Joseph E. Connarton, Executive Director
September 5, 2012
Raymond Spear, Chairman
West Springfield Retirement Board
26 Central Street
West Springfield, MA 01089
REFERENCE: Report of the Examination of the West Springfield Retirement Board for the three-year period from January 1, 2008 through December 31, 2010.
Dear Mr. Spear:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the West Springfield Retirement Board for the 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 examination addressed two specific findings and recommendations included in the audit report. The results are as follows:
1. The Audit Report cited a finding that the new (at that time) payroll system had been set up to incorrectly withhold retirement deductions on many types of pay that are not regular compensation. The finding also addressed “Fair Labor Standards”, a pay type that had been having deductions withheld incorrectly for years.
Follow-up Result: Members who had contributions taken from Fair Labor Standards pay have received refunds. A review of pay codes shows that there are still many types of pay set up for retirement contributions that are not regular compensation. This issue is not resolved.
2. The Audit Report cited a finding that the Board was not collecting proof of marriage or the beneficiary’s age for retirees who chose option C.
Follow-up Result: The option C retirees from the first half of 2012 were reviewed. All five had marriage certificates and either a driver’s license or birth certificate from the spouse to verify the age. This issue is resolved.
The Commission wishes to acknowledge the effort demonstrated by the staff of the West Springfield Retirement Board to correct the issues cited in the most recent examination of the system. PERAC auditors may conduct an additional follow-up visit to ensure appropriate progress is being made in those areas that have not been corrected adequately at this time.
We anticipate your continued cooperation in resolving this important matter.
Joseph E. Connarton