March 2011

Local Insurance Changes Loom

Local Insurance Changes Loom

GIC Mandate Proposed

Filing his third barebones budget in as many years, Governor Deval Patrick has proposed a significant change to local health insurance plans in an attempt to plug growing budget deficits that are the result of the ongoing economic recession.

In addition to slashing the budget of the state’s Group Insurance Commission (GIC) by $100 million for FY12, the Governor is also proposing a 7% cut in non-school local aid to cities and towns. In order to offset local aid cuts, Patrick has reintroduced a plan that could drastically alter municipal health plans.

2010 Strong Investment Earnings

2010 Strong Investment Earnings

But Must Tackle Unfunded Liability

Continuing its climb from the abyss of Year 2008 when it lost 29% of its value, the Commonwealth’s pension fund displayed an encouraging investment return of 13.56% for Year 2010.

This followed earnings of 17.46% for Year 2009 and pushed the January 1st value of the fund, known as the Pension Reserves Investment Trust (PRIT) Fund, to $48.3 billion. While still short of the Fund’s peak value of $53.7 billion at the end of ’07, it was uplifting news for the State and Teachers’ Retirement