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

October 18 2013

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

HARRISBURG (Oct. 18, 2013)– Auditor General Eugene DePasquale today released audits of municipal employee pension plans in Adams, Allegheny, Beaver, Berks, Bucks, Butler, Cambria, Carbon, Clarion and Clearfield 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:

Adams

• East Berlin Borough Nonuniformed Pension Plan
• East Berlin Borough Police Pension Plan

Allegheny

• Blawnox Borough Nonuniformed Pension Plan
• Blawnox Borough Police Pension Plan
• Springdale Borough Nonuniformed Pension Plan
• Springdale Borough Police Pension Plan

Beaver

• New Brighton Borough Nonuniformed Pension Plan
• New Brighton Borough Police Pension Plan

Berks

• Central Berks Regional Police Force Pension Plan
• Shoemakersville Borough Nonuniformed Pension Plan
• Womelsdorf Borough Nonuniformed Pension Plan
• Womelsdorf Borough Police Pension Plan

Bucks

• Newtown Borough Nonuniformed Pension Plan
• Newtown Borough Police Pension Plan

Butler

• Clay Township Nonuniformed Pension Plan
• Marion Township Nonuniformed Pension Plan
• Zelienople Borough Nonuniformed Pension Plan
• Zelienople Borough Police Pension Plan

Cambria

• Ebensburg Borough Nonuniformed Pension Plan
• Ebensburg Borough Police Pension Plan
• Portage Borough Nonuniformed Pension Plan
• Portage Borough Police Pension Plan

Carbon

• Jim Thorpe Borough Nonuniformed Pension Plan
• Jim Thorpe Police Pension Plan
• Nesquehoning Borough Nonuniformed Pension Plan
• Nesquehoning Borough Police Pension Plan

Clarion

• Porter Township Nonuniformed Pension Plan

Clearfield

• Boggs Township Nonuniformed Pension Plan

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