In its budget, which was passed on May 8, the House included a 3% COLA in its $986 million pension liability fund line item. This was an increase of $52 million over the governor’s pension line item, which also included a 3% COLA.

Since the Senate has included a 3% COLA in its pension line item, the COLA will be in the final version of its budget which is now being debated in that branch.

Because the House and Senate budgets differ in several areas, including funding for the controversial “clean elections” referendum, it is anticipated that a House-Senate budget conference committee could go well into the summer before reaching final agreement.

In the event that the budget is not passed in time for the July COLA increase, it would be paid retroactively in a later check. This has happened in the past and your Association does not consider it to be a problem.

Meanwhile, we are closely watching our 104 city, town, county and authority retirement boards who are voting on a 3% COLA for members of their retirement systems. Under Chapter 17, our 1998 legislation, each of these boards has full autonomy on COLAs without requiring local government approval.

At this juncture, 96 boards have approved a July 3% COLA and most of the remaining boards are expected to do so prior to July 1. Here is a listing of the boards that have approved the COLA.

Members must have been on the pension rolls prior to July 1, 2000 to be eligible for this year’s COLA. Members retired since July 1, 2000 and prior to July 1, 2001 will be eligible for next year’s COLA.

No Change In Base... Yet

The $12,000 base is still in effect. Legislation (H335), that would raise that base to $20,000, continues to be reviewed by the Public Service Committee. Some data on the cost has been forthcoming from PERAC, the state’s pension oversight agency.

“The Committee has been under pressure to hold the line on pension costs, while at the same time we have been pressuring them to agree on a higher base,” said Association President Ralph White.

“In any event, this is a two-year session and whatever the Legislature finally approves wouldn’t take place before next year. We are not attempting to increase the percentage (3%) at this time, even though the consumer price index was 3.4% under Social Security this year. In ‘99 and 2000 our 3% COLA was well ahead of the CPI. If the CPI stays above 3% we’ll tackle that issue, but since we did agree on three percent with the Legislature in order to escape from the 1.3% CPI of ‘99, this is not the time to make a move.”