by Susan MacEachron

The Norfolk Retirement Committee held its annual meeting on Feb. 4 and recommended maintaining the current 5 percent contribution of an employee’s salary in its retirement savings plans. 

The committee oversees the retirement plans for current and former employees of the town, including school administrators and sewer district employees. The town has two Defined Contribution Plans: a 401(a) plan that the town funds each year and a 457 plan that employees can use to defer current income for retirement. Employees must work a minimum of 1,000 hours a year to be eligible to participate.

The town’s Defined Benefit Plan, which was terminated in 2012 and is currently managed by Union Savings Bank, is a significantly larger financial obligation. However, Norfolk’s pension adviser says it is well funded. There are 16 retired town employees, or beneficiaries of retired employees, who are currently receiving monthly payments from the plan. In addition, there are six current and four former town employees who are vested but not yet collecting benefits. 

The committee recommended that all 26 participants in the plan be offered the option to receive a lump sum in lieu of future monthly benefits. The town approved the plan at a town meeting on Nov. 30. Participants were notified of this option at the beginning of December and have until mid-March to respond. The committee will make its budget recommendation regarding additional funding for the plan after all participants have decided whether they want a lump sum payment or not.