Articles about Legislation that may be useful to Massachusetts retirees.

Pension Errors Bill Nears Passage

NOVEMBER 1999 - Boards May Waive Repayments - Ever
since House and Senate budget negotiators became deadlocked in their
deliberations over the FY 2000 State Budget, our Association’s
legislative team has patiently attempted to shepherd numerous
retirement bills through the Committee process. Association lobbyists
have continued to meet with legislative staff members to keep our
legislative package fresh in their minds.

State House Busy Despite Budget Delay

NOVEMBER 1999 - Work Continues On Retirement Legislation - To
many, the fact that the FY 2000 State Budget is four months overdue
would mean that not much work was getting done under the golden dome
atop Beacon Hill. With the legislative leaders locked in daily
negotiations, how can anything else get done?

Maine Pension Tax Exemption Vetoed

SEPTEMBER 1999 - 766 Mass Retirees Subject To Maine Tax - Public employees of the State of Maine have again been unsuccessful in repealing Maine's law that taxes their pension.

State Police Disability Bill Moving

SEPTEMBER 1999 - Since
the passage of the last controversial disability law (Chapter 306, Acts
of 1996) over 2 1/2 years ago, we've reported on countless bills,
including our Association's H-305 (see January Voice), that deal with
disability retirees returning to work. While a technical corrections
bill (Chapter 427, Acts of 1996) was passed right after Chapter 306's
enactment, no other major piece of legislation, on disability retirees'
returning to work, has been passed.

Member Organizes Effort In North Carolina

SEPTEMBER 1999 - Pushes To Restore Tax Break On Mass Pensions - Recently we reported on states that have a reciprocal agreement with the Commonwealth not to tax thepensions of Mass retirees, now living in that state and we would not
tax the public pensions of their retirees residing here (May Voice). Unfortunately this list does not include every state that has an income tax law and could tax public pensions.

Legislative Team Ready For Action

SEPTEMBER 1999 - With
the first quarter of legislative action now complete, our Association's
legislative lobbying team is well poised to hit the halls of the State
House when the General Court reconvenes in September. To date, several
Association bills have progressed through the Committee process.

far so good", says Legislative Chairman Bill Hill in describing the
Association's early legislative success. "We have seventeen months left
to go in this session and I'm confident that we will continue our early
success. However, nothing is ever guaranteed."

the fifteen bills in the Association's package, eleven remain in active
status. The four remaining bills are being studied by the Committee on
Public Service.

A handful of bills
seem to have generated a great deal of interest from a number of
legislators. They are H-319 (pension errors), H-351 (state life
insurance), S-1283 (insurance reinstatement), S-1588 (noncontributory
taxes), and S-1815 (right to remarry).

Budget Process Continues

on Beacon Hill slowed down considerably through July and August as key
members of the House and Senate leadership teams engaged in
negotiations over the FY 2000 Budget. As is noted in the COLA article,
the state's annual fiscal blueprint has been delayed for the past two
months as the House and Senate debate in conference committee.

House observers cite deep philosophical differences as to the scope and
size of a potential state tax cut package. House members are interested
in reducing the overall tax rate, while members of the Senate support a
narrow "targeted" tax cut focusing on low income taxpayers.

hanging in the balance is the so called "rule of 90" teachers' early
retirement plan. Similar versions of the proposal passed the House and
Senate and are being finalized by the conference committee. However,
Governor Paul Cellucci is on record stating his intention to veto the
proposal due to its cost and the possible negative impact it may have
on local school districts.

Focus On Early Retirement

SEPTEMBER 1999 - Long-Term Employees May Benefit - Within
days of going to press with our July edition of the Voice, the
Legislature's Joint Committee on Public Service unexpectedly released a
comprehensive early retirement bill which would affect nearly all
public employees.

Early Retirement Moves To Front Burner?

JULY 2, 1999 - Public Service Creates Stir With Unexpected Bill - On
Tuesday, June 22, the Joint Committee on Public Service created quite a
stir with public employees and their State House lobbyists when the
Committee unexpectedly released an omnibus early retirement bill
covering nearly all public employees.

Widow's Remarriage Bill Receives Strong Support

JULY 1999 - Surviving
spouses of public employees killed in the line of duty made a strong
showing at a Public Service Committee hearing on May 25. The issue was
the right to remarry without losing a surviving spouse pension.

Legislation Moving Right Along

JULY 1999 - Public Hearing Process Near Complete - As
the Legislature approaches its summer recess at the end of July, the
Association's legislative team can look back at the first six months of
the 1999-2000 session as being a success.

the end of the first quarter of action, eleven of the fifteen bills,
now being supported by the Association, have been granted a favorable
report by the Joint Committee on Public Service. Three bills have been
placed in studies and one bill is being held for further consideration
by the Committee.

"We are off to a
great start. Both Brian Joyce (Senate Chairman) and Paul Casey (House
Chairman) have been very receptive to addressing the concerns of
retirees," said Association Legislative Liaison Shawn Duhamel. "With
most of our bills now before the House and Senate Ways and Means
Committees, our job gets even tougher. Not to imply that moving bills
out of Public Service is easy. A case had to be made for each
individual bill before the Committee would act favorably.

Ways and Means is not only interested in the merits of the proposal.
Their main function is to determine the cost of a bill, along with its
long term financial impact on the state budget. Since many of our bills
cost money, this is a very high hurdle to overcome."

Committee Takes Action

In the May Voice,
we described how the Committee Chairmen and their staffs, despite being
new to the issue of retirement law, had quickly picked up on their new
subject matter. Both Chairmen have led the way in their respective
chambers on issues such as the COLA and early retirement.

along with our lobbying work with Committee staff, has resulted in only
three bills being discharged into a study, rather than being released
favorably,from the Committee. Both H-305 and H-306, relating to
disability pensions, have been placed into a study. H-1287, which
raises the COLA base to $16,000, is also in a study.

bill, S-1284, which establishes a special study commission to explore
how to offer affordable retiree dental care is being held by the
Committee while the staff works on the drafting details. Dental
coverage has become a top priority for the Association's lobbying and
health insurance teams. Insurance Coordinator Cheryl Stillman is
leading the effort to find a workable plan for retirees.

is not unusual for bills to be placed in a study while further
information is gathered. Quite frankly, with a new Public Service
staff, I would have expected more of our bills to be placed in a study
while they learned the issues," explained Duhamel. "Thankfully, both
chairmen have people around them who are quick studies and are not shy
about making a decision. Our members have really benefited from their

Legislation: Status Report

H-305: Amends Chapt. 306, Acts of 1996 (disability law). Study.

H-306: Provides for indemnification protection for disability retirees. Study.

H-319: So-called "Needham bill", allows retirement system to forgive pension errors. House Ways & Means.

H-350: Minimum $10,000 pension for municipal retirees with 25 years or more of service. Reported favorably from Public Service.

H-351: $10,000 basic life insurance for state retirees and employees. Reported favorably by Public Service.

H-352: Right to remarry, redrafted by Public Service as S-1815. Sen. Ways & Means.

S-1273: Creates a study commission of Group 1 retirement benefits, redrafted by Public Service as S-1804. Sen. Rules Committee.

S-1281: Noncontributory retiree option C pop-up. Sen. Ways & Means.

S-1283: Health insurance reinstatement. Sen. Ways & Means.

S-1284: Study of retiree dental insurance. Held by Public Service.

S-1285: Allows municipal dental coverage to be offered. Sen.Ways and Means.

S-1286: Increases minimum pension for survivors of active employees who die of nonwork related causes. Sen. Ways & Means.

S-1287: Raises the COLA base from the current $12,000 to $16,000. Study.

S-1288: Allows for an annual COLA of up to 3%. Senate Ways and Means.

S-1588: Exempts noncontributory veterans pensions from state taxes. Sen. Ways & Means.