Pension Commission evaluates COLA adjustments for retirees amid budget constraints

Wilmington's City Treasurer addressed critical budgetary discussions during the FY2026 Budget Hearings on April 16, 2025, focusing on pension fund management and potential cost-of-living adjustments (COLAs) for retirees.

The Treasurer highlighted that while the city oversees a substantial pension fund of $345 million, there is currently no budgetary mechanism in place to provide COLAs for retired pensioners. Unlike active employees who may receive annual adjustments based on performance, retirees do not have similar provisions. However, the Pension Commission, which meets quarterly, is tasked with reviewing the financial health of the city to assess the feasibility of any potential COLA increases. Notably, the commission has not recommended any COLA adjustments in the past decade, indicating a cautious approach to managing the city's long-term financial obligations.

In addition to pension discussions, the Treasurer mentioned ongoing evaluations of the pension manager position, emphasizing the need to redefine its role to better align with future operational goals. This reflects a broader commitment to ensuring effective management of the city's financial resources.

As Wilmington moves forward with its budget planning, the implications of these discussions will be closely monitored by both city officials and residents, particularly those relying on pension benefits. The next steps will involve continued assessments by the Pension Commission and potential adjustments based on the city's financial outlook.