PERAC Memo #20 - 2024: 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 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.
Full Text
Memorandum Memorandum PERAC Memo #20: Cost of Living Increase for Supplemental Dependent Allowance Paid to Accidental Disability Retirees and Accidental Death Survivors Date: 07/31/2024 Referenced Sources: PERAC Website PERAC Memo #20 2024
To All Retirement Boards: M E M O R A N D U M
TO: All Retirement Boards
FROM: William T. Keefe, Executive Director
RE: Cost of Living Increase for Supplemental Dependent Allowance Paid to Accidental Disability Retirees and Accidental Death Survivors
DATE: July 31, 2024
On July 29, 2024, Governor Healey signed the FY25 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, 2024. As a result, the supplemental dependent allowances under §§ 7(2)(a)(iii) and 9(2)(d)(ii) will be increased as of July 1, 2024.
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 $1,125.36 beginning July 1, 2024 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 $1,125.36 beginning July 1, 2024 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.