1998-04-BOS-min - Laserfiche WebLink

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61-149 Selectmen’s Meeting Minutes April 1, 1998 A regular meeting of the Board of Selectmen was held on Wednesday, April 1, 1998 in the Selectmen’s Meeting Room, Town Office Building at 7:30 p.m. Chairman Enrich, Mr. Busa, Mr. Fenn, Mrs. Eddison; Mr. White, Town Manager; and Mr. Cohen, Town Counsel, were present. Retirement Board Articles Finance Director John Ryan discussed Retirement Board Articles 54 and 55 of the Warrant for the Annual Town Meeting. Article 54 would cost $8 million over a period of thirty years if it is approved. Since 1989, when a professional management firm was hired, the retirement fund has grown from $20 million to $60 million. This puts the $8 million cost in perspective. This year the cost of living adjustment will be 2.1%. The statute sets a 3% limit on the first $12,000 earned. From 1985 to 1996, the Fund grew by 12% a year. The retirement fund was 80.4% funded in 1996 and Mr. Ryan believes the system is now fully funded. 384 retirees receive pension allowances, of which two-thirds receive less than $12,000/year. The Retirement Board is unanimously in favor of this article. The cost of living adjustment is at the discretion of the Retirement Board. Mr. Ryan believes appropriation for this purpose will be minimal. Mr. Ryan explained that Article 55 proposes to seek legislation to include non-contributory retirees. There are presently 9 retirees or their beneficiaries receiving pensions. If these nine were to receive the COLA it would cost the Town $3,500 per year. Upon motion duly made and seconded, it was voted to support Articles 54 and 55. Upon motion duly made and seconded, it was voted to adjourn at 7:50 p.m. A true record, Attest: Phyllis A. Smith Executive Clerk