Tuesday, December 02, 2008

Some random pension comments

I know I showed you some of this before. But this is a slightly more detailed look at the Town's pension plan assets, including benchmarks and history:FWIW, I've gotten unofficial word that the pension assets were around $40,000,000 as of October 31... down from $60,000,000 on June 30. Furthermore, while we were funded at about 105% (assets exceeding liabilities) on June 30... in economic times such as these, not only have the pension plan assets decreased... it's not unlikely that the pension plan liabilities have increased.

That was a surprise to me, but I understand it's related to some actuarial function that changes the assumed interest rate (to be earned over time). So the asset / liability spread is probably going the wrong way on both sides of the plan... not good.

Finally, I believe the Retirement Board Chairman (Tom Denne) has called a special meeting for next Wednesday, Dec. 10 at 6pm in Town Hall. There's lots to be discussed.

Tim White

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