Eye on Town Government

by Susan MacEachron

Two thirds of the participants in the town’s retirement plan have opted to accept an offer of a lump-sum payout instead of monthly benefits under the Defined Benefit Plan. 

The window to accept the offer of the lump sum closed on March 15, and of the 25 participants in the plan eligible for the offer, 16 decided to accept the lump sum payment. Ten participants remain in the plan, which was terminated in 2012. 

The Retirement Committee met on March 24 to review the results with the town’s pension consultant, Matt Sicilia, from TPS Group.  The plan funds are managed by Union Savings Bank and after the lump sum payments, current plan assets are valued at $1.8 million. Sicilia stated that the plan is well-funded and recommended the committee explore the possibility of purchasing an annuity for each participant in order to close out the plan. Committee members expressed concern about the cost of purchasing annuities when interest rates are so low but agreed the option should be given further consideration. Sicilia advised there is no need to add any additional funds to the plan in the upcoming fiscal year. This represents a savings of $147,200 in the town’s 2021-2022 budget.