Bill > H2348

This bill proposes changes to the cost-of-living adjustments (COLAs) for retired public employees in the Commonwealth, primarily by increasing the base amount on which COLAs are calculated and allowing retirement systems to elect to pay COLAs on higher base amounts, up to $16,000, provided the system's legislative body approves and a funding schedule is established to eliminate any unfunded actuarial liability by a date approved by the commission. The bill also modifies how COLAs are applied based on a retiree's allowance relative to the maximum Social Security benefit, with the percentage of Social Security benefit considered for COLA calculation increasing over time, and mandates that COLAs be at least 3 percent annually, funded from investment income, and become a fixed part of future retirement allowances.