Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pensions And Benefits topic
No spam. Unsubscribe anytime.
Worcester Retirement Board notifies council of 3% COLA; committee files update
Summary
The Worcester Retirement System notified the Municipal Legislative Operations Committee it will continue its historical 3% cost-of-living adjustment for retirees; city staff said the increase is built into the funding schedule and the committee voted to file the informational notice.
The Worcester Retirement System notified the Municipal Legislative Operations Committee that it will provide a 3% cost-of-living adjustment (COLA) to retirees, the city auditor and auditor’s staff said during the committee’s meeting.
The notice, required 30 days before a COLA the board intends to provide that differs from the Social Security percentage, was placed before the committee as an informational communication. “The 3% COLA is built into the funding schedule,” Robert Stearns, city auditor, told the committee, adding the funding schedule is set by an actuary “to determine the date [to] fully pay off the unfunded liability, prior to the statutory deadline.”
The item drew a brief public comment from a caller who urged the committee to preserve policies that help older residents, and later asked how frequently the council receives updates on the retirement system. Stearns said the retirement system provides a yearly update and reiterated that, historically, the board has provided 3% COLAs even in years when Social Security’s increase is higher.
Timothy McGurthy, city chief financial officer, answered questions about the plan’s funding and said the city remains on track with the funding schedule. The committee’s recommendation was to file the informational communication; the clerk called the roll and the motion carried with the members present voting yes.
