BigDecimal rounding problem using setScale()

Things aren't working the way I expect. I have the code:

    activeAmount.setScale(2,RoundingMode.HALF_UP);
    pensionAmount.setScale(2,RoundingMode.HALF_UP);
    interestAmount.setScale(2,RoundingMode.HALF_UP);
    distributionAmount.setScale(2,RoundingMode.HALF_UP);
    BigDecimal balance = pensionAmount.add(activeAmount).add(interestAmount).subtract(distributionA$
    balance.setScale(2,RoundingMode.HALF_UP);
    wrk = string12 + twoPlaces.format(balance);
    System.out.println("Balance             " + wrk.substring(wrk.length() - 12));
System.out.println("\n" + fourPlaces.format(balance));

And I get:

DROP TOTALS:
  Active               21,443.25  Last Active Deposit: 04/23/2011
  Pension             125,534.07
Total Contributions   146,977.32
  Interest              2,512.78  Current Interest Rate: 1.7003%
  Distribution        149,490.10
Balance                    -0.00

-0.0026

Why is the 0.0026 not rounded off to 2 decimal positions?