Farmington retirement board briefs council on pension health, long‑range cost projections

The Town of Farmington’s retirement board on Oct. 28 told the Town Council that the town’s defined‑benefit pension plan is mature, largely closed to new general‑town hires and being managed to reduce long‑term funding risk.

"The plan is what we call a defined benefit plan," said Joe, a retirement board presenter, explaining the pension guarantees a benefit based on credited service and formulaic calculations. He said the single employer plan contains five subgroups — police, fire, town employees, board of education non‑certified staff and the library — and that the rules are codified in town ordinances.

The board emphasized that both employees and the town contribute to the plan and that contribution rules differ by subgroup. "Most town employees contribute 6 percent," Joe said, while firefighters contribute at an 8 percent rate; employee contributions generally stop after 32.5 years of service. For employees hired after the plan closure dates, the town uses a defined contribution plan with mandatory employee 6 percent…