An audit of the Nebraska Public Employees Retirement Systems found a number of problems, including improper handling of deposits, late payment of benefits and inaccurate calculation of member service years.

The systems' director chafed at the report's findings.

"We don't want plan members thinking everything is going to hell in a handbasket, because it's not," said Retirement Systems Director Anna Sullivan.

She downplayed the findings of the report released Friday by State Auditor Kate Witek.

"Some of them are very, very minor points," Sullivan said. "They're nitpicky in some respects."

The report detailed nine specific areas of concern with corresponding recommendations for improvement.

In a 10-page response to the auditor's report, Sullivan outlines steps under way to improve each fault or explain why she disagreed with the auditor.

The retirement board is responsible for the administration of the Nebraska retirement plans for school employees, state employees, judges and the State Patrol.

Omaha Sen. Jon Bruning, chairman of the Legislature's Retirement Committee, had not seen the audit and wanted to learn more about the problems noted.

Bruning, who was elected chairman of the Retirement Committee this year, said he has not received complaints about the systems' work.

Problems with the retirement systems cited in the audit include:

Procedures in place did not ensure that all eligible employees were added to the School Employees Retirement Plan. Seven of 27 noncontributing employees who were tested worked more than the required 516 hours and did not contribute, even though they should have. Seven of 22 members tested contributed an incorrect amount. Excess contributions ranged from $7 to $234 a year.

Sullivan said steps are being taken to educate employer reporting to lower the risk of error.

Controls over contributions were not adequate to ensure all money was deposited correctly. Five of 15 school employees tested had contributions posted late.

Sullivan said procedures are in place to ensure contributions are handled correctly.

Procedures to prevent unauthorized benefit payments were not adequate. One of 25 benefit payments tested was calculated incorrectly.

The one miscalculation was for 66 cents.

"Proper procedures are in place to ensure accurate calculations," Sullivan said.

Controls over access to the board's computer systems were not adequate.

Steps are being taken to realign and reduce authorizations, Sullivan said.

Inaccurate member service years were noted for 15 of 42 members tested, ranging from five months to more than seven years.

It is an ongoing procedure to correct service records found to be inaccurately reported by an employer, Sullivan said.

The report covered July 1, 1999, through June 30, 2000.

Journal Star

-- Anonymous, February 17, 2001