The City Council voted unanimously to approve a five percent cost of living adjustment (COLA) for eligible retired city employees receiving a pension Tuesday evening.
City Clerk Janet Rowe opened the meeting by reading a letter from Mayor Jared Nicholson urging the City Council to approve the Retirement Board’s proposal which would cost the city a total of $27,500.
“This would provide Lynn’s retirees with a Cost of Living Adjustment of 5 percent for Fiscal Year 2023, costing the city approximately $27,500. While this is a modest expense to the city, I believe that this increase will greatly assist our retirees on a fixed income,” Nicholson wrote. “I support this increase and would respectfully ask that the council take whatever actions necessary to support this increase.”
The rate increase came in accordance with state legislation passed over the summer raising the maximum cost of living adjustment rate for state and municipal retirees from three percent to five percent of a base $15,000 per year pension. Retirement Board Executive Director Gary Brenner said that retirees who already received a three percent increase between July and November will receive, retroactively, the extra two percent.
“Most people are going to get $125 retro. That’s what the majority of people are going to get, as long as their pensions are over $1,250 A month,” Brenner said.
Brenner added that he believed most cities in the state would vote to increase their COLA rates, given the fact that retirees often can not work, and are on fixed incomes.
“It’s only fair if the state people, and all the teachers are getting it. Most cities are going to accept it. I mean, it’s really tough to vote a COLA down to retirees, because their income is fixed, and half of them can’t work anymore, and they need that. It was a good vote,” Brenner said.
The maximum five percent increase would amount to $62.50 extra each month. Every city retiree that retired on or before June 30, 2021 is eligible to receive the five percent COLA.
In order to get the maximum, individual’s monthly pension must be $1,250 or more
In previous years, as the city raised their retirement COLA by only three percent annually, retirees with a $12,500 pension would see a $37.50 COLA adjustment.
Pointing out that city retirees will receive a nice increase, at no cost to them, in their December pension check, Brenner said that he was pleased with the council’s vote.
“They are looking out for the city,” Brenner said. “it’s retro so they didn’t lose anything. And they’re gonna get a nice little present in their December pension check. That’s a that’s a nice little thing and they can and they can definitely use it.”
