Recently enacted legislation provides for a cost-of-living adjustment (COLA) and other supplemental payments for eligible retirees, or their eligible beneficiaries, as described below.  Note: Cost-of-living adjustments and other supplemental payments are not automatic every year.  The Legislature must vote annually on what, if any, COLAs or other allowances will be granted. 

Cost-of-Living Adjustment (COLA)

To be added to the retirement pension beginning with the pension payment for July 2010

Retirees who have been retired on July 1, 2010 for at least 12 months will receive a 1.5% increase on the first $30,000 of their annual pension.  The COLA will be calculated retroactive to the retiree’s most recent anniversary date of retirement.  This increase will become a permanent addition to their retirement pension.

Retirees who are eligible for a one-time retroactive COLA adjustment will notice that the amount of their July pension payment is greater than the amount of subsequent pension payments.

Examples
A member who retired on July 1, 2009 whose pension is less than $30,000, is eligible for the 1.5% COLA  granted on July 1, 2010. That retiree does not receive a retroactive adjustment, because July 1st is that retiree’s most recent retirement anniversary date.

A member who retired on March 1, 2009 whose pension is less than $30,000, was retired for 16 months as of July 1, 2008. Effective July 1, 2010, that retiree is eligible for the 1.5% COLA and a one-time retroactive adjustment of that COLA to March 1, 2010 (a one-time retroactive adjustment for March 1, 2010 through June 30, 2010), since March 1st is that retiree’s most recent retirement anniversary date.

A member who retired on March 1, 2010 is not eligible for the 1.5% COLA which became effective July 1, 2010 because that retiree had been retired for only four months.

Additional Supplemental Allowance Payments

One-Time Supplemental Payments

To be issued in a separate check in addition to the pension payment for July 2010

Retirees who had at least 15 years of creditable service at the time of retirement, whose annual pensions equal $20,000 or less as of their latest retirement anniversary date, and who have been retired for at least 12 months, will receive a one-time payment of $1,000. 

In addition, retirees who retired before January 1, 1993, will receive a one-time payment of $500.

Supplemental Allowances for Eligible Medical Subsidy Recipients

To be issued in a separate check in addition to the pension payment for July 2010

Legislation enacted in 2008, provides eligible retirees who received the medical subsidy as of their latest anniversary date of retirement with supplemental allowances in the form of an annual one-time payment as described below.  These annual payments began in July 2008, and continue in Fiscal Years 2010 and 2011. 

Non-Medicare-eligible medical subsidy recipients who retired from towns, cities, school districts, counties, or other local government employers will receive an additional supplemental allowance as follows:

• A one-person medical subsidy benefit recipient will receive a payment of $500.

• A two-person medical subsidy benefit recipient will receive a payment of $1,000.

Medicare-eligible medical subsidy recipients who retired from towns, cities, school districts, counties, or other local government employers will receive up to 60% of the non-Medicare-eligible amounts:

• A one-person medical subsidy benefit recipient will receive a payment of $300.
• A two-person medical subsidy benefit recipient will receive a total payment of $600.

A two-person medical subsidy benefit recipient may not receive more than $1,000 per year. 

State employees who retired from state service are not eligible for the supplemental payments related to the medical subsidy.