The City of Bryan may adjust cost of living pension increases for some retirees in order to reduce costs in the coming years.
The Bryan City Council discussed the potential pension adjustment Tuesday. The city could save more than $416,000 each year if the city council accepts the proposal, according to Bryan Deputy City Manager Hugh Walker.
The current City of Bryan retirement program includes an annual pension increase based on the national consumer price index increase. The proposal would mean reducing the pension increase from 70 percent to 50 percent of the consumer price index increase each year.
“Those employees who have been retired longer are the ones that will be impacted,” said Walker. “Some will not notice a change, other than a reduction from 70 to 50 percent- so they will continue to see an increase of some sort. There are some who won’t see an increase though for several years, or up to seven years.”
City employees who retired within the last four years will continue to see annual pension increases.
Pensions for city employees who retired before 2008 will be frozen between one and seven years. Employees who retired in 1980 would not see another pension increase until 2020 if the proposal passes.
“Fiscally, I think it makes sense. Does it make sense from a retirement perspective and from a political perspective on how that impacts retirees? That will be a discussion they’ll have to have as a council,” said Walker.
The Bryan City Manager’s office plans to bring an ordinance to the city council meeting at the beginning of August.