WALLINGFORD — The Town Council voted Tuesday to approve a 1 percent increase in pension payments to retired employees over the next three years, following a recommendation by the personnel department.
Every three years, the personnel department approaches the council to recommend an increase in pension payments, personnel director Jim Hutt said. The increases are a part of the negotiated pension plans for some town retirees.
The increase amounts to an additional cost of $87,967 for the town over the next three years. That money is taken from the town’s pension fund, according to personnel director Jim Hutt said.
The one percent increase would be for the entire three-year period, rather than a one percent increase for each year, Mayor William W. Dickinson Jr. said
In September 2014, the council approved a 1.5 percent increase to pensioners. The town received about a 13.5 percent return on its pension investments in the last fiscal year, about twice as much as anticipated. But other economic factors, primarily the state’s financial woes, led town officials to approve a more conservative increase this time.
Only some town employees qualify for the increase, Hutt said. An employee has to be retired for at least one year, and not receive any automatic cost-of-living adjustment or workers’ compensation.
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