Pennsylvania municipalities are getting $328.2 million in state funding to cover pension costs this year — an increase of about $30 million from 2018.
Auditor General Eugene DePasquale announced the allocations at a meeting of the Pennsylvania Professional Firefighters Association.
“You’re putting lives on the line every single day … so these pension plans are critical for you, your loved ones, your families and future generations,” he said.
The money comes from a 2% tax on out-of-state fire and casualty insurance policies sold in Pennsylvania.
“As with all types of taxes, these revenues fluctuate from year to year,” said auditor general’s office spokesman Gary Miller. “There’s more money available, so we’re handing it out.”
Municipalities get money based on how many full-time employees they have, with more money going for police officers and firefighters.
Last year Allegheny County got almost $44.7 million in state pension money. This year it’s getting about $50.6 million. Pittsburgh gets more than half that money.
The city was budgeting for $22 million in state funding. It’s getting $25.5, and the extra money is a welcome bonus, said Timothy McNulty, spokesman for Mayor Bill Peduto.
“Just like every year, the city of Pittsburgh puts more funding than is required into our minimum municipal obligation for the pension fund, so these state monies from casualty and fire insurance premiums are always highly valued and go right back into our fund,” he said via email.
The city’s total pension cost is about $1.6 billion.
Westmoreland County municipalities are getting about $5 million, up from $4.6 last year.
Greensburg gets the largest share, at about $512,000. That’s up about $44,000 from last year.
“That’s pretty significant. It could help us not have a tax increase, with that sort of yearly increase,” said Kelsye Milliron, city administrator.
This year’s increase isn’t unusual, according to Milliron. It’s similar to previous years.
Greensburg’s total 2019 pension obligation is about $1.6 million.
