This evening, the House and Senate approved both our COLA Reform initiative and an increase in the post-retirement earnings limit!
Both provisions are contained within the outside sections of the FY27 State Budget, which was released from conference committee late Tuesday afternoon. The budget is now on Governor Healey’s desk. The governor then has 10 days to review the document, prior to taking further action.
We are cautiously optimistic that we have the support of Governor Healey for both items. Don’t forget, it was Maura Healey who initiated the creation of the Special COLA Commission in 2024 and appointed me to serve as one of 9 commissioners.
As you may have read in the July Voice or within our Weekly Update, COLA Reform contains two main items: A new Enhanced COLA benefit for long-term retirees, who were career public employees; the creation of a COLA Reserve Fund, whereby a portion of annual excess investment gains will be set aside and earmarked to pay for improved COLA benefits such as the Enhanced COLA and higher COLA base.
Once signed into law, both items will automatically take effect for the State and Teachers’ Retirement Systems – which are funded and administered by the state government. Due to Proposition 2 ½, the measures are local option for the 102 local retirement systems.
This COLA Reform initiative will mark the largest change in the state’s COLA law since Municipal COLA Reform in 1997.
Thankfully, language increasing the post-retirement earnings limit by $10,000 also survived conference committee. Once again spearheaded by the MA Police Association and our good friend Jim Machado, the increase is a step to update the earnings limit to adjust for inflation. The last increase took place in 2014.
Before closing, I want to take a moment to thank the members of the House and Senate for their support of public retirees. It is also important to acknowledge the leadership of the House for initiating COLA Reform within the FY27 Budget. If not for Speaker Ron Mariano, Majority Leader Mike Moran, and Ways and Means Chairman Aaron Michlewitz, COLA Reform would not have gotten off the ground in 2026.
We also appreciate the support of Senate Ways and Means Chairman Mike Rodrigues and the Senate leadership for not only agreeing to include COLA Reform in the conference committee report, but also for initiating the increase in allowable post-retirement earnings.
While the COLA Reform measure that passed does appear to differ slightly from the original proposal crafted by Mass Retirees earlier this year and that passed by the House in April, we view this as a major win for public retirees and our Association. Please look to Friday’s Weekly Update for a full analysis of both measures. The Weekly Update is sent by our CEO Shawn Duhamel to all Mass Retirees members each Friday at 6:00 AM.
With great appreciation,
Frank
Frank Valeri
President
Mass Retirees Association