County Early Retirement Plan OK’D: Retirement Board Approves Incentive, Which is to Be Offered to 368 Employees.
By Jennifer Learn-Andes, The Times Leader, Wilkes-Barre, Pa.
Jun. 20–The Luzerne County Retirement Board voted Thursday to ratify an early-retirement incentive that had been adopted Wednesday by county commissioners.
The incentive, which will be offered to 368 employees, would increase pension payments by adding service years by 30 percent.
For example, an employee with 20 years of service would receive an additional six years of service.
The county commissioners, treasurer and controller sit on the retirement board.
Minority Commissioner Stephen A. Urban voted against the package Thursday. Though he voted for the package during the commissioners meeting, Urban said he didn’t realize that employees must be eligible from Oct. 1 through Dec. 31. Urban said the period should be expanded because state pension law allows a one-year eligibility window, and such a pension-funded package may only be offered every five years.
He also said the board should receive more details on the cost before the program is finalized.
In other business, the employee pension fund has a current market value of $202 million.
The board voted to terminate two money managers for underperforming: Omega Bank Asset Management and Reed Conner Birdwell. The $5.3 million under their management will be transferred to other money managers, rather than hiring new companies.
The board is interested in looking at alternative investments to boost the fund, but not until the fall, when the board will choose an overall adviser through a public request process.
Merrill Lynch, the current adviser, is expected to reapply.
The incentive would increase pension payments by adding service years by 30 percent.
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