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The bill would have allowed towns like Hamden to switch new hires over to a defined contribution program. So the town cannot make a new retirement plan for new employees unless they withdraw all employees from CMERS and cover the full liability costs for all employees. The primary reason for this gap is that assets failed to grow as quickly as expected.
This state restriction on towns in CMERS forming new plans for their new employees stands in the way of reforms that would make retirement benefits for municipal employees safer and more sustainable — and it should be repealed. Regardless, the contribution costs are growing anyway.
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