PLYMOUTH - The Town Council has rescheduled a public hearing on a proposed ordinance to create a Retirement and Pension Oversight Board, after the original hearing was cancelled in April due to a lack of a council quorum.
The new hearing will be Tuesday, June 6, at 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 has said the town 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 and on a proposal to hire a financial advisor to work with the board.
Merchant had originally wanted to have the board in place by April. He said the town’s pension fund has been neglected and underperforming for years and needs to be fixed.
Ralph Zovich, Board of Finance chairman, has called the town’s pension fund an “unsustainable” inverted pyramid, with 75 retirees collecting from the 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.
He 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 860-973-1802 or firstname.lastname@example.org.