The Stuart Town Council directed Town Manager Bryce Simmons to inform the Virginia Retirement System (VRS) that it does not accept the offered Memorandum of Understanding (MOU) at its meeting on Wednesday, March 19.
The MOU states that to bring the town’s plan to a 100 percent funded status, including ongoing required contributions for current employees, additional payments totaling $638,000 as of Jan. 1, 2025, would be required.
Over a three-year period, the cost would amount to $20,000 per month.
Because of this expense, Simmons said he does not believe the town can afford to rejoin VRS.
“That’s so steep,” Council Member Erica Wade said.
The town first enrolled in VRS during the 1970s. However, in the 1980s, the then Town Council attempted to withdraw from the system but was unable to do so. As a result, the town has not actively participated in VRS since the 1980s.
Town Attorney Chris Corbett asked if that means town employees will never be part of VRS.
Simmons replied that he is unsure, adding that with the town’s ongoing projects, he anticipates having to tighten the reins on spending.
“I don’t foresee where the government is going to be handing out $1.5 million checks to every county and town. I just don’t see it, and I can’t in good conscience put the town at financial risk like that. I just don’t feel good about it, and that’s at my own detriment,” Simmons said.
Council Member Dave Hoback agreed with Simmons.
“This is a perfect example of bad policy and bad decisions resulting in bad consequences. That was what happened 40 years ago when the people that were on council at the time voted to get out of VRS. So, I tend to think that the price is too steep at this point in time to get back in,” he said.
Hoback said he wants the town to move away from poor policy decisions, which is why it currently does not provide any kind of retirement vehicle for its employees.
Simmons noted that even if the town rejoined VRS, not all employees would be covered under the plan.
“I really feel pretty strongly that we need to look at some kind of retirement vehicle to support all our employees. There’s lots of them out there, and I think we could do that at far less cost,” Hoback said.
Simmons agreed.
“I can’t in good conscience face the employees and say, ‘Yeah, we’re going to spend all this money for me, and we’re sorry—that’s the rule.’ That doesn’t sit well with me, and I don’t think it’s going to sit well with anybody that looks at that. I just can’t do it. I don’t feel good about it, and I don’t want to,” Simmons said.
In other matters, the council:
*Scheduled a budget meeting for Wednesday, April 9, at 6 p.m.
*Discussed the process of removing fluoride from the town’s water.
*Reviewed the need for a strategic plan and decided that each council member should bring a list of five priorities to the next regularly scheduled meeting.
*Approved a resolution from the Tobacco Commission.
*Received updates on public works.
*Discussed town policy.
*Reviewed plans for the Wine & Beer Festival on Saturday, April 5.
*Approved meeting minutes.
*Paid outstanding bills.
