Sunbury council orders follow-up after pension audit flags possible state repayments
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Summary
Council members heard a detailed police pension audit and directed staff to convene actuaries and auditors to clarify potential overpayments and repayment obligations to the state; figures mentioned in the meeting included illustrative amounts of roughly $8,500 and an earlier $38,000 error, but precise liabilities are pending verification.
Sunbury City Council held an extended discussion about a recent audit of the city's police pension plan that identified reporting errors and possible overpayments that could require reimbursements to the state.
Council member and staff briefings said the city is still assembling the precise numbers. A staff member told the council they have not yet had a chance to meet with the actuarial consultant named in meeting discussion (Conrad Siegel) and that additional documentation is needed to reconcile audit figures.
The audit and follow-up discussion focused on how state aid and statutory reimbursement interact with local obligations under the third‑class city code. Staff indicated the state reimburses a portion of pension costs but that certain elements of the pension calculation (discussed in the meeting as the 2.5% step/overpayments) may not be eligible for full state aid; if so, the city may need to make up the difference from the operating budget.
Council members and staff used two concrete examples during discussion: one line of inquiry used an $8,500 illustration tied to a benefit calculation; earlier in the meeting staff also referenced a reporting error cited at roughly $38,000 that prompted the audit follow-up. Meeting speakers repeatedly stressed that those numbers were examples drawn from the audit discussion, not final liabilities.
The council directed staff to arrange a work session with the actuary and the auditor general (or their representatives) to: obtain a complete accounting of the amounts at issue, determine any statutory deadlines for repayment, identify whether state aid can be withheld, and develop options to remediate any required payments without destabilizing city budgets. A council member asked staff to bring the full actuarial evaluation referenced in a 2011 actuary report for historical context.
The council did not take formal action beyond directing staff to secure the follow‑up meeting and to return with verified numbers and recommended next steps.
Next steps: staff will schedule a work session with the actuary and auditors before the next regular meeting or call a special session if deadlines require faster action.
