Owensboro City Commissioners are expected to consider a 2.8% cost-of-living adjustment for retirees in the City’s two closed pension systems following a recommendation from both pension boards.
The 2.8% increase, which matches the Social Security rate set for 2026, would take effect with retirees’ first payment of the year.
Angela Waninger, the City’s director of finance and support services, said the boards overseeing the Police and Firefighters’ Retirement Fund and the City Employees’ Pension Fund each met and approved the adjustment, which has become an annual action as long as funding conditions allow.
“Annuitants typically get the same COLA as Social Security,” Waninger said, noting that Kentucky Revised Statutes govern COLA decisions for the police and fire fund while a City ordinance outlines the process for the general employees’ pension fund.
The City maintains two legacy pension plans that have been closed to new entrants for decades. Membership continues to decline each year as retirees age. The Police and Firefighters’ Retirement Fund has 18 remaining annuitants, down from 21 last year, while the City Employees’ Pension Fund has 10, compared to 11 last year.
The two plans differ significantly in financial health. The Police and Fire fund is defunct and now funded entirely by the City’s General Fund. The City Employees’ Pension Fund, by contrast, remains financially strong with healthy investment performance.
Last year, retirees in both plans received a 2.5% COLA, mirroring the Social Security rate set for 2025.
City leaders have emphasized the importance of continuing annual adjustments for retirees who spent their careers working for the community, even as the number of pensioners continues to shrink.
