HARRISBURG, PA — Pennsylvania Auditor General Timothy L. DeFoor has released a new round of compliance audits examining municipal and police pension plans in Chester County, identifying reporting errors in one township plan while finding overall compliance across several others.
The audits, completed in January, reviewed pension plans in Atglen Borough, East Bradford Township, and East Fallowfield Township, covering both non-uniformed employee plans and a police pension plan. The reviews were conducted under the authority of the Municipal Pension Plan Funding Standard and Recovery Act, known as Act 205, which governs how state aid is distributed to local pension systems.
In East Bradford Township, auditors found an error in the township’s Non-Uniformed Defined Contribution Pension Plan that resulted in an underpayment of state aid. According to the audit, township officials failed to certify two eligible employees and understated payroll by $157,205 on a required certification form filed in 2022. As a result, the township received $10,360 less in state pension aid than it was entitled to for that year. Auditors concluded the plan was otherwise administered in compliance with state law and recommended stronger internal controls to prevent similar errors in the future. Township officials agreed with the finding.
Audits of Atglen Borough’s Non-Uniformed Pension Plan found no significant compliance issues for the periods reviewed. The report noted that borough officials had corrected issues cited in a prior audit and that required employer and employee contributions were properly calculated and deposited. The plan was found to be administered in accordance with applicable laws and regulations.
Separate audits of East Fallowfield Township’s Non-Uniformed Pension Plan and Police Pension Plan also found the plans were generally administered in compliance with state requirements, with no material findings reported. The reviews examined employer and employee contributions, benefit calculations, and the timely deposit of state aid.
DeFoor’s office conducts routine audits of municipal pension plans to ensure taxpayer-funded state aid is properly allocated and pension systems remain financially sound. Municipalities that receive state pension aid are subject to periodic review, and findings can affect future aid distributions if not addressed.
The full audit reports are available through the Department of the Auditor General.
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