Kalamazoo County commissioners revisit retiree cost‑of‑living options as actuary outlines long‑term costs

Summary

County officials and retirees debated three formulas for a potential pension COLA — 1% annually, 1.5% annually, or 1% every three years — after actuaries and the retirement investment committee presented projected costs and funded‑ratio impacts. No formal change was adopted; commissioners requested more financial detail before a decision.

Kalamazoo County commissioners reopened a months‑long discussion April 15 on whether to adjust monthly pension benefits for retirees, hearing actuarial estimates and testimony from retirement advocates and county financial staff.

The county’s finance director, Ryan Post, and the retirement investment committee summarized three options under consideration: a 1% annual cost‑of‑living adjustment (COLA), a 1.5% annual COLA, or a 1% COLA every three years. “The 1 percent increase is $900,000 new cost,” Post said when identifying the projected recurring expense of that option. The retirement investment committee’s Bob Salisbury told the board, “The 1% COLA would increase that by 36% or an increase of about $900,000 per year,” and said even smaller periodic increases would raise the county’s annual pension contribution over time.

Why it matters: Kalamazoo County’s pension plan is currently over‑funded by actuarial measures, but commissioners and staff warned that any ongoing COLA decision would create a permanent, embedded cost in future budgets. Finance staff stressed that an additional recurring…

Kalamazoo County commissioners revisit retiree cost‑of‑living options as actuary outlines long‑term costs

Summary

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