County Retirement Board Votes 5% Staff COLA
PITTSFIELD, Mass. — Berkshire County Retirement Board voted to set the cost-of-living adjustments at a 5 percent increase during its meeting on Wednesday morning.
The Berkshire County Retirement System conducted a salary survey that recommended a COLA of 7.1 percent.
The COLA policy that the board previously approved was calculated between 2.5 to 5 percent but the board has the discretion to approve above that calculation in certain circumstances, Executive Director Sheila LaBarbera said.
Staff looked into comparable positions for retirement coordinator in Western Mass, including Lowell and Lawrence because they are the two most economically depressed areas in the state of Massachusetts, LaBarbera said.
What their findings showed is that the average salary for a retirement coordinator is $63,000. The average for employees just starting out is averaged at $55,000 to $60,000. Berkshire County staff are currently at $55,500.
"So basically, [Brian Shepard and Jill Hersey] have only had a $500 raise in the last 14 months since they've been here," LaBarbera said.
"And I think that the 5 percent, which is relevant to the COLA policy that you approved, the 2 percent would actually just give them a bump, to help them come more in line with the people who are doing the same jobs as they are implemented fairly."
Members of the board noted that a year ago they hired the coordinators on the higher end of the salary scale.
When LaBarbera explained that they did not do a comprehensive salary survey at the time of hiring, board members asked where the numbers for their current salary came from. LaBarbera responded that the board "made them up."
"Well, we had numbers and then they were added to because they seemed low so I think there was a substantial increase at the time," Chairman Michael Ovitt said.
He also noted that they were not discussing salary comparisons and raising the salary but were talking about the cost of living.
"We're below the cost of living. The cost of living is 7 percent. So at 5 percent, we're behind. That doesn't even make up for probably what we'll see in health insurance increases and things of that nature," LaBarbera argued.
The board had previously voted to cap COLA at 3 percent on the first $14,000 for retirees so if they were to raise the cap for staff, they would also have to raise it for retirees to be fair, Bashara argued.
LaBarbera has been with BCRB since 1996 and compared how her salary is one of the closest in Western Mass based on how much experience she has.
"[Administrators in other areas] are all about making what I make with one year of service. The difference is about $3,000. So, it speaks for something, again, almost, if not close to the lowest, one of the lowest paid administrator," LaBarbera said.
"I can't speak for the other members … but the fact that we're not even sure if we can get them an extra 2 percent and if we do, that's 5 percent and that's only based off of $14,000," Bashara said.
"Once again, that's not on you but I also feel that I'm here to advocate for the retirees. So I try to look at what's a good compromise in the middle. So that's why I recommended the maximum of our cap."
He added that he understood what she was saying but that if they were to go based on that they would have an "astronomical figure."
"I'm going to be honest, I feel like for a long time, we've had more discussion about staff, nothing bad, just things we've discussed, than we have about the retirees and I really want to start focusing on retirees, and with what we can do for them, what we can accomplish," Bashara said.
"So to me, that's why I made the motion. It's a reasonable compromise. Is it exactly what everybody wants? No, but to me, it's the best we can do to at least keep us not going backwards."
Some board members agreed with Bashara while others expressed how they felt 5 percent was higher than they would like but agreed to vote for the approved cap.
"I'd like to say something, so you want fair, which I understand but I think everyone has a different perspective on that," Karen Williams said. "And so what I have to offer to this as a collector treasurer, in Stockbridge, I was making $60,000 a year. I'm like borrowing and I just think it's a whole different level of responsibility compared to Jill and Brian. I agree with Mark that 5 percent I think it's fair."
The board voted for the 5 percent increase on the cost of living increase with four in favor and one abstaining.
Tags: cost of living, retirement board,
