Waterford

WSD budget offers a sweet deal in retirement benefits

But the costs can be almost sickening

By Patricia Bogumil

Interim Editor

Town of Waterford Sanitary District (WSD) commissioner Donna Block has called for a special meeting to discuss the types and amounts of benefits now paid to full-time WSD employees.

Block emailed her request to WSD office administrator Debbie Nelson Monday morning, asking Nelson to forward the request to board president Bill Gerard.

As of press time Wednesday, Block had not yet heard back.

“I requested a closed session special meeting, as I feel that privacy and sensitivity are called for,” Block explained in an email. “Of course, any actions taken will be fully disclosed.”

Of particular concern to Block are retirement benefits paid through a 457(b) retirement plan that has been in effect since 1995.

WSD does not offer a typical pension program like the one for Town of Waterford employees, she noted. Instead, its plan is more like the 401(k) plans offered by private employers.

The Town of Waterford’s retirement program abides by Wisconsin’s budget repair bill, also named Act 10, which requires most public employees to pay 5.8 percent to their Wisconsin Retirement System funds, and 12.6 percent of their health insurance premiums.

But WSD does not require its employees to pay anything into their 457(b) retirement plans; instead, WSD pays the entire retirement package for its three full-time employees.

The 2012 WSD budget lists $22,000 to be paid this year into the retirement plan of Debbie Nelson.

Another $38,500 is budgeted this year for retirement plans offered to the two full-time WSD operations employees: Norm Nelson ($16,500) and Jerry Ignatowski ($22,000).

These retirement funds are paid over and above what each employee earns in wages.

Block emphasized that employees cannot be blamed for the costs of retirement plans their employer has set up for them.

But this situation is not right, Block added, particularly when WSD users are struggling to get by on their own tight budgets.

“I don’t know how this level of contribution started,” Block said, adding that she’ll do her best to find out.

“This is going to change,” Block predicted.

“I don’t speak for the board, we have not discussed it, but this needs to be discussed,” she said.

Besides the WSD retirement plan costs, Block is also concerned about the insurance premium costs WSD pays for its employees.

In addition, budgeted costs for sick leave, and vested benefits for that sick leave, need to be examined further and discussed, she said.

Block, the WSD treasurer, was appointed to the WSD board in May 2011 by Town Chairman Robert Langmesser, filling a vacancy left by the resignation of Myron Ciesielski.

Block noted that while she can ask that issues be placed on an agenda, only Gerard has the authority to decide which matters actually get on an agenda.

Block recently sat down with former WSD commissioner Dan Dickinson to review the 2012 budget, following an offer Block made at the May monthly meeting to discuss WSD concerns with anyone interested in sharing an exchange of information with her.

Dickinson, who is currently gathering signatures to recall Gerard from the WSD board, decided to take Block up on her offer.

As of Tuesday, more than 630 signatures, or 118 percent of the legally required minimum, had been obtained but not yet submitted to the town clerk, Dickinson said.

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