Reduction in Retirement Benefits

I’m not going to take on the entire retirement reform bill at one time. If I did your eyes would glaze over, I know mine do, before we got half way through the legalese.


So let’s just start with the changes to the Cost of Living Adjustment for existing retirees.

The bill quits using the Consumer Price Index to compute the Cost of Living Adjustment and sets the annual raise to 1.5 % per year.

The Legislature has the ability to do away with COLA’s for existing retirees anytime they want “The General Assembly reserves the right to suspend or reduce the benefits conferred in this subsection if in its judgment the welfare of the Commonwealth so demands.”

Here is the zinger"

The Consumer Price Index has never dropped to 1.5% during the last 20 years. Below are the percentages for the last 20 years. The General Assembly will happily screw the state employees by annually reducing their purchasing power.

Below is the CPI for the last 20 years.

1987 3.60%
1988 4.10%
1989 4.80%
1990 5.40%
1991 4.20%
1992 3.00%
1993 3.00%
1994 2.60%
1995 2.80%
1996 3.00%
1997 2.30%
1998 1.60%
1999 2.20%
2000 3.40%

2001 2.80%
2002 1.60%
2003 2.30%
2004 2.70%
2005 3.40%

2006 3.20%
2007 2.80%