The Committee of the Whole met on Wednesday, May 20. See the report and meeting video.
Held
- Retiree COLA base increase (22-0) The Newton Retirement Board and Mayor requested approval to increase the retiree Cost of Living Adjustment (COLA) base from $15,000 to $16,000 in FY27, $16,000 to $17,000 in FY28, and $17,000 to $18,000 in FY29, effective July 1, 2026, pursuant to G.L. Chapter 32, Section 103(j).
CFO Maureen Lemieux presented the proposal, noting that of 104 communities with retirement systems in the Commonwealth, 49 have a COLA base above $15,000, with 26 at $18,000 or higher.
CFO Lemieux indicated that the current system does not provide any inflationary relief for retirees, many of fixed incomes, with annual increases of between 1.07 and 1.13 percent during the five-year window. By gradually increasing the COLA base, the same retirees would see an annual increase between 1.13 percent and 1.30 percent.
The change will increase the unfunded liability by $8,329,642.
The proposal moves the pension funding end date to 2035 at a 6.75% projected investment return and frees up funds for the City budget “over the window.”
State law caps the annual COLA increase at 3%.
Retirement Board Chair Tom Lopez noted Newton’s COLA base had lagged the state average until recently and that retirees are supportive of the increase.
Finance Committee Chair Grossman informed the members that the City Council would hold this item at the end of the presentation and question/comment period until a date certain of May 26, 2026, at that evening’s City Council Meeting.
Present: Councilors Albright, Baker, Bixby, Block, Charm, Dahmubed, Farrell, Getz, Gordon, Greenberg, Grossman, Irish, Kalis, Kelley, Krintzman, Leary, Lucas, Malakie, Oliver, Roche, Silber, and Wright.
Absent: Councilors Golden and Micley.
City staff: Maureen Lemieux, CFO; Tom Lopez, Chair of the Newton Retirement Board; Steve Curley, Comptroller.