Answer: Before the turn of the century COLA bills were passed by the New York State legislature during random years, generally about twice a decade. The unions secured a permanent COLA bill with the enactment of Chapter 125 of the Laws of 2000. Under this law, COLA adjustments are determined each calendar year in March by multiplying half of the Consumer Price Index (CPI) with up to the first $18,000 of your pension. Half of the CPI is guaranteed to be at least 1% but no more than 3%. Multiplying this percentage by $18,000 provides for a COLA between $180 and $540 per year. The increase doesn’t go into effect until September of each year.

To be eligible to receive COLA, service retirees must be at least 55 years old and retired for 10 years or be 62 years old and retired for 5 years. Disability retirees must be retired for 5 years with no age limit. As I wrote in my last PBA Magazine article, since we are finally past January 1, 2007, members who receive the Defined Benefit/Variable Supplement will have their COLA subtracted from this benefit until they reach the age of 62. Therefore, service retirees who may be receiving COLA at age 55 are in fact not seeing any real COLA increase until they reach age 62, since until then their monthly COLA is being subtracted from their December Defined benefit.

Question:  In your last PBA Magazine article you wrote that the Defined Benefit, also referred to as the Variable Supplement, is subject to federal tax only. Is that true in all 50 states? — Retired Police Officer Jack Wetjen, Queens Warrants

Answer: No, it’s true only if you live in New York State. In other states it’s taxed in the same manner as your Police Pension Fund pension. I apologize for not making that clearer in my previous column.

Question: Will my wife continue to receive free health insurance coverage upon my death if she survives me? — Retired Police Officer Michael Barrett, 120 Pct.

Answer: Retired members of the department are entitled to have health insurance paid for by New York City. The benefit, however, ceases upon the death of the retiree. The only exception is for Accidental Disability retirees who die from the condition for which he or she received the disability pension. For spouses of all other retirees, health coverage may be purchased at 102% of the city rate for life under COBRA (Consolidated Omnibus Budget Reconciliation Act). Upon the retiree’s death, the Police Pension Fund provides their spouses with all paperwork necessary to purchase COBRA insurance.

PBA Pension Consultant Joseph Maccone will answer your retirement and pension questions in print. Write or email at the PBA, 40 Fulton St., NY, NY 10038, or jmaccone@nycpba.org.