Morgan Stanley reports pension gains; board approves 2026 pension obligations

A Morgan Stanley representative presented the township’s annual pension investment review at the Sept. 15 meeting, reporting year‑to‑date returns and describing the fund’s asset allocation and alternatives exposures.

The presenter said the police pension was up about 8.5% year to date and reviewed longer-term performance and the target allocation (roughly 60–65% equities, with an allocation to bonds, cash and alternatives). He highlighted that certain alternative investments have delivered strong short-term returns and described market factors that could influence future performance. Board members asked whether a modest reduction in the assumed actuarial rate of return would require changes to the investment mix; the presenter advised that a small change in the assumed return typically would not require a major shift from the core 60/40 allocation but could affect actuarial calculations.

Later in the meeting the board voted to approve the township’s 2026 minimum municipal pension obligation calculations: the police plan MMO was recorded as $532,858 and the uniform plan MMO as $22,186. The vote was taken after discussion and a motion recorded in the minutes.

Why it matters: Investment performance and the actuarial assumption together affect required township contributions and long-term pension funding plans. Approving the MMO finalizes the township’s required contribution for the next plan year and informs budget planning.

What’s next: The board will incorporate the approved MMO figures into 2026 budget planning and continue annual investment oversight with Morgan Stanley.