Cost of Living Adjustments
Cost of-living adjustments are granted to Hingham benefit recipients by vote of the Hingham Retirement Board. Every year, the Public Employee Retirement Administration Commission (PERAC) files, with the Legislature, a report detailing the increase or decrease in the Consumer Price Index (CPI). The board then votes whether to grant a COLA based on the increase in the CPI or 3%, whichever is less.
Currently, the retirement base on which a COLA is granted is $14,000. Accordingly, if the Board grants a 3% COLA effective July 1st, a benefit recipient may have his or her allowance increased by a maximum of $420.00 per year, or $35.00 per month.
Massachusetts public pension retirees who go back to work in the Massachusetts public sector (state, county, municipal, city, town, district or authority) are limited to how much they can earn and how many hours they can work during a calendar year. The limits only apply to superannuation retirees who go back to work in the public sector. See Post Retirement Earnings FAQs (PDF)
What are the limits for working in the public sector?
A retiree must stop working when either of the following is true:
- They have worked 1200 hours in a calendar year or
- They have earned the difference between the current salary of the position they retired from and their pension.
- After being retired for one full calendar year, the retiree can add $15,000 to this calculation.
These limits apply to the retiree only. It does not apply to a survivor receiving benefits.
What are the limits for working in the private sector?
- Superannuation retirees do not have limits for working in the private sector.
- All disability retirees are subject to the earnings limits regardless of where they work.
Disability retirees are subject to earnings limitations regardless of where they work:
- They can earn the difference between the current salary of the position they retired from and their pension, plus $15,000.
- The $15,000 can be added right away to this calculation.
- Try a quick calculation using the Disability Retiree Earned Income Worksheet (PDF)
All disability retirees, including those retired under accidental disability, are required to submit an annual statement of their earnings (M.G.L. c. 32, § 91A). See Instructions for Submitting the Annual Statement of Earned Income (PDF)