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
May 26, 2010
Mr. Kevin Cleary, Chairman
Milton Retirement System
525 Canton Avenue
Milton, MA 02186
REFERENCE: Report of the Examination of the Milton Retirement System for the three-year period from January 1, 2006 through December 31, 2008
Dear Mr. Cleary:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Milton 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 results are as follows:
1. The Audit Report cited a finding that the additional 2% deduction is not being withheld from those members who earn over $30,000 when those members receive multiple pay checks in any one period.
Follow-up Result: The software vendor has made the appropriate changes to the payroll system. In addition, the Town Manager has directed that all employees receive only one pay check in any one pay period. This finding is considered resolved.
2. The Audit Report cited a finding that members who were age seventy or older had not made an election whether or not to continue contributing to the retirement system.
Follow-up Result: The Board Administrator has now contacted all members to which this applies, currently seven members. The Board is still waiting for the return of several of those forms. This finding is considered resolved.
3. The Audit Report cited a finding that there was an error in calculating the Annuity Reserve Fund Interest.
Follow-up Result: The Director recorded an adjusting entry January 1, 2009 correcting this error. This finding is considered resolved.
The Commission wishes to acknowledge the effort demonstrated by the staff of the Milton Retirement System 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