COUDERSPORT — Potter County Commissioners heard a presentation from a representative of the firm that handles the county’s retirement portfolio during meetings held Thursday in Coudersport.
Jeff Davidek of the C.S. McKee firm in Pittsburgh discussed market trends, interest rates and other financial-related information during a retirement board meeting held prior to the regular board meeting.
Davidek stated that this year will likely see more volatility in the markets, as 2017 was not a standard year. There was not a single month throughout last year when the S&P ended in the negative. The historical average is three down months for every seven months of gains.
In the recent past, the U.S. Federal Reserve system were involved in asset purchases that propped up the market, and central banks in Europe and Japan followed suit. Central banks are now backing off those positions and raising rates, which brings more uncertainty and more volatility.
Pension funds in many places are still underfunded, but much of that has to do with changing workforces. Decades ago, interest rates on bonds were high, leading to higher yields from safer money. As interest rates have decreased, life expectancies have increased. Pension funds now have to cover expenses for 30 years for many retirees, and even as many as 50 years in some cases. In addition, pension funds used to have seven active workers for every retiree collecting a pension. Now, funds average 1.4 active employees for each retiree, and some have more retirees drawing money than workers paying in.
Davidek reported that the county’s retirement fund is fully funded and in a good position to weather expected volatility in markets. As bond rates increase, the county portfolio will likely shift to weight more heavily in bonds, which are safer long-term investments than stocks.
Resident Leslie Howarth attended the meeting to question commissioners on handicapped accessibility accommodations at the Coudersport Magisterial District Judge’s office. Commissioner Doug Morley stated that he believed the issues are being looked into by the building’s owner. Howarth previously filed a federal lawsuit against several entities, both public and private, in Potter County that he believes do not comply with the mandates of the Americans with Disabilities Act (ADA). State Representative Martin Causer was also named in a suit by Howarth because of accessibility issues at his Coudersport office.
In other business, commissioners approved renewal of an agreement with the County of Erie for part-time use of Forensic Pathologist Eric Lee Vey, M.D. to run through December 31, 2018.
The next meeting of the Potter County Commissioners will be held at 11 a.m. on Thursday, April 26 at the Gunzburger Building in Coudersport.
