Schuylkill retirees not getting a raise in 2019

Not this year, the Schuylkill County Commissioners said.

During a meeting of the county’s Retirement Board Wednesday, Retirees Association President Joan Deitrich asked for a cost of living increase. The retirees received a 1.4 percent increase in 2017, effective January 2018; the change gave retirees an average of $14 more per month. Deitrich and two retirees attended the meeting.

County Controller Christy Joy gave a PowerPoint presentation outlining the county’s position. As of Nov. 14, the total market value of the retirement fund is $133,343,266.24, he said. He said that the 1.4 percent increase in 2017 cost $922,446, which the county is paying over 10 years at a rate of $134,387 per year.

The retirees are seeking a 1.7 percent increase, which Joy said would cost about $1.1 million. Paying for that would cost the county $164,256 per month, he said.

Commissioner Frank J. Staudenmeier pointed out that if the request for an increase were to be granted, the cost for 2017 and 2018 would total about $2 million.

“That would add up to 1 mill for taxpayers,” Staudenmeier said, adding that the monies come out of the county’s general fund. “We have a volatile market now.”

“When we look at granting a COLA, we look at the entire picture of the county,” he added. “We want to be fair to you people, and we did grant a COLA last year.”

Last year, the 1.4 percent increase was granted in a split vote. Staudenmeier, Commissioner Gary Hess and Treasurer Linda L. Marchalk voted in favor of the increase, while Chairman George Halcovage and Joy opposed.

In response to a question from Halcovage, County Financial Director Paul Buber said that health care costs for retirees will increase about 6 percent. Health care costs have exceeded the inflation rate, he added.

Joy described the county’s investment portfolio as “diversified, with good gains” but added that fluctuations in the stock market greatly affect the account. Also, Joy said, since 2001 the county’s contribution to the fund has increased while the employee contribution has remained stable.

“In 2003 we had about $60 million (in the retirement account), so we’re going the right way,” Joy said of the growth in the account. “The commissioners board has consistently put in money — we’re putting in about $4 million and the (retired) employees get 4 percent guaranteed.”