Westmoreland County's pension fund for retired employees lost more than $17 million during the first three months of the year.
The $302 million fund, which provides benefits to more than 800 retired county workers, was the subject of discussion Thursday afternoon by the county's pension board, which is comprised of county commissioners Tom Balya, Tom Ceraso and Kim Ward, along with Controller Carmen Pedicone and Treasurer Kathalyn O'Brien.
The first-quarter falloff of about 5.5 percent is a reflection of economic conditions around the country, officials said.
"It's really not something to worry about yet. We're losing money like every one is losing. It's the nature of where we are economically right now," Ceraso said.
Last year, the pension fund made an 8.2 percent profit. The last year the pension fund ended the year in the red was 2002, when the account experienced a 6 percent reduction in assets.
County leaders noted that despite the first-quarter losses, the pension fund could end up earning money by the end of the year.
Mark R. Gensheimer, executive vice president of CS McKee, one of the county's investment managers for the pension fund, predicted economic conditions will improve.
"We think we hit the bottom of the financial crisis in mid-March," Gensheimer said.
The pension account is funded through payments made by county workers as well as investments. Returns on those investments dictate whether taxpayers have to pay into the pension fund.
Since 2003, taxpayers have paid more than $20 million into the pension fund. Last year, taxpayers contributed nearly $3 million.
The county contribution is made to assure the pension account is fully funded.
Larger text
Smaller text
Print this article
E-mail this article
