Actuary: Dauphin County commission pension is 104.8% funded; recommended 2026 contribution is zero

Ashley, the commission’s actuary, reported that the pension plan sponsored by the commission — closed to employees hired after Jan. 1, 2014 — is down to about two active members and that the plan’s funded status increased from 100% in 2025 to 104.8% as of the Jan. 1, 2026 valuation. She said the actuarial interest-rate assumption was lowered from 7.5% to 7% to reflect expected future returns and that, even with that reduction, the plan’s funded percentage increased.

“The recommended contribution for 2026 is zero,” Ashley said, adding that the zero figure appears under both the aggregate and entry age normal methodologies and that a 6% long-term return assumption would drop funded status to about 95.9% and carry a required contribution.

Commission members pressed how to manage that zero recommendation. Jim Turner and other members asked whether the commission should nevertheless contribute budgeted funds (figures discussed in the meeting were in the roughly $67,000–$74,000 range) to smooth future volatility. Ashley said any contribution above the minimum is allowed and suggested a smoothed asset valuation (phasing gains/losses over five years) as a way to reduce contribution swings. “Any contribution that you make during the year above the required contribution obviously helps for future funding levels,” she said.

Chris, the commission’s investment adviser, reviewed the portfolio and said the plan’s market value was about $3.3 million as of Dec. 31, 2025, and that 2025 produced unusually strong returns. “We were looking to get 7% — we got 16.63%,” he said, noting the portfolio’s approximate 70/30 stocks-to-bonds allocation and the decision to invest in broad Vanguard index funds.

Both presenters cautioned that such a strong year should not be expected annually. Chris described how asset-class returns (notably foreign equities and large-cap growth) drove the 2025 result and reiterated that contributions made before a downturn can look prudent in hindsight. The commission accepted the actuarial and investment reports by voice votes.

What happens next: staff placed a placeholder on the September meeting to re‑examine contribution strategy if members wish to consider making a budgeted contribution later in the calendar year. The commission took no change to benefits or plan structure; the actuarial assumptions and investment mix remain documented in the plan materials presented at the meeting.