MOON TWP, PA — Pennsylvania distributed $427.8 million to 1,441 municipalities and regional departments to help finance public employee pensions, Auditor General Timothy L. DeFoor this week announced providing funding for local retirement obligations while incorporating the first cost-of-living adjustment for municipal police officers and firefighters since 2002.
The allocation supports pension plans covering police officers, paid firefighters and non-uniformed municipal employees. It is intended to help local governments meet retirement commitments while reducing the amount they must finance through local revenue.
Southeastern Pennsylvania and the Greater Philadelphia region received $181.9 million, the largest regional allocation statewide and approximately 42.5% of the total distribution.
The funding is generated through a 2% tax on fire and casualty insurance policies sold in Pennsylvania by out-of-state insurance companies. Because collections fluctuate, the amount available for municipal pension assistance varies annually.
DeFoor announced the distribution in Moon Township, Allegheny County, alongside state Sen. Devlin Robinson and state Rep. Valerie Gaydos.
“State pension aid helps to make sure municipalities can keep their promises to retired employees who spent decades serving their communities, often performing very dangerous work,” DeFoor stated. “This funding also helps to reduce burdens on local taxpayers.”
The 2026 distribution is particularly significant for retired municipal police officers and firefighters because it incorporates their first pension cost-of-living adjustment in 24 years.
The adjustment addresses retirement benefits that have not received an inflation-related increase since 2002.
Gaydos, who supported the adjustment included in the state budget, emphasized the length of time retirees had gone without an increase.
“Many of these retirees have gone two decades without a pension increase and it is about time that we address this and make sure they are taken care of in our community,” Gaydos stated.
Robinson emphasized the importance of maintaining pension funding for public safety employees and recognized Moon Township’s management of its retirement system.
“They deserve the peace of mind that comes with knowing the retirement benefits they earned through years of service will be there when they need them,” Robinson stated.
The Department of the Auditor General reported the following regional allocations for 2026:
- Southeast/Greater Philadelphia: $181,856,819.10
- Greater Pittsburgh: $90,178,161.01
- Susquehanna Valley: $65,286,735.03
- Northeast: $29,352,035.80
- Lehigh Valley: $27,508,640.38
- Northwest: $17,732,549.88
- Central: $15,873,740.89
The Greater Pittsburgh region received the second-largest allocation, followed by the Susquehanna Valley.
Together, the Southeast/Greater Philadelphia and Greater Pittsburgh regions accounted for approximately $272 million, or nearly 64% of statewide municipal pension assistance.
For municipalities in Chester County and the surrounding Philadelphia suburbs, the funding provides state support for pension obligations associated with public safety personnel and other municipal workers.
State pension assistance helps municipalities finance retirement commitments that otherwise place demands on local operating budgets and revenue sources.
Municipal pension plans receiving state assistance are subject to audits by the Department of the Auditor General to verify that the money is spent in accordance with Pennsylvania law.
The oversight process is intended to ensure that funds designated for employee retirement benefits are used for their authorized purposes.
The department has made county-level pension aid allocations available for public review at www.PaAuditor.gov.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.