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M TA G O V E R N M E N T R E L A T I O N S
H2302 – AN ACT RELATIVE TO INCREASING THE COLA BASE
LEAD SPONSOR Rep. Sean Garballey (D-Arlington)
CO-SPONSORS
REPRESENTATIVES
James Arciero
Brian Ashe
Jennifer Benson
Paul Brodeur
Thomas Calter
Gailanne Cariddi
Tackey Chan
Edward Coppinger
Claire Cronin
Daniel Cullinane
Mark Cusack
Marjorie Decker
Michelle DuBois
James Dwyer
Lori Ehrlich
Tricia Farley Bouvier
John Fernandes
Colleen Garry
Kate Hogan
Mary Keefe
Peter Kocot
John Lawn
Paul Mark
Paul McMurtry
James Murphy
James O’Day
Sarah Peake
Alice Peisch
Thomas Petrolati
William Smitty Pignatelli
Denise Provost
Angelo Puppolo
Tom Sannicandro
Alan Silvia
Frank Smizik
Theodore Speliotis
Thomas Stanley
Benjamin Swan
John Velis
RoseLee Vincent
SENATORS
Sal DiDomenico
James Eldridge
Anne Gobi
Robert Hedlund
Patricia Jehlen
Barbara L’Italien
Jason Lewis
Marc Pacheco
James Welch
WHAT IS A COLA?
A Cost of Living Adjustment (“COLA”) is a change made to a retiree’s pension in order to offset the effects of inflation. To most
retired Americans a COLA is a benefit received annually to their Social Security income. Social Security COLAs are generally equal
to the percentage increase in the consumer price index.
BACKGROUND
■■ Massachusetts public employee’s COLA is based only on an individual’s first $13,000 of their pension.
■■ Massachusetts public employees do not participate in Social Security and at retirement receive either no benefit or it will be
significantly reduced.
■■ Non-participation in Social Security saves the state hundreds of millions of dollars annually, as Social Security would provide a
COLA on the full benefit.
■■ COLAs are not automatic. General Law sets the parameters, but the decision to grant a COLA for retired members of the state
and teachers’ retirement systems is done annually through the yearly state budget.
■■ As a result of inflation on the costs on food, fuel, and housing, coupled with the increasing cost of prescription drugs, out-ofpocket medical expenses, and health insurance premiums makes a COLA imperative for retired public employees.
■■ The maximum annual COLA that a retiree or survivor can receive has increased only $30 since 1997.
WHAT THIS BILL DOES
■■ Provides a modest increase in the base pension formula that is used to calculate a retiree’s salary in the MTRS and MSPS
pension system.
• New COLA calculation would be based on 3 percent of the first $16,000 of a retiree’s pension (currently based on the first
$13,000).
• This would result in an annual increase in a retiree’s base to $480 (currently $390).
Kate Donaghey, Lobbyist | Catherine Fichtner, Lobbyist | Julie Johnson, Lobbyist | Sean King, Lobbyist
617.878.8119
j ust the facts
Kate Donaghey, Lobbyist | Catherine Fichtner, Lobbyist | Julie Johnson, Lobbyist | Sean King, Lobbyist
617.878.8119