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.

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.

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.