As soon as the budget is passed and signed by Governor Cellucci, the State and Teacher Retirement Boards will make a three percent COLA adjustment, retroactive to July, in the pension checks of retirees and survivors who were on the pension rolls prior to July 1, 1998.

Most city, town, county and authority retirement boards did increase the pension checks of their retirees by the 1.3% CPI this July. When the budget is finally passed, the enabling statutory language in the "outside section" of the budget will allow these retirement boards to also pay a 3% COLA retroactive to July.

As we reported earlier, these retirement boards must first receive approval from their governing authority (city council, town meeting, county retirement board advisory council, etc.). We expect that all retirees and survivors will eventually receive this retroactive increase, with the exception of members of the Hingham and Easthampton Retirement Systems whose boards have yet to accept the new 1997 COLA law.

The $21 billion budget has been on hold since June 21, while the longest budget negotiations in 24 years continue with no end in sight. Interim budgets have been passed for July and August and another will be forthcoming in September if an agreement has not been reached by that time.

Although delayed budgets have been infrequent in recent years, Beacon Hill veterans are blasé about the logjam. "I can recall the FY'76 budget not being signed until November." said Association President Ralph White. "Like this year there were major issues and neither side wanted to blink."

But unlike 1975 when the COLA was an issue in the '76 budget, the COLA is not an issue this year. "We've already won," said White. "Both sides have agreed on the three-percent language - that's what the governor will be signing. The delay is only a very minor inconvenience for our members, most of whom are well-educated on the legislative process."

White added that a special notice will be sent to all members as soon as the budget is signed. "We'll again clarify how the COLA law works, and when payments can be expected," he said.