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Latest Luzerne County hirings released

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‘The Lion King’ rules; ‘Endgame’ scores all-time record

<p>Luzerne County employee pension fund investment adviser Richard J. Hazzouri jokingly said he expected confetti to fall from the courthouse meeting room ceiling last week when he reported on the status of returns.</p><p>As of June 30, the fund was worth $248.58 million &#8212; a $27 million gain since the start of 2019, Hazzouri, of Morgan Stanley, told county retirement board members.</p><p>The year-to-date return: 12 percent.</p><p>In addition to this growth, the fund paid $8.4 million to approximately 1,300 retirees through the first half of the year, said county Pension Coordinator Rick Hummer.</p><p>In comparison, the fund had a negative return of minus 6.26 percent in 2018, with Hazzouri describing December as the worst final month of the year in about eight years. Many other investment portfolios experienced similar losses largely due to fears of inflation and rising interest rates, officials have said.</p><p>Hazzouri said he was &#8220;very pleased&#8221; with this year&#8217;s performance but said December highlights his continued reminder that volatility should be expected in today&#8217;s investment climate.</p><p>&#8220;We&#8217;re seeing the pendulum swinging,&#8221; he said, referring to sudden and extreme market changes.</p><p>Retirement Board member John Evanchick Jr. also noted the investment gains are still not enough to eliminate the county&#8217;s required pension subsidy.</p><p>Last year&#8217;s contribution was $12.9 million, with $8.5 million from the general fund operating budget and the rest from the state and other revenue streams. The 2019 budget increased the general fund contribution by approximately $570,000, officials have said.</p><p>Shoring up is necessary to close a shortfall that emerged years ago, when investment earnings and employee contributions stopped keeping pace with obligations for future pensions that are guaranteed by law. Two other drivers cited by the actuary: People are living longer, and the revenue projected from investments had been unrealistically high.</p><p>In response, the retirement board last year reduced the actuarial investment earning target from 7.25 percent to 7 percent.</p><p>In light of longer life expectancy, the board voted last week to use updated mortality tables to calculate pension benefit amounts for future retirees &#8212; a practice that will be implemented every five years.</p><p>The change will take effect Jan. 1 and only impact employees who opt to retire after that date, with specifics based on the pension option they select at the time of retirement, officials said.</p><p>Hummer said he will reach out to employees who are eligible to retire to review how the new tables would alter their pension receipts in case they want to retire before the changes take effect. In many scenarios, the amounts paid to future retirees won&#8217;t be negatively impacted as a result of the changes, officials said.</p><p>The board also voted last week to approve a revised investment policy.</p><p>This new version extensively details the types of investments that are permitted, replacing a list of prohibitions that may not remain comprehensive without constant reviews and updates, officials said.</p><p>For example, bitcoins are not on the new list of permitted investments and could not be introduced in the fund unless the retirement board agreed, officials said, emphasizing bitcoins are not being considered.</p><style>
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<div class="neFile"><img class="neImage" src="https://www.timesleader.com/wp-content/uploads/2019/07/web1_hazzouri-pic-022018.jpg">
<div class="neCaption">Hazzouri </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2019/07/web1_hazzouri-pic-022018.jpg</photo0><caption0>Hazzouri </caption0><photoCredit0></photoCredit0></div></div>
<div class="metaInfo"><bylineMeta><p>By Jennifer Learn-Andes</p><p>jandes@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.</p></shirttailMeta></div>

Luzerne County pension fund on a roll