Showing posts with label pension reform. Show all posts
Showing posts with label pension reform. Show all posts

Thursday, April 22, 2021

What are the fixed costs of the Town of Franklin budget?

As part of the continuing series to prepare for the Finance Committee budget hearings (which begin next week) and the Town Council budget hearings (in May), check out the link to the details on the history of the fixed costs year over year from FY 2004 to FY 2022.

The chart depicts the fixed costs of the budget year by year from FY 2004 to FY 2022.  

What are the fixed costs?

  • Liability Insurance
  • Employee Benefits:
    • Pensions
    • Health/Life Insurance/non school
    • Retired Teacher Health Ins
    • Non GIC - School Retirees
    • Workers Compensation
    • Unemployment Compensation
    • OPEB
    • Medicare

What are the fixed costs of the Town of Franklin budget?
What are the fixed costs of the Town of Franklin budget?

Prior posts

Town of Franklin - budget growth and split between municipal and schools - FY 2012 to FY 2022

School budget, executive summary by School Superintendent Sara Ahern


Friday, December 20, 2013

Franklin's portion of the Norfolk County Retirement System

Unfunded liability is an item of discussion for the Franklin budget. There are two areas of unfunded liability. The Norfolk County Retirement System and the towns own post-retirement benefit liabilities. Town administrator Jeff Nutting reviewed this worksheet with the Finance Committee at the December meeting. It was the first time that Franklin had received such detail from Norfolk County.

As you read the table in the attachment below, FRA is the Franklin line. We have an outstanding liability of $36.4M.

How Franklin will save to pay for this unfunded liability will continue to be a discussion item each budget cycle.

Tuesday, March 8, 2011

Two new reports examine data on public employee compensation, pension costs

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Two new reports examine data on public employee compensation, pension costs

March 7, 2011

Across the country there has recently been extensive attention focused on issues relating to public employee compensation.  Two new reports from MassBudget examine the available data on public employee compensation and state pension costs in Massachusetts.  In looking at compensation the reports also consider the broader context: across the country, inequality has been increasing with wages for less-educated workers stagnating.

The first paper, Workforce Characteristics and Wages in the Public and Private Sectors, finds that wage outcomes differ across sectors by education level.  Workers with at least a four-year college degree (60 percent of the public sector workforce) earn less in the public sector than in the private sector in Massachusetts -- even after accounting for benefits.  For those workers without a college degree, overall compensation appears to be higher in the public sector, as the wage gap between more and less educated workers is not as great as in the private sector.

A companion report, Demystifying the State Pension System, explains how the Massachusetts public employee pension system works and what the state costs are.  It finds that while public employees have good pensions, those pensions are financed primarily by contributions made by public employees to the pension fund (and by the investment earnings of the fund).  The amount the state pays towards the pensions of current employees is less than the amount paid in most states -- and less than the amount paid by most private employers.  This is partly because state employees are not eligible for Social Security -- which means that the state saves the 6.2 percent (of the first $106,800 of salary) that private sector employers pay towards Social Security.  The amount the state pays into the pension fund for current employees is significantly less than 6 percent.

"Workforce Characteristics and Wages in the Public and Private Sectors" is available at or by clicking here.

"Demystifying the State Pension System" is available
by clicking here.

See MassBudget's Budget Browser to explore Massachusetts state budgets from Fiscal Year 2001 to the present, as well as budget proposals for the next fiscal year as they are offered by the Governor and the Legislature.    

MassBudget provides independent research and analysis of state budget and tax policies, as well as economic issues, with particular attention to the effects on low- and moderate-income people.

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Tuesday, August 3, 2010

Municipal Relief Bill enacted

The major item of interest here is the unfunded liability for the pensions that Franklin (and every other community) has to address. The deadline for having a fully funded plan has been extended to 2040.

Sent to you by Steve Sherlock via Google Reader:

via Commonwealth Conversations: Revenue by Robert Bliss on 7/29/10

Earlier this week, Gov. Deval Patrick signed with an Energency Preamble the new Municipal Relief law . The preamble allows the provisions of the law to take immediate effect.
Highlights of the law, formally titled An Act Relative to Municipal Relief, include:

-- Allowing cities and towns to extend their pension funding schedules out to 2040, rather than meeting the previous deadline of 2030 which seemed all but impossible given unprecedented asset losses from the stock market decline of 2008;

-- Giving communities more flexibility in their borrowing by allowing the financing of projects over a term matching the asset's useful life up to 30 years;

-- Permits communities to adopt a limited early retirement program;

-- As noted in City and Town article of July 22, "Certification Year Reshuffle," restructures the schedule for triennial property tax recertifications.

There is much more in the new law, including changes in bidding, intermunicipal agreements, and provisions to stimulate regionalization and shared services. 

Things you can do from here:

Tuesday, February 2, 2010

In the News - pension reform

Given the extended discussion during the Budget Workshop held a week ago, this editorial is timely:

Editorial: Next steps on pension reform

from Wicked Local Franklin News RSS