$8 Million in Errors: State to Take Over Troubled Omaha Public Schools Pension Fund Amid Audit Chaos

Omaha Public Schools’ pension fund, plagued by an $8 million audit revelation of errors like overpayments and miscalculations.

Omaha School Pension Fund Audit Reveals $8 Million in Errors, State Worried About Overwhelming Administrative Challenges

Omaha Public Schools will soon hand over control of its pension fund to the state of Nebraska. However, a recent audit found many problems with the Omaha School Employees Retirement System (OSERS) that the state might have to fix. The audit showed issues like overpayments, wrong benefit calculations, and uncredited interest, pointing to serious management problems.

John Murante, head of Nebraska Public Employees Retirement Systems (NPERS), is worried about the amount of work needed to correct the accounts of 15,000 pension members. He said the state wasn’t ready to manage such a troubled plan. The audit found $8 million in extra balances from sample checks, raising concerns about the accuracy of the fund’s data. Murante highlighted the big administrative challenges and costs the state could face and stressed the need for a thorough assessment of the required corrections, according to the report of The 74 Million.

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(photo: Omaha World-Herald)

State Takeover of OPS Pension Fund Signals Hope for Stability Amid Audit Issues

Despite these issues, local officials and union leaders remain hopeful about the change. Omaha Education Association President Kathy Poehling is glad the state will take over, believing that the necessary fixes are being made and that retirees’ pensions are safe. OPS officials, including OSERS Administrator Shane Rhian, have promised to address the audit problems before the state takes over on September 1. They assure that corrective actions and catch-up payments will help stabilize the fund. The state is also working to finish data migration and ensure a smooth transition to better manage and invest the pension plan in the long run.

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