PEABODY — Retired city employees will receive an increase in their Cost of Living Adjustment (COLA) to $15,000 following a sharp City Council exchange over the hike.
The increase results in a monthly increase of $7.50 to retirees.
At a meeting of the Council Finance Committee prior to the council meeting, Retirement Board Director James Freeman originally put forth the board’s recommendation that the amount be increased from $12,000 to $13,000, but the committee noted that the $1,000 was not enough, considering the fact that Peabody had not increased the amount since 2010.
Committee member Anne M. Manning-Martin moved that the COLA be increased to $14,000.
Retirement Board member Joseph DiFranco said that many former municipal employees in Peabody who are only receiving $8,000 in retirement.
“There still are a lot of people not getting that much, so going to $14,000 would help, as you can’t even buy a loaf of bread for $2.50 (the added benefit of a boost to $13,000),” he said. “There are only 12 cities that are still at $12,000 and 60 at $14,000.”
Committee member Tom Gould recommended a COLA increase to $15,000.
In response, committee member Peter McGinn said he was in support of the increase to $14,000.
“Of the 70 communities we looked at, the majority are below $15,000,” he said. “The average is $14,432 with 20 at $15,000 or more. I definitely supported the initial motion of going from $13,000 to $14,000, but going beyond that, I’d like to see the impact long term.”
After further discussion, Manning-Martin amended the motion to provide for a $3,000 increase to $15,000.
“Even if we go to $14,000, that still is only $5 per month,” said committee member Anne M. Manning-Martin. “We have given salary increases in the city and the Retirement Board has been more than patient coming to ask for a minor increase.
“I think we are in this situation because the Retirement Board was bashful and didn’t want to come up and ask for too many years. To baby step forward when we really should be taking two steps ahead is not the fair thing to do.”
The committee approved the motion by a vote of 4-1. Tom Rossignoll cast the only opposing vote, citing his concerns about how a $3,000 increase would impact the city’s unfunded liabilities.
