Governor Proposes Pension Reform III

Would Not Impact Current Retirees

JANUARY 19, 2011: Following on the heels of two previous pension reform packages, Governor Deval Patrick has filed new legislation dubbed "Pension Reform III" that seeks to make the most sweeping changes to our defined benefit pension since the modern program was created generations ago. Members should note that none of the proposals in the bill would have any impact on current retirees, or, for the most part, today's active employees.

With House Speaker Robert Deleo, Senate President Therese Murray and new State Treasurer Steven Grossman at his side, Patrick claimed that his latest proposal would modernize and reform the system for future generations.

"I support the defined benefit program but without these reforms it is not sustainable," said the Governor, whose proposal aims to save some $5 billion in pension costs over the next 30 years.

Association officials are currently analyzing the bill, which is expected to be assigned to the Joint Committee on Public Service. The Committee will hold a public hearing on the measure in the coming months, before taking further action.

Click here for a full copy of the Governor's proposed bill, An Act Providing For Additional Pension Reform And Benefits Modernization.

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