Municipalities across Franklin County are receiving more than $4.4 million in state funding to support employee pension plans and volunteer fire relief associations as part of Pennsylvania’s 2026 municipal aid distribution.
According to figures released by the Pennsylvania Department of the Auditor General, Franklin County municipalities were allocated $4,442,765, including $3,418,217 for municipal pension plans and $1,024,548 for volunteer fire relief associations.
The funding is part of a statewide distribution administered under Act 205, the Municipal Pension Plan Funding Standard and Recovery Act, which provides financial assistance to municipalities maintaining pension plans for police officers, paid firefighters and non-uniformed employees.
Chambersburg Borough received the largest allocation in Franklin County, with $2,041,357 designated for municipal pensions and $105,764.98 for fire relief associations. The borough’s combined allocation totaled $2,147,122, accounting for nearly half of the county’s funding.
Waynesboro Borough received $448,241 in combined funding, including $397,228 for pensions and $51,013 for fire relief associations, for an exact total of $448,241.
Washington Township received $395,197, including $294,426 in pension assistance and $100,771 in fire relief funding.
Other municipalities receiving substantial allocations include Greencastle Borough, with $191,283; Antrim Township, with $261,171; and Greene Township, with $147,540.
The funding also supports smaller municipalities throughout Franklin County, including Fannett, Lurgan, Metal, Montgomery, Peters and Warren townships.
Statewide, Auditor General Timothy L. DeFoor announced that 1,441 municipalities and regional departments received more than $427.7 million in pension assistance.
“State pension aid helps to make sure municipalities can keep their promises to retired employees who spent decades serving their communities, often performing very dangerous work,” DeFoor said. “This funding also helps to reduce burdens on local taxpayers.”
The 2026 allocation includes the first cost-of-living adjustment for retired municipal police officers and firefighters since 2002, providing additional financial assistance to eligible retirees.
Funding for the municipal pension and fire relief programs comes from a 2% tax on premiums for fire and casualty insurance policies sold in Pennsylvania by out-of-state insurance companies. The amount available for distribution varies annually based on revenue collected through the tax.
Pennsylvania established the funding system in 1984 through Act 205 to help municipalities meet pension obligations while reducing the financial burden on local taxpayers.
In addition to pension assistance, the program distributes funding through municipalities to volunteer firefighter relief associations. These organizations use state aid for eligible expenses supporting volunteer emergency services.
Municipal pension plans and volunteer fire relief associations receiving state assistance are subject to audits by the Department of the Auditor General to ensure funds are used appropriately and financial information is accurately reported.
Municipalities found to have misused funds or received overpayments may be required to return money to the state. Funding may also be withheld when municipalities fail to comply with actuarial requirements or audit findings.
Additional information about municipal pension funding and audit findings is available through the Pennsylvania Department of the Auditor General.
