Milo to join Maine retirement system for full-time staff

MILO — At the start of 2026 the town of Milo will join the Maine Public Employees Retirement System as a participating local district for all full-time municipal staff. The decision was made during a special town meeting on Sept. 10.

Town Manager Robert Canney said Milo used to be a part of the state retirement plan before unenrolling sometime around the late 1970s/early 1980s. Since then the town has had a retirement plan through the Maine Municipal Association. Employees contribute with the municipality matching and this would also be true for the state program.

“The issue we are having is it’s a recruiting barrier if we want to hire somebody,” Canney said. This has been a hindrance for the Milo Police Department, which should have four full-time officers but has had three since the sergeant left for Dover-Foxcroft several months ago.

“We’ve been recruiting all summer and we have gotten no qualified applicants,” Canney said. Police Chief Nick Clukey has reached out and heard that many candidates will not apply because Milo does not participate in the state retirement program.

Milo needs to hire an experienced officer, being unable to send hires to the Maine Criminal Justice Academy in Vassalboro.

Not taking part in the retirement program has been a hindrance with other departments, as meeting attendees opted to go with an option to include all full-time employees and not just police officers. A public works candidate, with years of experience working with the Maine Department of Transportation, initially accepted a position but later withdrew for this reason, Canney said.

Many town office employees could be retiring in several years. “Maine State Retirement is certainly something that will attract a much better candidate,” Canney said.

Milo has 16 full-time employees who are eligible for health insurance so they would also be able to be enrolled in the Maine Public Employees Retirement System.

Mentioning he has his health insurance for being retired military, Canney said he does not take part in the municipal health insurance program and this saves about $13,000 per year. 

“But we still have to put that in the budget every year because if something happened to me and you had to replace me, it’s a good chance the person coming in to replace me would want Maine State Retirement,” the town manager said.

Unused monies for employee health insurance and retirement would remain in the account for the following year.

Currently Milo is budgeting $7,866 for retirement for four police officers, Under Maine State Retirement this amount would be $26,746 and $71,550 for all 16 employees (up from $26,513).

This amount would come from the general fund for the 2025-26 fiscal year and be included in future municipal budgets.

“This is really not a huge cost, even if we add everybody,” Canney said.

“It really is critical for us at this point,” Clukey said, saying is always aware of using tax dollars. “We are at the point where if we don’t do this, there is going to be major changes in how this police department operates.”

When asked, Canney said the department has spent 96 percent of its overtime budget.

Clukey said he has a candidate for the officer vacancy, who would most likely accept the position with state retirement in place.

Special town meeting attendees also approved the Penquis Recreation Program Interlocal Agreement. 

Last year the recreation departments in Milo and Brownville combined with one director to oversee.

The agreement is basically housekeeping, Select Chair Paula Copeland said. “Because of language in the contract we have to take it to our voters.”

“From what I hear it’s working just like we want it to,” Copeland said.