Pension payments increased for Groton City retirees

Groton - The City Council approved a cost of living allowance for pension payments to City of Groton employees who retired after 2007.

The city retirement board reviews the pension payment annually to determine if a COLA increase is in order for retirees beginning with their third year of retirement. City Mayor Dennis Popp said the practice began in the early 1990s, when automatic adjustments had been stopped.

The COLA is calculated using the annual Consumer Price Index published by the U.S. Department of Labor. It is based on 25 percent of that number, or 1.5 percent per year, whichever is greater. The adjustment was necessary so that people who retired before 1990 and those who retired up until December 2007 would enjoy the same COLA.

Popp said employees who retired in 2006 did not receive an increase last year because the CPI went down.

Hide Comments

READER COMMENTS

Loading comments...
Hide Comments