Retirees will recall that Cellucci failed to include such language in last year's budget, but the House and Senate came through on behalf of retirees when they enacted the budget - a budget that was ultimately signed by the Governor.

The $934 million state and teacher retirement line item in this year's budget contains sufficient funds for a 3% COLA, even though the long-range pension funding schedule calls for a $1.050 billion appropriation. It is not known what the House and Senate will do about the difference, but we are confident that both branches will concur on the COLA figure.

Local Boards Begin COLA Process

Local retirement boards are now beginning the process of voting on new 3% COLAs to be paid this July, a vote that can be taken anytime prior to July.

The Plymouth County Board voted for a new 3% COLA at its November 2000 meeting on behalf of members of the Plymouth County Retirement System. Plymouth County was the first board to take such a vote. Several boards voted in January including: Haverhill, Newton, Salem, Cambridge, Adams, Woburn, Winchester, Bristol County, Fairhaven, Watertown, Arlington, Plymouth, Swampscott, and Lawrence.

"We achieved our goal in passing a law that puts the COLA vote in the hands of the local retirement boards rather than the local governing authorities. To require local retirees to go before their city council or town meeting seeking a COLA each year would have been an annual nightmare," said Association President Ralph White.

"Last year was the first year that the boards could vote to pay a full 3% rather than the lower consumer price index figure. All but a few boards voted to do so. Since this year's CPI (consumer price index) is greater than the 3% COLA limit, I would be shocked if any board failed their retirees."

Retirees or survivors who were on the pension rolls prior to July 1, 2000 are eligible for this July's COLA. Members retired since that date will be eligible for the July 2002 COLA.