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Friday, April 20, 2012

Retirement Fund At All-Time High

County Employees’ Retirement Fund At All-Time High

Potter County Today

chart2An investment manager brought good news to members of the Potter County Retirement Board this week. Jeff Davidek, a vice president with the firm C. S. McKee, said the county employees’ retirement fund now stands at nearly $11.4 million, an all-time high. If these trends continue — and there are promising signs that they will — the county will finally see a reduction in its annual required contribution (ARC) and the fund may be healthy enough to yield a long-awaited benefit increase to dozens of retirees. The ARC is an element of the county’s budget required to support the legally mandated employees’ retirement fund.

Investments and interest income through the first quarter of 2012 added more than $900,000 to the fund’s balance, Davidek pointed out. He cautioned board members to view the retirement fund with a long-range perspective. In order to reduce the county’s ARC and allow for an increase in benefits, Davidek said, the fund must meet an actuarial target of 7.5 percent in annual earnings. When the U.S. economy tanked in 2008 and the first quarter of 2009, the retirement fund lost significant value. It has grown at a healthy rate of 16.4 percent over the past three years, but still has not met the 7.5-percent annual growth target in the long term, Davidek said.

Overall, the fund’s value has grown at 6.9 percent annually since 2001, ratcheting closer to that 7.5 percent goal. “For the 10-year period that ended on Dec. 31, 2010, Potter County had the best performance of any county retirement fund in state,” Davidek said. “One thing that really helped the county was the discipline of your fiscal management and the commitments to make contributions, even when it might have been hard to do so. Those who did not put money into their funds did not have that money to go to work for them when the market recovered.”

C. S. McKee is continuing to aggressively invest in technology companies and the firm’s experienced panel of analysts is closely monitoring developments around the world to adjust international investments, which are heavily weighted toward Japan and the United Kingdom.

9 comments :

Anonymous said...

So why don't they give the retirees a raise? Had one raise in 18 years.

Anonymous said...

Or he\re's a thought...How about getting rid of the defined pension program that is too expensive for corporations to pay for. The only people that are getting these pensions are government workers. Oh yeah, our taxes pay for that.

Anonymous said...

Read it again, 7:47. To avoid those of us who are STILL WORKING and TRYING TO PAY OUR OWN BILLS from having to bail out the retirement fund for you retirees, the fund has to return an acceptable amount over the long run. Let's take a poll on here of how many WORKING PEOPLE in Potter County (that cuts down on eligible voters in this poll) want to pay higher taxes to give the county retirees a raise before the retirement fund is able to afford it. My vote is NO so the tally is 0-1.
If we can get enough people to vote "Yes, I want to pay higher taxes so these retirees can get a raise from my tax dollars," then we can start a petition to the Retirement Board demanding that our taxes be increased.
Bring on the votes!

Anonymous said...

Why not give the taxpayers a raise, by lowering the tax rate we pay?

Anonymous said...

Uhm 7:47 did you uhm read the story before you wrote that. The answer to your question is right there!

Anonymous said...

I vote no to raising my taxes to give county retirees a raise and yes I am a working woman. Does that make the vote 0-2 so far?

Anonymous said...

Make that No-7, Yes-0.
My wife, father, mother and I all vote NO to raising taxes to give these people higher retirement benefits.

Anonymous said...

I wonder what percent of Potter County's newer generation of workers have a pension plan? I bet it's less than 3standing percent. Time to switch these employees over to a 401k plan like anyone else is (lucky) to have! Stop supporting the government workers on the backs of the working poor!

Anonymous said...

Yes 10:12 I have said the same thing for many years but Harrisburg will not listen. They should give the counties the right to choose and not tell them what to do. We have too much of that in Pennsylvania.