Tired of ads? Subscribers enjoy a distraction-free reading experience.
Click here to subscribe today or Login.

WILKES-BARRE — Problems identified in his last review of the city’s pensions have yet to be corrected and the overall funding ratio continues to worsen, state Auditor General Eugene DePasquale said.

In his compliance audit released earlier this month, DePasquale said the pensions are in moderate distress with a funding imbalance of $56.4 million. Actuarial liabilities of $136.2 million for the five plans outweigh the combined asset value of $79.8 million, leaving the plans 58.6 percent funded as of Jan. 1, 2017. The funding ratio dropped from 62.1 percent in 2015 and 66.7 percent in 2013.

“We are concerned by the city’s failure to correct those previously reported audit findings and strongly encourage timely implementation of the recommendations in this audit report,” DePasquale said.

The audit covered the first two years of Wilkes-Barre Mayor Tony George’s administration from Jan. 1, 2016 through Dec. 31, 2017. George on Friday said two of the non-compliance problems stem from arbitration rulings in favor of the unions, particularly police and fire.

“We lose just about every arbitration that we get,” George said.

The audit found that the city has been providing pension benefits for the Policemen’s and Firemen’s Relief plans in excess of what the Third Class City Code requires. George said that’s because “all the other stuff they get in addition to their base pay and longevity (pay)” are included in salary that determines the pension.

The city has appealed a firefighters’ union arbitration to the state Supreme Court that could resolve the excess benefits’ problem, George said.

Another problem area identified in the audit was a provision that allows an employee to buy back all of the time from one city pension plan and transfer it into a different city plan so they don’t have to start from zero. The service buyback applied to the Police Relief and Non-uniformed plans.

The audit also found the state overpaid in pension aid based on paperwork provided by the city. At issue is the designation of four city council members as full-time employees for calculating state pension payments.

The Auditor General’s office said it considers a full-time employee someone who averages approximately 35 hours of work a week on a consistent basis and also receives fringe benefits from the municipality.

But the city based its definition of employee on the Third Class City Code that includes officers and officials — elected or appointed — but does not distinguish between full-time and part-time or identify a salary threshold that would make an employee eligible for state aid.

Nonetheless, the audit recommended that the city return $18,738 plus interest and that at least two people review the documentation submitted to the Auditor General to insure accurate reporting.

George
https://www.timesleader.com/wp-content/uploads/2019/04/web1_TTL101618Budget1-2.jpg.optimal.jpgGeorge

DePasquale
https://www.timesleader.com/wp-content/uploads/2019/04/web1_DePasquale-Eugene.jpg.optimal.jpgDePasquale

By Jerry Lynott

[email protected]

Reach Jerry Lynott at 570-991-6120 or on Twitter @TLJerryLynott.