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HOLLIDAYSBURG -- Blair County's pension plan has lost value and employee contributions because of the ongoing coronavirus pandemic.
After starting the year at $33.8 million, reports provided Thursday to the county retirement board show the plan falling to $28.5 million at the end of March and improving to $30.4 million by the end of April.
For a pension plan that has long been described as underfunded -- the drop in value could be troublesome down the road -- but less so if the market improves.
The drop in the plan's value during the first quarter of the year reflected the largest consumer spending decline since 1980, investment adviser Patrick Wing of Marquette Associates told the county retirement board during a teleconference meeting Thursday.
The rebound in April, Wing said, can be linked to the federal stimulus providing $1,200 payments to taxpayers.
As coronavirus-related restrictions are being eased, consumer spending will again play a role in the performance of the plan and its investments, Wing said. In trying to address how much of a role, he said consumer spending will be a reflection of their available money and comfort levels.
For instance, Wing said consumers may or may not willing to buy tickets to a movie or a play in light of the coronavirus.
"There's an incredible uncertainty in how the consumers are going to respond," he told the board.
Retirement board chairman Bruce Erb credited Wing for recommendations to the county, influencing the plan's allocation of assets and rebalancing measures to maintain a mix of investments.
Wing also mentioned that while the county liquidated some plan assets in February for cash to pay obligations, the liquidation occurred while the market was up.
Further review of the county's pension plan reports showed that during the first four months of the year, the county and its employees contributed $1.83 million to the pension plan. The plan, during those same four months, paid out $2.5 million for monthly pensions, refunds, rollovers and other obligations.
"We're still in depletion mode … with $658,000 more in withdrawals that contributions," Erb said.
Those same reports also showed that of the $1.83 million contribution, the county provided $1.5 million and the employees contributed about $339,000. Employee contributions also dropped down to $69,884 in April, based on payroll withholdings in March and April, from $76,721 reported in March, based on payroll withholdings in January and February.
The drop in withholdings was linked to the March furloughing of 67 full-time and part-time employees in connection with closing the courthouse and county offices because of the outbreak.
Some employees have since been recalled and more are expected to be recalled as county courts and offices begin what they have pledged will be a slow reopening process to maintain the safety of employees and visitors.