Schuylkill County retirees did not get their long-awaited cost-of-living increase in 2013, but 2014 may be their year as the retirement fund continues to reach new highs.
Members of the county Retirees Association met in December with the county commissioners and Hank Steihl, senior consultant for The Hay Group, the county's financial actuary for the retirement fund. The county pension hasn't increased since 2007.
Pensions are paid out of the county's retirement fund, which is made up of about a dozen cash and stock accounts. It pays out monthly to nearly 500 retired workers.
Following the 2007 increase, the retirement fund was only about $70 million towards the end of 2008 and most of 2009. The fund has steadily recovered since then and has been setting new highs each month in 2013. It was at $118,551,391.23 on Dec. 16, 2013.
"The way the fund is going, hopefully, without any problem, we could (give a cost-of-living adjustment)," Commissioner Gary J. Hess, the lone Democrat county commissioner, said Thursday.
According to County Pension Law, the county is required to give any new COLA increases for each year since the last time it was changed.
"Our big concern is it has to go retroactively eight years," Hess said.
The county retirement board is comprised of the three commissioners, controller and treasurer. Cornerstone Advisors Asset Management, Bethlehem, serves as the consultant for the fund and has advised the county each year since 2007 to not increase the pension.
"That's why we have those folks there," Hess said. "We have a responsibility to both the current and future retirees. You have to do that balancing act to make sure everyone is covered."
Commissioner George F. Halcovage Jr. said the meeting showed good and open communication between the county, its employees and retirees.
"I thought it was a very positive meeting," Halcovage said Thursday. "It was the information that they needed to give back to the people they represent."
The county is also required to transfer an Annual Retirement Contribution from the county general fund. The commissioners approved the second-quarter payment of $395,000 last week. The total annual payment is usually about $4 million.
While the county is only required to vote on a cost-of-living adjustment once every three years, the Schuylkill County Retirees Association makes sure the board doesn't forget about the issue.
"That's our foremost objective," Joan Deitrich, president of the association, said Thursday. "Gas went up, food prices are outrageous, oil has gone up, everything is going up and some of our retirees are living on a very meager income."
While Deitrich said she was disappointed after asking the same question to no avail for seven years, the county retirees are not giving up.
"I'm hopeful that 2014 is going to be a better year and they will consider us again," Deitrich said.