Trustees schedule workshop to study proposed pension benefit changes, including COLA options

Board members spent an extended portion of the Nov. 12 meeting discussing proposed benefit changes submitted by CAVMAC (the transcript uses variants including CAVMAC/CABMac). Topics covered included enhanced cost‑of‑living adjustment (COLA) models (a model discussed on conference panels proposed up to 3% COLA), which actuary should provide the next analysis (options discussed included Kavanaugh McDonald and Foster & Foster), budgetary timing for implementation, and lower‑cost options such as adjusting accrual rates and an 8‑year drop.

Trustees raised that the general pension’s benefits have been reduced over the past decade relative to other plans and discussed the political and budgetary challenges of asking the city for additional funding. Several trustees said they wanted better data and communication materials from the actuary to present to the city council if changes are recommended. One trustee noted the importance of using an actuary who can clearly communicate complex changes to elected officials.

The board agreed a focused workshop would help staff and trustees work through options and asked Michelle (staff) to organize it. Trustees tentatively scheduled the workshop for Jan. 14 and asked for actuarial scenarios, cost estimates and comparative pension reports for the general plan and the other two pension boards prior to the session. No final policy change was approved at the meeting; trustees agreed to continue work at the workshop.