Norwich - Starting in January, more than 300 retired city employees will receive their pension directly from the city through monthly direct deposit to their banks.
City Manager Alan Bergren announced Monday that the city will take control of the pension plan payments from Wilmington Trust starting Jan. 1, with payments handled by the city Human Resources Department. Retirement Plan Administrator Pat Osten, who already handles pension request changes and operations, will handle the payments.
Currently, recipients have different payment options, from direct checks once or twice a month to direct deposit. The change mirrors a recent federal decision on Social Security payments, Bergren said.
The change is expected to save the pension plan $34,000 in management fees per year, according to Treasurer Brian Curtin, and also would avoid the problems experienced in recent years when banks and financial companies that have handled the service have been bought or sold.
Comptroller Joseph Ruffo said the change would not affect the $130 million in pension funds the city holds, which is invested in various diversified funds through UBS.
City officials will hold public meetings at City Hall over the next two months to explain the changes.