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Westmoreland

PNC to repay Westmoreland employees for fees incurred as part of payroll glitch

Rich Cholodofsky
| Thursday, July 12, 2018, 5:18 p.m.
Westmoreland County Courthouse in downtown Greensburg
Barry Reeger | Trib Total Media
Westmoreland County Courthouse in downtown Greensburg

On the eve of the next payday following a PNC computer error that delayed paychecks for hundred of employees, commissioners on Thursday said new banking options will be considered to control Westmoreland County’s money.

Commissioners hired a New York-based financial consulting firm to help evaluate proposals from financial institutions seeking to serve as the county’s new bank. The firm, threeplusone, will be paid $9,900.

The decision to re-evaluate the county’s banking contracts was reached in May, commissioners said.

“We decided to look at this prior to the payroll issue,” Commissioner Ted Kopas said.

The county operates with a $330 annual million budget but only keeps on average about $15 million with PNC Bank for daily expenses, according to finance director Meghan McCandless. PNC has served as the county’s bank for six years.

Officials said a review on the county’s banking deals could result in better interest rates and cheaper fees.

“It’s just a good idea to put new eyes on this,” said Commissioner Charles Anderson.

On June 29, a computer error resulted in delays of paychecks being processed for county workers who use banks other than PNC. The glitch meant that many county employees and pensioners received their pay two or three days late. County officials blamed the error on the bank, saying its software caused the payroll delays.

Commissioners and bank officials finalized an agreement Thursday in which PNC will reimburse the county for any late charges and fees caused by the computer error and paycheck delay. Workers will have until Aug. 31 to submit claim forms to the county. The county will evaluate those claims and make payments to workers.

PNC agreed to accept the county’s ruling on each claims and repay the government. The bank will also reimburse the county for all costs associated with processing the claims, according to agreement.

Rich Cholodofsky is a Tribune-Review staff writer. You can contact Rich at 724-830-6293 or rcholodofsky@tribweb.com.

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