Danbury officials say paraeducator transition into city pension plans is ‘in progress’

District staff told the Danbury Board of Education that work to place paraeducators into the city pension arrangements is underway following prior litigation.

Kim (district staff) said the district has been collaborating with city staff and vendors to identify affected paraeducators, set up individual MissionSquare accounts and move withheld funds into those accounts. Contracts require a 3 percent employee contribution and a 3 percent city match; staff said the timing and schedule for deposit of the city match is still being determined. The district will work with actuaries to estimate any lost investment earnings for accounts that were delayed during the rollout.

Board members asked for clarification about how new hires will be handled. Kim explained that new employees will enter the defined‑contribution component of the plan with automatic 3 percent withholding from pay into MissionSquare accounts, and that eligibility and other plan terms are governed by the city's pension ordinance and collective bargaining agreements. Staff said there are vesting schedules and procedures for employees who leave before vesting.

Why it matters: Moving paraeducators into the proper retirement accounts affects employee retirement security, payroll processes and actuarial calculations. The board was given an update but did not take formal action beyond receiving the report.