Politics & Government
Upper Milford Moves Pension Funds
Township supervisors voted to move employee pension funds to a plan with a higher rate of return, some more risk.
Here's the dilemma: Should a municipality leave its employee pension money in the most conservative fixed-rate fund with no risk but low return? Or should it go with a balanced fund that is half fixed investments and half stocks, with a higher rate of return but more risk?
Upper Milford supervisors chose the second option at the board's Dec. 27 meeting after finding out the fixed rate fund had a 3.84 percent return that could end up underfunding the pensions. Currently, the township has a total pension fund of less than $600,000, Township Manager Dan DeLong said. Upper Milford has 13 employees.
At that time, Township Supervisor Robert Sentner said he was concerned that if Congress and President Obama don't make a budget deal to avoid the so-called "fiscal cliff" it could scuttle the stock market.
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The township pension board recommended switching the pension funds to the balanced fund account with the Pennsylvania State Association of Boroughs Municipal Retirement Trust. The supervisors voted to do that.