Bill > H1322

This bill proposes several changes to the cost-of-living adjustments (COLAs) for retired public employees in the Commonwealth: 1. It increases the base amount for COLA calculations from $13,000 to $16,000 for certain retired public employees, effective July 1, 2016. 2. It allows retirement systems to accept a provision to pay COLAs on a base amount greater than $12,000, up to 100% of the maximum Social Security benefit, with the funding schedule designed to reduce the system's pension liability to zero by a year approved by the commission, which may be subsequent to June 30, 2028. 3. It requires the actuary to annually file a report with the legislature on the increase in the Consumer Price Index and the corresponding COLA percentage, which must be at least 3% even if the increase in the Consumer Price Index is less than 3%. 4. It establishes a graduated approach to COLA calculations, with the maximum base amount increasing from 65% of the maximum Social Security benefit to 100% over a period of 12 years, for those retirees receiving an annual allowance that exceeds these percentages.

Labor and Employment

https://malegislature.gov/Bills/190/H1322