Retired, disable teachers thirsty for COLA

Teachers’ Retirement System of Louisiana retirees and beneficiaries will see a 3 percent cost of living adjustment this month if they meet requirements and if they are not a widow receiving Social Security benefits.

The COLA increases the average monthly pension benefit by $49. And 54,847 retirees and beneficiaries are eligible for to receive the COLA.

The COLA is applied to the first $81,184 of a retiree’s retirement benefit.

This is the first pay adjustment for the state’s retied educators since 2002.

Gov. Kathleen Blanco’s approval of Senate Bill 116, authored by state Sen. Gerald Theunissen, R-Jennings, coupled with the passage of the Senate Concurrent Resolution 3, by Sen. Butch Gautreaux, D-Morgan City, cleared the way for the increase.

The state’s retirement system can now give a 3 percent hike to eligible retirees and beneficiaries, payable on July 1.

State teachers do not pay into the Social Security System. If, however, their spouse does receive Social Security and he or she dies, the teacher does not receive the spouse’s full Social Security benefit.

The teacher only gets two-thirds of their salary subtracted from their spouses’ Social Security benefits. For example, if a teacher was making $3,000 a month in benefits and their spouse earned $4,000 in benefits and he died, she would lose $2,000 monthly.

Because of this, some teachers, who have been widowed, lose all of their spouse’s Social Security benefits.

“All of the retirees are going to have to report this increase to the Social Security system and if they are getting something from a deceased spouse, two-thirds of it [the COLA] will count against their Social Security,” said Terrebonne Parish School District retirement specialist Curtis Constrantiche.

To qualify for the COLA, a retiree must be retired at least one year and be at least 55 years of age by July 1 this year.

Retirees receiving a disability retirement benefit must be retired at least one year, but there is no minimum age requirement.