| COLA Base Update |
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JANUARY 2006
- Association officials continue to work closely with the Joint
Committee on Public Service to draft legislation raising the COLA base
to a higher level in 2006.
In October, the Public Employee Retirement Administration Commission (PERAC) issued a report calling for an increase in the current $12,000 COLA base to a level of $16,000. This comprehensive report was the result of more than a year of analysis. Public Service Chairmen Rep. Jay Kaufman (D-Lexington) and Senator Patricia Jehlen (D-Somerville) are expected to request further financial data from PERAC that will show how the cost of raising the base can be absorbed into the state's pension funding schedule. A modest increase in the base of $4,000 would result in an additional cost of $100 million a year. "We anticipate that Public Service will be ready to advance a bill raising the base early in 2006," said Association President Ralph White. "Once the funding data come back, they will be able to focus on drafting an actual bill." |
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