Elk County retirement board reports strong 2025 returns; approves routine funding and crediting actions, declines immediate COLA

The Elk County Retirement Board reviewed year-end results and approved routine funding and administrative items at its meeting. The county’s chief clerk told the board the plan ended 2025 valued at about $3,035,000,000 and that the regular portfolio returned 16.22% in 2025, noting the fund is managed in a neutral 60/40 equity-to-fixed-income posture.

The board approved several staff recommendations affecting 2026 finances and participant accounting. By voice vote the board reaffirmed the county’s 1/80th benefit class (which mandates a 7% pretax employee contribution), approved an estimated actuarially determined contribution (ADC) of $630,000 for 2026, and set the interest-crediting rate on participant account balances at the 5.5% maximum allowed. The board also adopted the RATA-based first- and last-year crediting rate of 2.75% and approved customary plan fees, including administration/recordkeeping at $6,300 per year and GRS advisory fees unchanged at $1,461 per month.

On the plan’s financial health, staff told the board the plan’s funded status is roughly 90.6% and flagged that the slight decline from prior years is driven largely by a growing number of pensioners and longer lifespans. "We're still up 16.22% in our portfolio," the chief clerk said during the presentation, adding that the plan remains "in a neutral position" with a modest risk profile.

Board members pressed on longer-term affordability and legal limits on changing benefits. Staff summarized the available options to address underfunding—raising contributions, pursuing higher returns or reducing benefits—and said the county follows the statutory framework that constrains benefit changes. "We won't decrease benefits," staff said when asked about cuts as a cure to funding pressure.

The board reviewed, but did not adopt, an optional 3.3% cost-of-living adjustment (COLA) for retirees. Staff read a GRS estimate that adopting the COLA as drafted would require a one-time funding payment of $432,791 to preserve actuarial soundness and would increase the ADC in future years. Members cautioned that the immediate cash requirement and the legacy cost it would create made the board reluctant to approve the COLA at this time; no motion to implement the COLA passed.

A corporate notice also was ratified: the board formally ratified prior consent to a change in control related to CSM, naming Azimut US Holdings Incorporated as the indirect owner of voting and economic interest in the named manager; staff described the item as a transparency matter that would not materially affect plan operations.

The meeting closed after routine orders and a press question about whether the plan’s performance made approval of the COLA more likely. Staff reiterated the budget and cash-flow implications, and the board adjourned with next meeting dates noted.