HARRISBURG – Auditor General Timothy L. DeFoor today announced the release of audit reports for municipal pension plans in Allegheny, Armstrong, Clinton, Delaware, Lebanon, McKean, Montgomery, Northampton, Philadelphia, Tioga, Warren and Westmoreland counties.
“Our audits help to reduce burdens on local taxpayers by making sure state pension aid is used as intended,” DeFoor said.
DeFoor applauded several municipal plans for having no audit findings. Where applicable, the audit reports discuss the plans’ anticipated ability to meet financial obligations to retirees – a factor known as the funded ratio.
State aid for municipal pension plans is generated by a 2 percent tax on fire and casualty insurance policies sold in Pennsylvania by out-of-state companies. In 2021, the Department of the Auditor General distributed a total of $317 million in aid to 1,492 municipalities and regional departments to support pension plans covering police officers, paid firefighters and non-uniformed employees.
The department is required by law to audit liquid fuels tax usage by municipalities; municipal pension plans and volunteer fire relief associations that receive state aid from the department; various county offices and numerous other state government entities.
Detailed explanations of findings are found in the full audit reports linked below or available online at www.PaAuditor.gov/audit-reports.
Allegheny County
City of Duquesne Comprehensive Municipal Pension Trust Fund – Four findings:
- New Uniformed Employees’ and Officers’ and Employees’ plans: Noncompliance with prior recommendation – incorrect data on certification form resulted in a net overpayment of state aid; failure to maintain pension benefit calculations.
- New Uniformed Employees’ plan: Inconsistent service increment benefit provision.
- Police plan: Incorrect data on certification form resulted in an excess reimbursement from the state.
Thornburg Borough Non-Uniformed Pension Plan – Finding: Inadequate accounting/reporting over activity of the pension plan.
Tarentum Borough Police Pension Plan – Finding: Noncompliance with prior audit recommendation – benefits not in compliance with state law.
Tarentum Borough Non-Uniformed Pension Plan – Finding: Inadequate accounting/reporting over activity of the pension plan.
Armstrong County
Rural Valley Non-Uniformed Pension Plan – Finding: Inadequate accounting/reporting over activity of the pension plan.
Clinton County
Avis Borough Non-Uniformed Pension Plan – Finding: incorrect data on certification form resulted in an underpayment of state aid.
Delaware County
Ridley Township Police Pension Plan – No findings.
Ridley Township Non-Uniformed Union Pension Plan – No findings.
Ridley Township Non-Uniformed Pension Plan – Finding: Inadequate accounting/reporting over activity of the pension plan.
Lebanon County
City of Lebanon Non-Uniformed Pension Plan – Two findings: Incorrect data on certification form resulted in an underpayment of state aid. Inadequate accounting/reporting over activity of the pension plan.
City of Lebanon Police Pension Plan – No findings.
City of Lebanon Paid Firemen’s Pension Plan – No findings.
McKean County
Corydon Township Non-Uniformed Pension Plan – Finding: Inadequate accounting/reporting over activity of the pension plan.
Montgomery County
North Wales Borough Non-Uniformed Pension Plan – Finding: Inadequate accounting/reporting over activity of the pension plan.
North Wales Borough Police Pension Plan – No findings.
Northampton County
City of Easton Officers’ and Employees’ PMRS Pension Plan – Two findings: Incorrect data on certification form resulted in a net underpayment of state aid. Inadequate accounting/reporting over activity of the pension plan.
City of Easton Aggregated Pension Trust Fund – Funded ratio moderately distressed; four findings:
- Police plan: Noncompliance with prior audit recommendation involving benefits not in compliance with Third Class City Code.
- Firemen’s plan: Noncompliance with prior audit recommendations – provision of benefits not in compliance with Third Class City Code and incorrect data on certification form resulting in net underpayment of state aid.
- Officers’ and Employees’ plan: Incorrect pension benefit calculations.
Philadelphia
City of Philadelphia Municipal Pension Fund – No findings; funded ratio is moderately distressed.
Tioga County
Westfield Borough Police Pension Plan – Finding: Inadequate accounting/reporting over activity of the pension plan.
Westfield Borough Non-Uniformed Union Pension Plan – No findings.
Warren County
Sugar Grove Township Non-Uniformed Pension Plan – Three findings: Partial compliance with prior audit recommendation – receipt of state aid in excess of entitlement. Incorrect data certified on valuation report resulted in an overpayment of state aid. Inadequate accounting/reporting over activity of the pension plan.
Westmoreland County
Manor Borough Police Pension Plan – Finding: Inadequate accounting/reporting over activity of the pension plan.
Manor Borough Non-Uniformed Pension Plan – No findings.
Review other recent audits, sign up to be notified when new audits are released and learn more about the Department of the Auditor General online at www.PaAuditor.gov.
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