Cost-of-Living Adjustment (COLA) to 2022 Pensions: Update
Following up our previous communications regarding the cost-of-living increase (COLA) to be applied to the IDB Group international pensions in 2022, please find below a more detailed report on the actions taken by the Association to date.
As you may recall, on December 22, retirees and beneficiaries of the International Staff Retirement Plan (the “Plan”) received a communication from the Pension Plan Secretariat, who informed us that a COLA of 5% would be applied as of January 1, 2022.
The Association carried out a detailed analysis of the provisions of the Plan and concluded that the rules of the Plan require payment of a 6.81% COLA increase. This analysis was conducted with the assistance of a law firm with actuarial professionals and expertise in defined-benefit pension plans like ours.
On March 29, 2022, in a letter from President Isabel Larson, the Association shared with the Plan Secretariat the conclusions and details of our analysis. The letter emphasizes the need to apply the provisions of Article 15 of the Plan in accordance with the fundamental principle that the Plan should operate solely in the interest and benefit of the plan participants. The letter also expresses our concern and that of our members on this issue and reiterated our openness to continue the dialogue with the Secretariat and the Bank.
We have requested that this issue be discussed at the next meeting of the Plan’s Managing Committee. Today, we received a letter from the Plan Secretariat informing us that the analysis has been shared with the rest of the members of the Plan’s Managing Committee and that it will be considered at their next meeting, scheduled for the morning of April 20th, 2022.
We will continue to follow up closely and proactively on this critical issue. The Association takes seriously its mission of promoting the rights and interests of all retirees, both members and non-members. We invite you to participate in our Annual Meeting, next Wednesday, April 20, 2022 at 15:30 (EST) at which we will answer your questions on this topic.
IDB Association of Retirees