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
November 15, 2010
Ms. Evelyn M. Poness, Town Treasurer and Chair
Needham Retirement Board
1471 Highland Avenue
Needham , MA 02492
REFERENCE: Report of the Examination of the Needham Retirement Board for the three-year period from January 1, 2006 through December 31, 2008.
Dear Ms. Poness:
The Public Employee Retirement Administration Commission has completed a follow-up review of the finding and recommendation contained in its audit report of the Needham 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 recommendation cited in that report. The examination addressed one specific finding and recommendation included in the audit report for the period referenced above. The results are as follows:
The Audit Report cited a finding that the Housing Authority did not include a weekly payment for being on-call in its regular compensation. Should the employee be called in to work, part or all of this payment is converted to overtime, which is then correctly excluded from retirement deductions. Any portion not converted to overtime, however, must be subject to retirement deductions.
Follow-up Result: An examination of a recent Housing Authority payroll showed that retirement deductions are being taken correctly on any portion of on-call pay not converted to overtime; no deductions are being taken, also correctly, when this pay is converted to overtime upon an employee’s being called in to work. This finding is considered resolved.
The Commission wishes to acknowledge the effort demonstrated by the staff of the Needham Retirement Board to correct the deficiency cited in the most recent examination of the system.
Joseph E. Connarton
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