PERAC Memo #22 - 2022: Cost of Living Increase for Supplemental Dependent Allowance
Cost of Living Increase for Supplemental Dependent Allowance Paid to Accidental Disability Retirees and Accidental Death Survivors
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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.
Full Text
M E M O R A N D U M
TO: All Retirement Boards
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: August 5, 2022
On July 28, 2022, Governor Baker signed the FY23 budget into law. Included in the budget was a 5% COLA for eligible retirees of the State and Mass Teachers' Retirement Systems effective July 1, 2022. As a result, the supplemental dependent allowances under §§ 7(2)(a)(iii) and 9(2)(d)(ii) will be increased as of July 1, 2022.
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 $1,060.80 beginning July 1, 2022 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 $1,060.80 beginning July 1, 2022 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.