Jackson Township will return more than $5,000 to the commonwealth after an audit again found overpayment of state aid into a township pension fund.

According to a 2019 audit reviewing fiscal years 2016 through 2018, the state allocated $11,760 in aid toward the non-uniformed pension fund for the 2018 fiscal year. That amount included an overpayment of $5,121 for which the township was not eligible. The overpayment stemmed from the township certifying an ineligible employee and overstating payroll by $37,512.

The Department of the Auditor General routinely audits certain municipal finances to ensure compliance with state and municipal laws, including an audit of every municipality receiving state aid for its pension funds. Non-uniformed pension plans are designed for non-police municipal employees; municipal police officers have a separate pension fund.

The township was previously found to receive incorrect amounts of state aid for the pension plan in other years. In 2015, Jackson Township had to repay $3,920 for the same error, and also reimbursed the commonwealth for a $3,310 error two years earlier, in 2013, caused by the same mistake.

The township failed to certify an eligible employee in 2007 and 2009, leading to an underpayment of aid, and a 2009 audit also found a $2,200 overpayment of aid, though for a different cause.

When the township received less aid than it should have — and was reimbursed by the state for that aid — it was recommended they follow the certification form, which was at issue in the most recent audit.

Chris Rearick, township manager, said much of the confusion comes from Jackson’s ordinance establishing the non-uniformed pension plan. He said the “unique” — at least among municipal government — requirement for an employee to work there for a year makes it less clear who is and who isn’t eligible for the plan.

“We may evaluate changing that so it’s less confusing in the future,” Rearick said, adding that the funds the township must repay are state aid, and not directly from Jackson’s coffers.

State aid to pension plans are funded by a tax on premiums paid to out-of-state casualty insurance company policies.

“It doesn’t really cost the township anything,” he said. “It’s aid the township shouldn’t have had and has to return.”

In other news

The township supervisors approved at a special meeting Thursday an updated investment policy for the township’s two pension plans.

Rearick said the updated policy brings it in line with what the township sees as a good path for pension investments and allows the third-party investment company to act on that path.

Additionally, the board extended the date by which face-value property taxes must be paid until Nov. 30. The county and other municipalities have approved similar extensions, and the county asked other municipalities to do so.

“It’s intended to help the people who truly need that help or deferral at this point,” Rearick said. “Approximately 80 percent of the real estate taxes have already been collected, so it helps those who may be struggling and may have been unable to pay their taxes thus far.”