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County's use of law to underfund pension account draws criticism

Butler County has been taking advantage of a state law that allows counties and municipalities to submit lower pension fund contributions.

But county Controller Ben Holland said that practice needs to end.

“We’re not paying off this debt,” he said. “All we’re doing is delaying the inevitable.”

Under Act 44 of 2009, Pennsylvania counties and municipalities may contribute an amount lower than normally required to provide short-term fiscal relief following the 2008 economic downturn.

The county switched to the adjusted contributions in 2010.

“That’s six years of underfunding,” Holland said. “Now, we’re going to be forced to make them up in later years.”

He determined the county contributed roughly $4 million less than it should have between 2010 and 2015.

Holland said the difference is using Act 44 makes the pension fund appear to be 88 percent funded when it is actually 82 percent.

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