Concord (Mass.) Contributory Retirement System may have to re-examine its asset allocation if city lawmakers approve paying retirees up to a 3% cost of living adjustment.
The action is expected to come at an April 27 meeting, said Anthony Logalbo, town treasurer.
The $45 million fund also might have to examine the implications of this change on funding status, he said.
Until now, the state picked up the COLA tab for all state and local pension systems. But a law passed last June allows the state to pass on COLA costs to local pension systems.
The current COLA is 2.1% on the first $12,000 in pension benefits.
The system currently has 50% of its assets in equities, including about 8% in international stocks.
The other half is invested in fixed income.
It is between 90% and 95% funded, he said.
