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Washington County retirement board expands investment portfolio

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The stock market is in a period of volatility, and in case a drop does not spring back, those who are in charge of Washington County employees’ pension fund want to be prepared.

On Thursday, Washington County Retirement Board voted to diversify its portfolio by investing with two firms.

One is Parametric Portfolio Associates LLC, a defensive equity.

And through J.P. Morgan Asset Management, the county will be investing in what are called global “infrastructure assets,” such as utilities and the building of roads, airports and shipping ports, which currently yield 5 to 7 percent returns.

The objective, according to the county’s pension consultant, is if inflation rears its head, the county pension fund will have a steady source of income in case of a long market slide.

“We should do the responsible thing while we have the opportunity to invest,” said county commission Vice Chairman Diana Irey Vaughan, who chaired the retirement board meeting in Chairman Larry Maggi’s absence.

The vote to diversify was 4-0. Other members of the retirement board who attended were Commissioner Harlan Shober, Controller Michael Namie and Treasurer Francis King.

As of April 30, the county’s total pension fund value was $167 million, the same place it stood in mid-February.

State law requires the funding of public employees’ pensions with taxpayer dollars, so the board’s decisions affect those who pay county and state taxes.

The County Pension Law, Act 96 of 1971, governs the establishment and operation of a retirement system for employees in each of the state’s 67 counties and requires a defined benefit plan.

In Washington County, workers contribute 7 percent of their earnings to their pension plans.

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