During a recent city council meeting, officials discussed a proposed amendment to the pension ordinance that would implement a cost-of-living adjustment (COLA) for retirees, marking the first increase since 2014. The ordinance, drafted by the city attorney, aims to provide a COLA look back to July 1, 2014, which is significant as it has been over a decade since retirees received any adjustment to their benefits.

The proposed COLA would be the third increase in 27 years for the city's civilian employees, who are the only group affected by this amendment. Notably, the plan excludes part-time, seasonal employees, and uniformed personnel such as firefighters and police officers, who are part of a separate state system.

Currently, there are 221 retirees from the city, and last year, the pension plan paid out approximately $5.36 million in benefits. The cost of implementing the new COLA is estimated at $209,000, a relatively small amount compared to the total benefits paid but still significant for the plan's overall financial health.

The funding for the pension plan is determined annually through an actuarial valuation, which assesses the necessary contributions from both employees and the city. Currently, employees contribute 6% of their salaries, while the city contributes just under 12%, maintaining a 2-to-1 funding ratio.

Council members emphasized their fiduciary responsibility to ensure the pension plan remains fully funded, highlighting the importance of ongoing vigilance in managing the plan's financial stability. The proposed COLA is seen as a necessary step to support retirees who have faced stagnant benefits for many years.