Governor Baker Supports FY15 COLA

Also Maintains State Retiree Insurance % In Budget Proposal

MAY 2015 VOICE: In his first budget proposal, Governor Charlie Baker has proposed a full 3% COLA for state and teacher retirees to be paid beginning in July on the existing $13,000 base.

Baker is the first Republican governor since Jane Swift to support retiree COLAs. Former Governor Mitt Romney failed to provide for a retiree COLA in each of his four annual budget proposals.

The FY16 budget, known as H1, also fully funds the Commonwealth’s pension appropriation, as well as maintains health insurance contribution rates for current state retirees. State retirees now contribute three different levels of insurance contribution based on the date of retirement.

“Back in 1994, Governor Weld and the Legislative Leadership created a policy of holding existing state retirees harmless from insurance contribution rate increases. For the past 21 years, every governor and legislature has honored this commitment,” said Legislative Director Shawn Duhamel. “While we certainly appreciate the Governor’s support of current retirees, our Association opposes the proposed increase in contribution rates for new retirees and active employees.”

H1 is expected to be debated in the House in late April, followed by Senate action in late May. FY16 begins July 1, 2015.