A 0.5% increase in monthly benefits for local government retirees went into effect this month after Gov. Lolo Matalasi Moliga signed into law on Oct. 1, a measure hiking the cost of living adjustment (COLA) for those retirees who qualify.

“The COLA increase applies to all retirees and contingent beneficiaries who retired on or before September 30, 2012” the Retirement Fund Office said in a brief statement, responding to Samoa News questions.

“In addition to the 0.5% increase beginning with their October 2014 benefit payments, eligible recipients will be also be retroactively paid for 24 months, and that will be included in their October benefit payment,” it says.

In a letter to the Fono leaders when signing the bill into law, Lolo said the COLA will “assist ASG retirees in meeting their day to day living expenses and other financial obligations. The gratitude and appreciation to those who have committed the better part of their lives to serve our people and government cannot be overstated.”

He said approval of the COLA increase “directly benefit over 90% of our retirees and I am grateful that we are able to make such payments to our people while at the same time maintaining the ASG pension fund in a financially sound position.”

ASG Employees Retirement Fund audited financial statements for fiscal year ending 2013, shows the Fund’s net position was $210.90 million, a net growth of $10.76 million from FY 2012.

According to the Retirement Fund board, the amount of dollar increase in monthly annuity payments for each retiree is based on date of retirement. The hike in retirement benefit will result in accrued liability to increase by $638,242.

A handful of ASG retirees, who were contacted by Samoa News late last week, all agreed that the approved measure will provide additional income in their monthly benefit checks, and it comes just in time for the busy White Sunday shopping this week.

White Sunday is celebrated this Sunday, Oct. 12.

“It’s always good to have more income, especially nowadays with the cost of living that keeps going up, especially in basic food items such as rice and sugar,” said one retiree, who asked not to be identified by name in order to prevent family members from asking her for money, now that she is getting additional income.

“I need to spend my added income on myself — such as go to the beauty salon, buy a new dress,” she said in a phone interview. “A girl must keep herself pretty.”