Allentown Police Deal Did Not Meet State Law

Commission finds city failed to consider full financial impact

The state Public Employee Retirement Commission (PERC) has determined that contractual amendments to the Allentown Police Pension Plan did not meet requirements set by state law, according to the Commission's report to state Senator Pat Browne, R-16th Senatorial District.

PERC investigated the contract amendments upon a request by Senator Browne in a November 23, 2005 letter to PERC Chairman Paul D. Halliwell.

"PERC's findings clearly show that during the process of negotiating and approving the amendments to the pension plan, Allentown did not develop nor consider the requisite actuarial information," Senator Browne said. "Basically what that means is that before the city could act on those amendments they needed to produce a financial analysis, which was not done."

In his report on the study of the Allentown Police Pension deal, PERC Deputy Executive Director James L. McAneny said the city's failure, omission or neglect to do the actuarial study represented a violation of Act 205 of 1984. "Pursuant to Section 307 of Act 205, the Commission (PERC) has the power and duty to order and direct the City of Allentown to comply with that duty statutory obligation and recommends such an order be issued," he said.

Senator Browne said the report provides Allentown with the opportunity to challenge the pension deal.

"This recommendation gives Allentown the basis to move forward," Senator Browne said. "This gives the Administration and City Council the information to potentially challenge the pension plan agreement."

Senator Browne can be reached at his Harrisburg Office (717) 787-1349.