Pittsburgh pension fund drops 25 percent in 2008

PITTSBURGH - The city of Pittsburgh is down $124 million in its pension fund this year due to the stock market's sharp decline.

Pittsburgh Mayor Luke Ravenstahl says the fund has lost 25 percent, dropping from $385 million at the start of 2008 to $261 million by the end of November.

The city needed to earn 10 percent to keep up with its monthly payout of $6.7 million. Ravenstahl says it is difficult to know how the city will make up for the losses, but the fund's board is planning to offer non-pension options to new employees. Ravenstahl is also supporting a statewide municipal pension fix.

Other towns are also suffering. Monroeville, a Pittsburgh suburb, says its police pension fund is down 16 percent, dropping from $25.9 million to $22.2 million.

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