A public hearing was held at a recent City Council meeting to hear retirees’ and city employees’ comments on reintroducing a cost of living adjustment (COLA) to the TMRS benefits.
In 2009, the city of Garland had to opt out of COLA for retirees because of the recession. In 2023, House Bill 2464 allowed cities to opt back into COLA without having to pay the “catchup” funds.
City Manager Judson Rex explained that it had been a challenging time for the city because of the recession. He said that property values were declining, and the pension and TMRS liability was increasing. It was a decision that the city was forced to make.
The city is committed to check on the possibility of restoring COLA, but it isn’t only the costs on the budget, but also on the effect on the bond rating.
“It’s a complex issue, and one that impacts not just the city, but employees, past, present and future,” Rex said.
More than 10 current and retired Fire Department and Police Department employees addressed the City Council and explained why they believe that COLA should be reinstated.
Retirees’ and employees’ comments include:
- Retirees’ insurance premiums increase, but net pay decreases because of inflation.
- The city not offering COLA affects its ability to recruit for police, fire and other departments.
- Retirees are having are experiencing financial difficulties in keeping up with living expenses with no pay increases.
- One of the speaker knows of a retired city employee who is currently homeless, and others can’t afford to attend the monthly lunches because they can’t afford it.
- Inflation is increasing with no sign of slowing down.
- Employees have to work longer to increase retirement amounts so that they will be able to make ends meet. Many jobs, including police, fire, street, electric, are mentally and physically taxing. And the jobs become more difficult for the employees as they get older.
- Garland has a great group of employees who always step up, and that should be appreciated.
- Several of the speakers said that no one blames the current staff or City Council for this situation.
- Most of the speakers expressed appreciation that this matter is being looked at.
Former Garland City Manager Bryan Bradford said that when he learned that the COLA issue was going to be discussed, he knew he had to attend the meeting. He was employed by the city in a management position when the Texas Municipal Retirement System (TMRS) began having problems like all pension systems were having.
Bradford said that the day the COLA benefit was discontinued was one of the worst days in his 30-year career with the city of Garland. He knew at the time that there was no alternative, but at the same time, it felt like a “promise was being broken.” Retirees had made decisions based on COLA being there.
He never thought that an opportunity to reinstate the benefit would come. He added that now the city has a chance to restore the retirement system back to “something that brings stability and security to our [city of Garland] retirees.”
His hope is that they city will make a decision to undo a “very, very dark period in this city’s history.”
Mayor Scott LeMay said that these discussions are ongoing and added that he appreciates what all employees do for the city.
“I care very deeply about our employees because I live here…I am a citizen of this city, so I appreciate what you do for us and I appreciate what you’ve done for us if you are a retiree,” he said.
LeMay added that this is a sensitive and emotional topic that is stressful for everyone.