Joseph E. Connarton, Executive Director
January 3, 2013
Mr. Michael J. Marks , Chairman
Lynn Retirement Board
3 City Hall Square
Lynn City Hall , Room 106
Lynn , MA 01901
REFERENCE: Report of the Examination of the Lynn Retirement Board for the three-year period from January 1, 2008 through December 31, 2010
Dear Mr. Marks:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Lynn 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:
The Audit Report noted that the system required an update to the policy to energize their efforts to collect funds owed by members for their additional 2% contributions dating back to 2005. Collection activity had not been completed and some persons who owed funds had retired without modification to their benefit.
Follow-up Result: The Lynn Retirement Board staff has collected 85% of the contributions missed prior to the discovery of this problem. Only 19 persons remain owing funds to the system. The Board initiated a policy of applying interest to the unpaid balances at an actuarial referenced rate. Additional letters have been mailed on a regular schedule informing persons of the remaining outstanding balances owed to the system. Memos have been sent to multiple department heads in an attempt to initiate their influence in contacting and settling the issues with their members and the retirement system. These memos were designed to coincide with longevity payments that may provide some discretion for recovery of these funds. The staff appears to be making acceptable progress on this issue. There are limited tools available at this point in the circumstances to collect the remaining balances and move on from this anomaly. This finding is partially resolved.
The Commission wishes to acknowledge the effort demonstrated by the staff of the Lynn Retirement Board to correct the deficiency cited in the most recent examination of the system.
Thank you for your continued cooperation in this important matter.
Joseph E. Connarton