Pension funds in Ohio, Pa. take dip

By Elise Franco

Some pension plans in Pennsylvania compensate for fund losses by dipping into general county funds.

Consistent drops on Wall Street have caused state and county pension funds in Ohio and Pennsylvania to take dips as well, but officials say it’s nothing to worry about — yet.

Julie Graham-Price, senior communications officer for the Ohio Public Employment Retirement System, said the state’s fund consists of pension and health care and is now funding 161,348 retirees and beneficiaries.

Of those 161,348 people, 5,710 are from a five-legislative-district area around Trumbull, Mahoning and Columbiana counties, she said.

Graham-Price said as of Dec. 31, 2007, the fund’s balance was $82.9 billion. As of November 2008, the balance was $57.7 billion — a more than $25 billion loss since 2007.

“It’s caused by the downturn of the market,” Graham-Price said. “OPERS is a long-term investor and highly diversified over many asset classes and market sectors.”

This is why Graham-Price said drops in the stock market have an effect on OPERS funds.

Despite these drops, she said the fund, which is 96 percent funded by investments and employee-employer contributions, isn’t in danger.

“We’re all watching the market very closely,” Graham-Price said. “The pension fund is safe, and we’re focused on providing a safe retirement for workers.”

In Pennsylvania, pension funds are the responsibility of individual counties, and Lawrence County Commissioner Dan Vogler said funds in the Keystone State are experiencing the same types of drop-offs as in Ohio.

“The performance of our fund this year has dropped by 16 percent,” he said. “Obviously, we’re not happy about that.”

Vogler said as of November 2008, the county pension fund’s balance, which pays out to 251 retirees, was about $35 million.

“The drop is not going to impact retirees in any way,” he said. “We’re obligated. They get a check each month, and that dollar amount remains constant.”

To date, in 2008, about $1.7 million has been paid to retirees in Lawrence County.

In order to keep the fund full, Vogler said the county has had to tap into general fund money. He said in 2008 the county moved about $600,000, and in 2009 it expects even more.

“We’re going to need to double that amount, so that’s where the real impact on the county is right now,” Vogler said. “Next year we’re budgeting the $1.2 million.”

Mercer County Controller Tom Amundsen said it’s unlikely that any pension fund is getting by unscathed by recent stock market dips.

“We were down 15 percent, and it has to do with the stock market and the world market,” he said. “I don’t think you’ll find a single pension plan out there that hasn’t seen losses.”

Amundsen said right now the county has about $40.8 million in pension money to fund 268 retirees.

He said Mercer County, like others, takes precautions to keep the pension fund safe.

“Last year we paid extra into the retirement fund,” Amundsen said. “That will be reflected in future years.”

efranco@vindy.com