In their respective budgets, which are now being finalized, both the House and Senate have agreed on a 3% COLA. The budget will require Governor Romney's signature, but Romney did include the 3% COLA when he submitted his budget to the Legislature in January.

Locally, 96 of our 104 city, town, county, regional and authority retirement boards have voted for 3% July COLAs, with the remaining boards scheduled to vote in June.

Unlike last year, we do not anticipate any remaining boards voting for a figure of less than three percent. "There have been a few individual board members who voted for a figure lower than three percent, but they have been outvoted in every instance," said Association President Ralph White. "And none of the dissenting votes have been by elected board members."

There has been no change in the COLA law, which is uniform to all retirement systems. The $12,000 base, which is the maximum to which the 3% can be applied, will not change this year. Members, who were on the pension rolls prior to July 1, 2003, are eligible for this year's COLA. Members retired since July 1, 2003 and prior to July 1, 2004 will be eligible for next year's COLA.

At press time, a House - Senate conference committee was meeting on a daily basis attempting to reach agreement on budget items where the two branches differ. When a final agreement is reached, the budget will be voted on by both branches, with no additional amendments allowed, and sent to the Governor.

Although the budget is a fiscal blueprint, it is also a bill and, therefore, was subject to amendments like any other bill. Of the hundreds of amendments that were offered during floor debate, only a small percentage survived in either the House or Senate budgets.

One successful amendment, a top priority with our Association, requires the Public Employee Retirement Administration Commission (PERAC) to explore alternative methods by which the $12,000 COLA base can be increased in an affordable manner.

PERAC's study, which will be submitted to the Legislature, will include the cost and actuarial liability associated with increasing the base from $12,000 to $22,000 incrementally by the thousand. In doing so, the Commission will provide alternative funding schedules which would reduce the unfunded liability to zero by 2028, 2034 and 2038, respectively. The Commonwealth's current funding schedule requires the state and teachers' unfunded liability to be reduced to zero by 2023, in effect closing the door on a higher base.

In addition, the Commission will provide assistance in developing similar schedules for the purpose of increasing the base at the request of any retirement board in the state.

"This will be the start of a comprehensive fiscal project to find alternative ways of increasing the COLA base," said White. "Our goal is to open the door for retirees of all the state's retirement systems to receive a COLA on a more realistic and affordable base.

"In seeking a higher base we are in no way deserting our many members who have pension smaller than $12,000, much smaller in some cases. We have always championed the little guy and will continue to do so."

"We must acknowledge Representative Bob Koczera and Senator Steve Tolman, the co-chairmen of the Joint Public Service Committee, who sponsored the COLA base amendments in their respective branches," said Association Legislative Liaison Shawn Duhamel. "In fact, we must thank the entire leadership team and members of both branches for their backing of this breakthrough legislation."