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Northampton council approves actuarial study to examine proposed 5% police pension COLA
Summary
Council authorized an actuarial study requested by the Northampton Police Department to determine feasibility of a permanent 5% cost-of-living increase for police retirees; the study cost will be paid from the pension plan and any change would require a later resolution and vote.
The Borough of Northampton council voted to authorize an actuarial study requested by the Northampton Police Department to evaluate whether a permanent 5% cost‑of‑living adjustment (COLA) could be added to the Northampton Borough Police Pension Plan for retirees.
Council members were told the last actuarial review was performed about "4 or 5 years ago," and that the requested study would analyze whether a permanent 5% increase for retirees is feasible. A council member asked whether the 5% would apply every year; staff clarified it was presented as a permanent 5% increase to retirees' base benefits rather than an annually compounding raise.
Officials also clarified funding and next steps: "The cost of the study does come out of the pension plan," a council member said. The study will generate recommendations; any implementation of a COLA would require a later resolution and a council vote. Council members noted they could consider adjustments based on the study's findings (for example, a smaller increase than 5%) before taking final action.
Additional details: council reported the requested COLA would affect 11 retirees according to staff statements at the meeting. The motion to authorize the actuarial study passed by voice vote. If the study recommends a change, council will return with a resolution and a separate vote to adopt any pension modification.
