City Owes $100,000+ to Retirement System for Overtime Error, for 2002–2013
November 19th, 2014 by
Members of the Monticello City Council Budget Committee met Tuesday evening, to consider budget requests from the various city departments for the upcoming year, and to discuss the overall state of the City Budget going in to 2015.
During the budget review, City Finance Director Vicki Tiner reported that an audit has revealed a shortage in payments to the City Employees Retirement Fund account.
She stated that during the 2012 audit, it was determined that no retirement benefits had been paid in by the City for overtime worked from 2002-2013. This shortage applied only to overtime earnings, and was rectified when Ms. Tiner took over as finance director. All retirement payments on regular earnings had been paid, as required.
Once the audit revealed that retirement funds were not paid on overtime, the Arkansas Public Employees Retirement System staff requested that work records should be obtained as far back as possible and submitted to them, and that they would calculate the shortage for the City.
Records were obtained back to 2002 and submitted. APERS went through the records, employee by employee to calculate the payment shortage.
They have advised the City that the shortage will be in excess of $100,000, and that the City must pay it within 30 days.
Ms. Tiner is speculating that the amount will be in the $100,000 to $150,000 range. When she expressed concern about paying such a large amount in such a short period of time, she was advised she could request an exception. At this time, she has no idea what that exception would involve.
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