Auditor General DePasquale Says Municipal Pension Aid on Schedule
Transition of duties from now defunct Public Employee Retirement Commission nearly complete
HARRISBURG –Auditor General Eugene DePasquale today said that state pension aid to municipalities will be distributed before the Oct. 1 deadline because the transition of duties from the now defunct Public Employee Retirement Commission (PERC) is nearly complete.
“Municipalities across the state rely on the annual state aid to support the pension plans for their police, firefighter and nonuniformed employees,” DePasquale said. “Without the state aid some municipalities would not be able to meet their pension obligations and could incur additional interest expenses.”
State pension aid for police, firefighters and nonuniformed municipal employee pensions is provided from a 2 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.
“Last year, my office dispersed more than $250 million in state pension aid to 2,600 municipalities
,” he said. “Municipal leaders can count on my office to deliver the aid before Oct. 1 even as we implement changes to make the municipal pension aid process more efficient.”
Act 100 of 2016 dissolves the PERC and transfers the powers and duties related to municipal pension aid to the Department of the Auditor General. Early next month the duties will be fully transitioned to the newly created Municipal Pension Reporting Program. Reports, data and documents available online for municipalities will be moved to: www.PaAuditor.gov