Boston Council Committee Backs One-Time 5% COLA for City Retirees

BOSTON -- March 13, 2023, Boston City Council committee members unanimously voiced support for a one-time increase to the municipal retiree cost-of-living adjustment from 3 percent to 5 percent. Committee on Government Operations Chair Ricardo Arroyo convened the March 13 virtual hearing on Docket 0369, a measure sponsored by Mayor Michelle Wu to accept Chapter 269 of the Acts of 2022, which the Boston Retirement Board already approved unanimously in January. Chief Financial Officer Ashley Grafenberger confirmed the change adds approximately $27 million to the city's unfunded pension liability, with additional annual costs of $5.4 million in FY23, rising to $7.2 million in FY27, all above the city's prior contribution schedule. Advocates representing roughly 7,300 of the system's approximately 13,000 members testified, with AFSCME Local 1526 President Alyssa Kadalik noting that Boston's cost of living runs 54 percent above the national average and housing costs run 127 percent higher. The 5 percent rate applies only to the first $15,000 of pension benefits, yielding roughly $25 more per month per retiree before taxes.