Pa. Auditor General distributes millions in welcome relief to municipal pension funds

Mark Abrams
December 07, 2018 - 4:00 am
Pennsylvania's auditor general has distributed nearly $300 million in aid to the state's municipal pension systems

Tony Romeo/KYW Newsradio

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PHILADELPHIA (KYW Newsradio) — Pennsylvania's auditor general has distributed nearly $300 million in aid to the state's municipal pension systems. 

Eugene DePasquale says the funds will help cities, boroughs and townships meet their pension obligations to police, firefighters and municipal workers.

"About $127 million of that was in the Philadelphia and the Southeast region of Pennsylvania. $75 million of that for the city of Philadelphia itself," he said. 

The money is collected from a state tax assessment on casualty and fire insurance premiums paid to out-of-state insurance companies.

"It's to make sure that these pension plans either try to help with their funding level and also trying to make sure that not only the benefits are paid, but also making sure that cities don't have to raise taxes just to fund their pensions," he added. 

DePasquale says while many pension funds in the state that he reviews have stabilized, he still is bothered by one issue. 

"There's no question I'm still concerned that too much money is being paid out in excessive fees to Wall Street managers, because so many of these cities are left to negotiate on their own. I think we can do a better in Pennsylvania on that front," he said.