San Francisco supervisors propose charter amendment for retirees' cost of living benefits

A pivotal charter amendment aimed at restoring supplemental cost of living benefits for San Francisco retirees took center stage during a recent government meeting. Authored by Supervisor Asha Safaei and co-sponsored by Supervisors Mandelmann and Melgar, the amendment seeks to eliminate the full funding requirement that has restricted these benefits for retirees who left the workforce before November 6, 1996.

For years, retirees had relied on these supplemental benefits, which were initially established by voters in 2011. However, a court ruling in 2015 deemed the full funding requirement unconstitutional for those who retired before 1996, effectively stripping them of benefits they had received for over a decade. This amendment aims to rectify that injustice by allowing these retirees to receive cost of living adjustments even in years when the retirement system is not fully funded.

Supervisor Safaei emphasized the urgency of the amendment, highlighting that nearly 70% of affected retirees earn less than $50,000 annually and many are in their late 70s and 80s. "To have a benefit taken away is unjust," he stated, underscoring the need to support those who dedicated their lives to serving the city.

The financial implications of the amendment were also discussed, with the controller's office estimating an annual cost of approximately $15 million for the next five years. This includes $9 million from the general fund and $6 million from the retirement system. The amendment does not include retroactive payments for lost benefits but aims to adjust future payments to account for the missed cost of living adjustments.

As the meeting progressed, support for the amendment grew, with several supervisors expressing their commitment to restoring these vital benefits. The amendment is seen not only as a financial adjustment but as a moral obligation to honor the contributions of the city's retirees. The next steps involve further discussions and public comments before the amendment can be finalized and implemented.