Originally the Public Service Committee was scheduled to hold hearings on the POB legislation later in June. Recognizing the claims by POB proponents that time is of the essence, the Committee moved up, to this past March, its hearing on the POB bill (H-1620) filed by the Mass Municipal Association (MMA), which would allow any community to issue such bonds.

"We testified on H-1620 and emphasized our concerns about the MMA approach," reports Legislative Liaison Shawn Duhamel. "Pension funds, including all investment earnings, should be for the exclusive benefit of retirees, survivors and employees.

"Additionally, we believe that the retirement boards should have a more active role in determining the pension system's unfunded liability and crafting the 'bond plan' to be submitted to the Executive Office of Administration and Finance for state approval. As we reported in January, there are several major pension issues, relating to POBs, that dictate the direct participation of retirement boards in the decision-making process."

One particularly strong voice of concern, at the hearing on H-1620, was that of Bob McCarthy, president of the Professional Firefighters. "Our objection to the use of pension funds for anything, other than employees and retirees, is hard and fast," emphasizes McCarthy. "We consider any other use to be a 'raid' on the pension assets". At the very same hearing on H-1620, McCarthy testified on behalf of their union's bill (H-1071) to prohibit any such raid.

At press time, H-1620 is being studied by a special subcommittee of the Pubic Service Committee. Chaired by Rep. Rachel Kaprielian (D-Watertown), the subcommittee, which includes our Association, the Professional Firefighters and MMA, hopes to resolve their differences and reach a consensus on a final version of the bill.

Communities Continue Push

In addition to H-1620, several communities have filed individual POB bills. Included in the list are Brockton, Brookline, Chelsea and Pittsfield. The Public Service Committee has yet to hold a hearing on these bills.

According to Hill, "Ditto the same concerns with these bills that we have with H-1620. Hopefully, Public Services' special subcommittee will draft a comprehensive bill that fully addresses them."