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Looking Back: The Voice Of The Retired Public Employee PDF Print E-mail

25 Years Ago

January 1978 - Massachusetts has become one of the first states in the country to abolish mandatory retirement. Beginning February 13, 1978 Group 1 employees will no longer be required to retire at age 70. Group 1 employees comprise 75% of the state and local government work force. Public safety employees will still have a mandatory retirement at age 65.

Governor Michael Dukakis has submitted his annual budget to the Legislature. The budget contains a provision and funds for a 5% state and teacher COLA. Whatever COLA percentage is contained in the final budget will be mandatory (pre-Proposition 2 1/2) for local retirement systems.

Beginning this year, disability retirees will be able to earn an additional $2,000. On November 23, 1977 Governor Dukakis signed a new law (Ch. 766) which permits the disability retiree to earn the difference between his/her pension and the current salary of the former job, plus $3,000. Under the old law, the retiree could only earn the difference, plus $1,000.

A major retirement law change has been enacted. Chapter 744, which was signed on November 18, 1977, provides that anyone whose public employment commenced on or after January 1, 1978 must complete ten or more years service in order to receive a superannuation retirement allowance.

This law will tighten up the number of future pensioners by preventing people from coming into the system, working a relatively short period of time and earning a pension. Although these pensions were usually small, they did add a burden to the system and frequently involved employees who had spent most of their lives in other careers.

20 Years Ago

January 1983 - After months of political hardball, Governor Edward J. King signed a major pension oversight bill into law on January 4, 1983. The bill Ch. 630, Acts 1982, shifted control of the states 104 retirement systems from the Division of Insurance to a newly created agency, the Division of Public Employee Retirement Administration (PERA). Upon signing the bill, the lame duck governor appointed his outgoing chief secretary, John "Jack" McGlynn to a five-year term as PERA's director.

Newly elected Governor Michael Dukakis, returning to the Corner Office, filed a budget containing funds to pay a 3% COLA to state, teacher and local government retirees. Governor King had eliminated any new COLA funds in his budgets since the inception of Proposition 2 1/2.

Senate President William Bulger has appointed Senator Royal Bolling (D-Boston) as the new Senate Chairman of the Legislature's Public Service Committee. On the House side, Speaker Thomas McGee has named Representative Nick Buglione (D-Methuen) to continue as House Chairman of Public Service.

The Massachusetts Association of Contributory Retirement Systems (MACRS), in conjunction with the National Conference on Public Employee Retirement Systems (NCPERS), has stepped up efforts to defeat a Congressional proposal to institute mandatory Social Security for all states. MACRS President John McLellan says that mandatory Social Security would kill our state's current retirement plan. Association President Ralph White has pledged our support, including financial, in working with MACRS and NCPERS to defeat mandatory Social Security.

15 Years Ago

January 1988 - Governor Michael Dukakis has submitted his budget to the Legislature with a 4% cost-of-living provision. The 4% COLA line item was the result of 8 weeks of negotiations between our Association's leadership and the Dukakis budget staff, headed by budget chief Frank Keefe. The $90 million cost includes local retirees as well as state and teachers. It also includes the state's liability for local COLAs paid since Prop. 2 1/2 became law.

In a surprise move, the Group Insurance Commission awarded the state's group insurance contract to the John Hancock Mutual Life Insurance Company. The vote was 8-2, with our Association's representative on the GIC, Madeline Sullivan, voting to retain Blue Cross - Blue Shield, which had a slightly lower bid. Sullivan felt that our members had been well served by Blue Cross and that out-of-state members would have fewer claim problems with the widely recognized insurance carrier.

After a disastrous October 19, 1987 stock market crash known as "Black Monday", when the Dow dropped 508 points, retirement board officials remain cautiously optimistic of a rebound. "The market meltdown meant an end to the five-year bull market but I am confident of the market's future," said state pension fund (PRIT) advisor Larry Davanzo of Willshire Consultants.

John O'Malley of Springfield and John Dow of Marblehead have been reelected to new four-year terms on the Teachers' Retirement Board. Fred McCray (Quincy), Paul Fell (Worcester), Dick Avila (Taunton), Jim Cummings (Malden), Joe Almeida (Fall River), Tony Mastroianni (Milford) and Harry Bourassa (Franklin County) have all been reelected to new three-year terms on their retirement boards.

10 Years Ago

January 1993 - In submitting his annual budget to the Legislature Governor William Weld tagged the Commonwealth's pensions to be a "Budget Buster." Weld said that he had been able to control growths in all line items except pensions, which have grown by 33.6% over the past years.

Also in Weld's budget was a provision that would increase retirees' insurance premiums contribution by 100%. "Here we go again," said Association President Ralph White. "We've defeated this legislation in the past and we'll defeat it again."

New Committee assignments were announced by House Speaker Charles Flaherty and Senate President William Bulger. Representative Kevin Blanchette (D-Lawrence) will continue to be the House Chairman of the key Public Service Committee. Senator Michael Morrissey (D-Quincy), a former representative who was elected to the Senate in November, will be the Public Service Senate Chairman.

Bill Downey has been reelected to the Bristol County Retirement Board, Joe McDonough reelected to the Plymouth County Retirement Board and Cornelia Freeman reelected to the Amesbury Retirement Board.

5 Years Ago

January 1998 - Thirty-seven communities and counties have voted to accept Chapter 17, the new pension COLA law sponsored by our Association. The law, enacted in the 1997 legislative session, gave full authority to local government retirement boards to vote for retiree COLAs every year. By July 1998 Chapter 17 was accepted on behalf of all retirement boards. The Legislature will vote on state and teacher retirees' COLAs.

The Group Insurance Commission (GIC) held its first-ever public hearing. Legislative Liaison Shawn Duhamel testified on behalf of our Association. The GIC agreed to implement a $2,000 hearing aid benefit every two-years. Previously the benefit was $500 every year.

Association members in northern New England felt the brunt of the "Ice Storm of the Century" this month. Many of our 2,800 members living in Maine, New Hampshire and Vermont were without electricity or heat for as long as 12 days.

John Memory (Somerville), Kevin Regan (Westfield), Franklin Spaulding (Newburyport), Kevin McNeil (Shrewsbury), John McNamara (Clinton) and Andrew Martin (Fairhaven) have all been elected to new three-year terms on their respective retirement boards. Dennis Helmus has been elected to fill a vacant unexpired term on the Greenfield Retirement Board.

 
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