April 01, 2009
Pension reform. . .in Massachusetts
While New York legislators rejected proposed pension changes in the $132 billion budget, Massachusetts lawmakers have agreed to overhaul their state's public employee retirement system.
Described by the Boston Globe as an "effort to quell public anger," Massachusetts lawmakers plan to "wipe from the books some of the generous deals, custom-tailored laws, and hidden provisions that for decades have allowed some Massachusetts public employees to win enhanced retirement benefits."
A seven-point plan, announced Tuesday by Senate President Therese Murray, does not go as far as a measure proposed by Governor Deval Patrick, who nevertheless praised it. House Speaker Robert A. DeLeo said his house would act within several weeks.
Such unity of purpose contrasts with what happened in Albany where Governor David Paterson's modest changes to the pension system were wiped out of the budget by legislators.
Paterson had called for creating a Tier 5 pension system for yet-to-be-hired state and local government workers. For nonuniformed workers, his plan would raise the minimum retirement age to 62 from 55, require employees to contribute 3 percent for their entire careers, and exclude overtime when calculating pension benefits.
Every state has its own peculiar pension provisions. The Massachusetts legislation, for example, would eliminate a provision that allows workers to boost their pensions if they are fired. Among other existing provisions:
The Globe has published stories about town moderators and a library trustee who counted their volunteer service toward pensions, and public officials who began collecting early, enhanced pensions after they were fired from state government.
The Globe reported Sunday that a majority of Revere's 11 part-time city councilors are collecting full pensions while remaining on the municipal payroll and collecting about $25,000 in annual council compensation.
William Bulger, former president of the University of Massachusetts (who earlier was a legislative leader) boosted his pension by $17,000 to $196,000 by getting the value of his housing and transportation counted toward his pension.
For descriptions of proposed pension reforms in Massachusetts, see here and here.
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