The Retirement Board of Allegheny County approved a resolution today excluding high bonuses from being counted in pension benefits paid from the County’s Pension Fund, a position staked out by a declaratory action filed by County Controller Corey O’Connor in August.

“Allegheny County’s Pension System is in bad shape, and today’s resolution confirms the need for the Board to act now to further protect each of our retirees, taxpayers, and the County’s fiscal health,” O’Connor said.

O’Connor filed a declaratory action in August to end the practice of including high bonus payments to management personnel in benefit calculations, a matter which remains pending before the Allegheny County Court of Common Pleas.

“My office warned the Board months ago on the impact that including these high bonuses has on the Pension Fund’s health,” O’Connor said, “and at the expense of time, legal fees, and inaction, today’s resolution is a step toward making sure the Pension Fund does not run out of money. What we need now is to put innovative solutions into action to protect retiree benefits as required by law.”

The County’s Pension Fund is approximately 31 percent funded and projected to go insolvent as early as 2040. At that point, Allegheny County will not be able to pay out benefits to retirees, many of whom have dedicated decades of service to County residents.

“County residents and retirees deserve better, and the Board and County have a duty to not only do right by them, but deliver effective fiscal operations for taxpayers,” O’Connor said.