Understanding the options with the Town's underfunded pensions
A couple weeks ago I gave my version of the history (of the past few years) of the Council's actions on the Town pension plans. IMO, one of the key considerations for the Council is the recognition that not all employees are the same.
In terms of postretirement benefits, I see most employees belonging to one of four categories:
And in a nutshell, the Council has had the opportunity to truly move from defined benefit plans to defined contribution plans. But instead, they dawdle.
Keeping in mind that the defined bene's plan now has about $43 million in assets and more than $60 million in liabilities... we know that we are pretty dramatically underfunded. And anyone can see that's an issue.
I was going to get into this some more, but it's late. So, later this week, I'll post some possible scenarios for how this could evolve.
And a special thanks to Cheshire resident Mike Ulicki for following this with zeal. Government needs an informed electorate to keep it on its toes. And though the town pension may be boring to most Council members, it's a huge issue of which we must be aware.
Tim White
3 comments:
Hi Tim,
You are most welcome. I plan to be at the meeting on 02/04 and according to Ms Ryan, I may be the first member of the public to attend.
Best Regards,
Mike Ulicki
Cheshire
WHILE YOU LIST THE GROSS LIABILITY TO THE TOWN, I BELIEVE THE TOWN HAS SEVERAL DIFFERENT DEPARTMENTS IN DIFFERENT PENSION ACCOUNTS. ARE ANY OF THEM PROPERLY FUNDED? OR ARE EACH OF THEM UNDERFUNDED.
MR./MRS./MS. CAPS LOCK,
There are I believe 3 pension funds for the town. Patti Ryan, town finance director, is sending me the documents. I have never read one before but I believe I will find the information there. I will try to post something when I receive and review them.
Best Regards,
Mike Ulicki
Cheshire
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