PERAC Memo #8 - 2008: Corrected COLA Notice

Corrected COLA Notice

Summary

This corrected memo reports that the Social Security COLA for 2008 is 2.3%, which sets the base COLA rate boards may grant effective July 1, 2008 under Chapter 32, §103(c); boards may vote to increase this up to 3% under §103(i) with proper notice to their legislative body. Each retirement board must notify PERAC within 30 days of its decision on whether—and at what rate—to grant a COLA.

Full Text

MEMORANDUM #8, 2008 M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Corrected COLA Notice DATE: January 22, 2008 Due to a typo, please disregard PERAC Memo Number 2 / 2008 and replace it with this corrected Memo. We apologize for any inconvenience this may have caused. The Public Employee Retirement Administration Commission (PERAC) is providing this notice regarding the COLA Report required by Chapter 17, Section 8(c) of the Acts of 1997. Under the statute, PERAC reports to the General Court the computation of the increase in the United States Consumer Price Index in the previous year by the Commissioner of Social Security. Any such increase is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index is used annually to adjust benefits paid to Social Security retirees and beneficiaries. The Social Security Administration has announced that the latest Cost of Living Adjustment (COLA) is 2.3%. The COLA which any such system may grant, pursuant to Chapter 32, Section 103(c) and effective July 1, 2008 will thus be 2.3%. Pursuant to Section 103(i), a Retirement Board, with proper notice to the legislative body, may elect to increase this percentage up to 3%, at a duly called meeting. Each Retirement Board making a decision whether or not to grant a COLA must notify the Commission of that decision within 30 days.