After a presentation and appropriate time to review changes to the town pension plan that were proposed last month, the Board of Selectmen on May 3 unanimously accepted the revisions.

Before the vote, the selectmen recognized departing Pension Committee member Patrick Burke, who contributed much expertise to the group. Selectman Jeff Capeci also extended his appreciation to the committee for the thoroughness of their work and their attentiveness to creating consistency across all pension plan documentation.

While the pension committee is charged with reviewing and recommending any changes to the pension plan and other related matters, it is the Board of Selectmen that serves as trustees for the pension and other post-employment benefits (OPEB) trust and plans.

The selectmen unanimously approved the following changes as illustrated in the pension committee minutes of its April 15 meeting:

1. Approve the Amended and Restated Pension and OPEB Investment Policy Statements dated April 15, 2021.

2. Approve Fiducient Advisors, formerly FIA and DiMeo Schneider, LLC, Recommended Pension and OPEB Trust Portfolio Restructure and Implementation Plan to be implemented as soon as practicable.

3. Approve the revised and amended Comerica Trust Fee Schedule. The new fee schedule will be implemented upon initiation of the actual purchase and sales of the new Pension and OPEB portfolios.

4. Approve Actuarial Interest Rate Assumption changes as follows:

a. Pension: Change from 7% to 6.5% effective for Plan/Fiscal Year 2021-2022 based on the recommendation of David Leonard, Actuary, TR Paul with five-year contribution phase-in period.

b. OPEB: Change from 6.75% to 6.5% effective for the Plan/Fiscal Year 2021-2022 based on the recommendation of Stephen Chykurida, Actuary, Hooker & Holcombe.

5. Approve the Pub-10 Public Retirement Plans Mortality Table for the Pension Plans effective for the Plan/Year 2021-2022 Actuarial Valuation recommended by David Leonard, Actuary, TR Paul Inc.

6. Approve the Pub-10 Public Retirement Plans Mortality Table for the OPEB Plan effective for the Plan/Year 2021-2022 Actuarial Valuation recommended by Stephan Chykurida, Actuary, Hooker & Holcombe.

7. Approve the Actuarial Table used for Pension Benefit Calculations from the 1984 Unisex Pension Mortality Table to the 2020 Sec.417(e) Mortality Table effective July 1, 2021, based on the recommendation of David Leonard, Actuary, TR Paul Inc.

Following the selectmen’s vote, Newtown Finance Director Robert Tait explained to The Newtown Bee that changes to the mortality rate will be supplemented in a phased approach with a $33,000 annual impact over five years, as opposed to $166,000 at one time.

He said the town labor counsel agreed that the phased-in approach is most appropriate.

Associate editor John Voket can be reached at john@thebee.com.