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Chester County Retirement Board approves IPS changes, software contract and $13.2M employer contribution
Summary
At its May 28 meeting the Chester County Employees Retirement Board adopted a revised investment policy and a modest rebalancing, authorized a three‑year pension administration software contract with PTG, approved Resolution RB‑126 clarifying part‑time credit, and accepted an actuarial valuation that set the employer contribution at about $13.2 million.
Chester County Employees Retirement Board Chair Josh Maxwell on Thursday led the board in a series of unanimous votes that updated the fund’s investment policy, authorized a three‑year pension administration software contract and set the employer contribution after the actuary’s valuation.
The board approved an updated investment policy statement (IPS) that reduces the private equity target from 5% to 2% while increasing large‑cap equity targets. The board also adopted a modest rebalancing plan recommended by the investment consultant that moves $6 million out of emerging markets into short‑term fixed income to reduce risk and shifts a small amount into the S&P 500 and large‑cap growth. "We're gonna take private equity down from 5 to 2%," the consultant said, explaining the move was intended to reduce illiquidity risk while maintaining return assumptions.
The changes were presented as part of a broader performance review showing the system was roughly down 0.5% for the quarter (gross of fees) but had recovered in April and was up year‑to‑date. The consultant pointed to narrow market leadership in technology and softer consumer metrics — such as a falling personal savings rate and higher household debt payments — as reasons to take some risk off the table.
Commissioner Eric Rowe introduced Resolution RB‑126, described as a cleanup to ensure part‑time employees are credited prospectively without rescinding previously granted credits. Staff said the change honors commitments made in the past; the board adopted the resolution without objection.
On the technology front, the board authorized using plan funds to pay for a pension administration system recommended through an RFP process. Controller Nick Cherubino said the figure cited earlier in public comment is not an annual cost: "It's $385,000. This is not an annual figure. This is over a 3 year period," he told the board, adding the total includes implementation expenses and that the system will be hosted in the controller’s office and used by HR as well.
The actuary presented the draft valuation and explained the difference between market value and the actuarial (smoothed) value of assets. The report showed a smoothed funding ratio near the mid‑80s and a market funding ratio around 89.1%. The actuary recommended an employer contribution that the board recorded in the meeting as $13,197,000 (the report lists the figure as 13.19733). The board voted to accept that contribution.
Public commenter Jim — who spoke several times from Zoom — urged clearer, quarterly disclosure of dollar fee amounts for each manager and questioned the proposed software expense. Staff pointed the audience to the fee tables in the meeting packet and said they would follow up on Jim’s questions about fee histories and specific quarterly amounts.
All motions described above passed by voice vote with no recorded opposition. The board adjourned after completing the agenda.
