For example, the fact that our members are receiving a three percent COLA each year can largely be attributed to Finneran’s efforts back in 1997.

Prior to 1997, there had been a serious drought on the state’s ability to pay COLAs to its retirees. Earlier, in the wake of Prop 2 1/2 in 1980, the state picked up the cost of local government retirees’ COLAs. However, beginning in 1989, the Legislature and Governor had granted only three COLAs over a nine-year period. The cost of paying for local COLAs was adding over $100 million yearly to the state’s (state & teachers) unfunded pension liability.

“Everyone was a loser, state and local retirees alike,” said Association President Ralph White. “Working with Tom Finneran, we were successful in enacting 1997 legislation, (Chapter 17), which beginning in 1998, has allowed county and municipal retirement boards to vote each year on 3% COLAs on a new $12,000 base (formerly $9,000), while the Legislature, relieved of the fiscal responsibility for new local COLAs, voted each year for state and teacher retirees.”

“It wasn’t an easy win. The Mass. Municipal Association and the Mayors’ Association lobbied strongly against the enabling legislation. But Tom Finneran and his Majority Leader Sal DiMasi prevailed after a lengthy floor battle in the House.”