County pension posts modest fourth‑quarter gain, ends year near $142.2 million

Brett Holland of Stifel Financial told the Board of Commissioners that Lebanon County’s pension fund finished the fourth quarter with a modest gain and ended the 12/31 reporting period at $142,195,688. Holland said the pension posted a fourth‑quarter total return of $541,785 and a calendar‑year return of 8.47% for 2025.

Advisors reviewed allocation and performance: equities comprised roughly 67% of the plan, fixed income about 27% and alternatives (primarily a REIT) about 5%. The advisers noted the plan’s 3‑, 5‑ and 10‑year annualized returns (11.1% three‑year, 6.38% five‑year, 7.62% ten‑year) and said the results should help the county’s actuarial position. "It should" reduce actuarial contribution pressure, an adviser said when commissioners asked about impacts on the actuarial figure.

CS McKee portfolio managers described their approach to fixed income and equities. The fixed‑income team said higher starting yields and a shift in rate expectations had benefited returns in 2025; the equity manager said the market was "broadening" away from mega‑cap growth toward value opportunities and emphasized stock‑selection criteria grounded in valuation, earnings power and timeliness.

Managers also told the board they raised $3.6 million in short‑term cash to cover monthly pension payouts through May. Commissioners asked for follow‑up on the actuarial calculation and on any implications for the county’s budget cycle.

Why it matters: The pension’s performance affects county budgets and actuarial contributions. Commissioners said they monitor investment returns because improved returns can reduce required contributions and relieve budget pressure.

Next steps: Managers will supply updated performance and actuarial calculations to county staff; commissioners did not take further action at the meeting.