Auditor General DePasquale Releases Pension Plan Audits for Municipalities in Thirteen Counties

September 27 2013

Auditor General DePasquale Releases Pension Plan Audits for Municipalities in Thirteen Counties

HARRISBURG (Sept. 27, 2013) – Auditor General Eugene DePasquale today released audits of municipal employee pension plans in Allegheny, Bradford, Butler, Chester, Cumberland, Erie, Fayette, Lancaster, Luzerne, McKean, Washington, Warren and York counties.

State pension aid for police, firefighters and non-uniformed municipal employee pensions is provided from a two-percent tax on out-of-state casualty insurance premiums, a portion of the out-of-state fire insurance tax designated for paid firefighters, and any investment income earned on the collection of these taxes.

The objectives of pension plan audits are to determine, for the selected audit period, if the municipality complied with any prior audit recommendations and if the municipal pension plan is in compliance with applicable state laws, regulations, contracts, administrative procedures, and local ordinances and policies.

Specifically, department auditors review issues including whether:

• state aid was properly determined and deposited according to the requirements of the Municipal Pension Plan Funding Standard and Recovery Act;
• employer contributions were determined and deposited in compliance with the plan’s governing document and applicable state laws and regulations;
• employee contributions are required, and if so, whether they were properly determined and deposited into the pension plan;
• benefit payments were properly made only to those entitled to receive them; 
• obligations for plan benefits were accurately determined under plan provisions and based upon complete and accurate participant data; and
• actuarial valuation reports were sent to the Public Employee Retirement Commission in accordance with state law and selected information provided on these reports is accurate, complete and in accordance with plan provisions to ensure compliance for participation in the state aid program.

The following audit reports are available online atwww.PaAuditor.gov/audit-reports:

Allegheny

• West Deer Township Nonuniformed Pension Plan
• West Deer Township Police Pension Plan

Bradford

• Troy Borough Nonuniformed Pension Plan

Butler

• Center Township Nonuniformed Pension Plan

Chester

• Parkesburg Borough Nonuniformed Pension Plan
• Parkesburg Borough Police Pension Plan
• West Nottingham Township Nonuniformed Pension Plan

Cumberland

• Wormleysburg Borough Nonuniformed Pension Plan

Erie

• Lawrence Park Township Nonuniformed Pension Plan
• Lawrence Park Township Police Pension Plan

Fayette

• Connellsville Township Nonuniformed Management Pension Plan
• Connellsville Township Nonuniformed Union Pension Plan
• Georges Township Nonuniformed Management Pension Plan
• Georges Township Nonuniformed Union Pension Plan
  Lancaster
• Brecknock Township Nonuniformed Pension Plan

Luzerne

• Jenkins Township Fireman’s Pension Plan
• Jenkins Township Police Pension Plan 

McKean

• Corydon Township Nonuniformed Pension Plan

Washington 

• California Borough Nonuniformed Pension Plan
• California Borough Police Pension Plan
• Cross Creek Township Nonuniformed Pension Plan
• Jefferson Township Nonuniformed Pension Plan

Warren

• Eldred Township Nonuniformed Pension Plan

York

• Paradise Township Nonuniformed Pension Plan
• Windsor Borough Nonuniformed Pension Plan

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