PERAC Memo #1 - 2009: COLA Notice

COLA Notice

Summary

This memo notifies boards that the Social Security Administration's COLA of 5.8% translates, under the statutory 3.0% cap in Chapter 32, §103(c), to a maximum allowable retiree COLA of 3.0% effective July 1, 2009. Boards should be aware that this figure sets the ceiling for any COLA they choose to grant, and each board must notify PERAC of its decision (whether to grant a COLA, and at what rate) within 30 days of making it.

Full Text

MEMORANDUM #1, 2009 M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: COLA Notice DATE: January 9, 2009 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 5.8%. The COLA which any such system may grant, pursuant to Chapter 32, Section 103(c) and effective July 1, 2009 will thus be 3.0%. This figure reflects the Social Security Administration COLA, with a limitation of 3.0%. Each Retirement Board making a decision whether or not to grant a COLA must notify the Commission of that decision within 30 days.