Former Norwich Mayor Peter Nystrom is seeking to join the city's retirement system, allowing him to supplement his existing state pension.
The Norwich Personnel and Pension Board is scheduled to consider a request Tuesday from the longtime mayor to participate in a pension plan for city employees and elected officials.
Nystrom finished his last term as mayor in early December 2025. Records reviewed by Connecticut Public show two weeks before stepping down, Nystrom contacted the city's pension board and asked to buy back eight years of service credit, encompassing the last two of his three terms in office.
If the request is granted, Nystrom would be eligible to immediately begin receiving pension benefits after making a one-time payment into the municipal retirement system, which is funded by contributions from employees and the city.
Nystrom, a 68-year-old former Republican lawmaker, also receives a state pension. He previously represented the community in the Connecticut General Assembly, serving 18 years as a state representative.
Nystrom began receiving monthly pension payments from the state in 2014 after officially retiring from state service, according to records provided by the State Employees Retirement System.
State law doesn't prevent Nystrom from receiving a second public pension, though it's unclear whether he is eligible to join the city's plan.
During a preliminary discussion in November, members of the Norwich pension board expressed confusion about how to handle his request. They questioned whether Nystrom declined offers to participate in the retirement system when he took office in 2017, or at the start of his final term in 2021.
Joining now after twice saying no "would go against everything that I have ever heard" about pension rules, one board member said, according to a recording reviewed by Connecticut Public.
"If that didn't happen, then that's a different story," said the board member, whose identity was unclear from the recording.
"The issue for me is he'll be old enough to collect immediately," board member Patrick McMahon said. "So it's eight years of investment that doesn't exist. Now, it's over a $400 million plan, so it's peanuts. But ... if you can't invest it, you can't get a return."
The board voted to table the discussion until Jan. 20. They asked city staff to determine how much Nystrom must contribute to join the retirement system, and whether he received previous opportunities to participate.
Norwich mayor's role
Nystrom received an annual salary of $45,000 during his time in office, a figure set by the city charter.
Norwich operates under a council/manager form of government. The six members of the council and the mayor are elected at large, and the council appoints a city manager, who serves as the community's chief administrator.
The mayor nevertheless carries out important functions for the city, including coordinating economic development.
Mayors are eligible for retirement benefits under the charter, which establishes that "The Mayor shall be entitled to the same benefits package as is available to the elected registrars and the City Treasurer."
However, elected officials aren't automatically enrolled. The city's pension rules stipulate those who are eligible can participate “by notifying the board in writing, within 90 days of the date of their election or appointment."
The chairperson of the Personnel and Pension Board declined to discuss Nystrom's request in advance of the board's January meeting. Administrative staff from the city also declined to answer questions about Nystrom's eligibility.
Nystrom did not respond to emails and a letter seeking comment. He could not be reached by phone.
Decades of public service
A Norwich native, Nystrom has a long record of public service in the community. He first won office to the city council in 1979 at age 22, and served in the House from 1984 to 2002, when he lost a bid for state senate.
Nystrom returned to municipal politics, and served his first term as mayor from 2009 to 2013. After losing to Democrat Deberey Hinchey, he returned to the mayor's office four years later and won reelection in 2021.
He was barred from competing in the 2025 race by the city charter, which allows a maximum of two consecutive four-year terms. Nystrom now serves on the city council.
Outside of public life, Nystrom worked for more than two decades for the United Parcel Service.
His decision to balance full-time employment with his part-time duties as mayor drew criticism from at least one of his political opponents. During the 2013 race, Hinchey vowed to devote her full attention to serving as mayor, contrasting herself with Nystrom's dual employment.
But The Day of New London endorsed Nystrom, writing that he proved he was "working full-time for Norwich citizens, or close to it" by attending numerous meetings and functions.
Buyback would be costly
Under one calculation described in the city's retirement plan documents, Nystrom would stand to earn an annual pension in the range of $7,000 to $8,000, depending on whether his participation start date is determined to be before or after Jan. 1, 2018.
The calculation sets pension payments at between 1.95% and 2.2% of the average of an employee's three highest earning years, multiplied by years of service.
However, city officials have not described how they would interpret the pension rules.
It's also unclear whether Nystrom's request to buy back service credit is permissible. A plan document describes limited scenarios in which buybacks are allowed, including for military service, time spent on worker's compensation, and probationary periods, when new employees aren't yet contributing to retirement.
Buying back service credit would require Nystrom to make a significant lump-sum payment, meant to account for eight years of missed contributions, plus compounding interest. During the November meeting, members of the pension board speculated the amount would be in the tens of thousands of dollars, based on multiplying his $45,000 annual salary by an 8% contribution rate, and eight years of service.
Records obtained via a state Freedom of Information Act request show Nystrom receives a separate monthly pension benefit totaling $1,860.29 from the state retirement system.
His state pension stems largely from his service as a legislator. Documents show he earned an average salary of $34,849 during his final three years in the House. Nystrom also worked part-time for Eastern Connecticut State University from 1979 through 1984 during the spring and fall semesters, according to his pension paperwork.
Records show Nystrom additionally credited his first term in office as mayor of Norwich toward his total years of state service, paying $3,816 to buy back service credit for the years 2009 through 2013.
