Massachusetts Teachers’ Retirement System

The Official Website of the Massachusetts Teachers' Retirement System (MTRS)

Mass.Gov

MTRS logo

Welcome!
The Massachusetts Teachers’ Retirement System is the largest of the Commonwealth’s 106 contributory retirement systems. We provide retirement, disability and survivor benefits to more than 88,000 active educators and 47,000 retirees. We’re glad to have you as a visitor and encourage you to browse often!

What’s new

August 14, 2008
MTRS seeks owners of unclaimed funds

If you are:
• the executor or executrix, or
• the survivor or beneficiary
of a deceased MTRS retiree, the MTRS may have unclaimed funds on account for you. Please check our Unclaimed funds page for additional information.

August 12, 2008
COLA base increase vetoed

On Friday, August 8, the Governor’s Office announced he had vetoed legislation that would have increased the base for determining cost-of-living increases for state and teacher retirees from $12,000 to $16,000 (see Governor’s veto message; 2 pages, pdf). Although we are disappointed that this modest COLA base increase fell just short of becoming law during this legislative session, we are pleased that the Governor and the Legislature have supported and recognized, in one form or another, the need to adjust the Commonwealth’s current COLA policy.

August 4, 2008
Retirees: COLA base increase on Governor’s desk

Late in the evening on July 31, on the last day of its formal sessions, the Legislature returned to the Governor a bill that would increase the COLA base from $12,000 to $16,000. The legislation includes a provision that in the first year of the base increase (this fiscal year, FY2009), the increased COLA base will apply only to retirees who are receiving an annual benefit under $40,000; in subsequent years, the increased COLA base will apply to all retirees. The bill is now before the Governor and he has 10 days to either sign or veto the measure. If the bill becomes law, it will be effective as of July 1, 2008 for members who retired on or before June 30, 2007.

Be assured that we are monitoring this bill very closely, and will update our homepage as new information becomes available.

July 22, 2008
Retirees: The approved 3% COLA on a $12,000 base will be paid in July to eligible benefit recipients; revisions to COLA still pending

As of today—our deadline for preparing the July retirement payments—the COLA approved for FY2009 stands at 3% on the first $12,000 (the “base”) of a retiree’s allowance. Accordingly, this 3% COLA will be paid in our July 2008 payments to all eligible benefit recipients (to be eligible to receive this COLA, a member must have retired on or before June 30, 2007). As in recent years, this COLA allows for a maximum increase of $360 per year or $30 per month.

As you may know, however, revisions to the COLA are still pending with the Legislature and the Governor. The FY2009 state budget approved by the Legislature and sent to the Governor for approval included a provision that would increase the COLA base from $12,000 to $16,000. In responding to the Legislature, the Governor did not approve this increase, but rather included an amendment to this provision that would increase the COLA base to $16,000 for retirees of the State and Teachers’ Retirement Systems who receive an annual pension benefit less than $40,000. The Governor stated in his message, “In general, I recognize the need of our retirees, most of whom are on limited fixed incomes, for this very modest cost-of-living adjustment. This need is less critical, however, for those receiving larger pension payments. Considering the existing size of our unfunded retirement liability, therefore, I recommend limiting this adjustment to those retirees whose annual pension payments are below $40,000.” The amendment is now before the Legislature, which has several options:

They can reject the Governor’s amendment altogether and forward to him the original provision increasing the COLA base to $16,000 for all state and teacher retirees. The Governor would then have 10 days to either sign or veto the bill;
They can adopt the Governor’s recommendation as is and return it to the Governor for his signature;
They could send the bill back to the Governor amending his recommendation (e.g., strike $40,000 and replace it with another amount). The Governor could then either sign or veto the bill;
They could do nothing, and the COLA base would remain at $12,000.

What they do and when they do it is very important, as the Legislature will complete its formal sessions by midnight on July 31. Please be assured that we are monitoring this issue very closely, and will update our homepage as soon as information becomes available.