Bucks, Montgomery counties say no pension bump for retired employees

Retired Bucks County employees will not receive a cost-of-living increase in their pensions this year because the county can’t meet the 8.1% required by the state.

“We are all aware that inflation has caused the cost of living to rise and we appreciate the challenges our residents and pensioners are facing,” a letter sent to retirees states. “Unfortunately, state law limits us to only providing a cost of living increase that exactly matches the state’s determined cost of living rate. This year, the Cost of Living Adjustment (COLA) was determined to be slightly over 8 percent which equals to over $37,000,000.”

Rick Hopkins of Doylestown is a Bucks County pensioner who worked for the county for 35 years.

The letter, dated Dec. 28, is signed by the Bucks County Retirement Board. Its board of trustees is comprised of the the three Bucks County Commissioners ― Robert Harvie, Diane Ellis Marseglia and Gene DiGirolamo ― as well as county Treasurer Kristian Ballerini, and county Controller Pamela Van Blunk.

The county does not have to give a COLA increase to its 1,830 pensioners, but if it does it must be based on the rate determined by the state.

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“The board is urging pensioners to contact their state senators and representatives to ask that they change the law to allow county governments more flexibility in determining COLAs,” said county spokesman James O’Malley.

Rick Hopkins of Doylestown who retired about five years ago after 35 years of service to the county, most recently in the Central Supply Department, said he is concerned about the county’s decision.

“If they don’t have the money, it’s not my fault. I feel it’s partly their poor planning,” he said.

On Dec. 21, the county approved its 2023 operating budget of $458.4 million and a total budget including special revenues from other sources at $735.8 million. The budget has a fund balance of $51.8 million in reserve. It does not call for a tax increase this year.

Montgomery County also is facing a similar issue with its pension plan.

“Montgomery County will not be providing a cost of living increase in 2023 since currently our pension plan is not fully funded on an actuarial basis. However the commissioners have taken steps to fully fund the employee pension plan and remain committed to that effort,” said Kelly Cofrancisco, county spokeswoman.

This article originally appeared on Bucks County Courier Times: Bucks, Montgomery don’t plan to provide pensioners with COLA increase