NOV 2006 - A proposed law increasing the Cost of Living Adjustment for members of the Essex Regional Retirement System (ERRS) was approved by Legislature before being vetoed by Governor Mitt Romney on July 31, the last day of the legislative session.

The Essex COLA proposal was sponsored by Senator Thomas M. McGee (D-Lynn) and co-sponsored by a bipartisan and bicameral group of 13 other Essex County legislators.  It provided for raising the COLA, first from $12,000 to $14,000, and then in $1,000 increments in the future. The goal was to increase a retiree’s benefit as financial conditions permitted without needing any further legislative approval.

The drive for the legislation began in March, 2005 and eventually involved the 14 legislative co-sponsors and hundreds of retired ERRS members who contacted their representatives and senators directly.

While the Legislature heard the retirees’ pleas and approved the law, “apparently the Romney-Healey administration turned a deaf ear,” Essex Board Member Glenn Morse said. Morse also said, “The Governor chose to attack the pension system in the media for political headlines instead of giving 1,542 Essex retirees a $5 a month COLA increase.

“When a bill is vetoed, a formal session of the Legislature must conduct a roll call vote obtaining a 2/3 majority to overturn the Governor’s veto.  Because Romney waited to submit his veto until the very last day, he eliminated any realistic chance for the Essex legislative delegation to override his decision during the formal session.”

“The average ERRS pension is $12,586 compared to the state employee average of $20,513. ERRS retirees also pay a higher percentage of their health insurance premiums.The average ERRS retiree pays 42% compared to the state retiree average of 15% for health insurance.

“The COLA increase is the only way the ERRS can increase retirees’ pensions. ERRS has granted the maximum 3% of the first $12,000 in pensions, up to $360, for nine consecutive years, most recently this July 1,” said  Board Chairman Tim Bassett.

“In seeking a COLA base higher than the current $12,000, our legislation has included local retirement systems as well as state and teachers. In addition, we have also encouraged local systems to file legislation on their own. Our feeling is that if a local system were successful with a breakthrough of the $12,000, it would help to open the door for all systems,” said Association President Ralph White. “The Essex Regional Retirement Board should be praised for its efforts.”