Scranton, Pa., could be bankrupt in three to five years because its pension funds are poised to run out of money, state Auditor General Eugene DePasquale warned Wednesday, The Scranton Times-Tribune reported today. That dire prediction could be optimistic, as the pension funds face paying out as much as $10.5 million owed to retired police and firefighters because of the $21 million back pay court award to active members. The auditor general’s office did not evaluate the impact of the award in its audit released Wednesday. With a funding ratio of just 16.7 percent, the city’s firefighters fund is in the worst condition of any plan in the state and will be unable to pay benefits in less than 2.5 years. The non-uniform fund isn’t much better, projected to be insolvent in 2.6 years, while the police fund has less than five years. The sobering news is contained in an audit that DePasquale’s office conducted of the funds’ condition from January 2011 to January 2013.
