Benefits December 27, 2011
Conn. Town to Switch to 457(b)
December 27, 2011 (PLANSPONSOR.com) - Thomaston, Connecticut’s police officers’ union has agreed to eliminate pensions for newly hired officers, and health benefits after they retire, to save the town money.
Reported by Rebecca Moore
Dave Colavecchio, chairman of the Board of Finance, said the town is in line to save millions of dollars as a result of the police union’s concessions, according to the Thomaston Express.
Instead of pension benefits, the town will offer a 457(b) plan, specifically for governmental employers.
Under the agreement, a new hire is considered any officer to join the department on November 1, 2011, or after.Colavecchio said he was not surprised the police officers agreed to the plan. “We have been working on this for over a year, and I think everyone knows that the trend is going toward ending defined pension plans and retiree health benefits,” Colavecchio said. “Almost all of our police officers live in town and know the financial challenges we have.”