Administration February 5, 2010

CT Town to Release Pension Funding Plans

February 5, 2010 (PLANSPONSOR.com) - Officials of a Connecticut town that suffered a $42-million loss in the Bernard Madoff ponzi scheme are putting the final touches on a proposed spending plan that includes a nearly $1.6-million pension funds allotment.
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A news report in the Fairfield Citizen said the budget, set to be introduced by First Selectman Ken Flatto, comes as the town’s fiscal office has recommended Fairfield place $2.89 million into its two municipal pension funds over the 2010-2011 fiscal year.

The pension funds had fallen from a high of over $300 million in the summer of 2008 to last February’s low of around $220 million. At its low point, fund actuaries told the town it would have to pledge $4 million to $5 million to bring the funds back up to proper funding levels, the newspaper said.

But since February, the pension funds have steadily recovered, buoyed by healthier investment markets and this year’s $1.57-million contribution. By the end of December, the funds were valued at $267 million, Paul Hiller the town’s chief fiscal officer, told the newspaper. Also, the town’s investments are yielding 14%, a much better showing than the actuaries’ expectation of 8% returns last spring.

After learning of their Madoff-related loss, Fairfield officials vowed to pursue criminal charges in the matter (see Fairfield Pension Pursuing Criminal Charges Over Madoff Loss).  

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