Commonwealth of Massachusetts | Public Employee Retirement Administration Commission
Five Middlesex Avenue, Suite 304, Somerville, MA 02145
Ph 617 666 4446 | Fax 617 628 4002 | TTY 617 591 8917 | www.mass.gov/perac
Domenic J. F. Russo, Chairman
Auditor Suzanne M. Bump | Paul V. Doane | James M. Machado | Donald R. Marquis | Robert B. McCarthy | Gregory R. Mennis
Joseph E. Connarton, Executive Director
January 15, 2015
Rosario Sacco , Chairman
Belmont Retirement System
455 Concord Ave
Belmont, MA 02478
REFERENCE: Report of the Examination of the Belmont Retirement System for the three-year period from January 1, 2010 through December 31, 2012.
Dear Chairman Sacco:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Belmont Retirement System for the most recent period referenced above. We conduct these visits as a regular part of the oversight process. They are designed to ensure the timely implementation of corrective action for the recommendations cited in that report. The examination addressed five specific findings and recommendations included in the audit report for the period referenced above. The results are as follows:
1. The Audit Report cited a finding that several refunds examined returned an incorrect amount to former members.
Follow-up Result: Checks have been sent to the former members who were owed additional refunds, and letters have been sent to the former members who owe the Belmont Retirement System money. Those former members received more of a refund than what they were entitled to receive. The Belmont Retirement System, as of this follow-up, has not yet received one of the checks from a former member who owes the System money. This issue is partially resolved.
2. The Audit Report cited a finding that three members with regular earnings between $31,000 and $35,000 did not have the required 2% deduction being withheld from their weekly paycheck, and a travel allowance stipend was set up in the payroll system to have retirement deductions withheld.
Follow-up Result: Upon review of a recent payroll register, it was determined that the required 2% deduction is now being withheld from the three members cited in the finding and that the travel allowance stipend no longer has retirement deductions withheld. This issue is resolved.
3. The Audit Report cited a finding that the December 31, 2012 balance of the Annuity Savings Fund is overstated versus the Member Supplemental Schedule balance by approximately $7,000.
Follow-up Result: A detailed reconciliation of the activity recorded in the Annuity Savings Fund and the Member Supplemental Schedule should be performed to determine the correct adjustment to be made to the Member Supplemental Schedule. This issue remains unresolved.
4. The Audit Report cited a finding that over 30 retirees had not submitted a signed affidavit for 2012.
Follow-up Result: The Board sent out affidavits in 2013. All were returned, signed, and notarized (when necessary). This issue is resolved.
5. The Audit Report cited a finding that it is the Board’s practice to pay a full month of retirement benefits for retirees who die more than half-way through the month.
Follow-up Result: The Belmont Retirement System now sends letters to the next-of-kin, requesting a return of funds for retirement benefits paid to a retiree beyond their date of death. This issue is resolved.
The Commission wishes to acknowledge the effort demonstrated by the staff of the Belmont Retirement System to correct many of the deficiencies cited in the most recent examination of the system. PERAC auditors may conduct an additional follow-up via telephone call or in person to ensure appropriate progress is being made in those areas that have not been corrected adequately at this time.
We anticipate your continued cooperation in resolving this important matter.
Joseph E. Connarton