Subject:
Title
Request Approval of Revisions to Town Civilian and Sworn Pension Plans
Body
EXPLANATION AND SUMMARY:
The Town operates two defined benefit pension plans that were originally intended to supplement the State's retirement plan. The plan for civilian employees was closed to new entrants in 2006 and replaced with the 401(A) plan, but it still is utilized by approximately 10 active employees and 46 retirees. The plan for sworn police personnel is a supplemental benefit for law enforcement employees that serves 41 employees and 25 retirees. The plans are administered by the Local Pension Committee.
The Local Pension Committee was approached by the Police Association to explore changing certain provisions of the sworn plan. The key changes requested were to lower the age for retirees to receive an annual cost of living increase from age 55 to age 46 and to consider increasing the pension multiplier beyond a 25-year employment period.
After discussion, including of the increased cost for changing plan assumptions, the committee approved changing the COLA age and agreed to revisit the multiplier change in the future.
When the committee looked into this change, it performed a thorough review of both the civilian and sworn pension plans. Several other plan issues need to be updated as the plans had not been amended since 2004 for the civilian plan and 1994 for the sworn plan. The committee met on February 5, 2018 and approved additional changes to the plans. A summary of those changes and the original and red-highlighted plans are attached for further detail.
Changes to the plan are required to be approved by Town Council.
Departmental Recommendation: Recommend Council approve changes to the civilian and sworn local pension plans as submitted.
Finance Recommendation: Recommend Council approve changes to the civilian and sworn local pension plans as submitted.
Purchasing Recommendation: N/A
Town Attorney Recommendation: Town Council may ...
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