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
January 19, 2011
Ms. Eileen P. Hickey, Chairperson
Norwood Retirement Board
566 Washington Street
Norwood , MA 02062
REFERENCE: Report of the Examination of the Norwood Retirement Board for the two year period from January 1, 2007 through December 31, 2008.
Dear Ms. Hickey:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Norwood 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 a duplicate refund had been made in 2005 and that the Retirement Board still had not received restitution.
The Retirement Board’s attorney instituted court proceedings and the court ordered the defendant to commence paying the Retirement Board $250.00 a month until the total balance is paid. The first payment was received as required on October 29, 2010. This finding is considered resolved.
2. The Audit Report cited a finding that a review of active members who were ages seventy or older revealed that none had made an election whether or not to continue contributing to the retirement system as required under G.L. c. 32 § 90(G)(3/4).
The Retirement Board contacted all active members who were ages seventy or older and provided them with the election form referenced above. All members seventy or older now have the required election form in their files.
The Retirement Board has instituted a system that will ensure that the form will be sent on a timely basis and any necessary follow up is completed so that the active member will have the required form in their file. This finding is considered resolved.
3. The Audit Report cited a finding that the Retirement Board does not make use of the detailed pooled fund statements issued by the investment managers as its primary source documents to confirm the accuracy of the financial results reported by the custodian.
The Retirement Board has commenced using the detailed pooled fund statements issued by the investment managers and is using them to properly book investment income and management fees to the correct general ledger accounts. This finding is considered resolved.
4. The Audit Report cited a finding that the Norwood Housing Authority consistently withheld an incorrect amount for retirement deductions, resulting in some members owing money to the System and others being owed refunds. Pay categorized as “Personal pay” is included as retirement eligible for some employees but not others. Their payroll does not break out the regular retirement contribution, as well as the 2% deduction.
The Retirement Board has worked with the Housing Authority to ensure that the amounts withheld are correct. Pay categorized as “Personal pay” is included as retirement eligible for all employees. Payroll now breaks out the regular retirement contribution, as well as the 2% deduction. The Executive Director will continue to monitor the Housing Authority payroll to ensure that correct amounts are withheld. This finding is considered resolved.
The Commission wishes to acknowledge the effort demonstrated by the staff of the Norwood 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.
Joseph E. Connarton
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