Community Corner

Letter: Town Has Obligation to Act on Pension Bonds

Responding to George Levinson's Letter to the Editor, Hamden resident Robert Maturo says the town needs to act now on the issue of pension obligation bonds.


To the Editor:


Mr. [George] Levinson recently wrote a letter to the editor entitled “Your Take: No Pension Obligation Bonds.”

As we are all aware, the pension issue in Hamden has reached the crisis level. Mr. Levinson has stated that pension obligation bonds will be a crippling blow to Hamden and is encouraging the Legislative Council to vote against pension bonding.

The Legislative Council funded a study by the Segal Company to remedy the pension crisis. This study’s recommendations include maintaining funding discipline, immediate injection of cash (pension obligation bonds), and reduced pension benefits in the form of union concessions. Mayor Jackson has stated that his administration is committed to following the multifaceted recommendations of the Segal study.

The Mayor’s first step in following this study was to increase pension funding in his proposed 2013-14 budget request in the amount of $12.5 million. His next step in following the recommendations is to submit and request approval of pension obligation bonds by the Legislative Council. I believe that the Council must seriously consider pension bonding as the second step of the multifaceted approach in dealing with the pension crisis or this issue will be the death of Hamden.

Mr. Levinson is correct when he states that the town will have to wait several years until they can negotiate reduced pension benefits for present employees. Union contracts are not up for negotiation until 2015. It is illogical to continue to do nothing over the next several years as the financial health of the plan and ultimately the town continues to deteriorate.

The Town still has the legal obligation to pay retirees. If the pension plan has no funds, this financial burden will have to be paid from the yearly budget, which will be a major tax increase for every resident. This will be catastrophic for taxpayers.

Historically previous administrations have neglected their obligation to properly fund the pension. Mayor Jackson has decided to act and it appears to me that his plan has the ability to achieve long-term solvency for the pension fund without dramatic increases in the town’s contributions or our taxes.

Mr. Levinson will say that I have an agenda as I am a retired Hamden Police Officer. I am also a lifelong resident and taxpayer of Hamden and consider this town my home. Therefore my commitment is to the future financial health of the town of Hamden. The Legislative Council must act now to resolve this issue or we are placing every resident of Hamden at financial risk.

Robert Maturo


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