Norfolk County pension assessment sees 11% increase amid funding deadline discussions

Millis officials are bracing for a significant financial impact as the Norfolk County Retirement Board has approved an 11% increase in the town's pension assessment for the upcoming fiscal year. This decision, which amounts to approximately $2.9 million, is part of a broader initiative to fully fund the retirement system by 2032, a move that has raised concerns among local leaders about its immediate budgetary implications.

During the Finance Committee meeting held on March 26, 2025, town officials discussed the factors driving this increase, including the number of retirees and current employees eligible for benefits. The aggressive timeline set by the Norfolk County Retirement Board aims to alleviate future financial burdens but has resulted in a steep hike this year, which officials describe as one of the most challenging budget hits they have faced.

Committee members expressed their frustration over the lack of flexibility in the assessment process, noting that they had previously requested a more gradual increase to ease the financial strain on the town's budget. Despite these discussions, the board has locked in the current assessment, leaving Millis to navigate the financial repercussions.

In addition to the pension assessment, the committee also reviewed anticipated increases in health insurance costs, projecting a 12% rise in GIC health insurance premiums. This increase, coupled with the pension assessment, is expected to contribute to an overall 10.29% increase in benefits costs for the town.

The meeting also touched on the town's Medicare reimbursement policy, which has been a longstanding benefit for retirees. While this policy is seen as a valuable perk, officials acknowledged the complexities involved in potentially altering it, given its historical context and the need for negotiations with collective bargaining units.

As the town prepares for these financial challenges, officials are exploring options to mitigate costs, including discussions about offering buyouts for employees who opt out of health insurance coverage. This initiative, still in the negotiation phase, aims to provide a cost-effective solution while ensuring that all employees, including those in the school system, are treated equitably.

The Finance Committee's discussions underscore the ongoing financial pressures facing Millis, as officials work to balance the needs of retirees and current employees with the town's budgetary constraints. As the fiscal year approaches, the implications of these decisions will be closely monitored by both town leaders and residents alike.