Allows Local Base To Increase 

JULY 30, 2010: It may have been ten years in the making, but our Association's proposal that allows local retirement systems to raise the COLA base has been signed into law by Governor Deval Patrick.

The local option measure, which passed within the Municipal Relief Act (H4877), was signed into law this week as Chapter 188, Acts of 2010 . Once adopted locally, each retirement system will have the option to increase the local COLA base beyond the current $12,000 in $1,000 increments.

GLOBE SLAMS PROPOSAL

 JULY 21, 2010: Following weeks of intense negotiations, the House and Senate have enacted the Municipal Relief Act (H4877). The bill, which now awaits Governor Deval Patrick's approval, contains our Association's proposal to incrementally increase the local COLA base.

Despite our modest approach, that has been fully vetted and researched over the past decade, an editorial in the Thursday, July 15 edition of the Boston Globe slams the proposal and calls for the rejection of the bill.

Disability Survivors Increase Now Law

JULY 1, 2010: Governor Deval Patrick has approved the full 3% COLA increase for state and teacher retirees contained within the FY 2011 budget, which takes effect today. Eligible retirees (retired before 7/1/09) will see a monthly increase of up to $30 (3% of the first $12,000) in their July pension checks.

Association officials are also pleased that the governor approved the long overdue increase in the minimum pension for widows of disability retirees.  The law, which takes effect immediately for state and teacher retirees (municipal local option), increases the minimum pension from $6,000 to $9,000 annually - representing the first increase since 1995!

Survivor Increase Also Included In Budget

JUNE 24, 2010: Legislative budget conferees have approved a 3% COLA increase for state and teacher retirees beginning this July. The FY11 Budget resolution was approved late Wednesday night, after nearly a month of House/Senate negotiations.

Also included within the outside sections of the budget is a provision that will increase the minimum pension for survivors of accidental disability retirees. The benefit increases from $6,000 to $9,000 beginning this July. Legislators last increased the minimum benefit in 1994, when it was increased from $3,000 to its current $6,000.

MEMBERS IN THE MIDDLE

JUNE 11, 2010: A June 9th statement from CVS Caremark Corp. saying it will end Walgreen Co.'s participation in its retail pharmacy network next month, leaves thousands of Association members in the dark at this time. Today, we have been informed that as of July 10th, Walgreen will not be in the Caremark network.

CVS Caremark is under contract to take control of the Commonwealth's Group Insurance Commission's prescription drug plan beginning July 1. Caremark was awarded the contract, which Express Scripts had held for the past 10 years.

Pension & Health Care Issues Pending

June 4, 2010: Association officials are closely monitoring developments within two separate legislative conference committees, which are simultaneously negotiating the FY11 Budget and Municipal Relief Act. Contained within both pieces of legislation are several major pension and health care proposals that could have major impacts on retirees and active employees if passed into law.

Language allowing for the increase in the local COLA base, raising the minimum pension of survivors, and various pension reform measures (not impacting retirees) are being considered by the Municipal Relief Conference Committee. The FY11 Budget Conference Committee is considering the 3% COLA for state and teacher retirees, changes to municipal health care law, survivor benefit increases, and various pension reform proposals (again, not impacting retirees).

Fails by 3-2 Vote

At the May 25 meeting of the Leominster Retirement Board, a motion for a 3% July cost-of-living increase for Leominster retirees and survivors was defeated by a 3-2 vote.

Board members John Picone and Paul Doig sponsored the motion to pay the July COLA. Picone and Doig, both firefighters, are the Board's elected members.

Donnelly Leads Effort

MAY 14, 2008: At a time when much of the public focus has centered on reducing the pension benefits of future retirees, the state Senate has moved toward balancing the debate by unexpectedly passing an amendment to the Municipal Relief Act increasing the minimum pensions of survivors.

The amendment, sponsored by Senator Ken Donnelly (D-Arlington), increases the minimum pension for the survivors of disability retirees (retired prior to November 1996) from the current $6,000 to a new $9,000. Also included are widows of employees who die of non-work related causes, who will see their basic benefit increased from $3,000 to $6,000. It is automatic for the state/teachers systems and is subject to local acceptance.

Bill Moves To Conference Committee

MAY 14, 2010: On Thursday, the Massachusetts Senate approved a proposal, crafted by our Association, allowing local retirement systems to increase the base to which the annual cost-of-living adjustment (COLA) is applied.

The proposal was filed as an amendment to the Municipal Relief Act (S2424), by Senator Ken Donnelly (D-Arlington). It allows local retirement boards to increase the current $12,000 COLA base in $1,000 increments, after approval by the local legislative body. A nearly identical amendment was approved by the House in April, as part of that body's Municipal Relief Act.

House Allows For Local Option Increases

APRIL 29, 2010: The Association achieved a major legislative victory on Monday, when the House of Representatives unanimously approved an amendment to the Municipal Relief bill allowing local retirement systems to increase the COLA base, in $1,000 increments, from the current $12,000.

This local option provision is a new milestone in the Association's long-fought battle to increase the base amount on which the annual COLA is calculated. It is the first stage of a major effort to increase the COLA base for all public retirees in the coming months.