Articles about the Cost of Living Adjustment (COLA) that may be useful to Massachusetts retirees
- Association officials continue to work closely with the Joint
Committee on Public Service to draft legislation raising the COLA base
to a higher level in 2006.
SEPTEMBER 2005 - Cities, Towns Continue To Benefit - Since the inception of Prop 2 1/2 in 1981, COLA payments totaling $1.727 billion have been distributed by the state to local retirement systems, according to Jean Simone of the State Retirement Board who coordinates the payments.
And, although the state returned the responsibility of new COLA costs to local governments in 1998, the Commonwealth is still paying a significant amount each year to the locals for COLAs that were built into municipal pensions during the '81-'98 period.
- Retired members of our 106 retirement systems can look forward to a
new 3% cost-of-living adjustment (COLA) in their July pension checks.
- First Step Toward Cost-Of-Living - When it comes to reporting on cost-of-living adjustments (COLA) on
your pension, you've read or heard us referring to the Consumer Price
Index or CPI. What is the CPI and why is it important to us?
- Once again, the Consumer Price Index (CPI) was less than 3%. The CPI
for the year ending with the third quarter of 2004 increased by 2.7%
over the third quarter of 2003. This is the figure that will be used
for increases in the January Social Security and Federal retirement
- Initial "Summit Meeting" Held - While the $12,000 COLA base will remain in effect for this coming
July's COLA, the second step toward a higher future base was taken on
- Romney Rejected COLA Base Study - In a stunning rebuke, the Legislature has unanimously overridden
Governor Mitt Romney's veto of our Association's COLA base study.
JULY 2004 - Base Alternative On Horizon - A 3% July COLA for state and teacher retirees is now assured.
- Federal Reserve Chairman Alan Greenspan's testimony before the House
Budget Committee on February 25 has been getting a lot of headlines
- So far, it's been smooth sailing for a state and teacher retirees' 3%
July pension COLA. Language for the COLA was included in the FY05 state
budget filed by Governor Romney in January. House Leaders are now
preparing to act on the budget, which takes effect July 1. We have been
assured that the COLA will remain intact when the budget is passed by
the House, and we are optimistic that Senate leaders will support the
COLA in that branch.