Public Employee Retirement Administration Commission (PERAC)

This is an official audit report about certain activities of the Public Employee Retirement Administration Commission, covering January 1, 2009 through June 30, 2010.

“This audit of the Public Employee Retirement Administration Commission covers the audit period of January 1, 2009 to June 30, 2010.”

The Auditor reviewed PERAC to see whether its operations were efficient and effective and whether it was meeting its goals.

“Our review of PERAC was conducted to determine the efficiency and effectiveness of its operations and to ascertain whether it is accomplishing its goals and objectives.”

PERAC matters because it oversees the public pension systems that hold retirement assets for public employees across Massachusetts.

“PERAC is responsible for the oversight, guidance, monitoring, and regulation of Massachusetts public pension systems.”

For an ordinary resident, this report says the agency watching over public pension systems had adequate controls and oversight procedures during the audit period.

“PERAC's internal controls over financial and management activities and its policies and procedures for providing oversight, guidance, monitoring, and regulation of Massachusetts public pension systems were adequate.”

The audit did not report major problems; it found PERAC was meeting its responsibilities and following required laws.

“Further, PERAC was compliant with its enabling legislation (Chapter 7, Sections 49 and 50, of the General Laws).”

The report indicates PERAC was already auditing pension systems on time and following up on earlier issues until they were resolved.

“Finally, PERAC’s audits of public pension systems were conducted in a timely manner and the Commission is properly following up on prior audit disclosures for resolution.”

The report covers a large amount of public pension money: the systems had a combined market value of about $54.1 billion in 2009 and $47.7 billion in 2008.

“The aggregate market value of both these systems for calendar year 2009 and 2008 was approximately $54.1 billion and $ 47.7 billion, respectively.”

PERAC is the state commission that oversees 106 public retirement systems in Massachusetts.

“The Public Employee Retirement Administration Commission (PERAC) was established by Chapter 306 of the Acts of 1996 to oversee the guidance, monitoring, and regulation of the 106 retirement systems in the Commonwealth.”