PERAC Memo #31 - 2012: COLA Notice Update – Board Vote Needed Prior to June 30, 2012
COLA Notice Update – Board Vote Needed Prior to June 30, 2012
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This memo clarifies COLA notification requirements for 2012: since the SSA COLA (3.6%) exceeds the statutory 3% cap, boards do not need to notify their legislative body under G.L. c. 32, §103. However, boards must still vote to accept the COLA (as reported by PERAC) at a properly posted public meeting before June 30, 2012, and must notify PERAC of that vote within 30 days. PERAC also recommends boards voluntarily inform their legislative body of the action, such as by sharing the meeting agenda.
Full Text
PERAC Memo # 31/2012
M E M O R A N D U M
TO:
All Retirement Boards
FROM: Joseph E.
Connarton, Executive Director
RE: COLA Notice Update – Board Vote Needed Prior to June 30, 2012
DATE: April 3, 2012
Some confusion has arisen regarding the notifications required for granting the COLA.
Please be advised that G.L. c. 32, § 103 requires
Boards to notify the applicable
legislative body if the Board is voting to grant a COLA that exceeds the COLA that is
contained in the PERAC report. This year the COLA report indicated that the Social
Security Administration COLA is 3.6%. Under Massachusetts law, however, Retirement
Boards cannot grant a COLA in excess of 3%. As a result, the notification to the
legislative body is not necessary.
As you know, G.L. c. 32, § 103 does require a Retirement Board to vote to accept the
COLA contained in the PERAC report. This vote must take place prior to June 30, 2012.
In addition, the Board must notify PERAC of its action within 30 days of the vote.
While notification to the legislative body is not required, we would urge Retirement
Boards to vote for the COLA in a properly posted public meeting and to take steps to
advise the legislative body of the action, perhaps by providing the body with a copy of
the Board’s agenda.
If you have questions, please feel free to contact this office.
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