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Council adopts TMRS ordinance to provide 50% CPI-based COLA for retirees
Summary
Council read and approved an ordinance authorizing a TMRS cost-of-living adjustment set at 50% of the Consumer Price Index for eligible city retirees; staff said the change would not require additional city funds due to excess pension account balances.
The council reviewed and adopted an ordinance authorizing an annual TMRS cost-of-living adjustment equal to 50% of the Consumer Price Index for eligible City of Hays retirees.
The ordinance language, read into the record, explains that the annuity increase is computed by multiplying the sum of prior and current service annuities by 50% of the percent change in the CPI for urban consumers. "The amount of the annuity increase... multiplied by 50%, and that's the number that was optional for us," the reader of the ordinance said as the council reviewed statutory language. Staff emphasized the ordinance would not add to the city's operating budget because there is excess funding in the TMRS account and initial increases are subject to TMRS board approval.
Council members moved, seconded and recorded a voice vote described in the transcript as '4 aye, 1 refused.' Staff said the effective date for the initial increase would be Jan. 1 following approval by the system and board, consistent with TMRS procedures.
