61% ,after 2011 Raimondo reform to 52% now. Rhode Island Retirees need to see an 80% funded ratio ,as promised by Raimondo, before their suspended Cost of Living Adjustments are reinstated.  Bob Walsh after publicly endorsing  Gina Raimondo for Governor defended this performance effectively ignoring retired teachers. Shameful ,but perfectly legal. Virginia had a very similar Hybrid pension reform and yet. in the last 4 years, Virginia's funded ratio has IMPROVED from 65.4% to 74.5%.
Virginia Dramatically Improved , Rhode Island dramatically deteriorated. Virginia 74.5% funded , Rhode Island 52% funded.
     The Governor and the Treasurer owe Rhode Island citizens a better explanation of their terrible record over the last 8 years. Had Rhode Island performed as well as Virginia retirees, retirees in Rhode Island  would be in reach of reinstated COLAS. Taxpayers would be $ 1.6 billion better off. 
The bad news is the market has had a significant decline and pension funds across the nation are suffering but if Magaziner track record holds true, Rhode Island will do worse than 80% of the nation and could soon be under 50% funded.

   Below is a passage from Virginia's 2017 Comprehensive Annual Report pg8
https://www.varetire.org/pdf/publications/2017-annual-report.pdf



Tuesday, November 20, 2018

Providence RI last Pension Actuarial valuation 3 years ago - update

Today is November 20,2018. Providence has not yet released its final  pension Plan performance numbers for the month of October 2018. Based on a recording of the meeting on the City website we are expecting a significant loss of at least 4% which wipes out any gains for Fiscal 2019 and Calendar 2018. this is a very concerning development given the stated low funding ratio of 25% ( our estimate is 16%).
   Of particular concern , from a transparency standpoint, is the absence of Actuarial Valuations of the pension plan which were completed every year for 50 years by Buck Consultants who was fired by Mayor Angel Taveras during his minor and ineffective pension reform of 2013-4. After Bucks firing the City hired Segal Company  who ultimately agreed that the City was overstating assets in the pension plan an adjustment was made of approximately $60 million dollars.
    The City of Providence and new Mayor Jorge Elorza openly mocked calls for bankruptcy and funded 2 studies that highlighted enormous structural deficits and huge pension funding issues. At this  point it is more likely that the pension fund becomes solvent than Mayor Elorza moves or asks for State Receivership. Mr Elorza, since 2015 and after  admonition by the Auditor General Dennis Hoyle, has vowed to pay pension contributions on time( within the same fiscal year they are due) The city has never paid pensions contributions on time  the  under previous Mayors David Cicilline, Angel Taveras and now under Jorge Elorza. Mr Elorza ,despite misleading taxpayers and mis-directing pension contributions for other use , was re-elected in a landslide to two more years as Mayor of Providence on November 6th.
    In my candidacy for State Treasurer of Rhode Island , I have been extremely critical of Providence and its woeful accounting and have demanded that Providence undergo an outside forensic Audit of its finances and its Pension plan. I have no confidence that Providence has accounted for pensions correctly nor that they are distributing the proper benefits to the appropriate recipients.
    I twice accused the City of fraud and asked the Rhode Island Attorney  General to investigate. I have also reported my theories to the Securities Exchange Commission and MSRB . Thus far there has been no response from the SEC and AG Peter Kilmartin responded that potential Municipal fraud or Misleading Municipal bond investors were not part of his jurisdiction. Similarly I reported evidence of insider trading in the Infamous RIEDC  38 Studios bonds , Mr.  Kilmartin also told me he would not investigate as it was not in his jurisdiction. (side note  Mr Kilmartin was a senior Democratic legislator when 38 Studios loans were made)

More recently ,it has come to my attention that the city is for the first time no longer posting or paying for an annual actuarial Valuation of the pension plan. The last actuarial valuation posted on its "transparency site" used 2015 numbers. This is intolerable. Citizens should demand the Mayor and Town Council update the Actuarial Valuation of the pension plan.

http://www.providenceri.gov/wp-content/uploads/2018/05/Employee-Retirement-Sys-City-of-Providence-July-1-2016-Actuarial-Valuation.pdf

The City of Providence signed a new 3 year agreement with Segal in October

Wednesday, October 31, 2018

Providence Journal strikes again ... Incompetent ? yes Biased ? oh yeah

Thank you again Providence Journal for your fair and balanced Coverage of a State Wide candidate who has claimed he can save the state $1.5 billion Dollars for the state taxpayers of Rhode Island .

Projo's front page article says its not clear if I am running for Treasurer or not. This professional organization called me Monday to ask what my platform was and they wanted to ask a series of Questions profiling the Treasurers race. The conversation was about 60 seconds in length.

Projo Paul Parker : "mr riley?'

me(mgr) : yes

Projo: "i have been asked to get a profile of you and your platform. I have 4 or 5 Questions to ask you for tomorrows paper"

mgr : " are you serious? you know your Paper endorsed my opponent 2 weeks ago?

Projo : " yes . nevertheless can you please answer the following questions."

Mgr : " you know what? I'm busy give me a call next Wednesday November 7th"


So,that was it. 60 seconds.Of course  I was again angry at the purposeful or incompetent obliviousness of the States only newspaper.Two weeks after they endorsed my opponent? 6 days prior to election? They contact me for the first time? How does this fit their role in Elections and informing voters? I am a workaholic and passionate money manager working 10 to 12 hours a day for 40 years. I've extremely busy lately managing my funds risk in turbulent markets.  My fund is up 2% for October and +8% for the year. The current treasurer lost it all this month and is now negative for 2018 . 10 month return negative. Sucks right? I was insulted by this paper 's half-assed attempt at serving the public. Surely they wouldn't have anything to write after a 60 second interview.. Fine leave me alone. I am busy with this crazy market that the world sees but all of RI media is oblivious to.


The next day front page Providence Journal 



10/31/2018 R.I. treasurer's race: Incumbent's running, but it appears challenger has walked away http://www.providencejournal.com/news/20181029/ri-treasurers-race-incumbents-running-but-it-appears-challenger-has-walked-away 1/4 
By Paul Edward Parker Journal Staff Writer Posted Oct 29, 2018 at 11:13 PM Updated 

Oct 29, 2018 at 11:13 PM PROVIDENCE, R.I. —

               In a year when a gubernatorial candidate admits he once smacked a teenager who would grow up to be House speaker and a candidate for attorney general was recently charged with possessing 48 pounds of marijuana, the race for general treasurer may still be the strangest on this year’s statewide ballot. Incumbent Democrat Seth Magaziner has touted a list of what he calls accomplishments in his first four years in office.

 Meanwhile, Republican challenger Michael G. Riley has told people not to donate to his campaign because he won’t win. He issued a profanity-laced indictment of Rhode Island’s pension system in which he blasted local radio, television and newspapers and said Election Day “represents the last time I will have attempted to help Rhode Island or frankly any government save themselves from their own incompetence.” When asked to discuss his campaign issues this week, he told The Providence Journal that he preferred to do so after next Tuesday’s election. “Let’s do it next week,” he said. “I was thinking next Wednesday or Thursday.” In his screed against the media and the state pension system, Riley said he was thinking of beating up the head of one of the statewide teachers unions for his role in the state’s landmark pension overhaul, in which Riley said the union failed its teachers. “If I were a teacher, I would drag him into an alley and kick the crap out of him,” Riley wrote on Sunday in his Rhode Island Shrugged blog on Blogspot. “In fact I may do it anyway for them because it would be fun.” R.I. treasurer’s race: Incumbent’s running, but it appears challenger has walked away 10/31/2018 R.I. treasurer's race: Incumbent's running, but it appears challenger has walked away 

  The Associated Press reported Monday that Riley said he’s not serious about that. The state Democratic Party called for Riley to apologize. “Political discourse in our country has become dangerously overheated,” the party said in a statement. The Rhode Island Republican Party chairman said the comments were inappropriate. In September, Riley issued a statement asking people not to volunteer for his campaign or give it any money, saying that he’s “facing an obvious uphill battle” in his race. “Please do not contribute your hard-earned money as my chances are very slim.” Riley unsuccessfully challenged Rep. Jim Langevin in the 2nd Congressional District in 2012 and lost a 2010 race for state Senate. He hasn’t held elected office. Magaziner was first elected general treasurer in 2014, beating former state auditor general Ernest Almonte and succeeding Gina Raimondo, who was elected governor that year. Magaziner had never held elected office, but comes from a political family. His father, Ira Magaziner, was a chief adviser to President Bill Clinton. Before being elected, Seth Magaziner had been an investment professional, most recently with Trillium Asset Management LLC in Boston. “For me, this is an election about what the role of the treasurer’s office is,” Magaziner told The Journal. “My priorities really are to find ways to use the office to promote economic growth, bring jobs back to the state.” Among the initiatives Magaziner cited as ways in which he has promoted economic development, he listed his BankLocal program. Magaziner said that he moved millions of dollars of state money deposited in out-of-state banks to local banks and credit unions. That allowed a small-business loan program to make loans to more than 200 people, he said. 10/31/2018 R.I. treasurer's race: Incumbent's running, but it appears challenger has walked away 


  • He also touted his chairmanship of the Rhode Island School Building Task Force, which has recommended that the state borrow $500 million over 10 years to pay for school repairs. The first portion of that borrowing, $250 million, will go before voters on Tuesday. Magaziner said the borrowing would create construction jobs and bring improvements to school facilities. Magaziner also pointed to his work on how the state invests the money in the Employees’ Retirement System of Rhode Island, which covers state employees, as well as many municipal workers. “We’ve made some very significant improvements to the pension system,” he said. “The system’s getting healthier.” He acknowledged that part of that is because the stock market has been doing well for the last several years. “Not only have we been making money, we’ve been beating our benchmarks.” He attributed that to his “Back to Basics” policy of how the state chooses where to invest the retirement fund. He said the state has moved from high-fee hedge funds to low-cost index and bond funds. He also pointed to less-financially-oriented initiatives, including his support for a bill two years ago to help victims of domestic violence. The Crime Victim Compensation Program, which his office administers, can now pay some relocation expenses for people fleeing their abusers. “We can cover hotel-room stays,” he said. “We can cover the first few months of rent.” 
  • General treasurer candidates

  • Seth Magaziner Residence: Providence 

  1. Age: 35
  2.  Party: Democratic 
  3. Previous political office: Incumbent general treasurer 
  4. Education: Bachelor’s in history from Brown University, master’s in business administration from Yale University
  5.  Family: Wife, Julia 
Michael G. Riley

  • Residence: Narragansett 
  • Age: 62 
  • Occupation: Financial adviser
  •  Party: Republican Previous political office: Narragansett Pension Board, chairman of Narragansett Charter Review Commission
  •  Education: University of Connecticut 

Sunday, October 28, 2018

End of Public Service November 2018

        Not that anyone gives a shit. November 6, 2018 represents the last time I will have attempted to help Rhode Island or frankly any government save themselves from their own incompetence. I will only post my thoughts here. I have been increasingly growing angry with the both purposeful and unintentional ignorance of the issue of pension that I care so much about.
    Recently watching a cynical Bob Walsh of NEARI  explain his outrage of the week was the " Johnny come lately's " to the pension issue , triggered me to want to kick my television in. The outrage he claimed was a total farce. The truth is , he  Bob Walsh ,literally folded to Gina Raimondo and as such  failed every Rhode Island teacher in his role as their representative. Its incredible that he still has a job. If I were a teacher , I would drag him into an alley and kick the crap out of him. in fact I may do it anyway  for them because it would be fun. 

     The "Lively Experiment" as a show, was a good idea. I will, however, no longer watch it. Same with the shit shows known as Newsmakers, Dan Yorke, news conference 10etc.  Ditto radio WPRI,WPRO wherever the hell DePetro is. Oh yeah , I already unsubscribed from the biased Providence Journal. 
       I addition I will only advise my clients going forward on how to properly manage their money. I am a fiduciary required to put my clients interest first . I have no more free advice to give out to the Government or random readers. For any of you reading this ,if your reaction to me is to tell me to go fuck myself. Fine.I couldn't give a shit. If you were a friend, and are appalled  good riddens. If you still are a friend you'll be able to get a hold of me.
     I will continue to write in this blog about political wrongdoing. I will gleefully expose government abuse at any level and report it to authorities  but not for the greater good. And Not to help anyone in Rhode Island, because they don't deserve the help. I will hunt these political abusers down just for sport.

Coming Soon


The next large Abuse in Rhode Island that I will hunt down is the fact that many if not most municipalities have no idea whether they are paying the right people  retirement benefits . They have no idea if the amount a former employee is paid is correct or if its double what they deserve. They have no idea what health care they are entitled to. 

Your town is taking your money and paying benefits to people who may not have even ever held a job in your town. They are likely paying the wrong amount. You see they never check, they don't audit. Its kind of funny when it happens to all you other Rhode Islanders but not when it happens in my town. So thats where I will start. I don't need or want anyones help.

see a few of you in Galts Gulch

Friday, September 21, 2018

Pensions in Rhode Island the truth about Seth magaziner

 


   Can we really trust a young inexperienced treasurer who hides his performance? Seth Magaziner 2 weeks ago said on Dan Yorke show his performance was "improving" when Yorke pressed him for how he was doing compared to peers , Seth Said something like "middle of the pack". He said something similar yesterday to Kate Nagle.
Sadly Mr Magaziner was hiding the fact that he is being outperformed by 81% of his peers. At the same time he is paying twice as much in fees to Wall Street friends. This has to stop.
http://www.pionline.com/section/returns-tracker
play with the charts yourselves Returns tracker

Tuesday, December 12, 2017

Rhode Island imitates Puerto Rico in handling of pension disaster of Providence

Meanwhile Democrats Jorge Elorza and Gina Raimondo have no plans whatsoever re Providence . Can you say NEGLIGENCE?

Mayor Luke Bronin has asked for the city council's permission to apply for state oversight.
COURANT.COM

Wednesday, October 11, 2017

Rhode Island and Providence in eye of Pension Storm

Public Pensions - Biggest Financial Crisis Since The Great Depression?


        Rhode Island Governor Gina Raimondo has ignored the plight of Providence and stood by Mayor Elorza and his policy of delay and ignorance. She had hoped to be in Washington in the Clinton Administration. Instead she relies on trying to get out of office before the next recession and Providence Bankruptcy. The recent departure of Robert Hull as Revenue director is a sign that she has given up and has thrown RI Taxpayers under the bus. Hull was the only administrative leader capable of dealing with Providence. Now he is gone.










By FS Staff The following is a summary of our FS Insider podcast with Lawrence McQuillan (see America's Public Pension Crisis Part 1 and Part 2), which can be a
seekingalpha.com