No Change In GIC Premium Contribution

MARCH 2010 VOICE: Within Governor Patrick's version of the FY11 Budget, a 3% COLA (cost-of-living adjustment) for eligible state and teacher retirees was missing. In contacting the Governor's Administration and Finance Secretary Jay Gonzales, we were told that it was not the administration's intent to exclude the COLA and that an errata (correction) to the budget for a 3% COLA would be filed.

Under the current COLA law (Chapter 17), the 3% would be applied to the first $12,000 of a pension. If the FY11 Budget includes the COLA, eligible state and teacher retirees would receive it, beginning July 1.

As for local retirees, the number of retirement boards, adopting a new COLA, continues to grow each week. At press time, twenty boards have approved a 3% COLA.

"You can check either the Association's hotline or website to get an update on local approval of the COLA," according to Association official Nancy Delaney. "By this July, we expect to report that all 103 local retirement systems are on board with a new 3% COLA." Ed Note: The eligibility rules and maximum COLA Base, for state and teacher retirees, applies to local retirees.

According to the Governor's budget, state retirees, who have their health insurance with the GIC (Group Insurance Commission) will continue to contribute the same percentage toward their premium, based upon their date of retirement. That means: 10% for retirees, who retired before July 1, 1994: 15% for those retiring on/after July 1, 1994 and before February 1, 2010; and 20% for retirees whose date of retirement is on/after February 1, 2010.