City Council requests meeting with Retirement Board

City Council President Susan Albright sent this request to the Retirement Board to discuss the possibility of offering additional COLA payments balanced against a slightly slower rate of growth. The current rate of growth is 9.6%, and the Retirement Board is currently requesting a reduction to 6.6% with an increase in the retiree Cost Of Living Adjustment (COLA) base from $12,000 to $13,000 in FY24, to $14,000 in FY25, and to $15,000 in FY26.

In her request, President Albright recapped a recent Committee of the Whole meeting where Kathy Riley, an actuary working for City, joined the Council as they “studied” several options, including one with a 5.0% growth rate with two more years of COLA payments and a 5% option with one more year of COLA payments. They “concluded” that a 5.% growth rate with one additional year of COLA “would balance the Council and Adminstration’s goals (free up cash for our climate initiatives, infrastructure, school, and city goals with the needs of your Board and retirees).” She continued, stating that the Pension Trust would then be fully funded by FY33 (August 2032) and that the working group believes that this growth rate is “sustainable.”

The Retirement Pension proposal is the collaborative work of City Council President Susan Albright, Vice President Rick Lipof, Finance Chair Becky Grossman, and City Councilor Chris Markiewicz. School Committee member Chris Brezski is also a part of the group.

The City Council suggested limiting the focus of the working group to no greater than a 6.6% growth rate. Acknowledging that Ms. Riley had originally proposed a 6.2% growth rate, which was later amended by City Comptroller Steve Curley to the current 6.6% proposal, President Albright stated that the working group is seeking an opportunity to discuss with the Retirement Board a 6.2% or 5.5% growth rate (with 3 and 4 COLAs, respectively) as the Council appears “split” between these two options. Given the tight timeline, as the City Council is underway with budget review, the working group hopes to discuss these proposals, which its members believe will fully fund the pension and protect retirees but also will provide a sustainable rate of growth to meet the City’s goals and needs.

At the same time, Councilor Lenny Gentile and several of his colleagues urged the reinstatement of the City’s $925 Medicare Part B contribution to retirees and making that permanent for current retirees. The Mayor renegotiated the City’s health care plan, removing the $925 benefit, which she says will save at least $600 in the cost of each retiree’s health care plan. Newton’s Chief Financial Officer, Maureen Lemieux, who was asked to join the meeting, made it clear that the Medicare Part B reimbursement was under the Mayor’s control — as is the final budget — and would not be restored. As Finance Committee Vice Chair David Kalis concluded, “If the Mayor doesn’t want to play, there is nothing we can do.” In a straw vote, twenty Councilors voted in favor of bringing the three pension options to the Retirement Board. Only Ward 2 Councilor Emily Norton voted “no.”

Ed. Notes: This article originally misidentified City Council President as Margaret Albright. In a later revision, paragraphs 3 and 5 were added, based on reporting by Martina Jackson.