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Fire LOSAP 10/5/22 Meeting with Landmark Wealth & Penflex – The Town was Provided the Following Options: • Amortize the $3 million unfunded liability & pay off as if it were debt – this would result in an annual payment of roughly $280,000 for next 20 years or $235,000 for next 30 years. Freeze the Meanwhile no current members are able to earn service credits and you are not adding program any new members. Simply paying off the debt. This leaves possibility to unfreeze in future • The plan ends and either the town has to come up with $3 million to make this full payout Terminate or pay out everyone at 46 cents to the dollar of what they are owed. & pay out • Switch from a defined benefit plan to a defined contribution plan • Defined Benefit – Town owes $20/month to each member per each year of service Change the • Defined Contribution ‐ Town would pay $X to the plan each year and the payout to Plan members varies based on how the investments do • The town would have to make or exceed suggested contribution (currently $400,000/year) • Funding options: 20‐25% Property Tax Increase in Fire Fund / Allocate Additional Sales Get funded Tax here / mix of the 2 sources / Consolidate the 3 fire companies into 1 or 2 companies ratio back and use some of the contractual dollars saved towards LOSAP up 66