Panama City approves 3% COLA for future police pension retirees

Panama City commissioners on Jan. 28 approved Ordinance 32-58 to raise the annual cost-of-living adjustment for future Panama City Police Department pension retirees from 2% to 3%, effective for anyone retiring on or after Sept. 1, 2023.

The change "is a benefit to existing officers, which we hope will increase retention rates as well as increase recruiting opportunities for new employees," City Manager Jonathan Hayes said during the second public hearing. Staff told the commission the city factored the increase into existing pension benefit payroll payments and said the cost is currently funded in the budget. Hayes said the increase adds $135,452 per year initially, declining after 15 years to $47,086 per year.

No members of the public spoke on the item during the hearing. A motion to approve the ordinance passed on a 5-0 roll call. The commission adopted the ordinance amending Chapter 2, Article 6, Division 5 of the City Code to revise subsection f (cost-of-living adjustments) and provided for severability and an effective date.

The commission’s approval follows recommendation from the pension board and city staff that the cost could be absorbed without a budget amendment at this time. The measure applies only to future retirees as described in the ordinance language on the record.

The city clerk recorded the vote as 5-0 in favor. The ordinance text and the staff presentation are part of the official meeting packet and will be posted with the minutes.

Looking ahead, staff will monitor actual pension payroll costs over time and report any unanticipated budget impacts to the commission.