Published November 5, 2025
About This Audit
A compliance audit of the Lower Makefield Township Police Pension Plan was conducted to ensure adherence to state laws, regulations, and other relevant procedures. The audit, reviewing activities from January to December 2024, assessed proper handling of state aid, employer and employee contributions, retirement benefits, an actuarial valuation report, and DROP provisions. The audit found compliance with regulations except in one area: an improper pension benefit calculation. This issue arose from a separation agreement that improperly included a retirement incentive bonus in pension calculations, leading to unauthorized additional payments. This miscalculation impacted the plan’s financial status and could potentially increase future municipal contributions and affect state aid allocations. It was noted that the plan’s funded ratio declined from 75.5% in 2021 to 69.7% in 2023. It is recommended that excess benefits be adjusted in future actuarial reports per Act 205 standards. This is an automated summary. Please rely on the contents included in the released audit report.