ITEM FILE PHOTO
Saugus Town Hall.
BY BRIDGET TURCOTTE
SAUGUS — A Special Town Meeting will be held Monday at 7:30 p.m. at the Town Hall auditorium.
Members will vote on whether to adopt a post-employment benefits liability trust fund.
The Finance Committee is recommending that $150,000 be transferred to the trust from the town’s available free cash. This year, the Department of Revenue certified $2.1 million in cash account, the highest in the town’s history.
Free cash consists of unanticipated revenues, account balances and other receipts obtained in the year. The money was obtained from higher than projected revenues from permits and excise taxes.
Town Manager Scott Crabtree said employees did not pay enough into the retirement system in the past.
“After so many years, you pay into the benefit that you are receiving,” Crabtree said. “Employees didn’t pay enough into that system. This is not unique to Saugus, this is a statewide problem.”
Crabtree said he predicts a similar action will be mandated in the future. He recommended that Town Meeting adopt a trust to start funding, even if only at a nominal amount, to “get on track with dealing with the issue.”
“For us, this is a step in the right direction,” Crabtree said. “We can begin the process of having that discussion and allocating funds to be able to fund these unfunded liabilities. It’s the financially responsible thing to do.”
Bridget Turcotte can be reached at [email protected]. Follow her on Twitter @BridgetTurcotte
