Breaking News

KERRY CENTRAL TO WEP/GPO DEBATE

2007 JULY - As the new chairman of the US Senate’s Subcommittee on Social Security, Bay State Senator John Kerry now finds himself in a pivotal role in the debate over the future of the federal retirement program.

COLA BILL ADVANCES TO SENATE

2007 JULY - $16,000 Base Would Be Indexed - In a bold move, the Joint Committee on Public Service favorably reported the Association’s marquis bill, raising the COLA base, to the Senate on May 14.The bill, now S2234, not only raises the COLA base for state and teacher retirees to $16,000, but also allows local retirement systems to increase the COLA base to any level above the current $12,000 by allowing for adjustments in the long-term pension funding schedules.

DISABILITY REEXAM BILL ADVANCES

JUNE 8, 2007: The
Joint Committee on Public Service favorably released H2510, which limits the
reexamination and reevaluation of disability retirees to the first ten years of
retirement. H2510 was filed by Representative David Flynn (D-Bridgewater) and
Senator Michael Knapik (R-Westfield) on behalf of our Association.

BUDGET WILL INCLUDE 3% COLA

MAY 29, 2007:   The Massachusetts Senate has completed its work on
the Fiscal-Year 2008 state budget, which includes a 3% COLA for state and
teacher retirees. While legislation is advancing that would create a higher
base in future years, the base for the July 2007 COLA remains at $12,000.

PUBLIC SERVICE COMMITTEE RAISES COLA BASE TO $16,000

May 11, 2007:
Marking the first important step, the Joint Public Service Committee, chaired
by Rep. Jay Kaufman (D-Lexington) and Sen. Ben Downing (D-Piffsfield) has
approved the Association’s centerpiece legislation, raising the COLA Base.

The
bill, now S1586, includes several Association proposals, most importantly,
raising the Base for state and teacher retirees to $16,000 and allowing local
retirement systems to increase their Base to any level above the current
$12,000, through adjustments in their pension funding schedules.

COLA ACCEPTANCE UPDATE

May 4, 2007: To date,
eighty-eight of the state’s 104 local retirement systems have approved a new 3%
COLA to be paid this July. With the remaining sixteen retirement systems
scheduled to vote in May and June, we are well on our way to having 100%
adoption of the 2007 COLA.

Madeline Sullivan Passes On

2007 MAY - Shortly before going to press, we received word that Association Secretary Madeline Sullivan had passed away after a lengthy illness.

Sullivan was a true pioneer of group insurance here in Massachusetts. In 1956, she was one of the first people hired by State Group Insurance Commission Director Bill Burke. Burke himself had just been appointed by Governor Christian Herter to head the new agency created in October 1955.

PATRICK BUDGET CONTAINS 3% COLA

2007 MAY - Governor Deval Patrick did not make the same mistake that former Governor Mitt Romney did in his first year as governor.

Flurry of Activity on Beacon Hill

April 9, 2007:  Legislative leaders in the Massachusetts State House
are now busy at work on a number of proposals that have a direct impact on
public retirees. Bills raising the COLA base, creating a new minimum pension
and allowing local retirees greater access to the state’s Group Insurance plans,
are now being closely considered.

LOCAL COLA VOTES UNDERWAY

March 27, 2007:   In
what has become an annual ritual of sorts, the state’s 104 local retirement
systems are now voting whether or not to pay the 3% cost-of-living-adjustment
(COLA) for 2007. By law, the approved increase would take effect on July 1.

State law requires each local retirement system to hold an
annual vote on that year’s COLA payment, which currently can be no more than
3%, based on the first $12,000 of one’s pension. Since the law changed in 1998,
granting local control over COLAs, very few systems have refused the annual
increase or paid below 3%.

Currently, fifty-two local systems havre approved a full 3% COLA for FY08. None have rejected or lowered the percentage.