Leaders expect to save millions
State lawmakers, in an effort to quell public anger, displayed unified determination yesterday to wipe from the books some of the generous deals, custom-tailored laws, and hidden provisions that for decades have allowed some Massachusetts public employees to win enhanced retirement benefits.
Senate President Therese Murray announced that the Senate today planned to quickly approve seven proposals aimed at closing what critics call unfair pension provisions that have fattened the retirement benefits of untold numbers of public employees.
House Speaker Robert A. DeLeo, standing by her side, said the House would follow in the next several weeks.
The effort by Murray and DeLeo essentially repudiates actions taken by the Legislature in the past when its members responded to a variety of pension requests by passing favorable, narrowly crafted legislation. State senators did not have an estimate on how much money the changes would save, but said it would be in the "millions."
"Eliminating loopholes and clarifying the current laws is going to go a long way to restoring public trust and confidence in the system," Murray said. "The time for talk is over, and the time for action is now."
The announcement of the Senate proposal, which does not go as far as a similar plan announced last week by Governor Deval Patrick, means there will almost certainly be an overhaul of the pension laws this year, although there are still questions over details.
Senate Republicans, who also support the legislation, plan to offer several amendments to make the laws tighter, said Senate minority leader Richard Tisei.
"Overall I think it's a good first step from the Senate, but I'd like to see the package strengthened," said Michael Widmer, who is president of the Massachusetts Taxpayers Foundation and has been pushing for changes to the laws for years. "The governor has gone a bit further, and in a constructive way."
Patrick, for example, eliminates the provision that allows state employees to boost their pensions if they are fired. The Senate version only eliminates that provision for elected officials, who are able to boost their pensions if they are not nominated or reelected.
DeLeo said he supported the general parameters, but added that he did not endorse the Senate version because it was not final and there could be changes.
"Conceptually I think that the House is in agreement of many of the items being addressed by the Senate," he said at a press conference in the Senate Reading Room.
Patrick called Murray's announcement "wonderful news" that will help in "modernizing the public pension system and helping to restore public trust."
"Putting an end to abuses in our pension systems is a key part of my reform agenda," Patrick said in a statement. "And I look forward to working closely with my partners in the House and Senate to finalize this important reform bill over the coming weeks."
The Senate bill would remove a provision that credits a full year of service to employees after they have worked as little as one day in that year.
The Senate plan, which would also establish a commission to recommend broader pension changes by Sept. 1, would not apply to future retirees.
Lawmakers have been eager to project that they are busy on major changes. Last week, the Senate approved transportation overhaul, which the House plans to take up next week. The House adopted an ethics reform proposal last week.
The moves come in response to diminishing public confidence in the ability of elected officials to tighten state ethics and lobbying laws. A recent poll of 400 Massachusetts voters found that only 12 percent rated the level of ethics as good or excellent.
The Globe has published stories about town moderators and a library trustee who counted their volunteer service toward pensions, and public officials who began collecting early, enhanced pensions after they were fired from state government.
The Globe reported Sunday that a majority of Revere's 11 part-time city councilors are collecting full pensions while remaining on the municipal payroll and collecting about $25,000 in annual council compensation.
Revere is part of DeLeo's district, a topic that the speaker did not address during the press conference.
The Senate plan would also:
Prohibit municipal officials from being able to establish pension credit for time spent working in nonpaying public jobs.
The law has allowed officials such as two town moderators from Canton and Milton, as well as lobbyist John A. Brennan Jr., to receive pension credit for essentially volunteer work.
Change the current accidental disability retirement benefit for individuals who are injured while temporarily filling in for their supervisor.
Some firefighters in Boston have collected pension benefits based on their bosses' higher pay level after they were injured on the job while subbing for them.
Limit the definition of "compensation" to only wages and salary, and specifically exclude housing benefits, annuities, or the use of motor vehicles.
This would prevent presidents at the state's public colleges and universities from counting housing and transportation allowances as compensation.
William Bulger, a former University of Massachusetts president, fought for this perk and won, increasing his pension by $17,000 to $196,000 a year.
Prohibit public employees from combining their pensions from two separate positions, which can increase the overall pension.
Instead, an individual who is a member of two or more systems must retire separately from each system.
Align MBTA employees' pension with the state system and eliminate the policy that allows employees with 23 years of service to retire with benefits regardless of their age.
The provision has allowed workers to retire in their 40s and then take other jobs while collecting pensions.
Boston Globe
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