City of Gadsden retirees, beneficiaries to get one-time bonus: 'A good thing for our retirees'

Donna Thornton, The Gadsden Times
·2 min read
‎

City of Gadsden retirees and beneficiaries will get a one-time lump sum bonus in October, paid for by the city through the Retirement Systems of Alabama, after its approval by the Alabama Legislature in the last session.

The bonus will total $2 per month for every month of service. Finance Director Lisa Rosser said the total for an employee with 25 years of service would be $600. She indicated the state approved and the city paid a one-time bonus for retirees in 2018, but there have been no bonuses for them since then.

"This is obviously the only way retirees are going to get a raise," she said during this week's City Council meeting. "This is definitely a good thing for our retirees." It will cost the city $251,624, to be paid to the RSA for distribution to retirees.

Previously: Five things the Gadsden City Council dealt with this week

More from Donna Thornton: Suit alleging Open Meetings Act violations by Gadsden Airport Authority to proceed

Rosser said the city had the option of paying a lump sum to RSA or increasing its retirement payments by 1.5%. She said the cost of the increase would be more than the one-time payment. For financial reasons, she recommended the lump sum payment.

Council members agreed when discussing the issue, but Deverick Williams questioned Rosser about whether the city had any notice that the expense was coming. Rosser said she didn't know about the legislation until after it was approved.

Williams indicated some contact from the local legislative delegation would have been welcome before the legislation was passed. Rosser acknowledged prior knowledge would have allowed the city to budget for the expense, rather than amending the budget to transfer undesignated funds to cover the payment.

The council approved the measure authorizing the payment Tuesday, with council members Johnny Cannon and Thomas Worthy abstaining from the vote.

Cannon retired from the city's Public Works Department and Thomas Worthy retired from the Gadsden Police Department. Both receive retirement from the city and abstained because the vote affected them.

Contact Gadsden Times reporter Donna Thornton at 256-393-3284 or donna.thornton@gadsdentimes.com.

This article originally appeared on The Gadsden Times: City of Gadsden OKs one-time bonus for retirees, coming in October