Politics & Government

Council Approves Pension Review Board

Sought by Mayor Joseph M. Polisena, the new ordinance sets up an advisory panel to review fire and police pensions.

The Town Council unanimously approved an ordinance on Feb. 17 that establishes an advisory board to review fire and police retirement payments, and that creates a system for handling future claims for disability pensions.

The board will be comprised of two members each two each recommended by the mayor and town council; one each from the police and fire unions; and the town's finance director.

While the ordinance does not apply retrocatively to pensions already being received, it does allow the review board to investigate cases where a disability pension may have been obtained illegally.

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The new structure for pay-outs will also include regulations that allow partial disability payments of 50 percent of a qualified retiree's salary, instead of the two-thirds, or 66.7 percent, of salary that a full disability pension would provide.

As supporters of the proposal spoke Thursday night, one theme was quickly apparent: The town isn't trying to reduce benefits. Instead, it is trying to make sure that in practice, pensions adhere to the terms spelled out during bargaining.

"We don't want to give them less than they bargained for, but we certainly don't want to give them more than they bargained for," said Joseph Rodio Sr., a lawyer for the town.

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Rodio also told the council that about $8 million of the town's $45 million budget is currently being paid toward pensions, just under 20 percent. Adding in the heath care and other costs, Rodio estimated, brings the percentage closer to 35 percent, or just over $15 million.

In addressing the council, Mayor Joseph M. Polisena stressed the importance of the ordinance, saying it was "needed to repair the fiscal irresponsibility of years past."  He then added that, "disability pensions are far in excess of what the collective bargaining agreement called for."

Polisena also stated that reform of the pension system is needed if the town is to maintain its fiscal health.

"Unlike some other communities, bankruptcy is not an option for this town," Polisena said.

During an interview at Town Hall on Feb. 14, Polisena said the advisory board would be an independent committee, and would be empowered to make its own decisions.

"It's going to be out of my hands," Polisena said.

Polisena noted one case where he said a former firefighter is working a physically demanding job running a restaurant — while also collecting a tax-free pension that includes tuition support for the retiree's children.

"If you're going to do a physical job, maybe it should be a partial disability pension," the mayor suggested, adding: "but in the end, it's up to (the new board). If they think that's okay, then it's their decision."

Prior to the vote, Polisena said the plan "puts in policies and procedures in place" where there were previously none.

Thursday night's vote was the second reading and final decision on the pension reform plan, following the council's Jan. 19 introduction of the ordinance.

 

Update: Additional information was added on Feb. 18 to the original version of this article.


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