As one of the last true fishing communities on the East Coast, Gloucester's working class roots continue to shine through. Made famous by the Hollywood blockbuster "Perfect Storm", the city has a rich and proud history.

Originally founded in 1623 by the British, fishing immediately became Gloucester's main focus. Due to the naturally protected harbor and close proximity to the Grand Banks, the port quickly grew to host the region's premier fishing fleet.

Over the years, Gloucester's rocky coastline and colorful history have attracted countless writers and artists. Winslow Homer, T.S. Elliot, and Henry Wadsworth Longfellow each were inspired by Gloucester's beauty and charm.

While fishing has always been the main economic staple for the city, Gloucester is now home to a variety of businesses. Ranging from textile shops to electronics manufacturing, the city is home to a diverse business community that makes Gloucester anything but a bedroom community.

With a population of just over 30,000 residents living within 26 square miles, Gloucester is in the top one-fifth of the most populated communities in the state. The city is governed by Mayor John Bell and a nine member council. It is represented on Beacon Hill by Representative Tony Verga (D-Gloucester) and Senator Bruce Tarr (R-Gloucester). Congressman John Tierney represents the city in Washington.

The one thing that makes the Gloucester Retirement Board stand out is how active the board members are on behalf of retirees. Four of the system's five board members are active or retired city employees. Each member of the board, along with staff, are city residents.

Longtime board Chairman Douglas MacArthur is an active firefighter. He was reelected to an 8th term in 2002, serving a total of 25 years on the board. MacArthur is very active within the community, both as a firefighter advocate and working on behalf of retirees. He has been retirement board chairman since 1991.

Serving also as chairman of the Gloucester Insurance Advisory Committee (IAC), MacArthur has played a critical role in how the city's health insurance plans have been crafted and administered. He is known for his dogged defense of retirees and active employees.

"I look at my role on the retirement board and IAC as a chance to help the retirees and employees in Gloucester. These days we are getting squeezed from every angle and someone needs to be out there fighting for what is right," said MacArthur. "We have a very good board here in Gloucester. Everyone gets along and tries to do the best for the members.

"Just taking care of the little things like the COLA are a big deal to our retirees, many of whom are living on very tight budgets. To me the retirement benefits and health insurance go hand-in-hand. That is why it is important for me to stay on top of both issues. Retirees must have a voice."

Serving as the board's second elected member since 1996 is the Board's Executive Director Linda Geary. First joining the Board in 1985 as the assistant to then board director Janice Perry, Geary became the Board's director in 1992.

Geary is respected within the retirement community for her in-depth knowledge of Chapter 32 (retirement law). She also has the excellent reputation in Gloucester city government for her commitment to serving the members of the system. As a testament to hard work, Geary has twice been reelected to the board.

The Board's ex officio member is Joseph Pratt. Serving as the city auditor since 1985, he has 18 years worth of experience with the retirement system. Like most ex officio board members around the state, Pratt is known to be fair-minded and has a good understanding of the retirement law.

Representing Mayor Bell is retired Police Lt. Ed Hardy. An Association member, Hardy was appointed to the Board in 1998. What makes his appointment unusual is that most mayors and town managers would not appoint a retiree of the system to the board, instead opting for a member of their own administration. The fact that the mayor has appointed Hardy speaks to the city's commitment to the members of the system.

Rounding out the Board is Cindy Brown, who was appointed by the first four members as the Board's fifth member. As aregistered nurse who works in the private sector, Brown meets the statutory requirement that the board's fifth member not be a member of the retirement system.

Working with Linda Geary, as the Board's assistant analyst, is Elaine Tarantino. Tarantino, who like all Board members, lives in Gloucester, began working for the board in 1992.

After three consecutive years of negative investment returns, in which Gloucester went from being 62% fully funded to 47%, the financial markets have finally turned around and are now producing positive returns.

During calendar year 2003 (January-December), the $45 million Gloucester Retirement System returned a positive 21.3%. At nearly 12.6% higher than the targeted rate of return of 8.7%, 2003 proved to be a rebound year.

Gloucester's investment strategy has remained consistent throughout the economic downturn. As MacArthur puts it, "We simply picked good money managers and rode out the storm. It made no sense to panic. We knew things would turn around, it was just a matter of when."

The investment companies managing pension funds for Gloucester retirees and employees are as follows: Atlantic Asset Management, Freedom Capital, IRT, Mellon, PIMCO, and Wellington. New England Pension Consultants is the Board's consultant, advising Board members on the selection and oversight of their managers.

Larry Stone, of Stone Consulting, is the system's actuary, while Thomas Gibson is the Board's legal counsel.

"Gloucester is an example of a community that takes great pride in doing what is right for people. This Board has always supported the COLA, and Gloucester is known as a retiree friendly system," commented Association President Ralph White.