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 | A. Joseph DeNucci, Vice Chairman
Paul V. Doane | James M. Machado | Donald R. Marquis | Robert B. McCarthy | Gregory R. Mennis
Joseph E. Connarton, Executive Director
September 28, 2010
Mr. Chet Riley , Chairman
Brookline Retirement Board
11 Pierce Street
Brookline , MA 02445
REFERENCE: Report of the Examination of the Brookline Retirement Board for the three - year period from January 1, 2006 through December 31, 2008
Dear Chairman Riley:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Brookline Retirement Board 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 results are as follows:
1. The Audit Report cited a finding that the Brookline Retirement Board funded two pooled funds prior to receiving written notice from PERAC’s Investment Director.
Follow-up Result:
The Brookline Retirement Board now ensures that written notice is received from PERAC’s Investment Director prior to funding any pooled fund. This finding is resolved.
2. The Audit Report cited a finding that:
a. The Brookline Housing Authority members receive separate checks for longevity allowance for which the required 2% additional retirement deduction is not deducted.
b. A Brookline Housing Authority stipend for being on-call is not coded as regular compensation and deductions are not withheld.
Follow-up Result:
a. Brookline Housing Authority members are now receiving their longevity allowance along with their regular pay. The required 2% additional retirement deduction is now being withheld. This finding is resolved.
b. The coding for the on-call stipend has been changed so that it is included in regular compensation and the required deductions are now being withheld. This finding is resolved.
The Commission wishes to acknowledge the significant effort demonstrated by the staff of the Brookline Retirement Board to correct the deficiencies cited in the most recent examination of the system.
Thank you for your continued cooperation in this important matter.
Sincerely,
Joseph E. Connarton
Executive Director