Board approves one-time 10% boost and 3% COLA for Texarkana Water Utilities Arkansas retirement plan
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Summary
The board approved a one-time 10% increase for all plan participants and an ongoing 3% cost-of-living adjustment for retirees in the Texarkana Water Utilities Arkansas retirement plan; staff said the plan has a market value of $3,205,127 and the liability increase is estimated at $297,590.
Board members voted to authorize a one-time 10% increase for participants in the Texarkana Water Utilities (TWU) Arkansas retirement plan and an ongoing 3% cost-of-living adjustment for retirees.
A presenter explained that 29 people are in the plan (five employees currently working, seven retirees drawing checks, and 17 persons eligible to draw), the current market value of plan assets is $3,205,127, and the incremental liability for the proposal is about $297,590. Staff said the plan remains overfunded on actuarial projections and that approving the increase would not render the plan insolvent; an estimated $2.1 million would remain after the plan closes out in the scenario presented.
The board adopted the resolution by roll call. No amendments were recorded at the meeting.
