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

August 30 2013

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

HARRISBURG (Aug. 30, 2013) – Auditor General Eugene DePasquale today released audits of municipal pension plans for local government employees in Bucks, Cambria, Centre, Chester, Clearfield, Delaware, Fayette, Franklin, Lancaster, Lebanon, McKean, Mercer, Montgomery, Snyder, Susquehanna, and Union 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 at www.PaAuditor.gov/audit-reports:

Bucks

• Richland Township Nonuniformed Employees Pension Plan
• Richland Township Nonuniformed Police Pension Plan

Cambria

• Gallitzan Borough Nonuniformed Pension Plan
• Gallitzan Borough Police Pension Plan

Centre

• Harris Township Nonuniformed Pension Plan

Chester

• Upper Uwchlan Township Nonuniformed Pension Plan
• Upper Uwchlan Township Police Pension Plan

Clearfield

• Sandy Township Employee Money Purchase Pension Plan
• Sandy Township Police Pension Plan

Delaware

• Brookhaven Borough Nonuniformed Pension Plan
• Brookhaven Borough Police Pension Plan

Fayette

• Henry Clay Township Nonuniformed Pension Plan
  Franklin
• Letterkenny Township Nonuniformed Pension Plan

Lancaster

• East Drumore Township Nonuniformed Pension Plan
• West Donegal Township Nonuniformed Pension Plan

Lebanon

• Bethel Township Nonuniformed Pension Plan

Mckean

• Port Alleghany Borough Nonuniformed Pension Plan
• Port Alleghany Borough Police Pension Plan

Mercer

• Sandy Lake Borough Nonuniformed Pension Plan
• Sandy Lake Borough Police Pension Plan

Montgomery

• Horsham Township Nonuniformed Pension Plan
• Horsham Township Police Pension Plan

Snyder

• Monroe Township Nonuniformed Pension Plan

Susquehanna

• Bridgewater Township Nonuniformed Pension Plan

Union

• Lewisburg Borough Nonuniformed Pension Plan
• Lewisburg Borough Police Pension Plan

Washington

• Nottingham Township Nonuniformed Pension Plan

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