Pension & Health Care Issues Pending

June 4, 2010: Association officials are closely monitoring developments within two separate legislative conference committees, which are simultaneously negotiating the FY11 Budget and Municipal Relief Act. Contained within both pieces of legislation are several major pension and health care proposals that could have major impacts on retirees and active employees if passed into law.

Language allowing for the increase in the local COLA base, raising the minimum pension of survivors, and various pension reform measures (not impacting retirees) are being considered by the Municipal Relief Conference Committee. The FY11 Budget Conference Committee is considering the 3% COLA for state and teacher retirees, changes to municipal health care law, survivor benefit increases, and various pension reform proposals (again, not impacting retirees).

The Senate passed nearly identical language in its versions of Municipal Relief and the Budget on the following topics: pension reform, retirement system governance, and survivor benefit increases. None of these topics were addressed in the versions of the two bills passed in the House.

Representative Charley Murphy (D-Burlington) and Senator Steven Panagiotakos (D-Lowell) chair the Budget Conference Committee. Representative Paul Donato (D-Medford) and Senator James Eldridge (D-Acton) chair the Municipal Relief Conference Committee.

With the Legislature set to conclude its formal business on July 30, just eight weeks remain for the committees to complete their work and compromise versions of both bills passed and sent to Governor Patrick.