cola

PERAC has announced the 2026 COLA rate of 2.8%, based on the Social Security Administration's CPI-W increase for the prior year. Pursuant to G.L. c. 32, § 103(c), retirement boards may vote to grant a COLA effective July 1, 2026. Under § 103(i), a board may vote to increase the COLA up to 3.0% with proper notice to the legislative body, but this must occur before June 30, 2026. Every board must notify PERAC through PROSPER within 30 days of their decision, whether or not they grant a COLA.

This memo details boards' responsibilities for administering §91A disability retiree earnings compliance via PROSPER, covering non-filers, salary verification tasks, and excess earnings determinations. Boards must: provide hearing notice/opportunity to non-compliant retirees before any termination action; enter 2025 annual pension, annuity, current salary, and offset figures into PROSPER Salary Verification tasks (via individual entry or CSV upload) and submit for calculation; and, for retirees found to have excess earnings, send required notice, respond to the related PROSPER task documenting action taken, and upload board correspondence (not tax documents). Any data entry errors should be reported to Sandra King for correction.

PERAC Memo #22/2026 notifies boards that, following the FY27 budget's 3% COLA (effective July 1, 2026), the supplemental dependent allowance under G.L. c. 32 §§ 7(2)(a)(iii) and 9(2)(d)(ii) increases to $1,193.88 annually per eligible child. Boards that have accepted § 7(2)(a)(iii), § 22D, or § 9(2)(d)(ii) must implement this new annual amount for eligible dependent children beginning July 1, 2026. No further action is required beyond updating payment amounts accordingly; questions should be directed to PERAC actuary John Boorack.

PERAC notifies boards that the Social Security Administration's 2025 COLA, based on the CPI-W, is 2.5%, which sets the maximum COLA that retirement systems may grant under G.L. c. 32, § 103(c) effective July 1, 2025. Boards may vote to increase this rate up to 3.0% pursuant to § 103(i), with proper notice to the legislative body, but must complete this process before June 30, 2025. Each board must notify PERAC of its COLA decision within 30 days.

The FY2026 budget enacted a 3% COLA for State and Teachers' Retirement System retirees effective July 1, 2025, triggering a corresponding increase in the supplemental dependent allowance paid under §§ 7(2)(a)(iii) and 9(2)(d)(ii). Retirement systems that have accepted these supplemental allowances must pay $1,159.08 annually per eligible child beginning July 1, 2025. Boards with questions on the calculation should contact PERAC's actuary, John Boorack.

PERAC clarifies that COLAs under G.L. c. 32, § 103(c) must be applied to Section 100 benefits paid to survivors of public safety employees killed in the line of duty. Section 100 benefits are classified as a "pension" under the statute, making them subject to COLA grants by retirement boards. Any board that has not been applying COLAs to Section 100 benefits must correct this error immediately, recalculate any unpaid COLA amounts owed to beneficiaries, and remit payment with corrections-of-errors interest going forward.

This memo supplements Memo #28/2025 on Section 100 benefits and COLAs. It clarifies two key points: first, COLAs are not "benefits" themselves but enhancements to an existing pension, so the Section 100 "alternative benefit" language does not bar COLA eligibility. Second, when calculating back COLA payments owed to Section 100 beneficiaries, boards need only go back to July 1, 1998 — prior to that date, the pre-1997 version of Section 102(a) provided for the greater of a COLA or a Section 100 increase but not both, so COLAs would have been the smaller amount.

This memo notifies retirement boards of the 2024 Cost of Living Adjustment (COLA) available under G.L. c. 32, § 103(c). The Social Security Administration's CPI-W increase was 3.2%, but the maximum COLA a Massachusetts retirement board may grant is capped at 3.0%, effective July 1, 2024. Boards wishing to adopt the COLA must vote to do so in a properly posted public meeting before June 30, 2024, and must report their decision to PERAC through the new PROSPER portal within 30 days.

Starting January 30, 2024, retirement boards can submit annual COLA approvals and COLA base changes entirely through PROSPER, replacing the previous paper-based process. Step-by-step instruction manuals are attached. Board staff with the Finance role in PROSPER will automatically have access; boards needing to add new users should complete the Individual Account Request Form and return it to PERAC's PROSPER Help Desk.

PERAC has issued PROSPER tasks to all boards for disability retirees who failed to file their 2023 Annual Statement of Earned Income (91A form) or who reported earnings that may require a benefit adjustment. Boards must provide written notice and a hearing opportunity to non-compliant retirees; benefits may be terminated after the hearing, subject to CRAB appeal. Boards are also asked to respond to upcoming "Salary Verification" tasks in PROSPER by entering 2023 pension and salary figures so PERAC can calculate whether each retiree is within their allowable earnings limit.

The FY25 state budget, signed July 29, 2024, included a 3% COLA for State and Mass Teachers' Retirement System retirees, which triggers an increase in the supplemental dependent allowance for accidental disability retirees and accidental death survivors. Effective July 1, 2024, retirement systems that have accepted G.L. c. 32, §§ 7(2)(a)(iii) or 9(2)(d)(ii) must pay $1,125.36 per year per eligible child — an increase from the prior year's amount. Boards that have accepted these provisions should update their payment amounts accordingly.

This memo provides the annual COLA notice required under Chapter 17, Section 8(c) of the Acts of 1997, advising retirement boards that the Social Security Administration announced an 8.7% CPI-W increase, which triggers the maximum statutory COLA of 3.0% available under G.L. c. 32, § 103(c) effective July 1, 2023 (FY24). Boards wishing to grant the COLA must vote to do so in a properly posted public meeting before June 30, 2023, and must notify PERAC of their decision within 30 days; notification to the legislative body is not required when the SSA COLA exceeds 3.0%.

This memo advises retirement boards that the FY24 budget signed by Governor Healey on August 9, 2023 includes a 3% COLA for State and Mass Teachers' Retirement System retirees effective July 1, 2023, which triggers a corresponding increase in the supplemental dependent allowance. Effective July 1, 2023, any retirement system that has accepted the supplemental dependent allowance under G.L. c. 32, §§ 7(2)(a)(iii) or 9(2)(d)(ii) must pay $1,092.60 annually per eligible dependent child. Boards that have accepted the relevant statutory provisions must update their payment amounts immediately to reflect this increase.

This memo notifies retirement boards that the 2022 COLA under G.L. c. 32, § 103(c) is capped at 3.0%, despite the Social Security Administration announcing a 5.9% CPI-W adjustment. Boards wishing to adopt the COLA must vote in a properly posted public meeting with 30 days' notice to the legislative body, both steps completed before June 30, 2022 for a July 1 effective date. All boards must notify PERAC of their decision within 30 days.

This memo requests that retirement boards verify 2021 salary information for disability retirees through the PROSPER system to determine whether any retiree exceeded their allowable post-retirement earnings limit under G.L. c. 32, § 91A. Boards must enter each disability retiree's 2021 annual pension and current salary figures into PROSPER, which will calculate whether earnings thresholds have been exceeded. Where excess earnings are found, PERAC will issue an Excess Earnings letter and boards must notify the retiree and suspend the allowance until any overpayment is recovered.

This memo notifies retirement boards that the FY23 budget signed by Governor Baker on July 28, 2022 included a 5% COLA for eligible State and Mass Teachers' Retirement System retirees, which triggers an increase in the supplemental dependent allowances under G.L. c. 32, §§ 7(2)(a)(iii) and 9(2)(d)(ii). Effective July 1, 2022, retirement systems that have accepted these provisions must pay an annual amount of $1,060.80 per eligible child to qualifying accidental disability retirees and accidental death survivors. Contact PERAC Actuary John Boorack with questions.

This memo explains Chapter 269 of the Acts of 2022, signed November 16, 2022, which gives local retirement systems a one-time option to increase the FY2023 COLA to up to 5% on the applicable base amount under G.L. c. 32, § 103, retroactive to July 1, 2022. The approval process differs by municipality type — cities require city council action on the mayor's or city manager's recommendation, towns require select board approval, and regional/county systems require approval by two-thirds of member cities and towns. PERAC Actuary John Boorack provides a formula for estimating the full cost of the enhanced COLA.

Reports the 2021 Social Security COLA of 1.3%, establishing the baseline COLA boards may grant under G.L. c. 32, § 103(c) effective July 1, 2021. Boards may vote to increase the COLA up to 3.0% before June 30, 2021 and must notify PERAC within 30 days of any vote.

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.

Instructs boards on handling 91A PROSPER tasks for disability retirees who failed to file the 2020 Annual Statement of Earned Income or whose earnings may require a benefit adjustment. Boards must provide written notice and a hearing opportunity; PROSPER will also issue Salary Verification tasks requiring boards to enter 2020 annual pension and current salary figures for excess earnings calculations.

Reports the 2020 Social Security COLA of 1.6%, which sets the baseline COLA retirement boards may grant effective July 1, 2020 under G.L. c. 32, § 103(c). Boards may vote to increase the COLA up to 3.0% with proper notice to the legislative body before June 30, 2020, and must notify PERAC of their decision within 30 days.

Initiates the 2019 G.L. c. 32, § 91A allowable earnings process for disability retirees who reported earnings that may trigger a benefit adjustment. Boards will receive PROSPER tasks to verify current salary and pension figures; if excess earnings are confirmed, PERAC issues an excess letter and the retiree's allowance is suspended until the overage is repaid.

Sets the supplemental dependent allowance for accidental disability retirees (G.L. c. 32, § 7(2)(a)(iii)) and accidental death survivors (§ 9(2)(d)(ii)) at $980.88 per eligible child annually, retroactive to July 1, 2020. The increase reflects the 3% COLA for State and Mass Teachers' Retirement Systems included in the FY21 budget signed December 11, 2020.

PERAC notifies retirement boards that the Social Security Administration has announced a 2.8% Cost of Living Adjustment (COLA) for the prior year, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Under G.L. c. 32, §103(c), any COLA granted by a retirement system effective July 1, 2019 may be up to 2.8%. Per §103(i), a board may elect to increase this to a maximum of 3.0% with proper legislative notice, but the process must be completed prior to June 30, 2019. Each board deciding whether or not to grant a COLA must notify PERAC within 30 days.

PERAC announces the 2019 supplemental dependent allowance amount for retirement systems that have accepted the provisions of G.L. c. 32, §7(2)(a)(iii) or §22D. Effective July 1, 2019, the annual allowance for each eligible child is $952.32. The same amount applies to additional pensions for dependent children under G.L. c. 32, §9(2)(d)(ii), also effective July 1, 2019.

This memo notifies retirement boards that the 2018 COLA under G.L. c. 32, § 103(c) is set at 2.0%, matching the Social Security Administration's CPI-W adjustment. Boards may elect to increase the COLA up to 3.0% by vote with proper legislative body notice before June 30, 2018. All boards must notify PERAC of their COLA decision within 30 days.

This memo sets the 2018 supplemental dependent allowance at $924.60 per eligible child per year, effective July 1, 2018, for retirement systems that have accepted the provisions of G.L. c. 32, §§ 7(2)(a)(iii), 22D, or 9(2)(d)(ii).

This memo notifies retirement boards that the Social Security Administration's 2017 Cost of Living Adjustment (COLA) is 0.3%, which is the maximum COLA boards may grant effective July 1, 2017 under G.L. c. 32, § 103(c). Boards may vote to grant a higher rate up to 3.0% with proper notice to the legislative body. Each board that makes a COLA decision must notify PERAC within 30 days.

This memo announces that the annual supplemental dependent allowance under G.L. c. 32, § 7(2)(a)(iii) and the additional pension for dependent children under § 9(2)(d)(ii) are both set at $897.72 per eligible child, effective July 1, 2017. The adjustment applies to systems that have accepted those provisions or that accepted § 22D, under which the supplemental dependent allowance is deemed to have been accepted.

PERAC Memo #4/2016 announces that the Social Security Administration's CPI-W-based COLA for the year is 0.0%, meaning the base COLA retirement boards may grant under Chapter 32, §103(c), effective July 1, 2016, is also 0.0%. Boards retain discretion under §103(i) to vote at a duly called meeting to grant a higher COLA (up to 3.0%) with proper notice to their legislative body, but regardless of the decision made, each board must notify PERAC within 30 days of its determination.

PERAC Memo #19/2016 announces the updated annual supplemental dependent allowance of $871.56 per eligible child, effective July 1, 2016, applicable under G.L. c. 32 §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii). Boards that have accepted these provisions must begin paying this increased annual amount to eligible dependent children of accidental disability retirees and accidental death survivors as of that date. No further board action is needed beyond implementing the new payment amount for qualifying beneficiaries.

PERAC Memo #3/2015 reports that the Social Security Administration's announced CPI-W increase is 1.7%, which sets the statutory COLA rate under Chapter 32, §103(c) effective July 1, 2015. Retirement boards may vote at a duly called meeting to grant this base COLA or, with proper notice to their legislative body, elect a higher rate up to 3.0% under §103(i). Each board must notify PERAC of its COLA decision within 30 days of voting.

PERAC Memo #16/2015 announces the updated annual supplemental dependent allowance—$846.12 per eligible child effective July 1, 2015—payable under G.L. c. 32 §7(2)(a)(iii) (including systems that accepted §22D) and under §9(2)(d)(ii) for additional pensions for dependent children. Boards that have accepted these provisions must apply this new COLA-adjusted amount to eligible accidental disability retirees and accidental death survivors beginning with that date; no further action is needed for boards that have not accepted these provisions.

PERAC Memorandum #03/2014 notifies retirement boards that the Social Security Administration's announced COLA is 1.5%, which sets the base COLA rate effective July 1, 2014 under Chapter 32, §103(c). Boards may vote at a duly called meeting to increase this rate up to 3.0% under §103(i), provided proper notice is given to the appropriate legislative body; regardless of the decision made, each board must notify PERAC of its COLA determination within 30 days.

PERAC Memo #28/2014 announces the annual COLA-adjusted supplemental dependent allowance for eligible children of accidental disability retirees and accidental death survivors, set at $821.52 per eligible child effective July 1, 2014, under G.L. c. 32 §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii). Boards that have accepted these provisions must update their payment amounts to reflect this new figure; questions should be directed to PERAC actuary Jim Lamenzo.

PERAC Memo #3/2013 reports that the Social Security Administration's announced COLA is 1.7%, which sets the base COLA that Massachusetts retirement systems may grant effective July 1, 2013 under Chapter 32, §103(c). Boards may vote at a duly called meeting to increase this rate up to 3.0% under §103(i), provided proper notice is given to the local legislative body; each board must notify PERAC of its COLA decision (whether to grant one, and at what rate) within 30 days of the vote.

PERAC Memo #21/2013 announces the updated annual COLA amount for the supplemental dependent allowance—$797.64 per eligible child, effective July 1, 2013—applicable to accidental disability retirees and accidental death survivors under G.L. c. 32, §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii). Boards that have accepted these provisions must begin paying the increased amount to eligible dependents as of that date; no further board action beyond implementing the new rate is required.

This memo announces that, per the Social Security Administration's 3.6% COLA determination, the maximum COLA local retirement boards may grant under c. 32, §103(c) effective July 1, 2012 is capped at 3.0%. Boards wishing to adopt a COLA must vote at a properly posted public meeting called for that purpose, provide the legislative body at least 30 days' notice, and complete these steps by June 30, 2012; each board must notify PERAC of its decision (whether to grant or not) within 30 days of that vote.

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.

This memo announces the updated annual supplemental dependent allowance—$774.36 per eligible child, effective July 1, 2012—payable under G.L. c. 32 §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii). Boards that have accepted these provisions must apply this increased amount when paying benefits to eligible children of accidental disability retirees and accidental death survivors, with no further action needed for boards that have not adopted these sections.

This memo notifies boards that the Social Security COLA for the year was 0.0%, which sets the base COLA rate under Section 103(c) effective July 1, 2011. Boards may vote at a duly called meeting to grant a higher COLA (up to 3.0%) under Section 103(i), provided they give proper notice to their legislative body; regardless of the decision, each board must notify PERAC of its COLA determination within 30 days.

This memo reminds boards of the process under G.L. c. 32, §103(j) for increasing a system's COLA base (a board vote by majority, followed by legislative body approval), as previously summarized in PERAC Memo #33/2010. It emphasizes that an increase is not effective until certification of both the board vote and legislative body approval is filed with PERAC—so boards that have taken steps to increase their COLA base but have not yet filed certification should do so promptly to make the change effective.

PERAC Memo #23, 2011 announces the annual cost-of-living adjustment to the supplemental dependent allowance under G.L. c. 32, §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii), raising the per-child annual payment to $751.80 effective July 1, 2011. Boards that have accepted these provisions must update payments to eligible children of accidental disability retirees and accidental death survivors accordingly; questions should be directed to PERAC actuary Jim Lamenzo.

**Memorandum #33, 2011 – Regular Compensation** This memo consolidates guidance on determining "regular compensation" for retirement purposes following Chapter 21 of the Acts of 2009, the amended 840 CMR 15.03 regulations, and relevant case law (Pelonzi and O'Brien decisions). It provides retirement boards with consolidated lists of characteristics that make payments includable (e.g., base salary, non-discretionary payments for services) versus excludable (e.g., overtime, bonuses, in-kind payments, severance) from regular compensation calculations. Boards should apply this framework when reviewing compensation determinations for members retiring on or after July 1, 2009, though no new filing or reporting action is required beyond ensuring compliance with existing law when calculating regular compensation.

This memo notifies boards that, per the required annual COLA report under Ch. 17, §8(c), the Social Security Administration's CPI-W-based COLA is 0.0%, making the statutory Chapter 32, §103(c) COLA effective July 1, 2010 also 0.0%. Boards may elect, after proper notice to their legislative body and a duly called meeting, to grant a COLA up to 3.0% under §103(i), and each board must notify PERAC of its decision within 30 days.

Memorandum #27, 2010 announces that effective July 1, 2010, the annual supplemental dependent allowance under G.L. c. 32, §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii) increases to $729.84 per eligible child. Boards that have accepted these provisions must apply this updated amount when paying benefits to accidental disability retirees and accidental death survivors with eligible dependent children. No formal acceptance action is required, but boards should update payment amounts accordingly and contact PERAC's actuary with questions.

PERAC Memorandum #33/2010 summarizes provisions of Chapter 188 of the Acts of 2010 (Municipal Relief Act) governing actuarial valuations, funding schedules, and COLA base increases—including the new biennial valuation/six-year experience study requirement, the 95% minimum funding payment rule under §22D, the new §22F option allowing systems to adopt a funding schedule reaching full funding by June 30, 2040 under specified constraints, and the ability under §103(j) to raise the COLA base in $1,000 increments. Boards should review these provisions carefully (referencing the attached law) to determine whether to pursue a revised funding schedule under §22F or a COLA base increase under §103(j); any COLA base increase requires board vote plus approval by the appropriate legislative body and certification filed with PERAC, and once accepted cannot be revoked.

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.

This memo announces the annual COLA adjustment to the supplemental dependent allowance under G.L. c. 32 §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii), setting the payment at $708.60 per eligible child effective July 1, 2009. Boards that have accepted these provisions must update their systems to pay this new annual amount to eligible accidental disability retirees and accidental death survivors for each qualifying dependent child, with questions directed to PERAC's actuary Jim Lamenzo.

PERAC Memorandum #42/2009 announces proposed regulations implementing Chapter 21 of the Acts of 2009, which narrowed the definition of "regular compensation" for payments received after July 1, 2009, and lists specific exclusions (e.g., overtime, bonuses, severance payments, in-kind payments). Until final promulgation (expected after June 2010), boards should continue treating previously-qualifying compensation as regular compensation unless it falls under one of the enumerated exclusions, while noting that certain grandfathered items covered by collective bargaining agreements or contracts in effect on May 1, 2009 remain includible only through June 30, 2012. No immediate board action is required beyond applying these transitional rules pending final regulations.

This memo announces that the Social Security COLA for 2007 is 2.3%, which sets the base COLA rate boards may grant under G.L. c. 32, §103(c) effective July 1, 2007; 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 of its COLA decision (whether to grant, and at what rate) within 30 days of that vote.

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.

This memo announces the annual cost-of-living adjustment to the supplemental dependent allowance under G.L. c. 32, §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii), setting the new annual amount at $687.96 per eligible child effective July 1, 2008. Boards that have accepted these provisions must update payments accordingly for accidental disability retirees and accidental death survivors with eligible dependent children; no further board action beyond implementing the new rate is required.

This memo notifies boards that, per Ch. 32 §103(c), the maximum COLA retirement boards may grant effective July 1, 2007 is 3.0% (based on the Social Security Administration's 3.3% CPI-W increase, capped at 3.0%). Boards must decide whether to grant a COLA and notify PERAC of that decision within 30 days.

This memo notifies retirement boards of upcoming Joint Committee on Public Service hearing dates on pending pension-related legislation, including minimum pension bills, the Municipal Partnership Act (local GIC and PRIT Fund provisions), COLA base increase bills, and pension governance reform bills. No board action is required, but boards with interest in attending should confirm hearing dates/agenda with the Committee (617-722-2240) beforehand, as schedules are subject to change.

Memorandum #29, 2007 announces the annual cost-of-living adjustment to the supplemental dependent allowance under G.L. c. 32, §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii), increasing the per-child annual amount to $667.92 effective July 1, 2007. Boards that have accepted these provisions must apply the new rate to eligible children of accidental disability retirees and accidental death survivors going forward; questions should be directed to PERAC's actuary, Jim Lamenzo.

This memo summarizes Chapter 68 of the Acts of 2007, which authorizes PERAC to annually evaluate each retirement system's funded ratio and investment performance and mandate transfer of assets to PRIT for systems that are under 65% funded and have underperformed PRIT by 2%+ annually over 10 years, subject to a limited appeal/exemption process. Boards should be aware that PERAC will conduct its initial review using January 2007 data (or the most recent valuation if none is updated by October 1, 2007) and will directly contact any systems identified as potentially subject to mandatory transfer; no immediate action is required beyond awaiting that notification, though boards should understand the appeal process and local approval requirements should their system be flagged.

This memo notifies boards that the Social Security COLA was 4.1%, but per the statutory 3.0% cap, the maximum COLA a retirement board may grant effective July 1, 2006 under Chapter 32, §103(c) is 3.0%. Boards must vote on whether to grant a COLA and, per the required action, notify PERAC of their decision within 30 days of making it.

Memorandum #35/2006 notifies retirement boards that have accepted G.L. c. 32 §7(2)(a)(iii) (or §22D, which deems that provision accepted) of the annual cost-of-living increase to the supplemental dependent allowance paid to accidental disability retirees, effective July 1, 2006, raising the amount to $648.48 per eligible child. Boards that have accepted these provisions must apply the new $648.48 annual rate for each eligible child going forward; a related increase for §9(2)(d)(ii) dependent benefits is covered separately in Memo #34/2006.

This memo announces that the Social Security COLA is 2.7%, which establishes the base COLA rate retirement boards may grant effective July 1, 2005 under Chapter 32, §103(c); boards may vote to increase this up to 3% under §103(i) with proper notice to their legislative body. Boards must notify PERAC of their COLA decision (whether to grant one, and at what rate) within 30 days of their vote.

This memo notifies boards that have accepted G.L. c. 32 §7(2)(a)(iii) (or §22D, which deems acceptance) of the annual cost-of-living adjusted supplemental dependent allowance for eligible children of accidental disability retirees, set at $629.64 per eligible child effective July 1, 2005. Boards subject to these provisions must update their benefit payments accordingly; questions should be directed to PERAC actuary Jim Lamenzo.

This memo transmits PERAC's cost analysis and recommendations on increasing the COLA base, prepared pursuant to Section 375 of Chapter 149 of the Acts of 2004. No specific action is required of boards; the enclosed report is provided for informational review.

This memo announces that the Social Security Administration's CPI-W-based COLA is 2.1%, which sets the statutory COLA rate effective July 1, 2004 under Chapter 32, §103(c). Boards may vote at a duly called meeting to increase this rate up to 3% (per §103(i)) provided proper notice is given to the local legislative body, and each board must notify PERAC of its COLA decision within 30 days.

This memo notifies boards that have accepted the supplemental dependent allowance under G.L. c. 32 §7(2)(a)(iii) (or §22D) of the updated annual COLA-adjusted allowance amount—$611.28 per eligible child—effective July 1, 2004. Boards that have adopted this provision must apply the new rate when paying supplemental dependent allowances to accidental disability retirees; questions should be directed to PERAC's actuary, Jim Lamenzo.

This memo notifies boards that the Legislature overrode Governor Romney's vetoes on several FY05 Budget provisions affecting retirement systems: reinstatement of the spousal retirement benefit under G.L. c. 32, §5(1)(e) for spouses married and in service on or before November 1, 2003; a PERAC-led study on raising the $12,000 COLA base; and changes to the confidentiality status of certain PRIM records. Boards must verify member records to identify spouses eligible for the reinstated spousal retirement benefit and, critically, must recalculate and retroactively pay increased allowances to anyone who retired between November 1, 2003 and the Budget's effective date who would benefit from this provision; no board action is required regarding the COLA study, which PERAC will distribute upon completion.

This memo notifies boards that the Social Security COLA for 2003 is 1.4%, which sets the base COLA rate boards may grant effective July 1, 2003 under Chapter 32, §103(c); boards may vote to increase this up to 3% under §103(i) with proper notice to their legislative body. Boards must notify PERAC within 30 days of their decision on whether to grant a COLA.

This memo notifies boards that have accepted the supplemental dependent allowance under G.L. c. 32 §7(2)(a)(iii) (or via §22D) of the updated annual COLA rate—$593.52 per eligible child—effective July 1, 2003. Boards that have accepted these provisions must apply this new amount when calculating supplemental allowances for eligible dependents of accidental disability retirees; no other action is required unless questions arise, in which case boards should contact PERAC's actuary.

PERAC Memo #3/2002 reports that the Social Security COLA for 2002 is 2.6%, which sets the base COLA rate boards may grant under Chapter 32, §103(c), effective July 1, 2002. Boards may elect to increase this to up to 3% under §103(i) with proper notice to their legislative body, and must notify PERAC of their COLA decision within 30 days of making it.

This memo announces that PERAC conducted its first-ever survey of retirement boards to gather feedback on PERAC's operations, educational efforts, and regulatory guidance, which will inform future initiatives including the July UMass educational seminar. Boards that have not yet completed the survey are asked to submit their responses promptly (contacting Lindsay Deaver if a copy is needed); no other action is required.

Memorandum #34/2002 notifies boards that have accepted the supplemental dependent allowance under G.L. c. 32 §7(2)(a)(iii) (or §22D, which is deemed to include acceptance) that the annual per-child allowance for eligible dependents of accidental disability retirees increases to $576.24, effective July 1, 2002. Boards that have adopted this provision must update their payment amounts accordingly; boards that have not accepted §7(2)(a)(iii)/§22D are not affected.

This memo requests retirement boards complete and return the annual Appropriation Data Questionnaire—covering FY03/FY04 appropriation amounts, Section 3(8)(c) reimbursements, COLA reimbursements, benefit payments, and any 90A/90C/90D acceptances—by October 31, 2002, so PERAC can calculate the FY04 appropriation under G.L. c. 32, §22D or §22(6A)(b). Boards may submit the questionnaire via PERAC's website and are reminded that funding schedules must be resubmitted for approval at least every three years, with boards lacking a recent schedule asked to contact PERAC.

This memo reports that the Social Security COLA is 3.5%, meaning retirement systems that have accepted Chapter 17 (Acts of 1997) and adopted a funding schedule may grant a COLA effective July 1, 2001 of up to 3.0% on the first $12,000 of a retirement allowance, per Chapter 32, §103(c). Only boards that have accepted Chapter 17 may act on this; each such board must notify PERAC within 30 days of its decision whether to grant the COLA.

This memo announces Chapter 411 of the Acts of 2000, which permits a "pop-up" pension allowance adjustment for noncontributory retirees who retired under G.L. c. 32, §58B before January 12, 1998 and whose beneficiary predeceased them, effective April 5, 2001 (with no retroactive benefits for the period before that date). Boards should note this is a local option requiring acceptance by both the retirement board and the local legislative body, and any such acceptance must be forwarded to PERAC's Legal Unit; the memo also provides the required formula and worked example for calculating the "popped-up" pension with applicable COLAs brought forward to the effective date.

This memo notifies boards that, following approval of the FY2002 state budget, systems that have accepted the supplemental dependent allowance under G.L. c. 32 §7(2)(a)(iii) (or §22D) must pay an increased annual allowance of $559.44 per eligible child, retroactive to July 1, 2001. Boards that have accepted these provisions should ensure accidental disability retirees with eligible dependent children receive the updated amount, including any retroactive adjustment.

PERAC Memo #6/2000 announces completion of the Local Option Project, with each board's adopted local options (e.g., board compensation, Option C Pop-Up) now searchable on PERAC's website via Board Profiles and a new "Local Options" tab; a "Y" confirms PERAC has received documented proof of acceptance, while "N" may simply reflect missing documentation rather than non-adoption. Boards should review their listed data for accuracy and completeness and submit proof of acceptance to PERAC's Legal Unit for any options adopted going forward (note: the Chapter 127 COLA provision is not yet reflected in these lists).

PERAC Memo #17/2000 reports that the CPI-W-based COLA for FY2000 is 2.4%, applicable only to systems that have accepted Chapter 17 of the Acts of 1997 and established a funding schedule; boards may elect to increase this to up to 3.0% under Chapter 127, Section 51 of the Acts of 1999. Boards must notify PERAC within 30 days of their decision whether or not to grant a COLA.

This memo clarifies that the FY2001 COLA under Section 103(c) is 2.4% on the first $12,000 of a retirement allowance, and must be approved by June 30, 2000. Boards that have accepted Section 51 of Chapter 127 may elect to increase the COLA up to 3%, but must provide the legislative body 30 days' written notice before the public meeting on this decision. All boards must notify PERAC within 30 days of their COLA decision, including any election to exceed 2.4%.

PERAC Memo #37/2000 explains that Chapter 159 of the Acts of 2000 permits retirement systems that properly accepted the Increased COLA Act (Ch. 127, §51 of 1999) to extend that same COLA increase to noncontributory retirees, retroactive to July 1, 1999, with costs borne by the municipality/entity rather than the retirement system. Boards in systems that accepted Section 51 must vote to grant this retroactive noncontributory COLA by June 30, 2001 to apply it retroactively; going forward, noncontributory retirees will automatically receive any COLA granted to contributory retirees without further board action.

This memo notifies boards that have accepted G.L. c. 32 §7(2)(a)(iii) (or §22D, which deems acceptance) that the annual supplemental dependent allowance for eligible children of accidental disability retirees increases to $543.12 per child, effective July 1, 2000. Boards subject to this provision must update payments accordingly to reflect this COLA-adjusted amount; questions should be directed to PERAC actuary Jim Lamenzo.

This memo clarifies that under G.L. c. 32, § 3(8)(c), a retirement system receiving reimbursement from another governmental unit for pension costs attributable to service in that second unit cannot also seek reimbursement for the COLA portion (under Chapter 17 of the Acts of 1997) attributable to that service. Because each board independently elects to adopt the COLA, the adopting system bears full responsibility for the entire increased COLA cost, regardless of any § 3(8)(c) reimbursement arrangement. Boards need not take specific action but should apply this interpretation when calculating and billing § 3(8)(c) reimbursements.

This memo announces Chapter 456 of the Acts of 1998, effective April 15, 1999, which allows a local option COLA for noncontributory pension recipients (requiring local legislative body acceptance of both Chapter 456 and Chapter 17 of 1997), and a separate local option permitting uncompensated library trustees to purchase creditable service by paying into the annuity savings fund as if compensated at $2,500/year plus interest. No immediate action is required of retirement boards themselves, since acceptance of the COLA provision rests with the local legislative body (Town Meeting, City Council, or County Advisory Council); boards should be prepared to implement the COLA for noncontributory retirees—including the FY1999 retroactive adjustment to July 1, 1998—once local acceptance occurs, and should be aware of the library trustee creditable service option if applicable.

This memo notifies boards that the Social Security Administration's CPI-W determination sets the FY2000 COLA rate at 1.3%, applicable only to systems that have accepted Chapter 17 of the Acts of 1997 and established a funding schedule for COLA costs. Boards eligible to grant this COLA must decide whether to do so and notify PERAC of their decision within 30 days.

This memo clarifies the method for calculating the Option (c) pop-up allowance when a member has also been granted a Section 90A, 90C, or 90D benefit increase. Boards must first calculate the pop-up allowance based on the member's original allowance (disregarding the 90A/90C/90D increase), then compare that "popped-up" figure—with COLAs applied—to the enhanced 90A/90C/90D benefit (also with COLAs applied), and pay the member whichever amount is greater. Boards should apply this calculation methodology, illustrated by the worked examples in the memo, whenever processing pop-up allowances for retirees who have received these statutory increases.

This memo clarifies the operation of G.L. c. 32, §§ 90A, C and D, which allow municipalities, districts, or MassPort to grant annual retirement allowance increases (up to 50% of current salary) to eligible retirees—accidental disability retirees under §90A, and superannuation/ordinary disability retirees with 25+ years of employment under §90C/§90D, respectively. It explains that acceptance and annual approval rest solely with the local governing body (not the retirement board), and importantly notes a policy change: due to revisions to G.L. c. 32, §102, retirees may now receive both a COLA and a §90A/C/D increase in the same year, reversing the prior rule limiting them to the larger of the two. Boards should administer benefits accordingly, recognizing that increases become a permanent part of the base allowance and that future COLAs will be calculated on the increased amount, with costs borne by the granting entity.

This memo explains new G.L. c. 32, §103(i), which allows local acceptance (by town meeting, city council, or county advisory council) to permit a retirement board to grant a COLA of up to 3% (on the first $12,000 of allowance), exceeding the standard §103(c) COLA. Boards must ensure local acceptance is completed, hold a properly posted public meeting to elect an increased COLA amount, provide the legislative body 30 days' advance notice before each annual election, and notify PERAC in writing both of the initial local acceptance and each subsequent election (with the COLA percentage granted); note this enhanced COLA does not apply to noncontributory retirees under §103(h).

PERAC Memo #50/1999 notifies retirement boards that have accepted the supplemental dependent allowance under G.L. c. 32, §7(2)(a)(iii) (or §22D, which is deemed to include acceptance of §7(2)(a)(iii)) of the updated annual COLA-adjusted allowance amount of $527.28 per eligible child, effective July 1, 1999. Boards that have accepted these provisions must apply this new amount when calculating supplemental dependent allowances for accidental disability retirees; no further action is required beyond implementing the updated figure.

PERAC Memo #2/1998 provides an updated list of retirement systems that have accepted Chapter 17 of the Acts of 1997, which reformed the method for granting COLAs to retirees. Boards should review the attached list to confirm their system is accurately reflected as having accepted the legislation, and contact PERAC immediately if their acceptance is not listed. Boards submitting acceptance letters must also include certified copies of the acceptance vote and relevant board meeting minutes excerpts.

PERAC Memo #17/1998 notifies all retirement boards that the maximum COLA allowable for FY99 (under systems that have accepted Chapter 17 of the Acts of 1997) is 2.1%, based on the Social Security Administration's announced increase. Boards that have accepted Chapter 17 and wish to grant a COLA must notify PERAC of their decision within 30 days, file certification of the vote, and amend their funding schedules to reflect the COLA's cost impact; boards needing assistance with funding schedule amendments may contact PERAC actuary Jim Lamenzo.

PERAC Memo #18/1998 addresses how retirement boards should handle FY99 appropriations for systems that adopt the COLA legislation before June 30, 1998. PERAC's preference is that the FY99 appropriation immediately reflect the COLA's funding impact via a revised schedule, but boards may instead delay incorporation of the COLA cost until the FY00 appropriation, provided the underlying schedule is based on a valuation dated January 1, 1996 or later. Boards should be aware that choosing to delay will result in higher required appropriations in future years, including FY00, compared to adopting the revised schedule immediately.

PERAC Memo #21/1998 answers frequently asked questions on implementing the COLA statute (Chapter 32, §103, as revised by Chapter 17) for FY99, confirming the applicable COLA rate is 2.1%, clarifying eligibility rules (must have been receiving a benefit as of June 30, 1997, and excludes non-contributory retirees), and explaining the automatic increase applicable to certain supplemental payments. To grant a FY99 COLA, boards must ensure both local acceptance of Chapter 17 and formal board action occur before July 1, 1998—no COLA can be paid without these two steps being completed.

This memo lists retirement systems that have accepted Section 103 (Chapter 32) and/or voted to grant a FY99 COLA, and clarifies that both the board and legislative body must adopt Section 103, followed by a separate board vote to grant the COLA, all completed before July 1, 1998. It also confirms that retirees whose retirement date was on or before June 30, 1997 remain COLA-eligible even if their first payment was received after that date. Boards that have taken these actions but not yet notified PERAC should do so immediately, and boards should verify their system's status against the attached listing.

This memo clarifies that accepting Section 103 (COLA statute) does not itself grant a FY99 COLA—boards must separately and formally vote to grant the COLA after acceptance is complete, with that vote occurring on or before June 30 and board minutes forwarded to PERAC. It also relays a State Ethics Commission opinion permitting retired board members to participate in both the Section 103 acceptance vote and the annual COLA determination, despite their financial interest, though this exception applies only to these specific COLA-related votes.

This memo reports an Ethics Commission ruling that retired members serving on their own retirement board may vote on annual COLA determinations (including acceptance of Chapter 17 of the Acts of 1997), even though they personally benefit, since COLAs generally affect all members rather than uniquely benefiting the individual board member. Boards should note that such members remain bound by their fiduciary duties in casting these votes; no other action is required.

PERAC Memo #37/1998 notifies retirement boards that have accepted G.L. c. 32, §7(2)(a)(iii) (or §22D, which deems acceptance of this provision) of the updated COLA amount for the supplemental dependent allowance paid to accidental disability retirees. Effective July 1, 1998, boards must pay $511.92 annually for each eligible child. Boards subject to these provisions should ensure payroll/benefit systems reflect this updated rate; questions should be directed to PERAC actuary Jim Lamenzo.

This memo follows the CRAB decision in Dargan v. PERAC, which requires retroactive payment of the $300 veteran's benefit to all surviving spouses and estates previously denied all or part of that benefit due to the 80% cap under G.L. c. 32, §5(2)(c)—regardless of whether they were in pay status when the earlier Drew decision was issued or which retirement option was selected. Boards must review current and past records to identify eligible beneficiaries/estates where possible, publish a local newspaper notice alerting potential claimants of their right to apply, and upon application, recalculate affected allowances using the appropriate PERAC worksheet (Simplified or Retroactive Payment) for submission to PERAC for review and approval.

PERAC Memo #50/1998 transmits the 13th Annual Report on the Massachusetts Contributory Retirement Systems for calendar year 1997, featuring a redesigned format that presents a broader view of fund administration beyond investment performance alone. No specific board action is mandated, but PERAC provides a model press release that boards may optionally use to publicize their system's 1997 investment returns and funded ratio to local media.

PERAC Memo #51 announces changes to the retiree and active data record layouts to support tracking of post-1997 COLA liabilities: a new required field, POST97COLA, must be reported by all boards to capture COLA amounts granted after FY97, while existing FY82COLA and FY81COLA fields remain unchanged. It also adds an optional GOVUNIT field for county systems to identify governmental units. Boards should coordinate with their software vendors to ensure these new fields are incorporated into data submissions beginning with the December 31, 1998 reporting period.

PERAC Memo #53 clarifies how boards should calculate the Option (c) "pop-up" allowance under the new local option (Ch. 194, §288 of the Acts of 1998), which extends pop-up eligibility to members who retired before January 12, 1988. Boards must calculate the pop-up as of the beneficiary's original date of death using the standard formula (Cdod × Aorig/Corig), then apply subsequent COLA increases forward to determine the allowance payable prospectively from July 1, 1998. Boards that accept this local option bear the full cost of the pop-up increase themselves, with no adjustment to Section 3(8)(c) reimbursement amounts.

PERAC Memo #63 addresses the frequency of actuarial valuations, noting that while Chapter 32 requires triennial valuations, GASB standards call for at least biennial reporting, and PERAC recommends annual valuations (or an interim valuation in off years) as sound pension management practice. Boards should work with private actuarial firms to establish ongoing relationships so that valuations can be performed more frequently, with PERAC able to adopt a reviewed private valuation to satisfy the statutory triennial requirement—no immediate mandatory action beyond pursuing this cooperative arrangement.

PERAC Memo #20/1997 notifies boards that Chapter 17 of the Acts of 1997 has delayed implementation of the Early Intervention Program (originally established by Chapter 306 of the Acts of 1996) to January 1, 1998. It also announces that PERAC will convene a Task Force, in consultation with MACRS, the MMA, and the State and Teachers' Retirement Boards, to study the program and recommend legislative changes by October 1, 1997. No immediate action is required of boards beyond noting the revised implementation date and awaiting further communication on the study.

This memo introduces Jim Lamenzo as PERAC's newly appointed Actuary and notes that a priority will be assessing the cost impact of recent COLA legislation on boards' funding schedules. Boards that have obtained or are obtaining independent actuarial cost estimates related to these COLA changes should promptly forward copies of any such reports or letters to PERAC to assist with this analysis.