Posted on 09/28/23
| News Source: FOX45
Baltimore City Schools failed to make more than $5 million in retirement contributions to hundreds of employees, according to a new report by the Office of the Inspector General.
That report, published today, also found senior management for City Schools had been aware of the missing retirement contributions since 2019.
The IG began investigating in July after receiving a complaint that City Schools had not initiated retirement contributions for more than 570 employees hired between 2014 and 2021, who were eligible for the City’s Retirement Savings Plan. According to the complaint, this resulted in more than $5 million of missed employee deductions and employer contributions for City Schools employees.
The City of Baltimore Employees' Retirement System (BCERS) manages the retirement programs available to City employees.
According to the IG investigation, a BCERS audit of fiscal year 2022 found 572 City Schools employees had zero employee contributions. Multiple witnesses told the IG that City Schools leadership was aware of issues with Retirement Savings Plan enrollment as early as 2019.
The IG report says, earlier this month, City Schools and BCERS agreed upon 474 as the final number of employees affected. On September 7, City Schools paid $5,179,434 to BCERS to cover the total amount of missed contributions for those employees.
The IG recommends continued communication between BCERS and City Schools senior leadership and suggests they complete a formal data-sharing agreement.