MARCH 10, 2008: At a meeting of the Taunton Retirement Board on February 29, 2008, a motion was made by board member Richard T. Avila, seconded by board member Peter H. Corr, and the board unanimously voted to increase the cost-of-living allowance from 2.3% to the 3% maximum.  The 3% COLA will be effective July 1, 2008 and only applies to the first $12,000 of a retirement allowance.  Therefore, the maximum benefit available will be $360.00 per year ($30.00/month).  Eligible retirees are those who retired on or before June 30, 2007.  The board is currently awaiting pending legislation in the Massachusetts legislature seeking to increase the COLA base from $12,000 to $16,000.  Further details to follow when more is known.

By vote of the Taunton Retirement Board, I am writing to provide you information on new legislation contained in the federal Pension Protection Act (“PPA”) of 2006. Section 845 of the PPA has amended Internal Revenue Service Code § 402 and may allow “eligible retired public safety officers” to exclude from federal gross income up to $3,000 of their payments for health insurance premiums.

Retirement Board seeks to increase COLA up to 3% maximum - At its meeting on January 25, 2008, the Taunton Retirement Board took its first step in securing a cost-of-living adjustment for retirees and survivors. On a motion by boardmember Richard T. Avila, seconded by Peter H. Corr, the Board voted for a 2.3% COLA which is consistent with the Consumer Price Index as set by the Commissioner of Social Security. However, the board also voted to post a meeting for February 29, 2008 to consider increasing the COLA from 2.3% to 3% which is the maximum allowed. By law, proper notice must be given to the local community before an increase up to the maximum percentage can be voted.

Please note the following dates for the retirement allowance payments.