What Romney had intended to do, as represented to us, was stop the transfer of the annual pension appropriation to an "off-budget" status. Since the language granting the COLA is included as part of the overall pension funding section, our members' 3% increase fell victim to the Governor's veto pen.

Despite the claims that the COLA was not specifically targeted by the Governor, his actions placed the much needed increase in jeopardy of not being granted this year. Leaving nothing to chance, our Association's legislative team descended upon the State House to actively lobby for a prompt override of the veto.

"Whether or not the Governor intentionally vetoed the COLA is not as important as the impact of his action. This was not the first time that the Romney Administration dropped the ball on the COLA," said Association President Ralph White. "The Administration continues to display a 'we know best' arrogance, while making foolish rookie mistakes."

Just this past February, Romney failed to file the necessary legal language granting the COLA in his FY04 budget proposal. He later filed a correction to include the 3% COLA, but only after Association lobbyists, working through Republican legislative leaders, brought the issue to light.

Thankfully, House Speaker Tom Finneran once again came to the aid of public retirees and quickly put Romney's pension vetoes before the House for a vote on July 7. In a show of bipartisan unity with retirees, the full House voted 154-0 to override the veto.

It was Finneran, along with House Ways and Means Chairman John Rogers, who originally designed the plan to move the state's pension funding mechanism off budget. Senate President Robert Travaglini and Senate Ways and Means Chairman Therese Murray agreed with the House's proposal.

Therefore, just one day after the vote in the House, the Senate voted unanimously 39-0 to also override the veto. This action superceded the Governor's objections, thereby granting the full 3% COLA for FY04. Eligible state and teacher retirees received this increase in their July checks.

By moving the $830 million pension appropriation off budget, Legislative Leaders have established a system whereby the Commonwealth's pension funding schedule will no longer be the subject of political gamesmanship. In recent years, a variety of attempts have been made to reduce the state's contribution to the fund.

Some of these changes have been the legitimate evolution of the fund, while others have been a blatant attempt to divert monies away from the fund, to be used for purposes other than pensions. Just in the last year alone, moves were made to extend the pension funding schedule back to 2028 and turnover $180 million worth of unspecified surplus state property in lieu of appropriating the required funds.

Under the new law, each year the Department of Revenue will transfer the funding amount, required under the state's pension funding schedule, directly to the pension system. This will be done prior to state's revenue estimates being set for the coming fiscal year.

"We are in full support of moving the funding schedule into an off-budget status. The system must be funded without gimmicks and games being played. This new system goes a long way towards guaranteeing that the funding remains on track," explains White.