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Council advances a one‑time payment equal to a 1% COLA for retirees while vowing to study long‑term fixes
Summary
After debate, councilmembers agreed by consensus to provide a one‑time payment equivalent to a 1% COLA for Richmond Retirement System retirees (estimated cost $716,400) and to convene a working group to identify sustainable options for future COLAs.
Council staff recommended a short‑term approach to a long‑running request for cost‑of‑living adjustments for Richmond Retirement System retirees: a one‑time payment equivalent to a 1% COLA. "It is recommended that we proceed with a the equivalent of a 1% COLA bonus payment to retirees," R. H. Warren said, and he put the up‑front one‑year cost at approximately $716,400.
Members debated whether to commit to a recurring COLA (which Warren said could be financed as a 1% COLA over 10 years at roughly $971,000 per year) or to provide a one‑time payment now while the council and the retirement board work on a long‑term plan. Councilwoman Trammell urged an ongoing COLA to honor retirees’ long service: "The 1%, let's do that. Let's do the right thing." Kia Johnson, senior deputy director of the Richmond Retirement System, explained how COLA calculations relate to pension bases and funding ratios; she also noted the system’s funded level (about 85%) and the implications for paying benefits.
Councilmembers signaled support for the one‑time payment that matches a 1% COLA this year and for formation of a working group to pursue a sustainable multi‑year solution that would not require repeated ad hoc requests. Warren said administration and council staff would return with clearer work‑group membership and financial pathways ahead of FY27 final adoption.
What’s next: staff will draft the amendment language and convene the working group to model long‑term options, reporting back before final budget adoption.
