Use this search box to find articles that have run in our newspapers over the last several years.
Date: 2/21/2023
SPRINGFIELD — The City Council approved a 5 percent cost of living adjustment (COLA) for retired city employees during their Feb. 13 meeting. The order was initially proposed by Mayor Domenic Sarno following a state law signed by former Gov. Charlie Baker in November 2022 that allowed for the COLA to rise from its initial 3 percent threshold.
In October 2022, Sarno submitted an order approved by the council that increased the COLA to its 3 percent maximum. Once the new state law was enacted, Sarno began collaborating with the Springfield Retirement Board in considering an additional increase.
Sarno credited the city’s fiscal management for placing them in a position to increase the COLA. He also stressed the additional support is needed for retirees given current financial circumstances.
“Thanks to our sound and prudent fiscal management, and with the unprecedented times of a 40 year high in inflation and a looming recession, it is imperative that we assist our city retirees and seniors,” said Sarno in a Feb. 9 press release.
Sarno continued, “Simply put, this is the right thing to do as I do not want our city retirees and seniors to have to make the difficult decisions whether to get their medicine and/or put food on the table.”
Springfield Comptroller Patrick Burns presented the request to the council. He explained that the 2 percent increase will be retroactively applied on top of the 3 percent that was already approved. The raise impacts 2,751 former city employees, according to Burns.
The increase estimates to $260 for retirees $1,300 base payment. For fiscal year 2023, the city will spend $715,000 to pay for the COLA. The increase will also be factored into the city’s ongoing payments toward its pension liability. Springfield’s unfunded pension is one of the lowest funded in the state, but city officials continue to enact a more aggressive funding schedule to address it.
Currently, the city has funded 39 percent of its pension. Springfield spent $51.5 million in 2021, $56.1 million in 2022 and is expected to spend $61.1 million in 2023. The city envisions paying off the liability by 2033 based on their current payment plan, with some annual payments expected to be over $100 million. Springfield is required to pay off all unpaid pension liabilities by 2040 as a part of a state mandate.
City Councilor At-Large Tracye Whitfield said addressing retired city employees’ growing needs is important. She also stressed the importance of providing assistance for other retirees across the city.
“There are retired people across the city, not just who work for the city, who need some type of relief … I do believe retirees on all levels deserve a COLA increase, especially around this time where everything is going up,” said Whitfield.
Ward 7 City Council Timothy Allen said there are always concerns around taking on a new expense, but deemed supporting retired city employees as an important cause.
“This expense in my mind we have to take on from a human standpoint and a sustainability standpoint,” said Allen.
Whitfield agreed with Allen on the importance of supporting retired city employees before noting that other retirees throughout the city also need assistance during rigid economic times.
“There are other retirees that never worked for the city of Springfield that need a break. Those are some of the folks we need to be thinking about too,” said Whitfield.
Ultimately, the council voted 12-1 for the COLA increase, with Ward 2 City Councilor Michael Fenton representing the no vote.
The City Council will meet again on Feb. 27.