PERAC Memo #6 - 2025: COLA Notice
COLA Notice
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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.
Full Text
Memorandum Memorandum PERAC Memo #6: COLA Notice Date: 01/15/2025 Referenced Sources: PERAC Website Memorandum TO: All Retirement Boards
FROM: Bill Keefe, Executive Director
RE: COLA Notice
DATE: January 15, 2025
The Public Employee Retirement Administration Commission (PERAC) is providing this notice regarding the COLA Report required by Chapter 17, Section 8(c) of the Acts of 1997.
Under the statute, PERAC reports to the General Court the computation of the increase in the United States Consumer Price Index in the previous year by the Commissioner of Social Security. Any such increase is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index is used annually to adjust benefits paid to Social Security retirees and beneficiaries.
The Social Security Administration has announced that the latest Cost of Living Adjustment (COLA) is 2.5%.
The COLA, which any such system may grant pursuant to Chapter 32, Section 103(c) and effective July 1, 2025, will thus be 2.5%. Pursuant to Section 103(i), a Retirement Board, with proper notice to the legislative body, may elect to increase this percentage up to 3.0%, at a duly called meeting. By statute, this process should be completed prior to June 30, 2025.
Each Retirement Board making a decision whether or not to grant a COLA must notify the Commission of that decision within 30 days.