Average Washington County government retiree’s pension pegged at about $9,800 annually
Although taxpayers are required by law to shore up county workers’ pensions when investment income falls short of the amount required, the average employee retiring from Washington County government is making only about $9,800 a year.
County Controller Michael Namie announced the figure Thursday at a meeting of the Washington County Retirement Board, of which he, county Treasurer Francis King and the county commissioners are members.
“Surprising, isn’t it?” asked Namie, who had an intern in his office roughly calculate the figure based on 667 county retirees currently receiving monthly pension checks. The calculation did not differentiate years of service or what option individuals chose.
Commission Chairman Larry Maggi said most county employees do not retire with 25 to 30 years of service, although shortly before the retirement board meeting, 30-year employees of the domestic relations office were introduced in conjunction with Child Support Awareness Month.
The controller said after the meeting Washington County has one of the lowest benefit classifications. The value of the county pension fund as of Aug. 11 is $144,686,197. Its one-year gain was $4.1 million.
Namie also noted a recent audit of the pension fund came back with no findings or comments.
Also Thursday, the commissioners and retirement board approved a pension funding policy, in which they went on record they will make, at a minimum, the actually determined contribution to the employees’ pension fund. Forty percent of this figure is reimbursed by the state. The latest figure, then known as the annual required contribution, was $4.3 million. Seriously underfunded pensions have become a problem for some counties.
“It’s great to see you have a funding policy in place,” Lee Martin, the county’s consultant with the Peirce Park Group, told the retirement board. Part of the retirement board’s discussion dealt with what are known as other post-employment benefits.
“Down the line, you’re going to have to start reporting other post-employment benefit liability as well,” Martin told the retirement board.
The county’s portfolio for other post-employment benefits is $10.3 million, according to Peirce Park’s report.
The county pays a Medicare supplement for its retirees. Those who were hired before April 1, 2004, could also have their health insurance paid by the county, but the commissioners that year halted the practice that was put in place by a prior board.