The Fiscal Year 2027 State Budget delivered several important victories for Massachusetts public retirees. Along with continued funding of the Commonwealth’s pension obligations and the Group Insurance Commission (GIC), the budget provides the annual 3% cost-of-living adjustment (COLA) for retirees of the State and Teachers’ Retirement Systems and includes a longawaited increase to the post-retirement public employment earnings limit (see below). Together, these provisions represent another positive year for retiree advocacy.
As is often the case, these accomplishments were made possible through the collaborative efforts of legislative leaders, public employee unions, retiree organizations, coalition partners, and our Association. While meaningful progress rarely happens overnight, working together continues to produce positive results for Massachusetts public retirees. We are grateful to everyone who helped advance these priorities throughout the budget process.
The Legislature completed work on the Fiscal Year 2027 State Budget before the close of formal legislative sessions on July 31. Although formal sessions have now concluded, the House and Senate will continue conducting legislative business through the end of the calendar year, including acting on certain bills that remain pending. Our Association will continue monitoring retiree-related legislation, working with lawmakers and coalition partners, and keeping members informed of any significant developments.
“Taken altogether with COLA Reform (see page 1), this was another highly successful budget cycle for Massachusetts public retirees,” comments Legislative Chairman Tom Bonarrigo. “Combined with the enactment of the Social Security Fairness Act earlier in 2025 and continued progress on retiree priorities, the FY27 budget represents another important step forward in strengthening the retirement security of our members.”