Governor Introduces Legislation

MARCH 2010 VOICE: Pension reform's "Phase II" is on the move, taking shape in legislation filed by Governor Patrick (HB4440). Now in the hands of the Joint Committee on Public Service, it is far from being a finished product at this time.

Whatever its final form, retirees need not worry that the proposed legislation would impact their pensions. Most of the provisions in the governor's bill would apply only to new hires (those hired after July 1, 2010), with the remainder possibly including current employees.

"Phase II really got underway when the Special Commission to Study Massachusetts Retirement Systems began its work this past summer," recalls Association President Ralph White. "Our members may remember that Phase I ended when Chapter 21 was enacted last year (see July ‘09 Voice), and the Commission picking up from there."

Last fall, the Commission completed work and issued its report. Many of the Commission's proposals have found their way into the governor's bill, with one notable exception - raising the maximum COLA Base to $18,000.  (A summary of the bill's key provisions follows.)

"Governor Patrick made special note of the Commission when introducing his legislation," continued White. "And, with several of its major proposals incorporated in the bill, we still have the same concerns that we raised earlier with the Commission report itself (see November Voice).

"As for our COLA Base proposal, we're not suprised that it was not included in Phase II," remarks White. "As you see by our lead story, it should be an integral part of the legislation, allowing retirement systems to extend out their funding schedules, which has been  introduced separately."