The Mercer County pension fund lost $3.3 million, or more than 10 percent, last year because of the failing economy and dismal stock market, county Controller Thomas Amundsen told commissioners Thursday.

"When compared with other counties, we're in good shape," Commissioner Olivia M. Lazor responded.

Amundsen said the county's funds did well, compared to other public retirement funds, because of the diversity of stocks the county holds.

Armstrong County, which is comparable in size to Mercer County, had to sink $400,000 into its retirement plan this year to make ends meet, Amundsen said. By contrast, he added, Mercer County had to put in only $78,000 to make sure everything was covered.

The county holds bonds, large growth stocks, small capital stocks and stocks that pay dividends. This diversity, coupled with strong stock performance during the economic boom years of the 1990s, means the county can weather the storm for a few years yet, Amundsen said.

The losses, Mrs. Lazor said, mean the county has to re-evaluate giving retirees the normal one-seventieth increase this year.

"We don't want to put the retirement plan in a less-than-stable situation," she said. "This is the first time we've had three down years in a row."

The fund, which totals about $28.2 million, lost money in the double-digit percentages for the first time ever, Amundsen said.

"The plan is very sound," he said. "It was just a bad year for stocks."

Amundsen said the fees the county pays for the investment accounts were renegotiated, which will help save some money.

"We're all hoping for a good year in the stock market," Amundsen said.