Glen County pension fund reports improved funding, actuary cites lingering liabilities from pay resets

Glen County’s Pension Committee heard an investment update and the annual actuarial valuation July 24 that showed the plan’s funded ratio improved but still carries an unfunded liability tied in part to recent public-safety pay adjustments. David (investment manager, Bowen, Haines & Company) reported market value assets around $153 million and Ms. Lawrence (pension actuary) reported the plan was 81.3% funded on the January 1 valuation and 87.5% on an accounting roll‑forward to June 30.

The actuary described how the valuation balances recent market gains against demographic and payroll changes. “As of today, we had about 81.3% of the money for the benefits that had been earned,” Ms. Lawrence said, describing the plan’s January 1 funded ratio. She told the committee the plan recognized a 9.1% return for valuation purposes after smoothing market gains and losses over five years, and that stronger 2023–24 returns have not yet been fully recognized in the actuarial smoothing schedule.

The report identified two offsetting forces: stronger-than-expected investment returns and higher liabilities from pay increases. The actuary said demographic experience produced a $3.8 million adverse adjustment and that public-safety salary changes added roughly $3.0 million to liabilities. The plan’s recognized asset gain versus the 7% discount assumption offset about $2.6 million of that increase, leaving the net change in unfunded accrued liability small year‑over‑year.

Committee materials showed the plan’s asset mix (roughly $5 million cash, $33 million bonds, and $114 million equities as of mid‑July) and noted a large contribution that arrived in mid‑July. David described recent portfolio positioning and individual holdings, noting bond yields have risen and the team has been adding to fixed income and selected equity names. “So far so good,” David said about recent performance.

The actuary reviewed the county’s contribution strategy and amortization approach. Under the plan’s closed amortization schedule, the committee’s budgeted employer contribution for the year is about $4.4 million; without the committee’s smoothing approach, the recommended contribution would have been about $5.5 million. Ms. Lawrence explained that the county made a larger-than-usual cash contribution in the last fiscal year (just over $6.0 million) because of a timing change in how employer contributions are paid.

Ms. Lawrence told the committee the plan began the year with a market value near $141–$143 million, and that strong returns and new contributions have raised that figure to about $153 million. She also walked the committee through mandatory actuarial disclosures showing a higher hypothetical liability (about $199 million) that would exist if asset risk were eliminated, a standard information disclosure under actuarial practice.

Staff updates included a planned formal service‑purchase policy and a possible plan amendment to follow federal SECURE Act 2.0 provisions that allow cashing out benefits under specified small thresholds; the actuary said a small number of terminated vested members have benefits under the statutory cash‑out amount that the county could remove from its books.

No formal votes were recorded during the presentation. Committee discussion focused on clarifying the contribution smoothing, the effect of public‑safety pay adjustments on liabilities, and how recent market gains will be recognized in future valuations. The committee’s agenda closed after the presentation and questions.