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James Hoyes's avatar

These quoted pension plan percentage increases are the “average” for the entire pension plan. The individual town impacts vary and many face 10-12% increases. The system-wide actuarial derived increases are 9.75% for FY28 through FY31 and then 13.67% for FY32. For most, if not all, towns these annual increase will significant erode the incremental budget impact allowed under Prop 2 1/2. Maintaining even level services scenarios will be very difficult, if not impossible.

Many assumptions are actuarial derived; the key lever for towns to control is payroll — number of staff, salaries and annual salary percentage increases.

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