Clarion County Retirement Board Reports $25.7 Million Balance
CLARION, Pa. (EYT) – The Clarion County Retirement Board voted to maintain the Employee Retirement Interest at 4 percent, change the actuarially assumed rate of return from 7.5 percent to 7.25 percent, and delay a Cost of Living increase for retirees at the group’s year-end meeting on December 26.
As of November 30, the Retirement Fund Portfolio had a balance of $25.7 million.
There are 176 active members and 183 retirees receiving a pension. For example, the total funds to be distributed on January 1 are $145,897.46. That includes $127,607.00 in County pensions and $16,377.00 in a lump sum payouts.
The Employee Retirement Account Interest Rate will continue at four percent after a Board review. The interest is paid on any employee contributions to the retirement fund, similar to interest in a savings account.
The change in the actuarially assumed rate of interest on pension fund investments. The new rate, according to Commissioner Ted Tharan, is a more accurate estimation.
County Treasurer Tom McConnell explained that the rate is more conservative than in the past, and the change also means Clarion County will be required to pay a higher percentage of its share to the pension fund. The Clarion County defined-term Pension is fully backed by Clarion County. Clarion’s fund is unlike the state pension fund that has been underfunded by Commonwealth for many years.
“We take a more conservative look at Investments and provide a proper contribution to the retirement fund so that it will continue for many years,” said Commissioner Ed Heasley.
A cost of living increase in 2020 was postponed and will be reviewed next year.
The board approved the following financial institution appointments for the Fiscal Year 2020:
- Investment Manager: Cornerstone Advisors Asset Management, Inc., Bethlehem, PA.
- Custodian: Wells Fargo Investments, Clarion, PA.
- Deposit administrator/custodian: Boetger Retirement Plan Services/Northwest Bank
- Actuary: Boetger Retirement Plan Services
- Accounts/auditor – Clarion County Auditors, Clarion, PA.
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