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The original item was published from 8/2/2011 12:00:00 AM to 10/29/2019 4:41:14 PM.

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Town News

Posted on: August 2, 2011

[ARCHIVED] FS on Town Council Approval of Defined Contribution Plan

FIRST SELECTMAN OFFERS COMMENT ON TOWN COUNCIL APPROVAL OF DEFINED CONTRIBUTION PLAN

Herbst: “Last night, the Town Council did not vote to kick the can, but voted to bring fundamental, structural reform”

First Selectman Timothy M. Herbst today issued the following statement concerning the Town Council’s affirmative vote last night approving a defined contribution plan for all elected and appointed, non-union employees in the Town of Trumbull:

“When I ran for First Selectman of the Town of Trumbull two years ago, I indicated that my administration would tackle Trumbull’s pension problem head on. We inherited a pension plan that was grossly underfunded. For far too long, Trumbull leaders kicked the can, hoping that this would become someone else’ s problem. Last night, the Town Council did not vote to kick the can, but voted to bring fundamental, structural reform and solve this problem. As I have indicated, the only way we are going to solve this problem is with both short term and long term reform. Short term, we have invested 1 million additional dollars into the pension fund over the course of the last two years. We cannot stop there. We must be committed to making the necessary, long term structural changes that will reduce our unfunded liability over time. Now, with all elected and appointed non-union personnel entering a defined contribution plan, the Town of Trumbull will be in a strong position to negotiate similar defined contribution plans for new hires that are members of various town bargaining units. Over time, the Town’s unfunded liability will decrease as our fiscal health improves. At the end of the day, these efforts will yield positive dividends for Trumbull taxpayers, both short and long term. I would like to thank my Chief of Staff, Dan Nelson, Town Treasurer John Ponzio and Town Finance Director, Maria Pires, for their hard work and efforts in making this important legislative initiative a reality. I also extend my sincere thanks to Town Council Chairman Carl Massaro and the members of the Town Council who voted in favor of this important legislation.”