Articles about the Cost of Living Adjustment (COLA) that may be useful to Massachusetts retirees
COLA Base Increase & Retiree Benefits Included
NOVEMBER 4, 2011: Phase III of Pension Reform has now passed the House with a unanimous vote to further alter the public pension benefit structure for future employees. In addition to future benefit changes (affecting those first hired on or after July 1, 2012), the House plan seeks a series of benefit enhancements for current retirees.
Association Urges COLA Inclusion
SEPTEMBER 2011 Voice: Determined to act this year on what might prove to be a generational change in our public retirement formula, Legislative Leaders are now drafting legislation that would serve as the third major pension reform measure passed in as many years.
Increased State & Teacher COLA Base Considered
SEPTEMBER 29, 2011: House leaders are eyeing mid-October to begin debate on the latest proposal to further reform the state's defined benefit pension plan. Earlier this month the Senate overwhelmingly passed S2018, which would bring about major changes to retirement benefits of employees hired after January 1, 2012.
Newburyport News Editorial
Bottom line for the pension reform bill currently before the Legislature: Since changes would affect only those hired into government service after Jan. 1, 2012, anyone offered employment with the state who felt they could get a better deal elsewhere would be free to turn the job down.
Boston Globe Editorial
MASSACHUSETTS NEEDS another round of public-pension reforms. Though Beacon Hill has made progress in curbing the worst abuses of the system, public-pension systems still have billions of dollars more in liabilities than they have money to pay for them. Bond rating agencies have made it clear that unless Beacon Hill comes to grips with the problem, the Commonwealth's ability to borrow money will suffer. And while the bill that cleared the Senate Thursday will help in several important ways, it also exacerbates the problem in others.
State/Teacher COLA Fight Shifts To House
SEPTEMBER 16, 2011: Yesterday, the State Senate passed its version of Pension Reform (S2010), closely resembling Governor Patrick's reform legislation, which he filed with the Legislature this past spring.
Mass Taxpayers Foundation Report
In a presentation to PERAC's Emerging Issues Forum and a letter to state senators, the Foundation highlights the urgency of passing legislation to reform the pension system for state and municipal employees.
JANUARY 2011 VOICE: Six intrepid local retirement boards have broken the ice which had restricted the pension COLA base to $12,000 since 1998 - twelve years ago. This change in the law, which allows a higher base option, was made possible by the passage of Chapter 188 of the Acts of 2010, enacted by the Legislature and signed by the Governor this past July. The new law also allows boards to extend their debt funding schedules to a maximum date of Year 2040, in order to reduce annual appropriations by their community or county.
Patrick Approves Landmark Law
SEPTEMBER 2010 VOICE: Governor Deval Patrick approved the Association's proposal that will allow local retirement systems to incrementally increase the COLA base beyond the current $12,000 level.
This marks a major breakthrough in the state's COLA policy that will have a lasting impact on all public retirees. A similar plan to increase the base for state and teacher retirees will be addressed early next year, along with the revaluation of the Commonwealth's pension funding schedule.
Anything But Routine 2010
SEPTEMBER 2010 VOICE: There was nothing routine about the 2010 state and teachers 3% COLA. Beginning with a misstep, in which the governor did not include the COLA authorization language in his FY 11 budget proposal, the passage of the COLA remained uncertain until the budget was signed on June 29.
While the House of Representatives did include authorization for the full 3% COLA within their April budget, the Senate did not include the measure when they took up the budget in May.
Since 1968 the Retired State, County and Municipal Employees Association has been the leading voice for Massachusetts public retirees and their families. Join with our 52,000 members as we continue the fight.
