Over the past few days, I've received a number of comments complaining that NorCo's proposed budget for 2026 calls for no county contribution to the pension fund. At Wednesday's budget hearing, Council member Jeff Corpora asked Exec Lamont McClure to explain the risk of not putting any money into retirement.
McClure: "I'm glad you asked that question. There is no risk. Currently, in the pension fund, we have $563,181,986.53. ... Our pension fund at the beginning of the year was funded at 90.7%. It is now presumably, because it has grown, funded at 93%. Your average pension fund in the Commonwealth of Pennsylvania is funded at 77%. Actually, nationally, the average is 77%. ... The taxpayers have been overtaxed for the pension and specifically, to the tune of $103,469,300.00. That's one year of the general fund real estate taxes. One entire year of the taxes we collect for the general fund went into the pension fund. We're going to rebalance that. It will be back down to about - I suspect - 85% funded at the end of next year."
Council member John Goffredo said McClure was being "too optimistic" McClure said he has had this argument for many years with former Fiscal Affairs Director Steve Barron but believes that a county contribution this year would be "funding liabilities well into the future that should be shared with future taxpayers because the whole purpose of this is to spread out the liability over the years, not to have it disproportionately paid for by taxpayers now ... .."
In addition to a pension fund for retirees, the county also maintains a $58,296,110.55 trust fund that pays medical expenses for eligible retired employees, which are those who started on or before 2010. McClure explained that since no one who was hired after 2010 is entitled to retiree health benefits, there is no reason for the county to continue paying into this fund.
11 comments:
"presumably" - "I suspect" The guy in charge shouldn't be guessing.
This is nothing but a lot of hogwash. The only reason McClure isn't funding the pension obligations is because he doesn't want to raise taxes. He is using the pension monies to offset County Liabilities and putting the burden on future County Council's and taxpayers to fund the "Retirement Account". Steve Barron is right. McClure is running for Congress and raising taxes would cost him votes. The Retirement investments are what is "fully funding" the County's Retirement obligations and it only takes one bad year of investments (stock market performance) to put the County taxpayer behind the eight ball. You just lost my vote McClure. It's bad enough seniors are getting shafted by "TRUMP AND THE R'S IN WASHINGTON, we don't need you helping them on the local level.
The county has an actuary that provides a recommended contribution to OPEB and the employee pension plan. What are they for 2026? They certainly aren't zero. Council needs to get those numbers from the financial professional, not a Congressional candidate desperately trying to avoid a tax increase on his way out the door.
This, gracedale funny money, layoffs, etc,etc - he doesn't stand a chance for higher office.
The pension contribution really isn’t his call to make, as he lacks the knowledge and expertise to determine what the amount should be. Whatever it is, it certainly shouldn’t be zero.
The amount of the contribution is determined by an actuary who looks at multiple factors, including current funding, future needs, and current and projected investment returns. This is designed to have annual contributions in all years to smooth out the impact that a down market could have on the fund, and allow the county to have a more predictable (and stable) contribution each year.
If he is ignoring the actuaries and trying to balance the budget on the backs of the pension funds, he is even more irresponsible than anyone could have imagined. Not only is he putting the health of the pension funds at risk, he is setting the taxpayers up for massive tax hikes in the future.
Council can always change this if they wish and prevent McClure from further damage done to the county. I don’t think McClure makes out past the primaries we can only hope he is not offered a seat back at the county as support after he will lose next year
This because Lamont has bleed the county dry. He has made choices that has put the county employees pension and medical insurance in jeopardy. He will throw around these big numbers so county votes hear them and think they are getting ripped off but the don't understand they tax payers are liable to make sure it is funded.
So cut this year off like Tara said to take money from this bucket to put in this bucket. And as county employees have learned with the steps in employment pay once its gone its never coming back the same.
Lamont has bleed this county dry. And he gets to run away and try to get to another elected office. Lol.
And who ever wins this next election don't blame them for raising your taxes. That POS try to make tax payers believe you've been rip off has screwed you.
YOU'RE RIGHT. I would like to see the Actuarial Report before making any negative comments. BY LAW, I repeat BY LAW the County is "mandated" to pay these pensions to the retirees. The funding mechanism is also clearly spelled out by law. Northampton County Retirees are truly fortunate that The County has always funded their obligations to its Retirees and employees as recommended by the Actuary. Get the Actuary report and then make a decision on how to move ahead. Mr. McClure may be right. He claims the fund is fully 100% funded. If he is right, no County contribution to the fund would be required.
Exactly … get it from the horse’s mouth instead of the other end!
A TIF better not be given to this Dixie building if the county isn't going to put there portion into the pension fund. If the fund was 100% funded then I'd see nothing wrong with them not putting that cash in .
Oh and by the way all you brainy people out there if Lamont would have given steps to the county employees it would be fully funded. People should realize that the county pension and medical insurance is self paid.. It is paid by the contributions from the employees. And the county. Every time he shorts his employees he is actually shorting the county tax payers. Because in the near future it is going to come that the fund is to low for the employees to put money in and then it will be on the tax payers to kick that in!
Enjoy thinking Lamont is looking out for the tax payers. He is actually screwing them over and I'm one of them.
Relax. The actuary is completed ever single year by a third party entity and provide to the retirement board and I’d imagine council.
The county’s contribution are “voluntary” year by year. Actuary simply provided a recommended amount the county’s contribution should contribute each year to keep the balance status quo.
Another being that understand little about this whole retirement account and actuaries. Deep breathes. Leave this important stuff up to those that know it best!
Nothing illegal about not contributing for a year or a few years, however is could potentially hurt a little in the future. Either way all retirees now and in the future that are eligible for pension benefits will get their benefits! They have to!
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