I read that David Bronner has been stripped of his ability to make on the spot investment decisions. The article stated that politics did not play a part in this.
What I want to know, how good a track record does he have in investing the retirees money? Compared to other investors and other states, is he average, above average or below average. Has he helped NW Alabama or not. I'm asking, I don't know the answer.
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I read that David Bronner has been stripped of his ability to make on the spot investment decisions. The article stated that politics did not play a part in this.
What I want to know, how good a track record does he have in investing the retirees money? Compared to other investors and other states, is he average, above average or below average. Has he helped NW Alabama or not. I'm asking, I don't know the answer.
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I've been happy with his tenure. He's made some poor choices but overall I think he's done a good job. The problem Bronner has is that the governor and the legislature want to get their hands on the RSA money and he is fighting them on it.
If you want to get confused on the RSA, read their last published financial statement at:
http://www.rsa-al.gov/About%20...CAFR/2012%20CAFR.pdf
I'm an accountant, and I cannot begin to understand how this very complicated agency works with the scant information provided in the 144 pages above. The financial statements are completely void of details on specific investments. I do see where they invested a fortune in a building in Manhattan that was wiped out in the hurricane last year, and they had to put another $80 million in it after insurance settlements.
Bronner really screwed up with the rail car factory, and he thought Navistar was going to save his *** renting the place. Navistar's out of money after their new generation heavy truck engine won't pass EPA, and they're a takeover target in the future--and business sucks for them. Now, they rented out 1/2 the railcar factory to a real railcar manufacturer. This alone is a $650 million nonperforming asset.
I've heard in the past that Dr. Bronner's performance has not been as good as pension funds in other states. RSA is not the worst, but far from the best.
My question is how many other nonperforming assets are hidden in that illegible financial statement? Are the golf courses turning a profit? If Dr. Bronner has been at the helm for almost 40 years, isn't it time he retired? Whoever heard of a financial institution with a manager with virtually no limits on credit approvals?
I'm sure glad my retirement funds are not in this pension fund. It's about time they held Dr. Bronner accountable for some debacles he's made.
this could very interesting, falls under the catagorie a little bit of knowledge is a dangerious thing. Bronner has a lot of power and influence, which has made him a pain in several politicians rear. Personally I don't care for him, however it seems he has done well for the retirement funds. I wish someone was looking out for the private sector lower middle class workers as he has the state employees.
From what I understand Bronner has been no better than average the last few years when it comes to return. That said RSA has invested quite a bit in the State of Alabama and has been pretty good to this part of the state.
The repubs and governor never intended for state employees to get their hands on the RSA money.
The repub machine is using them. I'm glad of course because the money is being spent and going back into the economy. The good thing about it the suckers are non-the-wiser.
The repubs and governor never intended for state employees to get their hands on the RSA money.
The repub machine is using them. I'm glad of course because the money is being spent and going back into the economy. The good thing about it the suckers are non-the-wiser.
That's completely untrue. The money's for the future of the employees, and its not a democrat/republican issue.
The predominantly democratic State Senators have had a cozy relationship with Dr. Bronner in the past. He should have been working all these years in concurrence with the boards that are responsible to the retirees of the state. And I fear that the people on Board are not business/investment professionals.
Gov burns
is at the bottom of the heap
"It has now become quite obvious that Alabama Governor Robert Bentley, a doctor who claims to be a Christian, has turned his back on the tired, the poor, the sick and even mainstream working class citizens who are desperate to get health care coverage under the Affordable Care Act, which is now the law of the land.
A new report reveals that governors and lawmakers in 25 states who reject federal support to expand state Medicaid programs are sacrificing thousands of lives and pushing away enormous economic development benefits that come with $426 billion in direct funding over 10 years.
Even financial expert David Bronner, who has successfully run the Retirement Systems of Alabama over the past few decades, has called on the governor to do the right thing for economic reasons.
So gov burns is cutting Bronner's legs out from under him.
Only the Catholics can save us now. They have the power to add a codicil to scripture allowing the Baptist and C0C to vote this so called "Christian" out of office.
As a state employee nearing retirement, it concerns me. I have total trust in Bronner, who has the investing know-how and intelligence to ensure a healthy retirement system. Gov. Bentley needs to go and the sooner, the better.
From a report by the Pew Center on the States:
"Generally speaking, a healthy pension fund should be 80 percent funded. The report found that 34 states were below that threshold in fiscal 2010, up significantly from 22 states just two years earlier."
For too long Alabamians, not conversant with the facts, have considered Bronner to be something of a genius at investing RSA funds. It just ain't so.
http://www.pewstates.org/resea...-alabama-85899398860
Comparing Alabama with others:
:http://www.nbcnews.com/busines...-1-4-trillion-834473
Only the Catholics can save us now. They have the power to add a codicil to scripture allowing the Baptist and C0C to vote this so called "Christian" out of office.
Looks like QD is slowly spinning out of control.
Downloaded the 2012 audit report and made a quick review. There are solid investments in real property. However, except for 2012, the return on investments was low for the four years before that. My personal investment account did much better, as did my companies investment fund.
In short, average for must states. Some states like California have investments in what I'd call risky instruments. While there are state and federal bankruptcy laws for counties and municipalities, there are none for states. In short, if the funds fall short, taxpayers are on the hook, unlike say Detroit. OTOH, Alabama is in much better shape than Illinois.
You'll be okay with your State pension. I'm just concerned that one person has so much power. No financial institution, insurance company or bank holding company in this country has a CEO with unlimited approval authority on deals. Dr. Bronner is human, and a mortal man should not have the responsibility of so many peoples' lives on his back. And we all know he's really screwed up with his rail car factory and the Manhattan skyscraper that required additional $80 million investment when the insurance wasn't enough to fix it after the hurricane last year. Dr. Bronner should just have concurrence with the leadership Board of the pension fund before he commits so much money to investments and projects that may or may not be good for the pension holders. Oversight is 30 years too late.
As I stated on another thread, due diligence was NOT performed on the railcar investment. Auditors should have reviewed project cost of the construction and requested independent estimate. Ten percent over would be permissible. About 100 percent more would not be.
when I read an audit the first place I go is to the auditors statement.
"We do not express
an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance."
[About the RSA Audit] page 12. then I go no further.
Referring to the audit report that Banaman linked to, the auditors opinion of the financial statements was "In our opinion, the 2012 financial statements referred to above present fairly, in all material
respects, the financial position of the Retirement Systems of Alabama (component units of the
State of Alabama) as of September 30, 2012, and its changes in plan net assets for the year
then ended in conformity with U.S. generally accepted accounting principles."
What the auditors did not submit an opinion on was a set of supplemental information outside the scope of the audit of the financial statements.
I would have like to have seen a more detailed financial statement making it clear on what investments they have, and how they're paying off. Like are the golf courses running in the black? All the numbers are consolidated--without details.
Obviously, pension programs are very complicated animals. But there's a difference between buying real estate cheap and watching it appreciate vs. buying stocks/bonds and getting tangible dividends or appreciation that can be easily documented.
The pension fund has an army of CFA's (Certified Financial Analysts.) I bet not one of them has the backbone to stand up to Dr. Bronner about potential deals that are marginal or bad investments. He's been allowed to do everything he wants without oversight, and that's too much power for one person. We're not talking $ millions here, but $ billions, and not talking about thousands of future retirees--but 100's of thousands of lives.
Did he make money or lose money? Not on a specific deal, but overall. Is he above or below the national average?
Did he make money or lose money? Not on a specific deal, but overall. Is he above or below the national average?
My family works in the private sector, so we don't have to worry about this for personal reasons, but I've attempted to read some of these financial statements, etc., and I'm not sure how Bronner does come out. Could someone offer a link to a comparison for say the past 10 years.
I agree the entire Shoals was just too eager to jump on Aziz's gravy train, but I don't see how you can blame Bonner (no I'm not that big a fan of his) for Hurricane Sandy. How often do hurricanes hit New York City? If you find fault with Bonner for that, let me ask if you have earthquake insurance?
As I've stated earlier, the report shows results for the last 5 years. This year was good, however, the four years before weren't. My pension fund did much better.
As I've stated earlier, the report shows results for the last 5 years. This year was good, however, the four years before weren't. My pension fund did much better.
Again, due diligence was not performed upon the railcar investment. Internal auditors should have compared reported cost of the plant against an independent opinion.
Did he make money or lose money? Not on a specific deal, but overall. Is he above or below the national average?
My family works in the private sector, so we don't have to worry about this for personal reasons, but I've attempted to read some of these financial statements, etc., and I'm not sure how Bronner does come out. Could someone offer a link to a comparison for say the past 10 years.
I agree the entire Shoals was just too eager to jump on Aziz's gravy train, but I don't see how you can blame Bonner (no I'm not that big a fan of his) for Hurricane Sandy. How often do hurricanes hit New York City? If you find fault with Bonner for that, let me ask if you have earthquake insurance?
Again, due diligence was not performed upon the railcar investment. Internal auditors should have compared reported cost of the plant against an independent opinion.
I blame Bronner for not having proper insurance on the building--enough to rebuild it. And is the 54 story building profitable otherwise? We see nothing about the performance of this major asset in the pension fund annual financial statements. ? ? ?
Now as far as due diligence on the rail car investment. It was a failure in their fiduciary responsibilities not to better analyze the construction costs and working capital needs of that operation. A bunch of large contractors knew the plant's budget was not possible to complete such an industrial complex. And it is no secret that the rail car industry completely sucked as this factory was being built.
