This month we are looking at the average pensions of the City of Newton – the Garden City. Because the latest (January 1, 2006) actuarial valuation of the Newton Retirement System was also done by Buck on a gender basis, Newton will be reported in that style.

The average pension for a Newton male retiree is $26,303 and for a female is $11,710. An immediate reaction to this difference might again be one of discrimination. But not so. Length of service is a major factor in determining pensions. Many women have worked for shorter periods of time as clerks or secretaries. For the most part, police, fire and public works employees are males (it’s slowly changing) and they stay on the job until they reach their 80% pension. Survivors, mostly female, are included in the chart. Many survivors are only receiving an extremely small pension. Pending legislation is attempting to help these women.

Salaries, another major factor in determining pensions, are relatively high in the public safety field. As more and more women enter this field, there will be a gradual narrowing of the gender-based  average pension. But as long as women have the burden (or privilege) of bearing children and in many cases being stay-at-home moms for lengthy periods of time, there will always be a gender difference in pensions.

Also included in the valuation is a breakdown of disability pensions. Accidental disabilities, which pay 72% of salary plus an annuity, the total of the two cannot exceed 75%. Ordinary disabilities are much less, depending on the years of service.