Town Pension Program
To be eligible for enrollment in the Town pension plan, you must have completed at least one year of service with the Town. You must also be regularly and permanently employed by the Town, although, not necessarily on a full-time basis. Should you elect membership, you will be required to contribute a minimum percentage of your wages (as determined by your collective bargaining agreement) to the pension plan, which would be deducted each pay period. (This plan is not open to teachers.)
You become fully vested in the pension plan upon completion of ten years of service. Although you cannot join the pension program during the first year of employment, that first year does count towards your 10-year vestment period. There is no partial vesting. Should you leave the Town's service prior to attainment of the 10-year vesting period, you are entitled to a refund of all your contributions with accumulated interest.
The pension benefit payable to you at normal retirement age is computed by determining your average earnings of the five years of highest earnings in your last ten years of service during which you contributed to the pension program, multiplied by 1.5%, times your number of years of service to a maximum of 30. Therefore, the maximum benefit would be 30% of salary. Benefits vary depending on years of service, normal vs. early or late retirement, whether or not you ceased contribution, etc.
Further specific details about the pension plan or if you have any questions, please contact the Town Manager's office at 860-779-5335.
If you would like to enroll in the pension plan, please contact KPS Payroll at 860-779-6613.