Photo: Belmont should not continue to pursue a pension pay down plan. (credit: Pixabay)
Letter to the editor:
It looks like the defeat of the override will lead to the loss of several school teachers, at least one fire fighter and police officer, and several DPW employees, as well as cuts to many important services for seniors and others. I’m guessing that even those who opposed the override will consider this prospect to be unfortunate.
With this in mind, it is absolutely critical that we identify any moves we can make to free up money in the budget. While it would be nice to do so, we can no longer afford to achieve 100 percent funding status on our pension liability eight years before we have to. According to an October 2020 report by the Segal Group, we are currently spending almost $9 million a year to reduce our pension liability and will boost this expenditure by about 4.5 percent annually until it hits $13 million in 2031 to eliminate the liability by 2032. If, as we are free to do under the applicable state law, we adjusted our full funding target date to 2040, we could free up at least several hundred thousand, if not more than $1 million, a year. This adjustment would enable us to avoid some painful budget cuts, lower our structural deficit and the size of the next override while preserving our commitment to provide the pensions we promised to our employees.
If you think that Belmont should not continue to pursue a pension pay down plan aimed at achieving full funded status several years ahead of when it is legally required, please ask the Select Board, the School Committee, and the Town Administrator to reach out to the Retirement Board, which determines the pension funding schedule, and request that it extend the full funding target date to 2040.
Dan Barry, Town Meeting Member, Precinct 1, Goden Street