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
Philip Y. Brown, Esq., Chairman
Auditor Suzanne M. Bump | Kathleen M. Fallon | Kate Fitzpatrick | James M. Machado | Robert B. McCarthy | Jennifer F. Sullivan

Joseph E. Connarton, Executive Director

September 14, 2017

William E. Cross, III, Chairman
Saugus Retirement Board
25R Main Street
Saugus, MA 01906

REFERENCE: Report of the Examination of the Saugus Retirement Board for the three-year period from January 1, 2012 through December 31, 2014.

Dear Mr. Cross:

The Public Employee Retirement Administration Commission has completed a follow-up review of the finding and recommendation contained in its audit report of the Saugus Retirement Board for the 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 one specific finding and recommendation included in the audit report. The result is as follows:

1. The Audit Report cited a finding that the system was not withholding retirement contributions for coaching stipends and crossing guard pay that qualify as regular compensation for retirement purposes.

Follow-up Result:  We reviewed correspondence between the Board and the Town’s payroll departments since the audit was performed along with the Board minutes.  We selected 30 employees, including coaches/crossing guards, from the Town and School payroll registers and recalculated the appropriate retirement deductions without exception. This issue is resolved.  

The Commission wishes to acknowledge the effort demonstrated by the staff of the Saugus Retirement Board to correct the issue cited in the most recent examination of the system.

Thank you for your continued cooperation in resolving this important matter.

Sincerely,

Joseph E. Connarton
Executive Director