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March 30, 2009

Briefing: Gov. Patrick's Pension Reform

 

On March 22, in response to an expected legislative debate on pension reform, Gov. Deval Patrick revealed an outline of his priorities to close loopholes, end pension abuse and restore the public’s trust in state and municipal retirement systems. Patrick’s Massachusetts Recovery Plan relies heavily on pension reform, as the governor has said that it is intended to “change the way that government does business” and to “secure the state’s economic future.”

What are the major intended reforms?

Special perks in the MBTA pension system, such as the “23 years and out” rule that allows employees to receive a pension earlier than employees in any other retirement system, will be eliminated. Likewise, the “one day, one year” provision that allows some public workers to receive a full year of credited service for as little as one day of work in a year will be removed.

What should we expect?

Patrick has penned ethics and transportation reform bills, but he will not formally draft a pension reform bill. Instead, he will push for the inclusion of his priorities (eight specific reform examples) in an expected bill drafted by the legislature.

What are Patrick’s political compatriots saying?

“If he’s sincere in what he’s saying, we certainly want to work with him to pass legislation to get rid of the abuses taking place,” Senate Minority Leader Richard Tisei (R-Wakefield) told the Boston Metro. “But … I think there is a certain degree of damage control that is part of this. He’s been in office for two and a half years, and he really hasn’t made pension reform a priority.”

How is Central Massachusetts involved?

A reform bill drafted by the House of Representatives is led by Rep. Robert Spellane (D-Worcester), the new co-chairman of the Public Service Committee. That committee will hold a pension reform hearing on April 6. “It’s my intent and the committee’s intent to have a comprehensive reform package on the governor’s desk as soon as possible,” Spellane told the Metro.

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