Legislation

MARCH 1999 - Beginning
last month, a former disabled MDC officer - now state trooper - about
whom we first reported over a year-and-a-half ago (July '97 Voice) has
resumed work. Phil Lindsay, with two fellow disabled officers (Mike
Shimkus and Bruce Buckley) who were cleared for work by the State
Retirement Board, are now back with the State Police.

JANUARY 8, 1999 - Pension Bonds Gain Popularity - As
the 1997-1998 Legislative Session came to a close a midnight on
Tuesday, January 5, several retirement related bills had found their
way to the governor’s desk. During the final week of the session, our
Association’s legislative team fought to move the handful of remaining
bills through the process.

Central to our efforts was H-5469, the non-contributory retiree’s COLA law
which is now awaiting Government Paul Cellucci’s signature. In
addition, pension obligation bond authorizations for the cities of
Everett and Holyoke, along with a retiree health care trust fund for
the Town of Brookline each received legislative approval before being
sent to Cellucci.

Both the Everett
and Holyoke pension obligation bond (POB) bills, H-5876 and H-5863
respectively, allow those municipalities to do the same, as Worcester,
in satisfying the retirement systems’ unfunded liability. In other
words, the city will issue POBs and pay off now the full amount of the
debt.

On the municipal health
insurance front, Brookline is following the example set earlier by
Arlington and establishing a retiree health care liability trust fund.
Last year, Arlington was successful in obtaining passage of Chapter 12,
Acts of ‘98.

Chapter 12 allowed
Arlington to set aside funds in a retiree insurance liability fund to
offset the anticipated cost of premium payments by retirees in the
future. With some variation, Brookline will be doing the same to cover
future health care costs. It must be emphasized that the Arlington (and
Brookline) plans do not take money out of their retirement systems.

Over 5 years ago, our Association reported on this issue (7/93 Voice).
Also, the Mass Municipal Association has filed a bill in this
legislative session, allowing all communities to establish such a fund.
Further details on POBs and health insurance trusts will be available in the upcoming March Voice.

At
session’s end, two retirement bills came close but did not receive
final enactment. S-2331 addressed the operation of the retirement
systems for counties that have been or will be abolished, by
establishing "regional" retirement systems. H-5369 (commonly referred
to as the "Needham bill") would have allowed retirement boards, if
certain conditions were met, to forgive the repayment by a retiree of
pension benefits paid to him due to a mistake or error not of his doing.

We have reported on both these issues extensively in the Voice. They will be addressed again in this session.

JANUARY 1999 - In
addition to a bill’s lead sponsor, other senators and representatives
can sign on to it. As for the Association’s legislative package, a
number of legislators have done so, lending their support to a
particular bill.