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MAY 2005 - Retirement Officials Oppose Mandate - With the winds of change swirling around Washington on the issue of Social Security, Massachusetts retirement officials are keeping a watchful eye on developments in the nation's capitol. Even though the fate of President Bush's plan to “reform” Social Security is yet to be known, the danger of the state's mandatory inclusion in Social Security is not something to be taken lightly.

As longtime members may recall, the fight to keep Massachusetts out of Social Security spans back several decades. In fact, the issue can be traced to the very beginnings of the federal program, when public employees were intentionally prohibited from enrolling in Social Security.

Beginning in the mid-70s and resurfacing with each “reform” initiative, there has been the threat of forcing Massachusetts and the other six non-Social Security states into the program. At first glance, the money that would be paid into Social Security by public employees appears attractive to federal officials. However, government accountants have determined that the long-term drain on the system far outweighs any short-term financial gains.

Most important to Massachusetts retirement officials is the tremendous financial burden that mandatory coverage would place on the state and local governments. It is estimated that mandatory Social Security would carry a cost of $5-8 billion over the next ten years, which is on top of the cost to maintain the benefits already earned under our current pension system.

In addition, the benefits currently earned by public employees upon retirement would have to be scaled back. New employees could ill afford to continue contributing 10% into the public pension system, along with an additional 6.2% into Social Security.

Over the years, the Association has been vocal in its opposition to mandatory Social Security and has worked alongside a number of other organizations and coalitions to stop any forward movement on the issue. In addition to representing the Association in Washington on the issue of the Social Security GPO/WEP, the firm of Lussier, Gregor, Vienna and Associates is also heavily involved in opposing mandatory coverage.

A number of state officials have joined with the Association in calling on our Congressional delegation to keep a watchful eye on the issue. Retirement board members Thomas Welch (Needham), Jerry Miller (Pittsfield), Thomas Curtis (Medford) and Roy Sacco (Belmont) have led the effort on behalf of the Mass Association of Contributory Retirement Systems by calling on our US Senators to actively support the state's position.

In the Senate, both Senators Kennedy and Kerry have joined an effort to head off any attempt to include non-Social Security states in the federal program. They have joined a bipartisan coalition of Senators from the seven non-Social Security states, who are leading the charge on the issue.

That effort to oppose mandatory coverage is being lead by Ohio Senator George Voinovich, a member of the Republican leadership.

 
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