JANUARY 2001 - Fifteen Bills in 2001 Legislative Package - As is the custom at the end of an election year, the Association has filed a new legislative package to be considered during the coming two-year legislative session, which begins on January 3, 2001. The fifteen bills contained within the package represent a comprehensive overview of the many issues affecting our members.

The COLA legislation marks a turning point for the Association. For many years the Association has held firm in its belief that the law governing the COLA needed to be uniform for each of the 106 retirement systems. When Chapter 17 (Acts of 1997) was passed, it marked one turning point in the COLA evolution, by placing the COLA in the hands of each local retirement system.

While the Association is proposing a fixed base of $20,000 for state and teacher retirees, something slightly different is being considered for local systems. Due to the varying ability of the local systems to pay COLAs above the current $12,000 base, the bill allows each system's retirement board the discretion to establish a base in excess of $12,000.

Each of the 104 local retirement systems differs when it comes to their ability to afford enhanced pension benefits, such as raising the base. There are local systems that cannot yet afford to pay COLAs on a base as large as $20,000, while still a handful of others can afford a base higher than $20,000.

"In an effort to provide increased COLA benefits to our members, we decided that the time had come to allow for each of the local systems to establish a base that fits the local conditions," explains Association President Ralph White. "We did not want to set the standard base too high or too low. By allowing the local retirement boards a little discretion, it enhances the ability for larger COLAs."

As was the case with the adoption of Chapter 17, any change in the local COLA base will require initial acceptance by the local legislative body. This means the city council, town meeting, county or regional retirement advisory council, and the district or authority governing body for each respective retirement system. Prior to any changes being made to the base, an actuarial study would need to be completed in order to incorporate the new base into the pension funding schedule.

"It should be made clear that all other provisions within Chapter 17 will continue to remain intact. We will not support any changes that would alter the process by which the COLA is granted or allow for COLAs not to be included as a permanent part of the base pension."

Beyond the cornerstone that is the COLA, the Association has filed fourteen other bills covering a wide range of issues. All members from survivors, to veterans, to disability retirees, and superannuation retirees are covered by one or more of the bills contained within the package.

Once the Legislature convenes for the new session in January, each of our bills will be assigned to a committee, most likely Public Service, for a hearing and evaluation. Public hearings will begin by late February and continue until early summer. After the hearing takes place, the committee will decide what action to take on each bill.

"There really is something included within the package impacting every member. We have always made it a point to represent everyone equally and this year is no different," said Association Legislative Liaison Shawn Duhamel.

"It is important for members to note that this is just the beginning of a two year session. While we want to pass each bill as quickly as possible, the process takes time."