Notice

Auditor General DeFoor Distributes Nearly $405 Million in Aid for Pension Plans for Police, Firefighters and Non-Uniformed Employees Statewide

Auditor General DeFoor Distributes Nearly $405 Million in Aid for Pension Plans for Police, Firefighters and Non-Uniformed Employees Statewide

EBENSBURG – Auditor General Timothy L. DeFoor today announced his department has distributed nearly $405 million in state aid to municipal pension plans across Pennsylvania as part of the annual allocation. Ebensburg Borough in Cambria County received $138,414.21.  

“This vital state aid helps reduce the burden on municipalities to make their legally mandated pension contributions so there is money available when their police, fire and non-uniformed employees retire,” Auditor General DeFoor said. “Ebensburg serves a great example to communities across Pennsylvania of how to make sure those retirement benefits are fully funded while meeting the needs of taxpayers. This isn’t always the case, so communities like Ebensburg should be applauded for its efforts.”

A total of 1,461 municipalities and regional departments received $404,734,250, in total aid to support pension plans. The department distributes the funds by Oct. 1 each year.

The funding is generated by a 2 percent tax on fire and casualty insurance policies sold in Pennsylvania by out-of-state companies. The amount of revenue available for distribution varies from year to year.

Auditor General DeFoor also warned that the number of municipal pensions not meeting their financial obligations is on the rise now that federal COVID-19 funding has expired.

“Since I took office, we have continued to see an increase of municipal pension plans in some stage of distress,” Auditor General DeFoor said. “It is our obligation to make sure that the people who make our communities safe and function will have a pension when they retire.  We urge all municipalities to ensure they are contributing to their pension plans as part of their regular budgeting process.” 

Municipal pension plans that receive state aid are audited to ensure funds are spent as required by state law. Pension plan audits are available on the department’s website.

By region, pension aid funding totals for 2024 are as follows:

• Central: $14,975,252.
• Susquehanna Valley: $62,548,438.
• Greater Pittsburgh: $84,543,097.
• Northwest: $16,514,910.
• Northeast: $28,128,795.
• Lehigh Valley: $22,437,303.
• Southeast/Greater Philadelphia: $175,586,455.

Review pension aid allocations by county and learn more about the Department of the Auditor General online at https://www.paauditor.gov/news-and-resources/vfras/#allocation-information.