By David Fenker
david@nmpaper.com
NORTH MANCHESTER, Ind. – The Town of North Manchester’s 457 Retirement Plan has been terminated by the Town Council.
The 457 Retirement Plan Termination Resolution No. 1 was one of four items of new business discussed at the council’s Wednesday, Feb. 1 meeting.
“Many years ago we created the 457 plan, which is comparable to a 401(k),” Clerk-Treasurer Carrie Mugford said.
“It was to encourage employees to contribute to an alternate or additional retirement plan, but we did it through payroll deduction. Now, we have direct deposit and all the other technologies that we use, and we have been told that this is not the most effective plan for our group.”
She noted that only four town employees still contribute to the 457 plan, and that they have all been notified and will be moving those funds to an IRA account.
The motion passed unanimously.
Other new business included giving permission to receive proposals for a new sewer cleaning machine, writing off checks from 2014 and “a preview of an item for next month,” according to Town Council President Jim Smith.
Town Manager Adam Penrod and Wastewater Superintendent Aaron Popplewell presented the information on the current sewer cleaning machine, including the estimated $100,000 in repairs needed.
“It’s 15 years old and showing its age,” Popplewell said.
He noted that it has needed $17,000 in repairs in the last two years, and needs more than $100,000 in repairs currently.
The council approved the request to seek proposals.
The 2014 check write-offs were four checks written by the town that had not yet been cashed, for a total of $223.79.
The fourth item was introduced by Town Attorney Matt Mize, and regarded Pleasant Way, a street near Manchester University that has not ever officially been received by the town.
“There is a piece of property that is locked because that has not happened, and the owner and potential buyer would like the town to receive Pleasant Way,” Mize said.
The council will be presented with a resolution on the subject at their March stated meeting.