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Additionally, the law has been stretched over the years to include former lawmakers who voluntarily stepped down from office and were not defeated by voters. A Globe story May 3 documented the cases of 10 former representatives and senators.
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Both houses of the Legislature, reacting to a series of stories in the Globe, filed bills earlier this year to rein in public pensions. On the subject of termination pensions, the Senate would make the proposed change applicable to existing employees, including the Legislature's incumbents, while the House version would not.
All members of the Legislature filed one-page disclosures of financial interest forms with the Ethics Commission in anticipation of voting on the pension-change bill. The forms are required when any public official takes an action "which would substantially affect such official's financial interest."
On Thursday, Spellane met with Senator Thomas M. McGee, Panagiotakos, and a handful of other legislators to reconcile the difference between the two bills. That meeting was closed to the press, and participants refused to say whether there was a resolution.
The Globe checked legislative biographies and found that more than 45 percent of legislators are presently qualified for the benefit or will be qualified while still in their 40s or early 50s if they keep their seats. Spellane said he would expect very few legislators of that pool of 93 to take the termination pensions. "In the eight years I have been in the Legislature only three put in for it."
Christopher J. Hodgkins, a Democrat from Lee who stepped down from the House in 2003 at the age of 45, is one of those. He got a pension boost of $15,800 annually on his lifetime pension of an estimated $550,000, if he lives to age 80, as actuarial charts predict.
Paul E. Caron, a Democrat from Springfield who retired in 2003 at age 47, got a $14,500 annual boost, worth $480,000 in estimated lifetime payments.
Paul C. Casey, who retired as a Democratic representative from Winchester in January, applied for a termination pension, but it was turned down by the State Retirement Board on April 30.
The denial occurred after the Globe pressed the board for the legal underpinnings for awarding such pensions to legislators who retire, rather than are defeated, but officials representing Treasurer Timothy Cahill, who oversees the retirement board, said the board would have denied it even without the Globe inquiries.
James E. Vallee, a Democrat from Franklin and majority leader, said there was no public policy justification for the termination pension being available to legislators, however they leave the job.
"The public doesn't like it," especially when the economy is causing so many layoffs, pay rollbacks, and other damage to working people, he said. "If we can't change it now, then when can we?"
Bradley H. Jones Jr., a Republican from North Reading and the minority leader, said doing away with the termination pension for incumbents is a matter of principle over personal financial interest.
"I think it is inappropriate," he said of enhanced pensions for legislators.
Judge Peter W. Agnes Jr., president of the Judges Conference, said in an interview that he lobbied Spellane and McGee against changes in pension laws that his fellow judges would consider unfair. Judges are not eligible for termination pensions, but they are concerned about a precedent that could be applied to already-vested public employees.
"Our concern is that the Legislature not upset expectations people have" in their pensions, he said.
Sean P. Murphy can be reached at smurphy@globe.com.
© Copyright 2009 Globe Newspaper Company.
Monday, May 11, 2009
David Josar and Leonard N. Fleming / The Detroit News Detroit --Businessman Dave Bing became Detroit's 62nd mayor -- and third mayor in eight months
The task of cleaning up pension abuses has deeply divided Massachusetts lawmakers, who are not only wrangling over sweeping reforms, but also confronting whether they should give up pension enhancements for many members of their own chambers.
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On one side of the debate are Senate negotiators and Governor Deval Patrick, who believe all current state officials should give up pension rights critics have called dubious. On the other side are House leaders and advocates for the state's judges, who argue that it would be unfair to apply the changes to already-vested public servants.
The stakes are particularly high for lawmakers, who in many instances will be determining the size of their own retirement benefits.
Under existing law, at least 93 of the Legislature's 200 members are on track to be eligible for early, enhanced pensions potentially worth hundreds of thousands of dollars each in additional lifetime payments, according to a Globe review.
State Representative Robert P. Spellane, chairman of a conference committee that is trying to forge a compromise and may issue recommendations as early as today, said last week that he believes the law requires the Legislature to exempt current members from elimination of the benefit.
Spellane cited a 1973 advisory opinion of the state Supreme Judicial Court saying pension rights are contractual obligations the state must honor.
"The SJC is very clear that pension rights begin the day an individual begins public service and participates in a retirement system," Spellane said in an interview in his office. "The House clearly supports the SJC ruling."
The Massachusetts Judges Conference, the Beacon Hill lobbying organization that represents most of the state's 370 judges, also supports that position, he said.
Patrick, however, wrote in a letter to legislative leaders last week that they must apply the pension changes to themselves for the sake of credibility.
"The issue that is most important to me is applying most provisions of the legislation to current employees," he wrote. "Without this, the benefits of these essential reforms will be delayed for a generation, and public confidence in our retirement system will suffer."
Patrick termed the letter confidential, but its contents were published by State House News Service and a copy was also obtained by the Globe.
In an interview, Senator Steven C. Panagiotakos, chairman of the Senate Ways and Means Committee, declined to discuss the application of the pension changes to current members, even though it is contained in the Senate bill.
But he was adamant that enhanced pensions had to be eliminated. "You can't justify them," he said.
The key pension enhancement at issue was authorized by the state in 1945 to protect employees who were fired to make way for patronage appointees. In 1950, lawmakers expanded the law to include elected officials who were ousted by voters or who failed to gather enough signatures to qualify for the ballot. Such "termination pensions" allow officials, if they have worked for the state for 20 years, to collect immediate pensions worth one-third of their pay, which is a big retirement advantage for people who are in their 40s or early 50s.Continued...
Discuss
COMMENTS (98)
Pension abuse coverage
On one side of the debate are Senate negotiators and Governor Deval Patrick, who believe all current state officials should give up pension rights critics have called dubious. On the other side are House leaders and advocates for the state's judges, who argue that it would be unfair to apply the changes to already-vested public servants.
The stakes are particularly high for lawmakers, who in many instances will be determining the size of their own retirement benefits.
Under existing law, at least 93 of the Legislature's 200 members are on track to be eligible for early, enhanced pensions potentially worth hundreds of thousands of dollars each in additional lifetime payments, according to a Globe review.
State Representative Robert P. Spellane, chairman of a conference committee that is trying to forge a compromise and may issue recommendations as early as today, said last week that he believes the law requires the Legislature to exempt current members from elimination of the benefit.
Spellane cited a 1973 advisory opinion of the state Supreme Judicial Court saying pension rights are contractual obligations the state must honor.
"The SJC is very clear that pension rights begin the day an individual begins public service and participates in a retirement system," Spellane said in an interview in his office. "The House clearly supports the SJC ruling."
The Massachusetts Judges Conference, the Beacon Hill lobbying organization that represents most of the state's 370 judges, also supports that position, he said.
Patrick, however, wrote in a letter to legislative leaders last week that they must apply the pension changes to themselves for the sake of credibility.
"The issue that is most important to me is applying most provisions of the legislation to current employees," he wrote. "Without this, the benefits of these essential reforms will be delayed for a generation, and public confidence in our retirement system will suffer."
Patrick termed the letter confidential, but its contents were published by State House News Service and a copy was also obtained by the Globe.
In an interview, Senator Steven C. Panagiotakos, chairman of the Senate Ways and Means Committee, declined to discuss the application of the pension changes to current members, even though it is contained in the Senate bill.
But he was adamant that enhanced pensions had to be eliminated. "You can't justify them," he said.
The key pension enhancement at issue was authorized by the state in 1945 to protect employees who were fired to make way for patronage appointees. In 1950, lawmakers expanded the law to include elected officials who were ousted by voters or who failed to gather enough signatures to qualify for the ballot. Such "termination pensions" allow officials, if they have worked for the state for 20 years, to collect immediate pensions worth one-third of their pay, which is a big retirement advantage for people who are in their 40s or early 50s.Continued...
Thursday, April 2, 2009
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