Sunday, January 13, 2008

County pension increase delayed

April 20, 2006

By PAT LITOWITZ
plitowitz@ncnewsonline.com

The numbers look promising, but they aren't good enough for the Lawrence County Pension Board.

Despite a call for a cost-of-living adjustment from retired county employees, the board said Tuesday that it couldn't move forward on the request -- yet.

"We worked for the county and did our job, when we retired we were told that we would get our pension, plus a cost-of-living raise, and now we find out that part isn't so," a member of the retirement pension committee said, reading from a prepared release.

"Why do senior citizens get left out? We did our part, now it is your turn to do what is right for us."

Joel Bender of Merrill Lynch reported to the board that the county's retirement fund earned a net of $418,000 from February through March. That figure represents an overall first-quarter return of 9.6 percent.

According to board member and county Controller Mary Ann Reiter, the fund needs to grow at a rate of 7.25 percent annually to meet its obligations. Currently, the fund has $37,475,000.

The plan paid $645,000 to retirees in the first three months of the year. There are approximately 225 pensioners drawing from the fund, Reiter said.

Commissioner Dan Vogler told those in attendance that the fund's solvency is the board's top priority. He noted that if the county ended operations today and all the pensioners were paid, the fund would show a $300,000 shortfall.

"We know that's not going to happen, but we have to make sure (the money) is there," he said.

The county has set aside $300,000 in its budget in case it is needed to address solvency issues. If it were not required for that reason, the money would be placed in the fund as a county contribution.

If the retirees were to see an increase, it would range from 3.6 to 4.2 percent. Reiter said that $500,000 would be needed to pay for the cost-of-living adjustment.

Retirees at the meeting said higher utility and gas costs have become burdensome. Those are two reasons they pushed for action on the matter.

"To do it in the first quarter of the year ... would be premature for us now," Vogler said.

Commissioner Ed Fosnaught, Reiter and Vogler said they would revisit the issue. If the fund continues to perform at its current rate, the three said a retroactive increase would be passed.

Fosnaught and Vogler differed on what time of the year it would be granted. Vogler said he would OK an increase at year's end. Fosnaught said he would have a better idea when the second quarter ended.

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