Articles about the Cost of Living Adjustment (COLA) that may be useful to Massachusetts retirees
April 21, 2023: As we reported last week, your Association has filed one amendment to the FY24 State Budget proposal (H.3900) that is set to be debated in the House of Representatives next week. Before I walk you through the specifics, as well as provide an update on local COLA activities, let me first remind those members in the Fitchburg / Leominster area of our upcoming area meeting.
Thursday, April 27, 2023, 11:00 AM
Leominster-Fitchburg Elks #1237
Positive Developments Continue Statewide
When it comes to the local COLA (Cost-of-Living-Adjustment), there has been a tremendous amount of activity over the past year and positive developments statewide. As you can see here, Mass Retirees has been at the center of this COLA activity.
Local retirement boards continue to increase the COLA base, with some voting this spring to shatter the $18,000 ceiling and push past the $20,000 threshold.
Expands Pension Funding & Proposes 3% COLA
WEDNESDAY, MARCH 1, 2023: Governor Maura Healey has filed her first state budget proposal, formally kicking off the FY24 budget process.
The $55.5 billion “spending blueprint” focuses on taming the high cost of living in Massachusetts, while investing heavily in the state’s future. This includes a new three-year appropriation schedule for the Commonwealth’s Pension Liability Fund, which funds both the State and Teachers’ Retirement Systems.
WEEKLY REPORT FOR FRIDAY, FEBRUARY 24, 2023: Between the President’s Day holiday and school vacation week, there is not much to report in terms of legislative or health insurance news. We will have a lot to say about retiree health insurance following the GIC’s insurance premium meeting next Thursday (3/2/2023).
Meanwhile, I would like to bring attention back to the ongoing work to improve COLA benefits for public retirees – particularly the ongoing success we are witnessing at the local level.
October 14, 2022: Thursday morning’s announcement by the Social Security Administration of an 8.7% COLA increase for 2023, while not unexpected, confirms what we already knew – inflation has placed substantial financial pressure on retirees. In fact, an 8.7% Consumer Price Index (CPI) is the largest increase since 1981, when inflation hit 11.2%!
9/9/22 Weekly Update: By CEO Shawn Duhamel
Before I jump into the news of the week, let me first remind everyone that our Annual Meeting takes place today (Friday) at Lombardo’s in Randolph. The meeting will kick off at 11AM. As is the case at all Mass Retirees meetings, members can bring a guest.
September 2022 Voice: During the summer of 2021, as serious signs of inflation began to become evident, Mass Retirees put a plan in place to build the case for improvements to the COLA starting in Fiscal Year 2023. These efforts paid off with the passage of a 5% COLA, signed into law by Governor Baker in late July.
Backed by historically high pension fund investment returns over the bulk of the past decade, the Association made the case for sharing the success with retirees in the form of better COLA benefits.
Awaits Approval By Governor Baker
By: Shawn Duhamel, Chief Executive Officer
Mass Retirees Association
Our efforts to pass a 5% COLA for FY23 took a major step forward this week when the legislature unanimously approved the measure as part of the annual the State Budget.
Budget Measure Now Before Governor Baker
JULY 18, 2022: Late Sunday evening, House and Senate budget negotiators unveiled a compromise $54 billion FY23 State Budget. The measure contains a 5% COLA for retired State Employees and Teachers, as well as a local option provision authorizing the 102 local retirement boards to pay an FY23 COLA from 3-5%. The 3-5% increase for local retirement systems for FY’23 is an option, not a mandate. It allows them to give up to a 5% COLA this year if they so choose.
Local Retirement Systems Empowered to Increase COLA Up To 5%
APRIL 27, 2022: Today, the Massachusetts House of Representatives unanimously approved a 5% increase in the FY23 cost-of-living adjustment (COLA) for State and Teacher Retirees. The measure also contains authorization for the state’s 102 local retirement systems to increase local COLAs from 3-5% by a majority vote of the retirement board.
Since 1968 the Retired State, County and Municipal Employees Association has been the leading voice for Massachusetts public retirees and their families. Join with our 52,000 members as we continue the fight.
