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, Chairman
Auditor Suzanne M. Bump | Kathleen M. Fallon | Kate Fitzpatrick | James M. Machado | Robert B. McCarthy | Jennifer F. Sullivan
Joseph E. Connarton, Executive Director
December 8, 2016
Karen Harnois, Chairperson
Southbridge Retirement Board
41 Elm Street
Southbridge, MA 01550
REFERENCE: Report of the Examination of the Southbridge Retirement System for the three-year period from January 1, 2012 through December 31, 2014.
Dear Chairperson Harnois:
The Public Employee Retirement Administration Commission has completed a follow-up review of the finding contained in its audit report of the Southbridge Retirement System 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 when a refund with 3% interest was paid to a member who transferred in from another system, the deductions from the prior system did not have the 3% applied until the service in Southbridge started.
Follow-up Result: Since the audit report was issued, there has not been a refund paid to a member with transferred in deductions. This issue is not resolved due to the circumstances.
PERAC auditors may conduct an additional follow-up visit to ensure appropriate progress is being made in this area.
We anticipate your continued cooperation in resolving this important matter.
Joseph E. Connarton