November 4, 2025
Finance Department
DATE: November 4, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Emily Combs, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manager
SUBJECT:
Annual Cost of Living Increase for Recipients of the
General Pension Fund in 2026
FINANCIAL IMPACT: The requested five percent (5%) cost-of-living increase is three percent (3%) greater than the minimum required
adjustment of two percent. The incremental expense
during the calendar year 2026 of the additional three
percent (3%) would be $5,808.37. Funding is available
within the General Pension Fund for this increase.
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
Participating members of the General Pension Fund have
requested that the City Council adopt a resolution
approving a three percent annual cost of living increase, in addition to the two percent minimum cost of living
increase, for the pensioners in the program. Adoption of the resolution will authorize a total annual cost of living increase of five percent for these recipients.
RECOMMENDED ACTION:
ADOPT a resolution approving a three percent (3%)
annual cost-of-living increase, in addition to the two
percent (2%) minimum cost-of-living increase, for the
recipients of the General Pension Fund, for a total annual cost of living increase of five percent (5%) for these
recipients – Finance Department (Emily Combs 510-620-
6740).
AGENDA
REPORT
November 4, 2025
DISCUSSION:
The City of Richmond General Pension Fund (the “Fund”) was established for the pension payments of all regular, non-safety retirees of the City of Richmond, who were employed before July 1, 1953. The Fund is now “closed,” meaning all members are now retired and receiving pensions. These retirees do not receive a pension from the California Public Employees’ Retirement System (CalPERS) and do not receive post-employment medical insurance reimbursements from the City. The first pensions were calculated as 50 percent (%) of their annual salary at the time they retired.
There are currently 2 retirees receiving pensions, with an average age of 93.5, and an average monthly pension of $8,067.19.
On November 6, 1984, the voters of the City of Richmond approved Charter Amendments “K” and “L” providing a two percent minimum cost-of-living increase or adjustment (COLA) for the recipients of the General Pension Fund, commencing January 1, 1985, and authorizing the City Council to increase the recipients’ annual pensions by an additional three percent (3%) commencing January 1, 2000. Since January 1, 2000, the City Council has annually approved the recipients’ request for the additional three percent (3%) increases for a total of five percent annually.
Participating members of the General Pension Fund have requested that the City Council adopt a resolution approving a three percent (3%) annual cost-of-living increase, in addition to the two percent (2%) minimum cost-of-living increase, for pensioners in the program for 2026. Adoption of the resolution will authorize a total annual cost-of-living increase of five percent (5%) for these recipients as requested.
DOCUMENTS ATTACHED:
Attachment 1 - Resolution Approving 2026 Annual Cost of Living Increase