PRESS RELEASE
Treasurer-Convened Working Group on Plan Funding Releases Report on Strengthening and Modernizing Allegheny County Employees’ Retirement System
Report outlines long-term strategy to protect retirement security for County employees and retirees while strengthening the County’s fiscal future
Allegheny County - Under the leadership of Allegheny County Treasurer and Retirement Board President Erica Rocchi Brusselars, the Retirement Board of Allegheny County today released the findings and recommendations of its Working Group on Plan Funding & Modernization, culminating over a year of research, collaboration, and expert analysis focused on strengthening the long-term financial health of the Allegheny County Employees’ Retirement System (ACERS).
Fulfilling a commitment she made before taking office, Treasurer Brusselars convened the Working Group shortly after becoming President of the Retirement Board. The group brought together County leaders, financial experts, and pension professionals to better understand how the pension system reached its current position, evaluate best practices from across the country, and develop recommendations to strengthen the fund for current employees, retirees, and future generations.
“When I became President of the Retirement Board, I believed we owed our employees, retirees, and taxpayers an honest assessment of where our pension system stands and what it will take to secure its promises long into the future,” said Treasurer Erica Rocchi Brusselars. “That’s why I brought together this Working Group: to examine the facts, learn from experts across the country, and develop a roadmap rooted in transparency, collaboration, and long-term stewardship. I would like to thank the Working Group members for bringing their expertise, support, and time to this effort.”
The report examines more than two decades of the pension system’s history, identifies the primary factors that contributed to today’s $1.4 billion unfunded liability, and outlines recommendations to improve funding, modernize the retirement system, strengthen investment oversight, and ensure the County can meet its long-term obligations.
Among its key findings, the report finds that the pension system’s challenges developed over decades with a variety of factors. Most significant is that years of employer contributions were insufficient to keep pace with the system’s long-term obligations.
“At its heart, this report is about keeping a promise,” Brusselars said. “Every County employee who has dedicated their career to serving our residents deserves to know the retirement they’ve earned will be there when they need it. We didn’t get here overnight. More than two decades of decisions and circumstances brought us to this point, and it won’t be solved overnight either. But every year we wait, the challenge becomes more expensive. The responsible thing to do is to face it honestly and begin the work now.”
Among its recommendations, the report calls for establishing a long-term funding strategy centered on actuarially determined annual contributions, identifying stable and sustainable revenue sources, continuing improvements to investment management and transparency, and modernizing aspects of the retirement system. The report does not call for increased contributions from County employees who already pay more than most public employees do for similar benefits.
“This report is about righting the ship, and leading responsibly,” Brusselars said. “We cannot change the decisions of the past, but we can decide what happens next. By putting the facts on the table and offering practical recommendations, we’ve created a roadmap that can help us keep the promises made to County workers while protecting taxpayers and strengthening Allegheny County’s financial future.”
The Retirement Board will use the report as the foundation for continued conversations with County leadership, retirees, employees, stakeholders, and state lawmakers as it works toward a sustainable, long-term funding strategy for ACERS.
“This report would not have been possible without the leadership of Sarah Emmans of SME Consulting.” said Treasurer Brusselars. “Her expertise and thoughtful leadership will ensure that future conversations are grounded in sound data and analysis as we chart our path forward.”
The report can be viewed online at: https://www.alleghenycounty.us/files/assets/county/v/1/government/retirement/retirement-board/committee-on-plan-funding/final-report.pdf
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