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Council clarifies one‑time 1% COLA‑equivalent payment for retirees, estimates $716,000 cost
Summary
At a Richmond City Council budget work session, members clarified a payment described in media as a 'bonus' is a one‑time payment equivalent to a 1% COLA for current retirees; staff estimated the cost at about $716,000 and council directed staff to pursue a long‑term COLA funding solution.
The Richmond City Council on Thursday clarified that a payment earmarked for current retirees is a one‑time payment equivalent to a 1% cost‑of‑living adjustment, not a recurring 'bonus.' Councilwoman Trammell pressed city staff to correct media reports and insisted the payment be described as a COLA, not a bonus.
"It is not a bonus. This is a COLA," Councilwoman Trammell said during the work session, pressing staff to ensure retirees and constituents understand the distinction. Council Chief of Staff RJ Warren confirmed council's intent, describing the measure as a one‑time payment that equals the amount a 1% COLA would deliver for this year.
Warren told the council the one‑time payment would deliver "the same amount as a 1% COLA" for recipients this year, and staff estimated the payment would cost about $716,000 to implement in the current fiscal year. Warren emphasized the council still must find a long‑term financing approach if it wants a recurring COLA beyond the current year.
The exchange resolved on direction to convene further discussions with the retirement system and administration to seek a permanent COLA mechanism. Council members said they remain committed to providing ongoing adjustments but need to identify sustainable funding sources before committing to a recurring COLA.
The council did not take a formal recorded vote at the work session; members instructed council staff and administration to draft any necessary budget amendments and return language for the formal meeting.
