With the state recovering from a $3 billion deficit for the current fiscal year and another $2 billion shortfall predicted for the coming fiscal year, the Association had held dim hopes that any action would be taken on a new COLA base this year. Hope sprung eternal in November, when the Public Service Committee released SB 1453 with a favorable report.

The Committee, which is chaired by Representative Robert Koczera and Senator David Magnani, drafted language for the Committee itself to officially study the issue. This unusual move would create an official legislative report that will likely serve as a blueprint to raise the COLA base.

Currently, the base to which the COLA is applied is locked in at $12,000. In other words, a 3% COLA is applied to only the first $12,000 of a retiree or survivor's pension. As members are well aware, this has been the case since 1998, when the base was increased from $9,000.

Combining a number of bills under one number, SB 1453, filed by Senator Guy Glodis (D-Worcester), the Committee chose one vehicle to advance the issue and develop the cost analysis that is key to future action on any base increase.

"We have to address the COLA base, which at $12,000 is too low," said Glodis. "By drafting language that would raise the base in increments of $1,000 we can get a price tag on the increase in the unfunded liability at each level. This is essential to understanding what the increase in the annual pension appropriation would ultimately be."

"We moved from a $9,000 base to $12,000 in 1998, but have been stalled at that level since that time," explained Association President Ralph White. "The negative stock market returns have caused the unfunded liability to become a major obstacle. Our members understand this and have been very patient and understanding of the Commonwealth's fiscal plight. However, now is the time for the Legislature to cut us some slack by beginning to prepare for the next step."

As of press time, the bill had advanced to the Joint Committee on Rules, which is chaired by Senator Stephen Brewer (D-Barre) and Rep. Angelo Scaccia (D-Hyde Park). Both have been strong allies of public retirees and our Association.