State Budget Deal Reached

State Budget Deal Reached

3% State & Teacher COLA Retroactive to July 1

JULY 18, 2018: House and Senate budget negotiators have reached agreement finalizing the $41.88 billion FY19 State Budget. Both branches of the legislature approved the budget today. Governor Charlie Baker now has 10 days in which to review the document, before taking executive action. 

In passing the budget, the legislature has approved a full 3% COLA on a $13,000 base for State and Teacher retirees, who retired prior to July 1, 2017.  

While the COLA will be retroactive to July 1, it appears likely that the payment will first appear in the August pension check – paid at the end of August. The likely delay is due to the fact that the budget will not be signed by Governor Baker until late July, leaving little time for the State and Teacher Retirement Systems to include the new COLA in the July check.

COLA payments made to local retirees are governed and funded through local retirement systems, all of which approved FY19 COLA payments prior to June 30th.