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HOLLIDAYSBURG -- The latest report on Blair County's underfunded pension plan shows 2023's general fund contribution of $5.25 million will exceed a recommended contribution of $5 million.
That's the first time that has happened since 2004, based on records reviewed Wednesday showing the county's contribution fell short, sometimes by millions of dollars, until 2022 when it fell short by just $30,000.
Commissioners Chairman Bruce Erb, who also chairs the county's retirement board, recognized the 2023 achievement on Wednesday during a review of a report on the pension plan's status.
"Thanks to a retirement board decision and adopting a policy and plan, this is the first time in 20 years that we will have met the actuarially determined contribution, which is a remarkable achievement from where we started," Erb said.
The commissioner also tempered his remarks by stating that he tells people that the county's pension plan is much like Social Security in that 449 participants are paying into the plan and almost 600 people are receiving benefits.
"So we are upside down in that sense, which stresses again the importance of us following the plan and to keep increasing the (general fund) contributions," Erb added.
David B. Reid Sr., vice president of CBIZ Retirement Plan Services, who reviewed his report with the retirement board, said it would be his opinion that the county should adhere to its plan that calls for increasing the 2024 contribution by $250,000.
If commissioners do that when building the 2024 budget, they'll be allocating $5.5 million of the anticipated $34.2 million in real estate taxes -- about $1 in every $7 tax dollars paid -- toward the pension.
Controller A.C. Stickel, who also sits on the pension board, pointed out to Reid that the plan had three years -- 2019, 2020 and 2021 -- when investment returns were reported at 19.02, 11.23 and 13.76 percent, respectively -- before 2022's return came in at a negative 11.66%.
Reid confirmed that such fluctuations were a reason for the county to stick to its funding plan, rather than backing away from contributing in light of improvements.
"I am certainly of the opinion that it's a matter of when you're going to contribute, not if you're going to contribute to the plan," Reid said.
Erb also mentioned that he's regularly asked by county retirees about the possibility of a cost-of-living raise in light of pension improvements. The last COLA was awarded in January 2013, three years before 2016 when a state law took effect prohibiting pension plans from awarding COLAs if they are less than 80% funded.
Reid's report also showed Blair County's pension funded at 31.21% in 2023. That was down from the 37.05% funding level reported in 2022, and a drop in assets, from $38.55 million in 2022 to $32.48 million in 2023, because of the negative 11.66% in investment returns.
Reid's report showed the fund's liabilities fell slightly from $104.3 million in 2022 to $103.37 million in 2023.
Despite its 31.2% funding level, Reid said after the retirement board meeting that the pension plan is currently solvent and will remain solvent based on the county's funding policy.
In 2021, Reid issued a report showing no projection of the plan running out of money. A report issued in 2015 identified 2024 as the plan's year of insolvency, when it wouldn't have enough money to cover its liabilities.
Mirror Staff Writer Kay Stephens is at 814-946-7456.