While the recent pension reforms focused primarily on reducing the cost to the government, one component of the changes had the opposite effect: the legislation allowed local retirement boards the option of offering retirees a larger annual cost-of-living adjustment, or COLA. While Massachusetts has made its COLAs more generous, many retirement systems around the country have been reducing COLAs to save money.
About Van Pham
Van Pham is an associate professor of economics at Salem State University. Before joining Salem State in 2007, she was a lecturer at Foreign Trade University in Hanoi, Vietnam, from 1999 to 2001. She received her MA and PhD in economics from the University of Oklahoma.