Norwell Questions New Plymouth County Retirement Costs

A change to Plymouth County's retirement funding schedule could add pressure to Norwell's long-term budget, prompting town officials to seek answers from county officials as they prepare for the next fiscal year. Town Administrator Chad Lovett told the Select Board that the Plymouth County Retirement Board has approved annual funding increases of 9.75% and extended its funding deadline from 2031 to 2032.

Norwell's five-year financial plan had been built around 9% annual increases and the earlier deadline. The town does not yet know exactly how much the change will cost. Lovett said the most recent actuarial valuation he had reviewed, dated Jan. 1, 2024, put Norwell's liability at approximately $27 million. He said he had not yet seen an updated valuation showing the town's current liability or the precise effect of the revised funding schedule.

“I don't want to throw numbers out because we don't know what they are yet,” Lovett said. “We'll have a better idea of what they are as we get deeper into this.”

The change matters because Norwell's existing financial plan anticipated pension costs dropping off after 2031. Board members said the additional year could overlap with an increase in the town's other post-employment benefits, or OPEB, liability beginning in 2032. Lovett emphasized that the change was based on new information from the county and was not the result of an error by town finance officials who developed Norwell's five-year plan.

According to Lovett, the retirement system's executive director attributed the higher contribution schedule to rising salaries and rates of pay among the communities participating in the system. He said he was also told the retirement board works with two-year forecasts when evaluating its funding needs. That explanation raised questions among Select Board members about how municipalities should construct longer-term financial plans when retirement funding assumptions can change.

“We need to have a grasp on this, especially when we have our own high school stuff coming up,” Vice Chair Lorenda Layne said. “Things are expensive already.”

The board wants representatives from the county retirement system to attend an upcoming meeting to explain the revised schedule and provide more specific figures for Norwell. Lovett said he had already raised the possibility with the county administrator and would follow up.

Officials also questioned how the change was communicated to participating communities. Lovett said he learned about the decision through a municipal Listserv rather than through direct notification from the county. He said the response he received when he questioned the outreach was that the retirement board's meeting had been publicly posted and was well attended.

“I think if our goal as a board is some transparency to our community, then we should be aggressively pursuing every number that we can,” Layne said.

Lovett agreed to contact the county treasurer as town officials seek additional information. The timing is important for Norwell's budget process. The town has asked departments to submit budget information by Oct. 15, and board members said they want a clearer understanding of the retirement obligation as soon as possible. Lovett said he expected more concrete numbers following an upcoming retirement board meeting. The Select Board discussed inviting county representatives to an October meeting, with members identifying Oct. 14 as a possible date.