Allentown pension boards approve rebalancing to extend bond ladder after consultant reports strong 2023–24 returns

The Allentown Aggregate Pension Board on Feb. 18 voted to adopt a proposed rebalancing that trims U.S. equity holdings and uses part of the proceeds to extend the funds’ short‑term bond ladder.

The motion to adopt the rebalancing proposals for the Police, Fire and O & E funds was made on the record by a board member and seconded; the measure passed unanimously by roll call. Board members said the moves are intended to lock in higher short‑term yields while keeping a buffer of cash for benefit payments.

Why it matters: Marquette’s market update presented at the meeting showed large positive investment returns for 2023 and 2024 that materially improve the plans’ funding projections. The board’s rebalancing directs some equity proceeds into Sterling (a fixed‑income manager noted in the packet) to extend the ladder to maturities that better match net cash‑flow…