Pennsylvania Auditor General Tim Defoor is painting a bleak picture of the state’s pension funds, and he said that communities can’t look for a bailout from Washington.
Defoor released a report saying that 58 Pennsylvania communities have pension plans that are at least moderately distressed, and that five communities have pensions considered severely distressed.
The group is led by Chester, a city that went into state receivership after pensions there fell behind by 34 million dollars.
Defoor said that cities looking to use pandemic dollars from Washington are going to be disappointed.
“Pennsylvania did not win the lottery when it came to the American Rescue Plan. In fact one of the provisions of the Am Rescue Plan law clearly states that these relief funds can not be used to pay off past pension debt,” said Tim Defoor, (R), PA Auditor General.
Members of the Schember Administration told Action News that Erie’s pensions are 70% funded, making them minimally distressed.
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