DOWNINGTOWN, PA — A new state audit has found that Downingtown Borough’s Police Pension Plan is in full compliance with Pennsylvania’s municipal pension laws and continues to meet all funding and reporting requirements — a result that spotlights the borough’s strong financial management of its police retirement fund.
The audit, released by Pennsylvania Auditor General Timothy L. DeFoor, examined the borough’s police pension plan for the period ending December 31, 2024. Conducted under the Municipal Pension Plan Funding Standard and Recovery Act, also known as Act 205, the audit reviewed the borough’s employer and employee contributions, benefit calculations, and compliance with legal and administrative standards.
“The results of our procedures indicated that, in all significant respects, the Downingtown Borough Police Pension Plan was administered in compliance with applicable state laws, regulations, and local ordinances,” the report stated.
The borough’s plan, established in 1955 and governed by Ordinance No. 2010-05, is a single-employer defined benefit pension plan for Downingtown’s police officers. As of December 31, 2024, the plan included 18 active members, one vested former employee, and 15 retirees receiving benefits. Police officers contribute 2.5 percent of their salaries, while the borough provides additional funding in accordance with state requirements and actuarial valuations.
The audit also reviewed the plan’s financial health and long-term funding trends. Actuarial data show the plan remains solidly funded, with an 87.9 percent funded ratio as of January 1, 2023 — a modest dip from 94.6 percent in 2021 due to market fluctuations, but still well within accepted standards for public pension systems.
Downingtown contributed more than $642,000 to the plan in 2024, representing nearly 30 percent of covered payroll. The borough has consistently met or exceeded its actuarially required contributions over the past decade, maintaining stable funding and ensuring benefits are paid without interruption.
The audit further confirmed that retirement benefits, employee deductions, and employer deposits were properly calculated and documented, and that the borough adhered to the Deferred Retirement Option Plan (DROP) provisions outlined in state law.
Officials from the borough cooperated fully with auditors, and the report contained no findings, deficiencies, or recommendations for corrective action — a rare outcome for local government pension audits.
The complete audit report for the Downingtown Borough Police Pension Plan is publicly available through the Pennsylvania Department of the Auditor General at PaAuditor.gov .
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