Pension debate divides the Hill - Part 2

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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.
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