Monday, May 31, 2010

Frequently asked questions: "Why don’t town employees fund their own pensions?"

Pension costs are killing us, so why don’t town employees fund their own pensions?

Public employees are generally not covered by Social Security and DO self fund their retirement through a municipal pension system. Teachers, for example, contribute as much as 11% of their annual salary to this program and local property taxes do NOT fund the system. State tax revenues fund a portion of current benefits but the majority of such revenues are allocated to the unfunded municipal pension liability (i.e., in fiscal 2008, 77 percent of the Commonwealth’s $1.3 billion contribution to State and Teachers’ Pensions covered the unfunded liability while 23 percent went to pay for current retiree benefits. Reference:

One of a series to address frequently asked questions


The special election on June 8th gives Franklin voters the choice:

Increase taxes to continue to provide the services we have this year (and that does not restore any of the services already cut)


Continue to cut municipal services for all and cut educational opportunities for our children

I'll help to provide the information. You need to do two things:
  1. Make your choice
  2. Vote on June 8th

You get bonus points if you talk with your neighbors about this and get them to vote!

Additional information on the override can be found here:

Franklin, MA

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