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Council weighs one-time COLA for police and firefighters; finance staff says plan can absorb cost
Summary
Councilors discussed a one-time cost-of-living adjustment (COLA) for police and firefighters’ pensioners, with staff saying the plan is actuarially solvent and the COLA cost is about $500,000 a year and the long-term liability roughly $6 million over 30 years.
Council members reviewed a resolution authorizing a one-time cost-of-living adjustment (COLA) for certain classes of pensioners in the police and firefighters retirement plan. Members asked for actuarial detail and a clear explanation of long-term implications before approving the change.
A finance official answered council questions about the plan’s status: "The cost of the COLA is around the $500,000 a year figure," and said the increase to plan liabilities was in the "$6,000,000 range," which, the official said, the plan could absorb. The official added that recent market performance has improved the plan's funded status and the plan had paid down a prior unfunded liability over decades.
Council members requested an actuarial summary in plain language for the public and for council review. One member said a brief layman's summary from the finance director or pension board would help them feel comfortable moving forward with the resolution.
