Do You Want A COLA? An R_a C?

Do You Want A COLA? An R_a C? No, Cost of Living Increase! Of Course

It is that time of year when the City Council routinely gives retirees a cost of living increase. In the past it just goes through the City Council on the consent agenda. And again this year they are asking for a 2011 COLA on the consent agenda which will add $9,393,000 to the pension liability and $740,000 to the annual contribution.

Look at the history of this which I found and this is just back to 1990 through 2007. In 2008 and 2009, when the stock market was going south, they gave COLA raises of 3%, 2% and 1% depending on when you retired. In 2010 it was 1-1/2%, 1% and ½% and this year they are asking 1%, ½% and ½%. Your social security increases for the last two years were ZERO.

One of the needed reforms is for the COLA increases at the City, County, State to be no more than social security increases. This is costing millions of dollars per year.

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