Municipal pension aid isn’t determined by need.
It’s based on the statewide average funding available per pensioner froma 2 percent state tax on fire and casualty insurance payable to the state Treasury, which diverts the money to the Pennsylvania Employees’ Retirement Commission. PERC disseminates it in conjunction with the state Auditor General’s Office.
The state law setting up that process provided for it every year, without involving lawmakers. That’s why this particular source of revenue remains in play, according to PERC Executive Director Jim McAneny, while others are sidelined as the Commonwealth approaches 120 days without a budget.
The flow of municipal pension aid isn’t completely unimpeded, though.
Read the full version of this reportat Keystone Crossroads' website. Keystone Crossroads is a new statewide public media initiative reporting on the challenges facing Pennsylvania's cities. WPSU is a participating station.
