Voters Block Change In Pension Plan
January 16, 2004
By LEE FOSTER, Courant Staff Writer

 

ELLINGTON -- First selectman Dennis Milanovich's first political battle since taking office in December has successfully overturned a decision made during the previous administration - and saved the town some money, he believes.   By 2,023 to 80, voters at a referendum Tuesday agreed not to change the pension plan for 17 town employees.  The referendum overturned a 45-34 vote at a town meeting Nov. 17 to enroll the non-union employees in the state Municipal Employee Retirement System.  Under the state plan, the employees would contribute 2.25 percent of the their pay to the pension fund and the town would kick in 3.75 percent. Under the original pension plan, the town contributed 7.1 percent and the employees paid nothing.  But buying into the new plan so the employees would be immediately eligible for full retirement benefits would have cost the town $1.6 million up front and as a result the town wouldn't see any savings for 89 years, Milanovich said.   "It was really a matter of a lack of and confusing information," Milanovich said.  Within two weeks of the Nov. 17 decision, a petition signed by 600 residents was submitted calling for the referendum. Milanovich and others paid for fliers and posters to inform residents about the referendum.  The first selectman spoke to groups, wrote letters to the editor and encouraged senior citizens to vote. At Milanovich's invitation, state Comptroller Nancy Wyman explained the state plan in detail to town officials.  By town charter, the referendum needed 15 percent of the electorate - 1,200 yes votes - to succeed.  "The town was very engaged," Milanovich said.  Fire Marshal Al Lawrence, a proponent of the MERS plan, said Thursday he was not surprised at the result because of the efforts of Milanovich and his supporters.  "But I'm somewhat disappointed," Lawrence said. More than 300 board of education employees have been covered by a similar state plan for years, he said. But during the recent disagreement, "The [non-union] employees were chastised and held up as criminals," as if they were trying to cost the town money, he said.  "All we were trying to do was improve our lot," Lawrence said.  Milanovich said he has turned his attention to improving the performance of the original pension plan's investments to increase retirement benefits.