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JULY 2000 - Formal Sessions To End July 31 - After many long months of lobbying, much of the Association’s legislative package was acted on as part of the FY 2001 state budget. In addition to the annual COLA, non-contributory COLA, dental coverage, prescription drug appeals, and the right to remarry law, our legislative team was successful in passing several other key provisions as riders in the so called "outside sections" of the budget.

For several years, many members have been tracking the status of legislation designed to allow the retirement boards to correct errors that are found within the retirement systems. Known as the "Needham Bill" after the Needham retiree who drew attention to the problem, the proposal will allow boards to forgive money owed to the retirement system.

Currently, if a retiree or employee is found to owe money to the retirement system the board is compelled to collect the funds. These cases generally stem from small, but long term overpayments to retirees or from active employees not having contributed enough to the retirement system. The mistakes are not widespread and are typically found during routine audits. Generally they are the result of an accounting error that went undetected.

If the amendment passed by the Senate is successful, the retirement boards will be allowed to address the situation on a case-by-case basis. If no fraud is involved and the retiree/employee had no knowledge of the situation, the board could vote to waive repayment. Identical language was passed by the House as H-319 in January.

Included In Budget

Several lesser known, but nonetheless important, provisions have also been included in the House or Senate version of the budget. As we go to press in mid-June, three Representatives and three Senators are meeting in closed door sessions to negotiate a final "conference" version of the FY 2001 budget.

Throughout the budget debate, the co-chairman of the Joint Committee on Public Service carried the ball for the Association in their respective chambers. Rep. Paul Casey (D-Winchester) and Senator Brian Joyce (D-Milton) once again proved to be the go to guys for public retirees. Four sections of the budget that the Association is closely monitoring are as follows:

Public Records Disclosure: Protects the names and addresses of retired law enforcement officers from being released to the public. Under this section, contained in both the House and Senate budgets, the records may only be released to law enforcement officers, unions, and the Association. The provision is sponsored by PERAC and the Association.

Survivor’s Benefits: Allows survivors of active employees who die of a nonwork related cause to collect the employee’s full Option C benefit, as if the employee had retired at age 55. This provision, like most other benefit changes, will be prospective in nature, only applying to future retirees. The provision, contained within the House budget, is supported by the Professional Firefighters of Massachusetts and the Association.

Group 1 Study Commission: Creates a special commission to study and recommend changes to the Group 1 retirement formula. Modeled after the special commission that created Chapter 17 (COLA law), the Commission’s goal will be to address the inequities of the current Group 1 formula. The section, contained in the Senate budget, was supported by the Mass Association of Contributory Retirement Systems and the Association.

State Police Return To Work: The House has included a section within their budget, which tightens the standards by which disabled State Police officers can be returned to work. This section grants the State Police Colonel the ability to apply fitness, retraining and other standards to returning officers. It would also require returning officers to purchase their creditable service in order to receive credit for the time they were retired. Our Association is not in support of this section.

"All of these sections are important in their own way to public retirees and employees. Not everything can be as far reaching as the COLA, but it all has a direct impact on the system," said Association President Ralph White. "I am just extraordinarily grateful to (Senator) Brian Joyce and (Rep.) Paul Casey for their efforts on our behalf. Surprisingly, every amendment we filed was adopted.

Bills Remain Alive

As the FY 2001 budget cycle heads towards a resolution, the Association’s focus will now turn towards our remaining legislative package. With a handful of important bills awaiting action and a month of formal sessions remaining, our team faces a tough challenge.

"We would really like to see some action on the noncontributory Option C pop-up (S-1281) and the health insurance reinstatement (S-1283). Both bills have a nominal cost," explains Association Legislative Liaison Shawn Duhamel. "Other bills, such as the tax cut for noncontributory retirees (S-1588), the $10,000 life insurance (S-351), and the survivors increase (S-1286) all have measurable costs. Therefore, it is unlikely we will see action on them this year.

"I know this won’t sit well with many members, but with the Big Dig’s cost problems, the Legislature is very reluctant to pass bills that require large continued sources of funding. This does not mean we are giving up the fight. We will continue to push for the whole package and will refile whatever remains incomplete for the next session."

 
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