JULY 2010 VOICE: Efforts are now underway to avert a quagmire from developing within the retirement community. We are referring to the potentially disastrous repercussions resulting from the recent court decision (O'Brien v. CRAB) that disallowed the inclusion of clothing allowances in calculating pensions.

Before the O'Brien decision, it was a long-recognized policy that those, who received a clothing allowance and made retirement contributions on it, would have those payments included in calculating their pensions. In fact, when the Legislature enacted pension reform last year (Chapter 21, Acts of 2009), it contained a provision that eliminated the clothing allowance from pension calculations no later than June 30, 2012, meaning that the clothing allowance would be used before then.

Legislature Awaits Commission Report

SEPTEMBER 2009: With a September 1 report deadline, the Special Pension Study Commission has been working vigorously throughout the summer preparing its report and recommendations for legislation to the House and Senate.