May 19, 2016 2 min read

For the third time in the past four years, taxpayers will be footing a record-breaking bill for Washington County employees’ pension fund.

The $4,610,598 figure, known as the actuarially determined contribution, is calculated by Hay Group of Philadelphia, consultant to Washington County, as part of a 28-page report.

Not all of the $4.6 million will be borne by Washington County taxpayers. State and federal reimbursements totaling $483,734 in the general fund cover pension obligations to those employed by Children and Youth Services to the tune of 70 percent; Aging Services, $89,547; and Emergency Services, $21,370. Other funds totaling $506,254 include pensions for workers in the Domestic Relations department, Childcare Information Services, 911 emergency dispatch; hazardous materials and Behavioral Health and Developmental Services for a total of $989,988.

According to state law passed in 1971, counties in Pennsylvania must have a defined benefit retirement plan for workers’ pensions. County employees have 7 percent of their salaries withheld from their paychecks as a pension contribution. The vast majority of Washington County retirees are making less than $40,000 in annual pensions.

Last year, taxpayer contributions from all sources reached $4.3 million for county government employees and in 2013, it topped $4 million for the first time since the pension fund’s inception after World War II.

The value of the pension fund’s portfolio was $143.7 million at the end of April available for 1,803 participants, including retirees and beneficiaries, active plan members and those who are entitled to benefits but are not yet receiving them.

Washington County retirement board convened Thursday, and the board voted 4-0 to eliminate the C.S. McKee Large-Capital Value Fund from its portfolio after placing the fund on its “watch list” because it failed to meet predetermined benchmarks.

The retirement board chose to retain its fixed-income fund with C.S. McKee Investment Managers LP, Pittsburgh. Four years ago this month, the county retirement board agreed to remove $5.5 million from its underperforming small-capital portfolio with C.S. McKee.

Management fees will also drop six basis points, which Lee Martin, the county’s investment management consultant with Peirce Park Group, estimated would result in a savings of about $85,000 a year.

Retirement board members commissioners Larry Maggi and Diana Irey Vaughan, Treasurer Francis King and Controller Michael Namie participated in the vote. Commissioner Harlan Shober left the meeting before the vote was taken.