FILED ON: 1/25/2012
HOUSE . . . . . . . . . . . . . . . No. 3457
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The Commonwealth of Massachusetts
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In the Year Two Thousand Twelve
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An Act relative to cost of living adjustments for retired public employees of the Commonwealth.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Section 22C of Chapter 32 of the General Laws, as appearing in the 2008 Official Edition, is amended by striking out in line 29 the number “23” and inserting in place thereof the following number:— 40.
SECTION 2. Paragraph (c) of Section 102 of said Chapter 32, as appearing in the 2008 Official Edition, is amended by striking out in lines 32, 36 and 43 the dollar amount “$12,000” and inserting in place thereof the following dollar amount:—$16,000.
SECTION 3. The provisions of Sections one and three of this act shall take effect for cost of living adjustments to be made, in accordance with the provisions of Section 102 of said Chapter 32, commencing July 1, 2012.
SECTION 4: Subdivision (3) of section 21 of Chapter 32 is hereby amended by striking out paragraph (f) and inserting in place thereof the following paragraph:
(f) the preparation and filing with the general court, of a report, annually, in the month of January, on the computation of any increase in the United States Consumer Price Index and the percentage thereof in the previous year by the Commissioner of Social Security, including a statement that such increase in said Consumer Price Index during the last previous year requires a cost of living increase in the retirement allowances, pensions or annuities of eligible members, as defined in sections 102 and 103, equal to the percentage increase in the Consumer Price Index or 3 per cent, whichever is greater.
SECTION 5: Section 102 of Chapter 32 is hereby amended by striking out paragraph (a) and inserting in place thereof the following paragraph:
(a) The actuary in the commission shall annually in the month of January file with the clerk of the house of representatives the report prepared in accordance with paragraph (f) of subdivision (3) of section 21. The retirement allowance, pension or annuity of every member of the state employees’ system and the teachers’ retirement system who has received a retirement allowance, pension or annuity on June 30 of the preceding fiscal year, or of a spouse or other beneficiary of such member who has received a retirement allowance, pension or annuity on June 30 of the prior fiscal year, shall be increased by the percentage as determined by the actuary’s report; provided that notwithstanding the actuary’s report the cost of living increase shall be at least three percent. The cost of living adjustment shall be applied each July 1. Said cost of living increase shall be funded from the investment income account of the state employees’ and state teachers’ systems. The sum of the dollar amount of each cost of living increase, together with the amount of retirement allowance, pension or annuity to which the cost of living per cent factor is applied, shall become the fixed retirement allowance, pension or annuity for all future purposes, including the application of subsequent cost of living adjustments in future years.
SECTION 6. Section 102 is hereby amended by adding after paragraph (c) the following clauses:
(i) In any case as of June 30, 2011 but prior to June 30, 2016 where such former employee, spouse, or other beneficiary is receiving an annual retirement allowance, pension or annuity which is sixty-five percent of the maximum social security benefit or more exclusive of additional annuity obtained by special purchase under paragraph (g) of subdivision (1) of section 22 or any similar law, the cost of living adjustment shall be in an amount determined by applying the per centum of change determined pursuant to paragraph (a) to the sum of sixty-five percent of the maximum social security benefit. Whenever a cost of living adjustment is granted pursuant to said paragraph (a), the dollar amount of such increase as determined in said paragraph (a) shall be added to each retirement allowance, pension or annuity which is in excess of said maximum base amount. The sum of the dollar amount of such cost of living adjustments, together with the amount of retirement allowance, pension or annuity to which the cost of living per centum factor is applied and any amounts in excess of said sixty-five percent of the maximum social security benefit shall become the fixed retirement allowance, pension or annuity for all future purposes including the application of subsequent cost of living adjustments in future years; provided, however, that the limitations of this paragraph shall continue to apply.
(ii) In any case as of June 30, 2016 but prior to June 30, 2020 where such former employee, spouse, or other beneficiary is receiving an annual retirement allowance, pension or annuity which is seventy-five percent of the maximum social security benefit or more exclusive of additional annuity obtained by special purchase under paragraph (g) of subdivision (1) of section 22 or any similar law, the cost of living adjustment shall be in an amount determined by applying the per centum of change determined pursuant to paragraph (a) to the sum of seventy-five percent of the maximum social security benefit. Whenever a cost of living adjustment is granted pursuant to said paragraph (a), the dollar amount of such increase as determined in said paragraph (a) shall be added to each retirement allowance, pension or annuity which is in excess of said maximum base amount. The sum of the dollar amount of such cost of living adjustments, together with the amount of retirement allowance, pension or annuity to which the cost of living per centum factor is applied and any amounts in excess of said seventy-five percent of the maximum social security benefit shall become the fixed retirement allowance, pension or annuity for all future purposes including the application of subsequent cost of living adjustments in future years; provided, however, that the limitations of this paragraph shall continue to apply.
(iii) In any case as of June 30, 2020 but prior to June 30, 2024 where such former employee, spouse, or other beneficiary is receiving an annual retirement allowance, pension or annuity which is eighty-five percent of the maximum social security benefit or more exclusive of additional annuity obtained by special purchase under paragraph (g) of subdivision (1) of section 22 or any similar law, the cost of living adjustment shall be in an amount determined by applying the per centum of change determined pursuant to paragraph (a) to the sum of eighty-five percent of the maximum social security benefit. Whenever a cost of living adjustment is granted pursuant to said paragraph (a), the dollar amount of such increase as determined in said paragraph (a) shall be added to each retirement allowance, pension or annuity which is in excess of said maximum base amount. The sum of the dollar amount of such cost of living adjustments, together with the amount of retirement allowance, pension or annuity to which the cost of living per centum factor is applied and any amounts in excess of said eighty-five percent of the maximum social security benefit shall become the fixed retirement allowance, pension or annuity for all future purposes including the application of subsequent cost of living adjustments in future years; provided, however, that the limitations of this paragraph shall continue to apply.
(iv) In any case as of June 30, 2024 but prior to June 30, 2028 where such former employee, spouse, or other beneficiary is receiving an annual retirement allowance, pension or annuity which is ninety-five percent of the maximum social security benefit or more exclusive of additional annuity obtained by special purchase under paragraph (g) of subdivision (1) of section 22 or any similar law, the cost of living adjustment shall be in an amount determined by applying the per centum of change determined pursuant to paragraph (a) to the sum of ninety-five percent of the maximum social security benefit. Whenever a cost of living adjustment is granted pursuant to said paragraph (a), the dollar amount of such increase as determined in said paragraph (a) shall be added to each retirement allowance, pension or annuity which is in excess of said maximum base amount. The sum of the dollar amount of such cost of living adjustments, together with the amount of retirement allowance, pension or annuity to which the cost of living per centum factor is applied and any amounts in excess of said ninety-five percent of the maximum social security benefit shall become the fixed retirement allowance, pension or annuity for all future purposes including the application of subsequent cost of living adjustments in future years; provided, however, that the limitations of this paragraph shall continue to apply.
(v) In any case as of June 30, 2028 where such former employee, spouse, or other beneficiary is receiving an annual retirement allowance, pension or annuity which is one hundred percent of the maximum social security benefit or more exclusive of additional annuity obtained by special purchase under paragraph (g) of subdivision (1) of section 22 or any similar law, the cost of living adjustment shall be in an amount determined by applying the per centum of change determined pursuant to paragraph (a) to the sum of one hundred percent of the maximum social security benefit. Whenever a cost of living adjustment is granted pursuant to said paragraph (a), the dollar amount of such increase as determined in said paragraph (a) shall be added to each retirement allowance, pension or annuity which is in excess of said maximum base amount. The sum of the dollar amount of such cost of living adjustments, together with the amount of retirement allowance, pension or annuity to which the cost of living per centum factor is applied and any amounts in excess of said one hundred percent of the maximum social security benefit shall become the fixed retirement allowance, pension or annuity for all future purposes including the application of subsequent cost of living adjustments in future years; provided, however, that the limitations of this paragraph shall continue to apply.