The Schuylkill County employees retirement pension fund stands a chance of losing $52,000 from a class action lawsuit because an initial check for $15,027.57 was not cashed within the 180 days after the distribution date.

The shocking news was disclosed at the monthly meeting of the county retirement board held Wednesday at the courthouse in Pottsville by Controller Christy Joy, who serves as secretary to the retirement board. All four other members of the board, Commissioners Frank Staudenmeier, George Halcovage and Gary Hess, and Treasurer Jacquelyn McGovern were stunned.Joy told the board on Feb. 12, while taking inventory and examining the contents of the controller's safe, he found a check dated March 4, 2009, for $15,037.57 made payable to Schuylkill County employees retirement fund."This check was the result of a class action lawsuit where the pension fund is owed a total of $52,090," he told the board, "and attached to the check was a letter which contained multiple instances of the phrase, even by the amount line that stated, 'Cash Check Promptly, Void and Subject to Re-distribution to others 180 days after Distribution Date.' Joy said he was told after June the unclaimed remainder of the fund will be given to charity."What is more disturbing," Joy said, "is that if the initial check of $15,027.57 was cashed, according to the lawsuit website, we would have been eligible for a second distribution. The distribution is being made subject to a federal court order. I am asking the board's solicitor to determine if we can collect from the Garden City Group, Dublin, Ohio, if not, can we make a claim on the elected official's bond for Errors of Omissions for the failure to deposit the check?"Attorney Christine Holman, who is the assistant county solicitor, said she would get working on the matter immediately.The money owed the county's pension fund is the county's share of distribution of a net settlement fund from the Tyco International, Ltd, securities litigation. There were 480,000 claims, including the county's, and $2.778 billion was available for distribution. Under the settlement each claimant was to receive 32 percent of their recognized claim.Kantner respondsFormer Controller Melinda Kantner was contacted by phone after the meeting and she claimed she knew nothing of the check. She claimed her second deputy and only remaining auditor in her office, Michael Mehalko, "took care of all checks, invoices, receipts which came into her office." She claimed her deputy coordinated with the treasurer's office in disposition of all checks.Kantner added it was impossible for her to keep track of every detail of work involved in the controller's office and depended on her staff. When contacted Mehalko refused to respond to Kantner's explanations, stating he had no comment, that he didn't raise the issue and was not at the retirement board meeting and does not know what took place and reiterated that he had no comment.Joy said he spoke to Mehalko who told him he never saw the check.Kantner served one term as the county controller. In last year's election she ran as an independent and lost to Joy.Market valueJoy reported the market value of the retirement fund at the end of February was $102,206,545 and when he checked the current value it was $103,134,881.17.He reported during the month of February one member received an annuity of $110,552.40, eight members received refunds totaling $71,827.15 and one member who passed away had a remaining annuity of $1,237.28.The board adopted a resolution authorizing the termination of M&T Bank in its role as investment manager on advice of the Cornerstone Advisors Asset Management Inc. and authorized Cornerstone to disperse or depose of the assets to current money managers of the fund. M&T remains as the distributor of pension funds.