|
Cola Eligibility: How It Works |
|
|
|
|
JULY 2000 -
Retirees or survivors who were receiving a pension prior to July 1,
1999 are eligible for the July, 2000 COLA. Members who retired between
July 1, 1999 and June 30, 2000 will be eligible for the July 2001 COLA.
The
$12,000 COLA base remains in effect. The 3% is applied to the first
$12,000 of any pension, meaning that it will be applied to the entire
pension if under $12,000 and to $12,000 of any pension over that
amount. Under this formula the maximum increase will be $360 or $30
monthly.
Our Association is
committed to seeking a higher base. Because a raise in the COLA base
will require a major change in the funding schedules that retirement
systems were required to adopt in order to address the huge unfunded
liability that was facing our state and local government, this will be
a daunting challenge.
Fortunately, as you can see by our "banner year" article,
recent pension fund investment returns have been greater than
anticipated, thus closing the unfunded liability gap at a very rapid
pace. We remain optimistic that our goal or a higher base will be
reached in the next two-year legislative session.
|
