How Did We Get Here?
 The Town has failed to contribute the Annual Required Contribution (ARC) every year since
FY ‘93, an amount totaling about $132M through 2012. An additional underpayment of about
$18M is expected for 2013.
$30

Millions

$25
$20
$15

27

$10
$5
$0

7 4

7 4

8 4

8 5

7 5

7 4

7

2

7 0

6 0

6 0

10

1

11

1

3

17

16

14

13

6

9

18
12

19
13

20

19
13

7

9
3

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Annual Required Contribution
Actual Town Contribution

 In the 1990s, investment returns largely covered for the shortfall of contributions. However, the
funded percentage has declined steadily since 2000 as the economy has struggled and
benefits/liabilities have continued to accrue while the ARC has not been paid.
100%
80%
60%
40%
20%
0%

1994

1996

1998

2000
2002
2004
2006
Funded Percentage [ Assets / Liabilities ]

2008

2010

2012
9