Cost of living adjustments for Albany city retirees may be in limbo
The city commission is considering changes to the way retirees receive their cost of living adjustments--making them discretionary instead of automatically.
The pension board says the automatic COLA is costing them $23 million in pre-programmed liabilities to provide for current and future retirees.
That's due to investment returns being so flat.
To prevent the employees and the city from having to pay half a million more into the plan, the board asks that retirees receive COLAs if the board can afford it.
"As the pension plan is actuarially sound, COLAs will be given. If there has to be a time when the pension plan cannot afford a COLA, the board will have that option as well," says Phil Roberson, who sits on the city's pension board.
The city will make a decision at their night meeting February 28th.