PERAC Memo #21 - 2021: Cost of Living Increase for Supplemental Dependent Allowance Paid to Accidental Disability Retirees and Accidental Death Survivors
Cost of Living Increase for Supplemental Dependent Allowance Paid to Accidental Disability Retirees and Accidental Death Survivors
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The FY22 budget (signed July 16, 2021) included a 3% COLA for State and Teachers' Retirement System retirees, triggering a corresponding increase to the supplemental dependent allowances under G.L. c. 32, §§ 7(2)(a)(iii) and 9(2)(d)(ii). The new annual amount per eligible child is $1,010.28 effective July 1, 2021, for systems that have accepted those provisions or § 22D.
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Memorandum Memorandum #21: Cost of Living Increase for Supplemental Dependent Allowance Paid to Accidental Disability Retirees and Accidental Death Survivors Date: 07/20/2021 Referenced Sources: PERAC Website PERAC Memo #21, 2021
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FROM: John W. Parsons, Esq., Executive Director
RE: Cost of Living Increase for Supplemental Dependent Allowance Paid to Accidental Disability Retirees and Accidental Death Survivors
DATE: July 20, 2021
On July 16, 2021, Governor Baker signed the FY22 budget into law. Included in the budget was a 3% COLA for eligible retirees of the State and Mass Teachers’ Retirement Systems effective July 1, 2021. As a result, the supplemental dependent allowances under §§ 7(2)(a)(iii) and 9(2)(d)(ii) will be increased as of July 1, 2021.
Any retirement system which has accepted the supplemental dependent allowance provided for in G.L. c. 32 § 7(2)(a)(iii), or which has accepted the provisions of G.L. c. 32, § 22D (under which the supplemental dependent allowance is also deemed to have been accepted), shall pay an annual amount of $1,010.28 beginning July 1, 2021 for each eligible child as defined in G.L. c. 32, § 7(2)(a)(iii).
Also, any retirement system which has accepted the additional pension for dependent children provided for in G.L. c. 32, § 9(2)(d)(ii), shall pay an annual amount of $1,010.28 beginning July 1, 2021 for each eligible child as defined in G.L. c. 32, § 9(2)(d).
Please contact PERAC’s actuary, John Boorack, if you have any questions on this issue.