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RELIEF FOR LOCAL RETIREMENT SYSTEMS

Association Supports Changes In Funding Schedules

JANUARY 22, 2009: At the core of any proposal for pension benefit improvements is its impact on the retirement system’s pension funding schedule. For the past 20 years, local retirement boards have been administering their systems in compliance with a pension funding schedule.

GOVERNOR URGES PENSION REFORM

Appoints White to Commission

JANUARY 16, 2009: In his annual State of the State Address, Governor Deval Patrick repeated his call for so-called pension reform, urging the Legislature to work with him to enact changes this year. Retirees should be aware that current pension benefits are protected by law and cannot be altered or repealed.

STATE GIC HALTS TALK OF MID-YEAR INCREASES TO COPAYMENTS/DEDUCTIBLES

JANUARY 10, 2009: State insurance officials have halted talk of mid-year increases in copayments and deductibles, which had been eyed to cover recent budget cuts. In October, $32 million was cut from the Group Insurance Commission’s FY09 Budget.

STATE FISCAL SHORTFALL REVISED

More Budget Cuts Expected

JANUARY 2, 2008: With Governor Deval Patrick now revising his fiscal shortfall in the current budget (FY09 budget) by an additional $1 billion over his October estimate of $1.4 billion, cities and towns are preparing for cuts in their budgets.

MUNICIPAL GIC: MEDICARE PART B KEY BARGAINING CHIP

JANUARY 1, 2009: Over the past eighteen months, scores of Massachusetts cities, towns, and various other governmental entities have been in open negotiation over whether or not to enroll local retirees and employees into the state’s Group Insurance Commission (GIC) health insurance plans.

IT'S PENSION COLA SEASON

Early Voting Process Urged

JANUARY 1, 2009: Although the next pension cost-of-living increase is not due until July, the process of voting for this 3% increase by our 104 local retirement boards has already begun.

OBAMA BRINGS HOPE TO SOCIAL SECURITY FIGHT

Illinois Retirees Hit By Offsets

JANUARY 1, 2009: Whether they supported his candidacy or not, the election of Barack Obama, as the 44th President of the United States, has brought a renewed hope to the thousands of members suffering under the Social Security Offset laws.

PENSION FUNDING CENTER STAGE AT STATE REVENUE HEARING

DECEMBER 15, 2008: The state’s top budget officials held a day-long hearing on the Commonwealth’s economic outlook for 2009 and the Fiscal Year 2010 Budget at the State House on Monday.

joint_revenue_hearing.jpgCo-chairing the meeting was Secretary of Administration and Finance Leslie Kirwan, House Ways and Means Chairman Robert DeLeo (D-Winthrop) and Senate Ways and Means Chairman Steven Pangiotakos (D-Lowell). The full House and Senate Ways and Means Committees were also impaneled, asking detailed questions of state officials, economists, and the various business leaders who testified on the state’s overall fiscal health.

BOSTON INVESTS IN STATE FUND

December 5, 2008: At the December 2 meeting of the Commonwealth’s PRIM Board, it was announced that the City of Boston Retirement Board had voted to transfer 27% of the Boston Retirement System’s assets to the Commonwealth’s Pension Reserves Investment Trust (PRIT) Fund. The 27% transfer equates to the Boston teachers’ pro rata value of the $3.8 billion Boston pension fund. The 3-2 vote by the Boston Board took place at their October 29th meeting. A home rule petition, allowing the transfer, will be filed with the State’s Legislature.

GIC EYES RARE MID-YEAR INSURANCE CHANGES

December 1, 2008: Following a $32 million budget cut, officials with the state’s Group Insurance Commission (GIC) are grappling with the possibility of mid-year changes to the 16 insurance plans offered through the agency.

With the economic recession causing a sudden and severe drop in state tax revenue, the governor was forced to use his so-called “9C” powers to cut $1 billion from the current state budget in October. The GIC’s FY’09 budget, which totals nearly $1 billion, was reduced by $32 million resulting in the shortfall. In addition to cuts in most state agencies, 1,000 state employees were laid off.