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Council adopts one-time lump-sum pension payments for eligible general employees
Summary
Boca Raton adopted Ordinance 57-50 to provide one-time lump-sum payments to eligible retired or disabled general employees to offset cost-of-living erosion: 5% for retirees before Oct. 1, 2015, and 3% for retirees between Oct. 1, 2015 and Oct. 1, 2020. City staff estimated a $490,465 cost and said the city will pay an equal amount to the pension plan to avoid net impact on unfunded liability. Vote: 5–0.
The City Council voted unanimously on Sept. 22 to adopt Ordinance 57-50, which provides one-time lump-sum payments to certain retired or disabled general employees to partially restore purchasing power lost to cost-of-living increases.
City staff explained the code requirement for a biannual review of retirement and disability benefits and reported that the review found erosion from inflation. Staff recommended a one-time lump-sum payment of 5% to pensioners who retired before Oct. 1, 2015, and 3% to those who retired between Oct. 1, 2015 and Oct. 1, 2020. The staff presentation estimated the total cost at $490,465 and said the pension plan would make the payments while the city simultaneously pays the plan the same amount, producing no net increase in the plan’s unfunded liability per the accompanying actuarial statement.
The council opened, then closed, the public hearing and voted to adopt the ordinance by roll call (5–0).
What this means: Eligible retirees and disabled general employees will receive the one-time lump-sum payments described in the ordinance; the city reports no net impact to the pension plan’s unfunded liability because of an offsetting payment to the plan.
