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OFFICE
OF SENATOR ROBERT O'LEARY
FOR IMMEDIATE RELEASE - March 31, 2009 |
Contact:
Micaelah Morrill
617-722-1570 |
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Senator O’Leary Votes for Pension Reform
The Senate today continued to push its reform agenda with unanimous approval of a bill that will tie off loopholes in current pension laws to save taxpayer money and end abuses.
“The time for talk is over,” Senate President Therese Murray (D-Plymouth) said. “The Senate’s actions today are aimed at fixing the system and restoring the public’s trust in government. While most public employees play by the rules, there are still too many who cheat the system by taking advantage of ambiguities in the law. That’s going to change.”
The state’s pension system is an important benefit for state workers who chose generally low-paying careers in public service over the private sector. The average pension for Massachusetts public employees is approximately $24,000 a year. Unfortunately, there are examples of individuals who exploit loopholes to increase pension payments at a high cost to the state.
The Senate pension reform package was strengthened today by several amendments that were approved on the Senate floor, including one that prevents local and state employees as of January 1, 2010 who make less than $5,000 from receiving pension credit. Another raises the vesting years for future elected officials from six to 10 years, bringing them on par with all other public employees.
“It is important, not just in these difficult economic times, but permanently, that we do everything we can to ensure that we have a fair and honest pension system for our state employees,” said State Senator Robert O’Leary (D-Barnstable). “While the Senate took a good first step today, it is clear that we need to investigate further reforms. I supported some unsuccessful amendments that would have required capping pensions at 400% of the average state pension and removing a provision in the law that says if you worked for the state for more than 20 years, are under 55, and your position is eliminated or you are fired, you can go and collect your pension immediately. These are remaining issues that I will encourage us to address as the session moves forward.”
The Senate legislation contains seven reforms of the State’s public pension system:
1. Re-defines “regular compensation” to exclude housing allowances, use of motor vehicle and travel;
2. Removes the “one day, one year” provision that allows elected officials to claim an entire year of credible service for working one day in a calendar year;
3. Eliminates the ability of municipal officials to receive pension credit for service in an unpaid position;
4. Reforms the current accidental disability retirement benefit for individuals who are injured while temporarily filling in for their supervisor;
5. Removes a provision that allows elected officials to claim a “termination allowance” based on the failure to be nominated or re-elected;
6. Aligns MBTA employee pension with the state system. Eliminates the 23 years and out for future T employees. (This reform was also included in the Senate transportation reform bill passed last week.);
7. Reforms dual-service pensions so that an individual cannot combine the compensation from two positions to artificially increase one’s pension. An individual who is a member of two or more systems will receive benefits as if retiring separately from each system.
The Senate legislation is just the beginning of important fixes to state pension laws. The bill also directs the currently-established Blue Ribbon Commission on Pension Reform to review broader issues within the system, such as capping large pension payments, and make comprehensive reform recommendations to the Legislature by September 1, 2009. Additionally, the Joint Committee on Public Service, chaired by Senator Thomas McGee (D-Lynn), will be looking at further reforms.
The bill now goes to the House of Representatives for further action. |
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