John Breguet

Date
2024-01-19

SUBMISSION OF ADVOCATES FOR COLA RESTORATION AND PENSION RELIEF TO THE PENSION ADVISORY WORKING GROUP.

The Advocates for COLA Restoration and Pension Relief submit the following proposals for the Pension Advisory Working Group to consider:

  1. Immediate restoration of annual 3% compounded Cost of Living Allowance for all retirees regardless of retirement date (See presentation of Mr. Sgouros and supporting Studies at the 14 December 2023 hearing PAWG hearing)
  2. Utilizing data developed in the January 13, 2024 RIPEC position paper (3% increase per year for the next four years), an equally conservative revenue projection anticipates a cumulative 30% increase in state revenues over the next ten years.  (N.B.  sales, income and most other state taxes are inflation protected.)  This guaranteed revenue stream would easily support a commensurate ARC increase, which would restore the pre RIRSA, 3% compounded annual COLA.
  3. Delay funding for any new programs until the retirement fund is funded at an 80% level. 
  4. Eliminate any caps on the annual COLA amount that may be received by individual retirees.
  5. Eliminate the minimum age for retirement.  In the alternative, reduce the combination of age/years worked to 85. 
  6. Base retirement benefits on pensioners’ 3 highest years of salary.
  7. Exempt all retirement income from State income tax.
  8. Calculate the impact of all proposals/“solutions” on the current 35% decrease in benefit value.
  9. Use Pension Obligation Bonds to Fund COLA Restoration as was reportedly being explored by former Senate President Montalbano.

Submitted via email