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Waterford selectmen approve $1 million cut to retirement contributions after heated debate
Summary
The Waterford Board of Selectmen voted to reduce retirement-related contributions by $1 million — $250,000 from line 51940 and $750,000 from line 51949 — after an hours-long discussion about taxpayer burden and long-term liabilities.
The Waterford Board of Selectmen voted to reduce retirement-related budget lines by a combined $1,000,000, approving a $250,000 cut to line 51940 and a $750,000 cut to line 51949 as part of the FY27 budget amendments.
The change came after an extended discussion about the town’s unfunded post-employment liabilities and the short-term tax relief a reduction would provide. Sue, speaking on behalf of the retirement commission, framed the commission’s posture on funding as reluctant but necessary, saying, "This is the castor oil of budgets. You just got to hold your nose and deal with it," to describe the hard fiscal choices the commission makes to address actuarial recommendations.
First Selectman proposed the combined reduction, arguing the move would give taxpayers relief in a difficult year while allowing the retirement commission and the board of finance to revisit funding later. "I'm going to recommend a reduction of $250,000 to line 51940 and $750,000 to line 51949 for a total reduction," the First Selectman said during the motion.
Opponents warned that reducing contributions to pension and OPE/OPEB accounts reduces invested assets and could increase future liabilities and borrowing costs. Several selectmen said they preferred using one-time funds or the general fund balance rather than cutting contributions that generate investment returns for the trust. "I'd rather not touch the OPE fund — it's money that makes money," one selectman said in debate.
After debate the board approved the motion by voice vote and updated the retirement commission’s FY27 total to $7,295,523. The board recorded the motion as approved and noted that the retirement commission and the board of finance and RTM retain the right to appeal and revisit funding during the appropriation process.
The board’s action amends the retirement commission request as submitted and will be reflected in the town’s FY27 totals as the budgets move forward to subsequent appropriation bodies.
Next steps: the retirement commission may present appeals or recommendations to the Board of Finance and RTM during their review of appropriations.
