RELATIVE TO STATE AND TEACHER RETIREE COLA BENEFITS
Section 1.
Section 1 of chapter 32 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by inserting after the definition of "Constitutional Officers" the following definition:-
“Cost of Living Reserve Fund”, the fund established under the provisions of subdivision (6B) of section twenty-two to provide for the reservation of monies for liabilities of cost of living improvements pursuant to paragraphs (h) and (i) of section 102.
Section 2.
Section 1 of said chapter 32, as so appearing, is hereby further
amended by inserting after the definition of "Employer" the following definition: -
“Excess investment income”, the amount in any calendar year of investment gains on the assets of the state employees and teachers’ retirement systems in excess of two percentage points above the investment return assumption set in the systems’ most recent actuarial valuation. The actuary shall certify the excess investment income of each system within 90 days after the filing of the calendar year-end PRIT performance report by the PRIM board.
Section 3.
Section 22 of said chapter 32, as so appearing, is hereby amended by inserting after clause (v) in section (a) paragraph (6) the following clause:-
(vi) In any calendar year prior to making the transfers required in clause (iii), a proportional amount of the excess investment income, equal to the percentage which the annuity savings and annuity reserve account balances of the state employee and teachers’ retirement systems represented to the total assets of the systems as reported in the financial statements required under paragraph (5), subparagraph (h) of section 20, shall be transferred to the Cost of Living Reserve Fund.
Section 4.
Section 22 of said Chapter 32 is hereby further amended by inserting after paragraph (6A) the following paragraph:-
(6B) Cost of Living Reserve Fund. - The Cost of Living Reserve Fund of the state employees and teachers’ retirement systems shall be credited all amounts set aside for the purpose of establishing a reserve to meet future liabilities and benefit payments pursuant to paragraphs (h) and (i) of section 102, including such amounts as may be set aside pursuant to a funding schedule established in accordance with section twenty-two C or twenty-two D. Such amounts shall include without limitation the amount of excess investment income as provided for in clause (vi) of paragraph (a) of subdivision (6).
Section 5.
Section 102 of Chapter 32 of General Laws, as appearing in the 2018 Official Edition, is hereby amended by adding at the end thereof the following:- (h) In any year in which a cost of living adjustment is paid pursuant to paragraph (a), every member of the state employee retirement system and the teachers’ retirement system who retired prior to July 1, 2020 with twenty or more years of creditable service, or who retired under sections 6, 7 or 28 of this chapter, and whose total annual retirement allowance is less than one hundred and fifty percent of the average annual retirement allowance as determined by the retirement system’s most recent actuarial valuation shall be eligible to receive an additional annual cost of living increase. Said members who have attained at least fifteen ten full years of retirement as of June 30 of the prior fiscal year who receive a cost of living increase shall receive an additional one hundred and twenty dollar benefit to said increase; said members who have attained at least twenty fifteen full years of retirement as of June 30 of the prior fiscal year who receive a cost of living increase shall receive an additional two hundred and fortydollar benefit to said increase; said members who have attained at least twenty full years of retirement as of June 30 of the prior fiscal year who receive a cost of living increase shall receive an additional three hundred and sixty dollar benefit to said increase; said members who have attained at least twenty-five full years of retirement as of June 30 of the prior fiscal year who receive a cost of living increase shall receive an additional four hundred and eighty dollar benefit to said increase.
Any surviving beneficiary of a deceased member who would otherwise be eligible for aforesaid additional benefit under this paragraph, including those beneficiaries receiving a benefit under sections 9, 12 or 101, shall receive said additional benefit if it is determined they are eligible by the retirement board in which they are a participant.
Section 6.
Section 102 of Chapter 32 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by adding at the end thereof the following:- (i)
- In any two consecutive calendar years the actuary determines there has been excess investment income as defined in section 1, the base retirement allowance on which the cost of living increase percentage is applied shall be increased by an amount of not less than one thousand dollars in the next fiscal year following the determination of excess earnings, provided however, the amounts credited to the Cost of Living Reserve Fund under paragraph 6B of Section 22 are in excess of the amounts necessary to meet current and future liabilities and benefit payments attributable to said increase.
Section 7.
Insert in the first paragraph of Section 102 after the State and Teacher base amount of “13,000 dollars” the following provision:- or other amount set in accordance with the provisions of paragraph (i).
| Date published: | August 6, 2025 |
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