The Board of Finance voted Tuesday night to invest the $1.2 million remaining after the termination of the town’s defined pension fund in a one-year Treasury bill, earning 4.88 percent, or about $49,000 (less an approximately $2,000 management fee). Susan MacEachron, head of the Pension Committee, said that investing for only a year gives the town access to the funds to meet expenses expected next year.
The town terminated its defined benefit plan—which had about $1.8 million in it—in January and has since purchased annuities for the few town employees still receiving retirement benefits. When obligations to employees were satisfied, the town was left with about $1.2 million, McEachron said, and a custody account was opened at Union Savings Bank.
A small portion of the money, about $135,000, is needed this November to pay this year’s installment on the debt on Botelle School windows and doors, and toward at the ambulance building. That money has been transferred to the National Iron Bank and invested in a five-month CD earning 5.125 percent.