Office of State Treasurer Deborah B. Goldbergmass.gov/retirement The Massachusetts State Employees’ Retirement System You Serve the Commonwealth. We Serve

Office of State Treasurer Deborah B. Goldberg

mass.gov/retirement

The Massachusetts State Employees’ Retirement SystemYou Serve the Commonwealth. We Serve You.

1

COLA Information&

Reporting any changes to The State Retirement

Board


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2

COLA Reimbursement

Basics


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3

The State’s liability for COLA reimbursement began on July 1st,

1981.


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4

The State is responsible for COLA reimbursement to Cities, Towns, and Counties for all retirement benefits

through December 31st, 1994


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5

The monthly benefit amount on our report reflects the amount that the recipient was receiving on July 1st,

1981


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6

Minimum Survivor benefits are given on Section 12 and Section 101. The monthly benefit should be $140 unless:• The Amount was greater on

7/1/1981• Section 12 was calculated to more

than $140.


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7

Our program will calculate the appropriate COLA due by internally raising this minimum to $250 and $500 on the effective dates of the

increases.


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8

Reporting Dependents


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9

Our Board needs the names and dates of birth of dependent children on

Section 12 and disability benefits.


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10

The Board report shows “minor” on a child paid through age 18 and

“student” if paid through age 21 or 22.


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11

In the case of an incapacitated child, the case should never terminate until said child ceases to receive benefits.


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12

If a parent of an incapacitated child dies, and a guardian is appointed, the

State Retirement Board should be advised.

If the child dies, you need to specify this on the report.


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13

The monthly benefit amounts on dependents should be either $80, $60,

or $26 (unless these amounts were greater on 7/1/1981).

Again, our program will adjust these amounts on the effective dates of the increases and pay the proper COLA

due.


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14

Reporting Deaths


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15

When reporting the death of a retiree, if there is a survivor benefit, our Board

needs the name and social security number of said survivor and the type

of benefit: Option C or 101 Widow. The monthly amount is not necessary to

report.


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16

If the benefit is a Section 9 or Accidental Death Benefit, the Board needs the original monthly amount due to the beneficiary. This figure is

the 72% portion of the retiree’s original allowance (without the

annuity).


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17

When reporting a death, please indicate if the deceased was receiving

two pensions (i.e. his or her own pension, plus a survivor benefit).


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18

Other Notes


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19

Notification of changes should be made to the State Retirement Board at

least twice a year.


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20

Our payments are made at the end of June and again at the end of

December.

Please make sure updates are sent no later than the first week in June / December so adjustments will be reflected in the proper payments.


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21

At this time, the Board prefers that you utilize our COLA Update Form when

notifying it of changes. This will eliminate the need to send the whole

report back to the board. Some boards have internal spreads sheets or reports

which are acceptable as long as the board code and payee ID is listed.


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22

If there are no changes to report prior to the June and/or December

payments, the Board appreciates receiving a short memo to that effect.


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23

Calculation Examples


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31

If you have any further questions regarding this process, please contact

the State Retirement Board’s COLA Coordinator.

Documents

Office of State Treasurer Deborah B. Goldbergmass.gov/retirement The Massachusetts State Employees’ Retirement System You Serve the Commonwealth. We Serve