Do school and town employees pay into their retirement plans?
Question: Do school and town employees pay into their retirement plans? From what I read in the papers it appears that they do not and that we as taxpayers pay for their retirement. If this is true when the contracts come up for renewal should there be consideration of having employee contracts retirement plans be changed to something like a 401K? This is what everyone else has to do. I don’t have someone else paying for my retirement plan it is all my money. If we were not paying for the employees’ retirement wouldn’t the town be saving a significant amount of money?
BCC Answer: You are correct, Bow Taxpayer are the ones that pay for town employee’s retirement plans, in fact our town manager benefits from two taxpayer funded retirement plans. So yes, town employees don’t pay into 401 K plans like we do. This definitely should be considered as a significant cost cutting idea.