Pensions

Massachusetts state legislators took up the issue of pension reform this spring and the proposals potentially most detrimental to our members were rejected.  Specifically the proposal to calculate pensions on the average of lifetime earnings rather than on the three highest consecutive years of earnings was defeated.  See below for a more comprehensive report prepared by the MTA.

Contract Funding /Raises

Our recently negotiated contract calls for a 1.5% across-the-board salary increase effective on July 5, 2009.  However, the Governor failed to submit our contracts to the legislature for funding in time to be included in the budget just approved.  As a result, the 1.5% collective bargaining increase must go through the supplemental budget process this fall, and we will have to wait to receive our increase (which will then include a retroactive payment for the first months).

Health Insurance

In the face of even more detrimental proposals, the current budget calls for an increase in our share of health insurance premiums.  Faculty and librarians hired before June 30, 2003 must now pay 20% of the cost, up from 15%.  Those hired after June 30, 2003 must now pay 25% of the premiums.  Thanks to all our members who phoned and emailed their legislators.  We are certain that these splits would have been much worse had it not been for your efforts.

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June 23, 2009

To:       Local Association Presidents

From:  Anne Wass, President
            Paul Toner, Vice President

Re:      Pension Reform: Some Good News

Due to the intense media spotlight, public employee pension reform has been a “hot button” issue on Beacon Hill for the past several months.  On June 11 the legislature enacted a pension reform bill and sent it to the governor for his approval.  At a press conference on June 10 the governor indicated he would sign the bill into law.

The major problems addressed in the legislation focused on a series of controversial state pension loopholes that have been subject of media headlines.  None of these headline grabbing issues involved MTA members.  However, there were issues of much concern that would have negatively impacted our members had they become law.

Systemic changes such as pension caps and the use of a “lifetime earnings” standard for the purposes of pension benefit calculations were not included in the final legislation.  However, an editorial in the Boston Sunday Globe (6/14/09) opined that “these key aspects of pension reform remain undone” signifying that the pension debate will continue.  Moreover, these issues are subjects for review by the Special Commission on Public Employee Pensions chaired by Alicia Munnell, Ph.D, Director of the Center for Retirement Research at Boston College.  Recommendations from this panel are expected by September 1, 2009.  Those recommendations would then be forwarded to the legislature for its consideration.  MTA is constantly monitoring the commissions’ meetings.

Very important, too, is that initial attempts by both House and Senate Ways and Means Committees to exclude payment for “additional services” and better known as “teacher stipdends” from one’s pension base were discarded at the insistence of MTA.  State Senators Thomas McGee (D-Lynn) and Kenneth Donnelly (D-Arlington) were particularly helpful in protecting these teacher benefits as well as State Representatives Antonio Cabral (D-New Bedford) and Sean Garballey (D-Arlington).  Also, the work by local association leaders from Winthrop was key in explaining this issue to House Speaker Robert DeLeo (D-Winthrop).  In the end everything worked out well as legislative leadership and members in both the House and Senate supported MTA’s recommendations.

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