Since the enactment of Chapter 188 in 2010, local retirement systems are authorized, with the approval of their local legislative body to increase the COLA base above $12,000. Briefly, COLA base refers to the maximum amount of pension to which the COLA percent (generally 3%) is applied.
Mass Retirees was the lead sponsor of the provisions in Chapter 188, allowing systems to increase the base. All 102 local systems have adopted this law, except for one, namely the Amesbury Retirement System that stands alone at a $12,000 base.
For FY27, all 102 local retirement boards have approved a COLA, effective this July 1, while the FY27 State Budget authorized a 3% COLA for retired state employees and teachers. Except for Peabody adopting a 2.8% COLA, a 3% will be applied to the COLA base that as the chart below shows, ranges from $30,000 to $12,000.
According to President Frank Valeri, “Since our report in the July Voice, we’re pleased to report that three more systems have increased their base this July. They are: Massport to $16,000, Needham to $20,000 and Quincy to $18,000.
ADOPT INCREMENTAL APPROACH
“That brings us to 21 systems (listed below) that have a greater FY27 COLA base. And, for all of these systems, this was not their first base increase since Chapter 188 became law.” It is also noteworthy that three of the 21 systems – Brockton, Newton and Wellesley – adopted an incremental approach whereby their FY27 base amount will continue to increase in $1,000 increments over successive fiscal years to an even higher amount. Ed Note: We explained the incremental approach: in the April Voice for Brockton (to $21K as of July 1, 2031) and in the July Voice for Newton (to $18K as of July 1, 2028) and Wellesley (to $25K as of July 1, 2029).
“And, thanks to all the retirement boards and local officials who made the base increases possible this fiscal year,” Valeri continues. “As we see it, these increases serve a very important function by sharing a system’s investment success with their retirees and survivors.”
$22,000 Base
- Wellesley
$21,000 Base
- MHFA
$20,000 Base
- Gr Lawrence Sanitary Dist.
- Needham
- Salem
$18,000 Base
- Chicopee
- Quincy
$17,000 Base
- Berkshire County
- Natick
- North Adams
$16,000 Base
- MassPort
- New Bedford
- Newton
- Winchester
- Winthrop
$15,000 Base
- Brockton
- Marlboro
- Revere
$14,000 Base
- Danvers
- Hampshire County
- Westfield