The town of Stratford has signed a contract with the police union to institute 401(k) retirement plans instead of pensions for new hires, Connecticut Post reports. As per the agreement, which has yet to be approved by the Stratford Town Council, the town will match 401(k) contributions made by future employees up to 6% and will also increase the board pay.
The four-year agreement, set to expire on June 20, 2013, will offer defined contribution plans to all future police department members, while preserving the pension obligations to current employees. The town has erased a $1,202 cap on health insurance obligations, making current and future employees responsible for 12% of their insurance premiums.
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