Rising pension costs, shrinking returns 'an eye-opener' to Town Council
A steep decline in market investments, along with two benefit increases since 2001, have caused the town's retirement pension costs to soar. From 2001 to 2008, the town's annual contributions to cover its pension obligations more than tripled, from $2.2 million to $7.5 million. The trend is expected to continue in the next decade, Finance Director Jane Struder said. Depending on market developments, one analysis shows the town's annual costs could double in five years, and drive the operating budget, currently at $67 million, into deficit as early as 2012. "The numbers are an eye-opener for everyone," Town Council President...
Original Article: Forum: News/Activism
Tags: 5 Million, Benefit Increases, Council President, Eye Opener, Finance Director, Market Developments, Market Investments, Next Decade, Operating Budget, Pension Costs, Pension Obligations, Retirement Pension, Soar, Steep Decline, Trend