Bill > H2742

This bill proposes several significant changes to the cost of living adjustments (COLAs) for retired public employees in Massachusetts. It increases the base amount for COLA calculations from $13,000 to $16,000, allowing retirement systems to opt into paying cost-of-living adjustments on amounts above this base through a majority board vote and legislative body approval. The bill also modifies how COLAs are calculated and applied, guaranteeing a minimum 3% increase annually based on the United States Consumer Price Index. For retirees receiving retirement allowances at or above certain percentages of the maximum social security benefit (85% as of 2021-2024, 95% from 2024-2028, and 100% after 2028), the COLA will be calculated differently, applying the percentage increase to the specified social security benefit percentage. Additionally, the bill requires an annual report in January detailing the Consumer Price Index increase and mandates that these cost of living adjustments be funded from the investment income account of the state employees' and state teachers' systems. The changes aim to provide more consistent and potentially more generous retirement benefit increases for public employees in Massachusetts.

Labor and Employment

https://malegislature.gov/Bills/194/H2742