Many municipal pensions statewide are underfunded, which leads to tax increases. No such problem exists in Northampton County. At the retirement board’s July 26 meeting, Pension Fund Manager John Spagnola reported that the pension is funded at over 90 precent, with over $415 million. In addition, a separate fund set up for medical benefits has $41 million.

In 2010, the retirement board voted to stop paying post-employment medical benefits for employees hired after June 30, 2010. But most retirees are eligible for post-employment health coverage at no cost. The retirement board voted to impose a 3 percent deduction for employees who retired after Dec. 31, 1997 and want coverage for a spouse. The deduction is 5 percent for a spouse and eligible dependents.

Fiscal Affairs Director Steve Barron said this will only affect 255 retireees, who will see their pensions reduced by an average of $50 a month.

Retirement board member Gerald “Jerry” Seyfried voted against this proposal, arguing that no pension can be reduced after it is vested.