If approved, would allow a maximum annual increase of $390, effective July 1st

The Governor’s proposed budget for FY2020 includes a recommended cost-of-living adjustment (COLA) of 3% on the first $13,000 of eligible MTRS retirees’ benefits, for a maximum annual increase of $390 for the fiscal year beginning July 1, 2019. To be eligible to receive this COLA, you must have retired on or before June 30, 2018.

Although the Consumer Price Index for the year ended December 31, 2018 was 2.8%, the Legislature and Governor may still allow an increase up to 3% on the base amount in accordance with M.G.L. Chapter 32. In previous years (including last year) when the CPI has been less than 3%, Governors and the Legislature have approved COLAs of 3%. Before the MTRS can pay any COLA, however, the FY2020 budget must first be finalized. The increase, if approved, will take effect in our retirees’ July benefit payments.