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Norwich board denies former mayor's request to join retirement system

The clock and bell tower of Norwich City Hall are pictured. Peter Nystrom served three terms as the city's mayor.
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The clock and bell tower of Norwich City Hall are pictured. Peter Nystrom served three terms as the city's mayor.

Members of the Norwich Personnel and Pension Board denied a request from former Mayor Peter Nystrom to join the retirement system, finding he missed an earlier opportunity to sign up.

During his final weeks in office last year, Nystrom contacted the city's pension board and requested to buy back eight years of service credit, encompassing the last two of his three terms in office.

Nystrom would have been eligible to immediately receive pension benefits after making a one-time payment into the municipal retirement system, which is funded by contributions from employees and the city.

Members of the pension board previously asked city staff to research Nystrom's eligibility. At a meeting last week, the city's retirement plan administrator said emails show Nystrom didn't respond to a previous invitation to participate — a relevant factor under the city's past practice.

Plan participants have 90 days to respond after being invited to join the retirement system, board members said last week.

Additional requirements apply to elected officials, who aren't automatically enrolled. Those who are eligible can participate by notifying the board in writing within 90 days of their election or appointment.

An email reviewed by the board shows the city's former human resources director provided Nystrom information about retirement benefits in December 2023, but didn't receive a response from the mayor.

"Peter Nystrom was offered, informed, about this back in 2023, and there was no response back on this issue?" Board Chair Paul Schroder asked, according to a recording of the meeting.

"Based on that information, yes" replied Evelyn Lopez, the retirement plan administrator, referring to the 2023 email.

Members voted to deny the request after a brief discussion, finding Nystrom had a sufficient opportunity to join in the past.

Nystrom did not respond to requests for comment. He told The Day of New London that his inquiry to the pension board was "fact finding," and said he simply wanted to find out what the cost of the buyback would be. Nystrom told the paper it would be in range of $28,000.

"I think I can invest that money in other places and get a better return," Nystrom said. "I was looking at it as a potential investment."

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.

Records show Nystrom 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.

He was later reelected to another two terms as mayor, serving from 2017 through 2025.

Jim Haddadin is an editor for The Accountability Project, Connecticut Public's investigative reporting team. He was previously an investigative producer at NBC Boston, and wrote for newspapers in Massachusetts and New Hampshire.

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Federal funding is gone.

Congress has eliminated all funding for public media.

That means $2.1 million per year that Connecticut Public relied on to deliver you news, information, and entertainment programs you enjoyed is gone.

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All donations are appreciated, but we ask in this moment you consider starting a monthly gift as a Sustainer to help replace what’s been lost.

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