MUNICIPAL PENSION OBLIGATIONS |
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By: Rute Pinho, Principal Analyst |
ISSUE Which municipalities have issued pension obligation bonds? What is the funding status for pension plans in Connecticut's large municipalities (i.e., those with 50,000 or more residents)?
SUMMARY
Seven municipalities (Bridgeport, Hamden, Naugatuck, New Britain, Stratford, Waterbury, and West Haven) have issued pension obligation bonds. The bond issuances range from $49 million in Naugatuck to $350 million in Bridgeport.
There is a wide variation in the funding status of pension plans in Connecticut's large municipalities. Based on data collected by the Office of Policy and Management (OPM), the funded ratios for these pension plans range from 0% for Bridgeport's Janitors and Engineers Retirement Fund and Hartford's pre May 1, 1947 Plan to 244.1% for Bristol's Firefighter's Benefit Fund.
PENSION OBLIGATION BONDS
As Table 1 shows, seven municipalities have issued pension obligation bonds. New Britain and Stratford were the first to do so. Hamden was the most recent. Bridgeport and Waterbury had the largest issuances at $350 million and $313 million, respectively. Naugatuck and West Haven had the smallest at $49 million and $67 million, respectively.
Table 1: Municipalities Issuing Pension Obligation Bonds
Municipality |
Plan Name |
Date of Bond Issuance |
Amount Issued |
Bridgeport |
Public Safety Plan A |
August 2000 |
$350,000,000 |
Hamden |
Retirement Plan of the Town of Hamden |
March 2015 |
125,000,000 |
Naugatuck |
Employee Plan, Fire Plan |
October 2003 |
49,000,000 |
New Britain |
Policemen's Fund, Firemen's Fund |
February 1998 |
105,000,000 |
Stratford |
Stratford Employees Retirement Plan |
August 1998 |
95,000,000 |
October 2013 |
162,690,000 | ||
Waterbury |
Waterbury Retirement Fund |
September 2009 |
313,000,000 |
West Haven |
West Haven Police Pension Fund |
September 2002 |
67,000,000 |
Source: OPM and www.munios.com
PENSION FUNDING STATUS IN LARGE MUNICIPALITIES
Table 2 provides funding status data for defined benefit pension plans in the 19 municipalities that have 50,000 or more residents according to the Department of Public Health's most recent annual population estimates on July 1, 2014.
Specifically, the table shows each plan's actuarial accrued liability (AAL) (i.e., the estimated present value of the benefits promised to employees based on service already rendered) and the percent of AAL funded (i.e., funded ratio). The funded ratios range from 0% for Bridgeport's Janitors and Engineers Retirement Fund and Hartford's pre May 1, 1947 Plan to 244.1% for Bristol's Firefighter's Benefit Fund.
Attachment 1 provides more detailed pension funding information on each of these plans, including whether they are accepting new entrants, the number of members and employee groups covered, the municipality's annual required contribution in FY 13 to fund the plan, and the percent of the contribution made.
Table 2: Pension Funding Information for Defined Benefit Pension Plans in Large Municipalities
Municipality |
Plan Name |
AAL |
% of AAL Funded |
Bridgeport |
Public Safety Plan A |
$336,963,000 |
43.8% |
Police Retirement Plan B - post 6/3/81 employees |
165,561,000 |
78.4 | |
Firefighters' Retirement Plan B - post 12/31/83 employees |
41,988,000 |
177.0 | |
Janitors and Engineers Retirement Fund |
7,386,000 |
0.0 | |
Bristol |
City of Bristol Retirement System |
170,641,000 |
116.1 |
City of Bristol Police Benefit Fund |
95,527,000 |
184.6 | |
City of Bristol Firefighter's Benefit Fund |
65,874,000 |
244.1 |
Table 2 (continued) | |||
Municipality |
Plan Name |
AAL |
% of AAL Funded |
Danbury |
General Employees' Pension Plan |
117,668,661 |
94.2 |
Post 1967 Fire Pension Plan |
75,975,052 |
88.5 | |
Post 1967 Police Pension Plan |
58,317,746 |
87.2 | |
Post 1983 Police Pension Plan |
32,286,786 |
66.1 | |
Pre 1967 Police Pension Plan |
9,509,978 |
51.5 | |
Pre 1967 Fire Pension Plan |
8,000,590 |
57.5 | |
East Hartford |
East Hartford Employees' Retirement Plan |
293,268,000 |
63.9 |
Fairfield |
Town of Fairfield Town Employees Retirement Plan |
169,315,000 |
89.3 |
Town of Fairfield Police and Fire Retirement Plan |
161,511,000 |
90.7 | |
Greenwich |
Retirement System of the Town of Greenwich |
420,978,858 |
76.8 |
Hamden |
Retirement Plan of the Town of Hamden |
419,266,994 |
14.0 |
Hartford |
City MERF |
1,237,136,000 |
79.0 |
RAF/PBF/FRF pre 5/1/1947 Plan |
6,030,000 |
0.0 | |
Manchester |
Town of Manchester Retirement Plan |
183,751,000 |
77.2 |
Meriden |
Meriden Employees' Retirement Plan |
150,068,846 |
98.4 |
Meriden Police Pension Plan |
103,632,267 |
62.6 | |
Meriden Firemen's Pension Plan |
79,799,856 |
66.8 | |
Milford |
City of Milford Retirement System |
321,477,000 |
110.1 |
New Britain |
New Britain Firemen's Pension Fund |
85,558,000 |
89.2 |
New Britain Policemen's Pension Fund |
82,500,000 |
82.1 | |
New Haven |
Pension Fund For New Haven Policemen And Firemen |
594,979,800 |
47.5 |
City Employees' Retirement Fund of New Haven |
398,562,100 |
42.5 | |
Norwalk |
Employees' Pension Plan |
191,985,282 |
88.0 |
Police Benefit Fund |
121,114,987 |
75.0 | |
Fire Benefit Fund |
102,110,071 |
85.6 | |
Food Service Employees' Plan |
2,442,179 |
69.9 | |
Stamford |
Classified Employees Retirement Trust Fund |
219,465,000 |
85.9 |
Police Pension Trust Fund |
204,563,000 |
85.4 | |
Firefighter's Pension Trust Fund |
147,783,000 |
92.8 | |
Custodian And Mechanics Retirement Trust Fund |
54,525,000 |
88.2 | |
Stratford |
Town of Stratford Employees' Retirement Plan |
259,719,000 |
43.9 |
Table 2 (continued) |
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Municipality |
Plan Name |
AAL |
% of AAL Funded | |
Waterbury |
City of Waterbury Retirement Fund |
563,275,000 |
70.8 |
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West Hartford |
Town of West Hartford Pension Fund |
308,852,000 |
48.2 | |
West Haven |
City of West Haven Police Pension Fund |
120,389,438 |
91.8 | |
City of West Haven Allingtown Fire District Plan |
22,738,356 |
19.3 | ||
Source: OPM, Municipal Fiscal Indicators, 2009-2013 Edition
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