COLA

Articles about the Cost of Living Adjustment (COLA) that may be useful to Massachusetts retirees

Local COLA Voting Season Opens

UPDATED APRIL 18, 2006 - Newton Board Leads The Way - Local government retirement boards have until July 1st to vote for a July 2006 3% COLA for their retirees and survivors.
Most
boards wait until sometime after the first of the year to take a vote
on the July 1st COLA, a few even waiting until June to vote.

Romney Slights Retirees - Again

MARCH 2006 - No Pension COLA In His Annual Budget - It's hard to believe, but Governor Mitt Romney, in submitting his FY 07 state budget (effective July 1, 2006) to the Legislature, failed to include a 3% pension COLA for state and teacher retirees.

COLA Base Update

JANUARY 2006
- 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.

State Paid $1.727 Billion Toward Local COLAs

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.

3% July COLA On Schedule

JULY 2005
- Retired members of our 106 retirement systems can look forward to a
new 3% cost-of-living adjustment (COLA) in their July pension checks.

Consumer Price Index: What It Means To Us

MARCH 2005
- 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?

Boards Prepare For COLA Vote

JANUARY 2005
- 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
checks.

COLA Base Study Underway

JANUARY 2005
- 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
October 28.

Unanimous Override Of Veto

SEPTEMBER 2004
- 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.

3% COLA OK'D

JULY 2004 - Base Alternative On Horizon - A 3% July COLA for state and teacher retirees is now assured.