Massachusetts COLA Explained
Answer: Massachusetts COLA is 3% applied to only the first $13,000 of your allowance (max $390/year), with annual compounding.
COLA is 3% applied to the first $13,000 of your annual allowance only. Maximum increase: $390/year.
| Year | Base Applied | COLA (3%) | New Annual |
|---|---|---|---|
| Year 1 | $13,000 | $390 | Base + $390 |
| Year 2 | $13,000 | $390 | Prev + $390 |