PATRICK BACKS 3% STATE/TEACHER COLA

Local Acceptance Now Underway

 

JANUARY 30, 2009: Governor Deval Patrick has included a 3% COLA increase in his FY 2010 budget proposal. The COLA, which will take effect on July 1, now must be approved by the House and Senate as part of the budget. If passed, this marks the thirteenth consecutive year in which a COLA has been granted by the state.

Retirees, who retired prior to July 1, 2008, will be eligible to receive this year’s increase. State law has long required that a retiree must be retired for a full fiscal year prior to being eligible for the increase.

As members are aware, the 3% COLA is based on the first $12,000 of a retiree or survivors pension. Retirees receiving the maximum annual increase of $360 a year will have seen their pension grow by $3,600 over the past ten years, when the base was raised to its current level with a full 3% increase paid.

To date, approximately 45 local retirement boards have also voted to grant the full 3% COLA this coming July. The remaining local boards are expected to enacted the increase over the coming months.

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