Key Takeaways
- • Luzerne County's pension fund value rose from $341.4 million to $359.3 million during the second quarter of 2026, a gain of roughly $17.9 million.
- • Investment earnings for April through June totaled nearly $22.6 million, with a second-quarter return of nearly 6.6%.
- • Net outflows from withdrawals and benefit payments exceeding employee contributions reduced the fund by nearly $4.6 million in the quarter.
- • For the first half of 2026, the fund's return was 4.9%, with investment earnings of $16.9 million, after a first-quarter decline tied to market volatility from the U.S. war against Iran.
- • Morgan Stanley investment adviser Richard Hazzouri presented the results to the county retirement board on July 15.
Summary
Morgan Stanley investment adviser Richard Hazzouri reviewed the pension fund totals at the county retirement board meeting on July 15. The fund's value had dropped $350.8 million from the start of the year to $340.8 million on March 31, a decline the article attributes to market volatility created by the U.S. war against Iran. Investments recovered in the second quarter as tensions in the Middle East eased. Hazzouri told the board, "We did stay disciplined and did not make very many changes. Lo and behold, the market did snap back, and we did participate in that snap back."
For the first six months of 2026, investment earnings totaled $16.9 million and the return rate was 4.9%. Over the same period, the fund lost $8.7 million from net withdrawals and pension payments.
For context, fund contributions totaled nearly $4.7 million last year, while benefits paid to retired members were nearly $25.5 million. Last year, 1,310 Luzerne County employees were active participants in the pension fund, and 1,576 persons were beneficiaries.
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