Option C, which provides for a two-thirds spousal pension upon the death of a retiree, has become an increasingly unpopular selection when employees sign their retirement application. Approximately 10% of new retirees are now choosing Option C, a very small percentage compared to 40 years ago when almost half of all men selected Option C.

The feeling seems to be that the 20% (average) reduction when compared to Option A (full pension) is simply not affordable. Also, in earlier days many women had no other income and were completely dependent on their husband's pension. This is no longer true in most cases.

Tim Bassett, director the Essex Regional Retirement Board, has long felt that the Option C reduction was outdated and too much of a financial disincentive for many men who should have been selecting Option C to protect their wives.

"The mortality table used to calculate an Option C pension has never been changed. It was constructed in 1928 and is hopelessly out of date," said Bassett. Bassett took it upon himself to work with his Board members in drafting legislation that would require the Public Employee Retirement Administration Commission (PERAC) to promulgate a new mortality table.

The Board's actuary, Kathy Riley of the Segal Company, did an analysis that showed the average reduction for an Option C pension should be only 13% instead of 20%, but a new mortality table would be needed.

The bill to require a new mortality table was sponsored by Senator Tom McGee (D-Lynn) and given a favorable report by the Joint Committee On Public Service. Ultimately, it was incorporated within the legislative section of the state budget in order to ensure speedy passage. PERAC is now in the process of creating a modern-day mortality table, which will go into effect December 27, 2004.

"I worked closely with Senator McGee on this issue," said Bassett. "He and his staff, especially Chief of Staff Frank Valeri, demonstrated a real understanding and took the time to study the issue and respond to the needs of future retirees.

"It means that both the retiree's pension would be larger and the survivor's pension would be higher. The new law only applies to those who retire after December 27, but the board will file legislation for next year to cover all Option C members."