Selectmen Approve Pension Reinvestment Plan

By KAAREN VALENTA

Published: Aug 11, 1999 12:00 am

Date: Fri 29-Mar-1996

Publication: Bee

Author: KAAREN

Quick Words:

selectmen-pension-Murtha

Full Text:

Selectmen Approve Pension Reinvestment Plan

The Board of Selectmen has approved a proposal by the town's Pension Committee

to reinvest $2 million of the town's $8 million pension fund into eight

different funds.

Pension Committee members Dunham Smith, Walter Pachniuk and Frank Krasowski

attended the selectmen's meeting last week to make a recommendation which was

outlined in a letter from Tom Murtha, the Pension Committee chairman.

According to the committee, Phoenix Home Life told the town in a letter

received on February 13 that it planned to replace the town's nearly $2

million investment in the Phoenix Growth Fund with a new series of

institutional mutual funds. If the town didn't give its approval by February

23, the account assets would be transferred.

"Phoenix Home Life was not receptive to extending the deadline and, because

there wasn't time to discuss it, our money was sent to our Fleet money market

account," Mr Pachniuk said.

Following its traditional practice of investing approximately half in stocks

and half in bonds, the Pension Committee recommended putting $250,000 in each

of the following funds: Mutual Beacon Fund, Vanguard Index Trust 500

Portfolio, Fidelity Stock Selector Fund, American Washington Mutual Investors

Fund, American Fundamental Investors, American EuroPacific Growth Fund,

Harbour International and American Capital World Bond Fund.

Mutual, Vanguard and Fidelity are existing town investment funds to which the

$250,000 will be added. The investment in American Capital World Bond Fund

will be made after July 1.

The Pension Committee said this reinvestment of the money from the Phoenix

Growth Fund plus excess funds from the Fleet Money market account will result

in the following asset allocation: 42 percent in US stocks, 46 percent in US

and international bonds, 9 percent in international stock and 3 percent in

cash.

Two years ago the town formally created and adopted an investment policy to

cover the three defined benefit pension plans for town employees, police and

elected officials. Currently the town has approximately 167 active

participants. More than 40 employees are retired and drawing benefits, a half

dozen of which have retired during the past year.

Two years ago the pension fund had $6 million in assets. The total now is

about $8 million.

Edward Zeller, Mark Korotash and Klaus Ertl also are members of the Pension

Committee. Members of the committee are appointed to serve two-year, unpaid

terms. The pension plans' actuary is T.R. Paul, located in Newtown.

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The editorial took no position on the budget going up or down so you're reading things into the editorial that simply aren't there. The turnout is tied to the lack of passage, in that people who came out to vote last time did not this time, indicating a lack of support on their part. Perhaps it wasn't spelled out clearly enough, but that's what the editorial was driving at, people showing lack of support by not casting a vote. The editorial did address likely concerns among voters that may have led to lack of support and lack of turnout. This lower turnout also follows increasing turnout over the past four referendums in three years (meaning it is an aberration from that), and increased turnout is something that I do push for regularly in editorials. Any disappointment you might be seeing is at the break in that trend, not at whether the budget passed or not. I'd rather see more people come out and vote "no" then not vote at all.

Lower Turnout Results In Two Budget Defeats

Clearly, property owners no longer want to bear the burden of expenses while the state does not meet it’s responsibilities. Rising costs must be addressed by actions that do not include yearly increases of property owners’ taxes. The state of CT must meet its share of the educational costs, and other costs.

Town And School Budgets Fail At Referendum

This feels like an oddly misleading headline and narrative, particularly coming from the Editorial Board. The headline "Lower Turnout Results in Two Budget Defeats" pushes a misleading narrative regarding voter turnout, and then seeks to tie the outcome of the referendum to that misleading narrative. Sure, voter turn out for this year's referendum, 18%, was lower than last year's. However, last year's turnout, 25.4%, represented the highest turnout in the most recent 10 budget referendums. If you take the time to examine turnout percentages between 2017 and 2026 (2017: 19.9, 2018: 15.7, 2019: 17, 2020: 0, 2021: 8.98, 2022: 7.7, 2023: 8.8, 2024: 15.1/17.49, 2025: 25.4, 2026: 18), this year's turnout was actually the third highest in the past 10 cycles. Perhaps the headline of this article should say "Lower Voter Turnout Than Last Year", which is more accurate, rather than creating an impression that this year's turnout is some type of aberration - a narrative that the turnout numbers, in all their binary glory, simply do not support. Further, the headline of this article appears to tie the "lower turnout" to the defeated budgets. Sure, that could be true. But, perhaps, its more likely that Newtown residents are feeling the squeeze of multiple economic influences. In Newtown, we've experienced property revaluations and increased municipal spending. Eversource continues to raise rates. The state legislature gives PURA the authority to impose Public Benefit charges that benefit a tiny percentage of the public (and subsequently burdening the rest of us). At the national level, inflation has run rampant for years and many of those costs remain high to this day. In short, the data tells a far less dramatic—and far more honest—story than the headline suggests. This wasn’t an electorate vanishing in apathy; it was a fairly typical turnout delivering an verdict that, perhaps, some at the Editorial Board didn't like. At some point, it’s worth considering that residents aren’t confused, disengaged, or misled by turnout; they’re simply doing math at their kitchen tables and concluding that “no” is the only responsible answer left.

Enjoyed the forum which only confirmed my support for Brandon Moore as the Democratic candidate to run for the state representative position. Brandon Moore did not waiver about his duty to all the people, if elected, when an issue presents itself that requires that he voice a difference of opinion for the wellbeing of Newtown residents. If Michelle Ku’s 16 years have led to her loyalty being to other elected officials, as she implied, then Newtown is going to continue to witness actions that do not protect its residents. She could not unseat republican, Mitch Bolinsky, during a Blue Wave, and once again, will not do it now. Winning that seat is critical for all. That explains why her previous campaign committee now campaigns for Brandon Moore. It explains all the endorsements he has received from local elected democratic officials. It’s why we need Brandon Moore to be the democratic candidate to run for state representative.

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Appreciated the opportunity to hear from both candidates as we were present for the College Dems forum but only heard from Brandon Moore. It was an opportunity to see who can unseat the Republican incumbent and there is no doubt that Brandon Moore should be the Democratic candidate. One concerned parent posed a question about discrimination unaddressed by the school district and interestingly enough, Michelle Ku, who proudly speaks of her Board membership years, said little, while Brandon Moore passionately addressed the issue along with his experience as an Apache Helicopter Commander. This family is supporting Brandon Moore. We need change and someone who is not afraid to disagree, especially about the rising costs of living in Newtown.

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Selectmen Approve Pension Reinvestment Plan

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