Government
Funding Retirement System Will Save Money Later, Won’t Help Schools Now
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The Fiscal 2015 budget includes $12 million to fund the shortfall in the retirement system, but in a few years it will reap $32 million in savings. Like all communities in Massachusetts, Watertown has an unfunded liability in its retirement benefits and the difference must be made up. The town now funds about 68 percent of the benefits, and needs about$53 million to fully fund it. The town had been working toward funding the shortfall by 2022 by paying in about $10 million a year, but last year the Watertown Retirement Board – at the request of the Town Council – voted to accelerate the funding of the shortfall. Each year from Fiscal 2015 to 2018 Watertown will pay an additional $1.575 million toward funding retirement benefits – meaning the town will pay in $12.2 million in Fiscal 2015 and keep adding until it pays $16.9 million in Fiscal 2018.