Bill > H2427

This bill proposes to amend the Massachusetts state law (Chapter 32) to increase the cost-of-living adjustments (COLA) for retired public employees. Specifically, it would: 1. Allow public pension systems to design funding schedules that reduce their unfunded actuarial liability to zero by a year subsequent to June 30, 2028, as approved by the Public Employee Retirement Administration Commission (PERAC). 2. Increase the COLA base amount from $13,000 to $16,000 per year. 3. Allow public pension systems to vote to pay COLA on a base amount greater than $16,000, subject to legislative approval. 4. Require the PERAC actuary to annually report on the increase in the Consumer Price Index and the corresponding COLA increase, which must be at least 3% even if the CPI increase is less. 5. Establish tiers for COLA calculations based on the retiree's pension amount relative to the maximum Social Security benefit, with higher pensions receiving COLA on a smaller base amount. The overall goal is to provide more generous COLA adjustments for retired public employees in Massachusetts.

Labor and Employment

https://malegislature.gov/Bills/193/H2427