DUBOIS — Questions from citizens regarding the non-uniform employee pension plan prompted a detailed response from the DuBois City Council on Wednesday.
Interim Co-Manager Lisa Hagberg addressed concerns raised during a previous meeting, clarifying that the plan covers city employees who do not work for the police department.
Hagberg reported that the pension fund faces a roughly $6 million shortfall. She traced the deficit back to 2012, citing “illegal changes” and an investment strategy that resulted in losses rather than the necessary growth.
To correct the gap, Hagberg said the city has moved all employees hired after 2013 who have not yet retired into a new plan. While current council members expressed frustration with past practices, they said they are working to stabilize the fund.
“I don’t know what they did, but we need to get to the bottom to get it shored up,” Council member Bill Beers said.
Hagberg noted that the council is exploring ways to gradually fill the $6 million gap. Options include contributing more than the state-required minimum municipal obligation (MMO) each year. The city is also transitioning to a more secure investment strategy.
Hagberg warned that if a large number of employees retire simultaneously, the surge could drain the fund too quickly. In that scenario, the city would be forced to issue checks directly to retirees from its general fund.
In other business, city officials emphasized they have no authority over the potential roundabout on Beaver Drive. If the project proceeds, the Pennsylvania Department of Transportation (PennDOT) will handle all decisions and implementation.
