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Our View: Diamonds to Wilkes-Barre’s ‘Shoe Guy’

WILKES-BARRE &mdash; Mayor George Brown Friday said the noncompliance issues listed in a recently released state audit of the city&rsquo;s pension plans can be easily addressed.
				In its <a href="https://www.paauditor.gov/Media/Default/Reports/MunCityofWilkesBarreAGGPTF011521.pdf" target="_blank" rel="noopener noreferrer">Jan. 5 report the Pennsylvania Department of Auditor General</a> said it found previously identified problems and once again encouraged the city to correct them.
				City Council also took note of the audit and placed a resolution on the agenda for its Jan. 28 meeting requesting that the administration resolve the outstanding issues.
				Brown questioned the need for City Council&rsquo;s resolution and said it could have been handled differently if he was asked about the audit of the city&rsquo;s Aggregated Pension Trust Fund covering the period of Jan. 1, 2018 to Dec. 31, 2019 before he took office.
				&ldquo;We&rsquo;ve reached out to the auditor&rsquo;s office. We found out it&rsquo;s just a matter of rewriting old ordinances,&rdquo; Brown said.
				Brown described the fix as administrative.
				The audit determined the provisions in the city&rsquo;s pensions were inconsistent with the Third Class City Code and contained unauthorized buyback provisions. Brown pointed out the problems were not corrected by prior administrations.
				&ldquo;This is the first audit report I&rsquo;ve received as mayor,&rdquo; Brown said.
				The city&rsquo;s current practices are in compliance and with City Council&rsquo;s approval his administration has taken steps to improve the Fund.
				City Council Chairman Tony Brooks said he and the four other council members received a copy of the audit. He added it was reassuring to learn the mayor said the plans were in compliance.
				Last November, City Council backed Brown&rsquo;s request for the city to become part of a investment plan with other municipalities that would managed by Pension Funding Solutions LLC. The city would receive $22 million that it could use to lower its Minimum Municipal Obligation payments to the five pensions that make up the Aggregated Trust Fund. In addition it would increase the funding ration to 65 % from the 53% listed in the audit.
				The Aggregated Trust Fund&rsquo;s board, which includes Brown, supported the city&rsquo;s participation in the pooled investment plan.

Brown: Pension fixes administrative, plans in compliance with state