Auditor General warns municipalities about distressed pension plan obligations

Auditor General Timothy L. DeFoor has issued a warning to municipalities regarding their pension plans, following a report indicating that 25% of these plans are experiencing some level of distress. DeFoor emphasized the importance of local government pension plans in ensuring that public servants receive the pensions promised to them.

"Local government pension plans are essential to making sure those who dedicate their life to public service have the pension we promised them," said Auditor General DeFoor. He acknowledged some improvements in the number of distressed pension plans but stressed that more efforts are needed. "Those in charge of those plans need to take steps to make sure the money is managed appropriately, invested wisely and local contributions are made."

DeFoor also highlighted the legal obligation for municipalities to contribute to their pension plans. Failure to do so could result in increased taxes or difficult decisions regarding community funding and personnel.

The statement from Auditor General DeFoor was supported by PAPERS President Robert Mettley.