Senator Anthony
Petruccelli Supports Senate Pension Reform Bill
(Boston, April 1, 2009) – A week after passing
comprehensive legislation to overhaul the state transportation
system, the Senate continued to push its reform agenda with
unanimous approval of a bill that will tie off loopholes in current
pension laws to end abuses and save taxpayer money.
“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. There are examples,
however, of individuals who exploit loopholes to increase pension
payments at a high cost to the state.
“This legislation tackled the inequities that have plagued the
pension system for far too long,” commented Anthony Petruccelli
(D-Boston). “The intention of the bill is to go after those that
have abused the system and have caused a loss in public trust.”
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
making comprehensive reform recommendations to the Legislature by
September 1, 2009.
The Senate legislation contains seven common-sense reforms of our
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 pension reform package was strengthened 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 ten
years, bringing them on par with all other public employees.
The bill now goes to the House of Representatives for further
action.
