MILFORD - Two retirement plans for the town of Milford's employees were discussed by the Milford Town Council Monday at a special meeting.

In the end, the council approved the retirement plan presented by councilman Bob Phillips. The plan still has to be approved by the town's financial consultant and the state.

Under the plan, an employee's base salary will be divided by 100,000, resulting in a percentage. That percentage will be multiplied by the amount the town employee puts in each year toward their retirement. That result is how much the town will put in toward that employee's retirement. The maximum amount a person can put toward their retirement per year is $10,000.

For example, if an employee makes $25,000 annually and puts $10,000 of that away for their retirement, the town will put in a matching amount of $2,500 toward that employee's retirement.

Councilman Douglas Ruch said the ratio sounded fair to him. "Bob's plan takes the guesswork out of it. I think it's a very good plan," he said.

Since the retirement plan would not begin until into 2004, Ruch said the plan would be retroactive to the beginning of 2004.

Phillips asked clerk-treasurer Charlotte Siegfried if everyone contributed the maximum, if the town had enough funds to match.

"Yes," she said. "We should be able to."

Ruch made the motion that if ING, the consulting firm, agrees, to approve the retirement plan to contribute to the employees' 401(a) retirement plans.

The other plan not approved was suggested by utilities superintendent Dallas Winchester, who's been an employee of the town for approximately 17 years.

Under his plan, the most a person could put toward their retirement plan is still $10,000. However, for an employee who has been with the town for one to five years, the town would match 10 percent of what the employee contributed. For an employee with the town six to 10 years, the town would match 20 percent; 30 percent for an employee of 11 to 15 years; and 40 percent for an employee of 16 or more years.

"If I or anyone put the maximum amount in," Winchester said, "you'd be matching $4,000 (at most)." He said it is an incentive and a nice breakdown that's not out of line.

Bob Cockburn, incoming councilman, said he has always tried to get his children to put money away for their retirement. If the town can do the same for its employees, "I'm all for it," he said.

Later, during the town council's regular meeting, the council voted 2 to 1 to give town employees a 3 percent raise across the board for 2004.

In all fairness to the taxpayers, Ruch said, he was in favor of a 1 percent raise and voted against the 3 percent raise. The taxpayers already face an increase in their sewer and wastewater rates next year and the town is going to start contributing to the town employees' retirement plans.

Phillips said the retirement plan is supposed to be separate from salary increases and the town's employees are quality people who deserve the raise and retirement plans.

Along with Phillips, council president John Lehman voted for the 3 percent raise for town employees. [[In-content Ad]]