Carbon Retirement Fund ahead of projections
The Carbon County Retirement Fund is ahead of projections for its 2010 performance.
During the monthly meeting of the county retirement board on Thursday, Robert Crampsie, county controller and secretary of the retirement board, announced that the retirement fund rate of return for the year so far is 8.47 percent, .97 percent higher than the actuarial assumptions set in the beginning of the year.
He broke down the figures, stating that the retirement fund started the year with a value of $58,072,417.
During the year, employees and the county contributed $1,613,010 to the fund and $3,787,052 was disbursed
Crampsie said with those contributions and disbursements, the retirement fund adjusted beginning market balance for 2010 was $55,898,375.
"The portfolio's value as of Oct. 31, was $60,631,481," Crampsie said, adding that the year to date increase in market value is $4,733,106, which equates to a year to date return of 8.47 percent.
"Even though we experienced a lot of volatility and it has sort of been like riding a roller coaster, we are ahead of the actuarial assumption of 7.5 percent," he said.
He also announced that the county's estimated annual required contribution (ARC) for the retirement fund in 2011 is $1.22 million, a $1.28 million decrease from 2010. The estimate was based on the portfolio's September market value.
Three years ago, the county had to contribute $11,400 to keep the fund fully funded.
In other matters, the county retirement board voted to accept the Hay Group's proposal to prepare plan documents that are in compliance with the Internal Revenue Services code.
County solicitor Michael Ozalas explained the proposal, stating that the purpose of the letter was to inform the county of the steps that are necessary to bring the pension plan into compliance. If the county does not complete this plan and other needed documents, it could be at risk of substantial penalties if the IRS audits the pension plan.
He recommended that the county accept the proposal at a cost of $3,500 to the Hay Group for its services.
Crampsie added that IRS charges $1,000 for the determination letter, which is needed, and $500 for the volunteer correction program.