Demorest approves richer city retirement formula, committing $36,000 more a year

Demorest City Council voted unanimously June 2 to increase the retirement-benefit multiplier in the city’s Georgia Municipal Employee Benefit System plan from 1.5 to 1.75. The 4-0 decision follows a cost study reviewed by officials that day and is projected to add $36,000 in annual expense beginning Jan. 1, 2027.

The action changes a component used to calculate retirement benefits for city employees, making it both a compensation decision and a recurring budget commitment. For current and future employees covered by the plan, the higher multiplier means a more generous benefit calculation; for the city, the study’s estimate places a new annual cost in budgets beginning in 2027.

Council members had considered a broader set of retirement-plan changes in March, when a retirement representative outlined raising the multiplier to 2%, adding a Rule of 75 option, or adopting both. The combined option was estimated to add 5.82% of payroll annually. By May, the discussion had narrowed to a 1.75 multiplier, but the council postponed a decision so staff could prepare a cost study. That study became the basis for the June vote rather than the earlier, broader alternatives.

The council’s recorded position was unanimous support for the 1.75 multiplier after reviewing the study. City staff’s role, as reflected in the May action, was to complete the cost analysis before the council decided. The retirement representative who spoke in March presented possible plan designs and estimates, but the minutes do not record a separate public position from employees, residents or other groups on the final 1.75 change.

The 1.75 multiplier is an approved council action, not a proposal, and the recorded cost estimate is $36,000 annually starting Jan. 1, 2027. Officials also discussed a possible increase to 1.8, which the study said would add another $4,000, but that was not the action approved. The council minutes establish the vote and projected start date; they do not show that a plan-amendment agreement has been completed or that the revised calculation is already in effect.

The next concrete public marker would be city or GMEBS documentation showing adoption of the amendment and implementation before the Jan. 1, 2027 effective date. It remains undecided in the public record when that paperwork will be completed and whether the city will announce additional implementation steps before the added annual cost begins.