Local government retirement reform could save New London $951,000 in 2024

Retirement


NEW LONDON, Connecticut (WTNH) — An existing pension plan for local government employees in more than 100 cities and towns in Connecticut has existed since President Truman’s presidency.

More than 70 years later, State Comptroller Sean Scanlon says he hopes lawmakers will approve new reforms to make pension plans for local government employees more sustainable. Stated.


State Comptroller Sean Scanlon said he worked with Republican, Democratic, and labor leaders to reform the pension plans used by the 107 cities and towns that make up the City of Connecticut Employees’ Retirement System (CMERS). .

“He has done the impossible in a very short time,” said the new Mayor of London, Michael Passero.

In recent years, we have had to pay more and more money to keep the funds going.

“Cities and towns like New London needed to squeeze 75 percent of the increase out of already-stretched municipal budgets,” Scanlon said.

According to Scanlon, the six major changes will collectively save more than $32 million in 2024 and more than $843 million over the next 31 years.

State Leaders Announce Local Government Retirement Reform

The biggest savings come from changes in the cost of living adjustment (COLA) that retirees receive in their pensions.

“We’re not taking away the COLA. We’re not changing the actual pension benefits. We’re just changing how the COLA is calculated,” Scanlon said.

This change means that retirees will have to wait an entire fiscal year before realizing an increase in the cost of living.

New London Police Chief Josh Burgison said it could be almost two years before the first cost-of-living increase goes up if you retire after July 1 because of the delayed fiscal year. Union.

If MPs approve the pension reform bill, New London could save $951,000 in 2024 alone and $28,625,000 over the next 30 years.

The city is still evaluating how the potential savings will affect its current budget.

However, it is hoped that it will be able to fund the four currently pending police posts.

New London Police Chief Brian Wright said: “I think it’s great that officers are able to walk around the neighborhood again and interact with the community.”

The idea is to make the pension system sustainable for current employees.

“Having a sacred pension like that against a 401K makes police work more attractive to everyone,” Burgison said.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *