GOVERNOR TO FILE FY14 BUDGET WEDNESDAY

GOVERNOR TO FILE FY14 BUDGET WEDNESDAY

Retiree Healthcare Bill Not Included

JANUARY 22, 2013: When Governor Deval Patrick files his FY 14 Budget proposal on Wednesday, it is not expected to contain legislation to reform retiree healthcare. Observers now anticipate a stand-alone bill to be filed in late January or early February that mirrors the report filed by the Special Commission on Retiree Healthcare, issued in December.

As we have extensively reported, the Commission has made a series of
recommendations that, if passed into law, will dramatically change eligibility for healthcare benefits of future retirees. Association officials and labor have secured provisions exempting all current retirees and survivors from the new eligibility criteria, as well as the new proration of insurance contribution rates, which will be based on years of service.

In addition, most active career employees who are close to retirement age are also fully exempted from the reform. Another sub-group of current employees, who are close to retirement age and lack substantial years of service, have received a partial exemption.

Further information and a summary of the Commission’s report can be found by clicking here.

Once the Governor files a bill, it is expected to be discharged to the Joint Committee on Public Service, where the legislative process will begin. The bill would then receive full legislative vetting, including a public hearing, before moving toward possible passage later this spring or early summer.

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