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Henniker board locks COLA at 2% and approves merit increases; committee charged to address rising insurance costs
Summary
After extensive discussion of COLA methodology, merit systems and sharply rising health‑insurance premiums, the select board voted to set the 2026 cost‑of‑living adjustment at 2%, proceed with merit increases per staff worksheets, and direct the Compensation Committee to develop solutions for projected health‑insurance cost growth effective July 1.
The Henniker Board of Selectmen on Jan. 6 voted to lock the town’s 2026 cost‑of‑living adjustment (COLA) at 2% and to proceed with merit‑based raises as outlined in the staff worksheet, while charging the Compensation Committee to work with employees to identify solutions for projected health‑insurance increases anticipated to take effect July 1.
Compensation‑workgroup members and staff reviewed regional and national benchmarks, described a hybrid approach that combines transparent step increases with merit bonuses, and flagged that single‑year merit additions can compound into higher long‑term base‑salary costs. Staff recommended modernizing the personnel policy so the select board determines COLA annually rather than automatically adopting the state number.
Board members expressed concern about employee morale if promised merit increases were delayed or rescinded; one board member moved to lock COLA at 2% and apply merit increases as presented while tasking the Compensation Committee to craft solutions—options discussed included shifting merit to an annual bonus rather than base salary, encouraging use of deferred compensation options, or adjusting employee plan contributions. The motion was seconded and approved; the committee will return with recommendations before mid‑year implementation of new insurance rates.
