PLYMOUTH - The Town Council has scheduled a public hearing on a proposed ordinance to create a Retirement and Pension Oversight Board.
The hearing will be Tuesday, April 4, 6:30 p.m., just before the regular Town Council meeting, in the Community Room at Town Hall, 50 Main St., Terryville.
Mayor David Merchant said the town has had a pension review board in the past but never one that has been formally established. He said he worked with Town Attorney Bill Hamzy to come up with an ordinance.
“To do this the right way we would take this ordinance, run it through a public hearing, and then if you voted on this, I’d like to have the pension review board in place by sometime in April,” Merchant told the council members recently.
He said Hamzy is also drafting a request for proposal to hire a financial advisor to work with the board.
“Right now our pension is not performing the way that it should,” Merchant said. “This has been neglected for quite a few years and it’s time to fix it.”
Ralph Zovich, Board of Finance chairman, has called the town’s pension fund an “unsustainable” inverted pyramid, with 75 retirees collecting on a pension fund with only 14 full-time employees paying in.
In the last three years, the pension fund has shrunk from $6 million to $5 million, due to having 95 percent of the assets invested in fixed, low return insurance annuities, Zovich said.
Zovich has compared Plymouth’s pension fund situation unfavorably to that of the City of Bristol, which has a fund that is five times bigger but is fully funded because of good planning and investment strategies.
Susan Corica can be reached at or .