NAGE Supports State Retiree COLA Base Increase
If you're a state, county or municipal employee, chances are extraordinarily good that you will, at some time in the future, be a state, county or municipal retiree who relies on a pension to maintain a stable standard of living. You will count on that pension to increase each year in retirement so that you can keep up with the rising cost of living.
In Massachusetts, the Legislature designates a flat dollar amount to use in calculating annual pension increases, or COLA's; since 1997 the dollar amount has been calculated on the first $12,000 of a pension. For the last 8 years, pensions have increased by 3 percent a year, calculated on that base of $12,000. In other words, pensions have increased by a flat $360 each year.
The Retired State, County and Municipal Employees Association of Massachusetts has submitted amendments to the FY09 state budget that would raise the COLA base from the current level of $12,000 to a new level of $16,000. Assuming a continued 3 percent COLA, the budget amendments would raise the flat pension bump for every retiree to $480 each year.
The House passed an amendment to its version of the budget that increased the COLA base to $16,000 for state and teacher retirees. The Senate version goes a step further and allows local retirement systems, by local option, to also increase the base for local retirees to $16,000.
Since the House unanimously passed the COLA base amendment in late April,there has been an avalanche of negative media attention that has distorted the facts surrounding the COLA and called upon the Legislature to forestall the increase. Despite the misinformation, Senate leaders passed an amendment increasing the base for local retirees.
However, with local officials and several newspapers continuing to press for the defeat of the COLA base increase, the passage of the $16,000 base could be in doubt. NAGE is asking all members to contact their own state Representative and Senator, and to contact the Budget Conference Committee members and ask that they continue to support the $16,000 COLA base.
HOUSE CONFEREES
Chairman Robert DeLeo
Robert.DeLeo@state.ma.us
(617) 722-2990
Marie St. Fleur
Rep.MarieSt.Fleur@Hou.state.ma.us
(617) 722-2380
Vinny deMacedo
Rep.VinnydeMacedo@Hou.state.ma.us
617-722-2100
SENATE CONFEREES
Chairman Stephen Panagiotakos
Steven.Panagiotakos@state.ma.us
617-722-1630
Stephen Brewer
Stephen.Brewer@state.ma.us
617-722-1540
Michael Knapik
Michael.Knapik@state.ma.us
617-722-1415