37 Local Systems Adopt July Increase

APRIL 25, 2013: This week, the Massachusetts House of Representatives passed the $34 billion state budget for Fiscal Year 2014, which begins July 1. Contained within the budget is a full 3% COLA for eligible state and teacher retirees, which will be applied to a $13,000 base.

Local retirees receive their pension and annual COLA benefits from their local retirement system. To date, 37 local retirement systems have voted to grant a July 2013 COLA increase. The remaining 66 systems are expected to vote on the issue prior to July 1.

Governor Deval Patrick first proposed this year’s COLA increase in his FY 2014 budget filed in January. The Senate, where strong support for the COLA exists, is expected to take up the budget in late May.

Like the Governor, the House also fully funded the state’s Group Insurance Commission (GIC) and did not alter state retiree contribution percentage rates, which remain at 90/10; 85/15; 80/20 depending upon retirement date.