Wednesday, May 06, 2009

Defined Benefit Pension Plans coming to an end

This one's especially for Breachway...

As I explained in an April 20 post, the Council was again considering terminating the option of defined benefit pension plans (DBs) for new hires who are not unionized. I understand this is now a fait accompli.

I think it's a real victory, but not for the taxpayers. And not for employees.

I think it's a victory for our children because moving away from DBs and to defined contribution pension plans will require the Town Council to collect taxes today for services offered today... we won't be able to make promises today for taxes that will be raised tomorrow.

And if you're wondering how this happened... just consider the words spoken to me upon my election to the Council in November 2003 by Councilman Sheldon Dill:

"Tim, it takes 5 votes. F-I-V-E."

And with the return of Sheldon Dill to the Council, staff see that there are five votes willing to direct staff to do this. And staff doesn't like being directed. So instead, there will be no vote on this. It will just happen... just as it could've happened years ago... except for the fact that there were five Rubber Stamp votes on the Council that would never dare direct staff to do anything because as they acknowledged, they took direction from staff.

As I said before, there's a new sheriff in town.

I thank Sheldon Dill for his leadership.

Tim White


Breachway said...


You deserve the credit for this. No one else was talking about it. Nice job. I suspect that they finally realized that ending the DB pan was inevitable. It isn't about party lines- its about the bottom line.

Anonymous said...

A victory for the children????? DO you work for the Board of Education?