2020-10-14-AC-STM#2-STM#3-rpt - Laserfiche WebLink

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(DRAFT V4) APPROPRIATION COMMITTEE 2020-2 AND 2020-3 SPECIAL TOWN MEETINGS 7 OCTOBER 2020 that changes to the design of the new Police Station will result from this process, and this has temporarily halted work on design and construction documents. The most recent actuarial report on the Town's Pension Fund as of January 1, 2020, shows substantial increases in the unfunded pension liability. The growth in unfunded liability is largely attributable to changes to industry standard tables for mortality rates,but also the gradual growth in the number of Town and non-teaching school staff. This increase makes it unfeasible to maintain the current funding schedule for achieving full funding in FY2024. The Retirement Board recently adopted a new funding schedule to amortize the liability through FY2028, and this schedule results in an increase in the pension contribution of approximately $750,000 per year through that date. This new funding schedule will put pressure on future operating budgets and the Retirement Board has agreed to review the funding schedule annually going forward. Updates This report presents the official positions of the Committee as of the date of publication. The Committee will continue to meet as necessary prior to and during Town Meeting and it may revise its official positions based on new or updated information. In a typical year,the Committee also reports orally to Town Meeting on each article.The oral report summarizes the Committee's current position,which may have been updated following publication of this report. 4