Massachusetts Retirees United Legislative Interests

Prepared by Marie Ardito
MRU Information Coordinator

If you see any issue that you are really interested in, send for more information to  mardito@retireesunited.org

COLA
Irrespective of what happens with the COLA in the budget we would like to see a bill re-filed that would automatically increase the COLA Base until it reaches the maximum Social Security amount.  You have seen the amount of time and energy used these past few months to get a $10 a month raise! As you look at the legislation presented in this document you will note that many are losing hundreds each month at both the State and Federal levels.

  • Raise Base to $16,000 immediately or increase by 3% or CPI, whichever is greater
  • 2008-2012 Cola Base would be 65% of Max. Soc. Sec. Benefit or $16,000 
  • 2012-2016 Cola Base would be 75% of Max. Soc. Sec. Benefit or $18,000 (if max still $24,000)
  • 2016- 2020 Cola base would be 85% of Max. Soc. Sec.  Benefit or $20,400 (if max still $24,000)
  • 2020-2024 Cola Base would be 95% of Max. Soc. Sec. Benefit or $22,800 (if max still $24,000)
  • 2024 Cola Base would be 100% of Max. Soc. Sec. Benefit or $24,000 (or whatever the Max is at that time)

          The Maternity Bill is a bill that we intend to get passed in the next session. We have been patient long enough on this.
          Maternity Bill

          • Applies to those Retired Prior to September 2000
          • Follows Criteria of Active Teachers’ Maternity Bill
          • Has No Buy-In as IRS will not allow us to contribute to our pension fund once retired. We are not asking that the bill be made retroactive to Sept. 2000, as retirees amply paid for the benefit.
          • In 2007 there were between 1,460 and 1,750 retirees who would benefit
          • In 2000 there were between 2,000 – 2,400 who would benefit
          • In 2001 the potential cost was 3.3 M
          • In 2005 the potential cost 2.825 M
          • In 2007 the potential cost 2.5 to 2.6 M
          • Cost will decrease at the rate of $100,000 per year.

              In a survey I did 8 years ago the average percent at which these people retired was 56%. The MTRS said that the Maternity Bill attached to Retirement + was the correction of an act of discrimination. Yet they compounded the discrimination by neglecting those who had been asked to leave the classroom because they were pregnant and were retired by Sept. 2000.

              I have a lot of information on this bill for anyone wishing to work on it or may know of people that this will benefit. The highest benefit possible is 10%.

              GIC Insurance  Reinstatement of State paying part of Medicare B Premium

              Request that the State pay the amount of the Medicare B premiums that they formally paid for those under The Group Insurance Commission (GIC).

              There are some 75 communities of teachers and all those who retired under the State Retirement System that are affected by this.  Because GIC forced people to go on Medicare B they paid part (or all) of the premium until Jane Swift took it away to balance her budget with the promise that it would be reinstated when times were better.

              Option B  and Option C Penalty Reduction

              It allows those who retired prior to July 1, 2004 and took Option B to have the penalty rate reduced to 1% instead of the 3% they had to take.

              Those who took Option C will have the penalty rate reduced to the new rate, which is approximately half the penalty that they took.

              In July 2004, PERAC, with Legislative approval, decreased the 3 - 5% penalty

              of Option B to 1 - 2%.  Most frequently it is a 1% decrease.

               In July 2004, PERAC, with Legislative approval, decreased the Option C penalty based on new actuarial assumptions.

              The decrease made the penalty half or less of what it had been previously.

              Number of Retirees Affected

              State - 13, 637 - Option B

              State - 6,194 - Option C

              Teachers - 6, 312 - Option B

              Teachers - 3, 334 - Option C             

              (figures for above accurate as of July 2006)

               

              The following bill may receive some adjustments between now and when it is refilled in December 2009.

              Retirement Security Bill

              Retirement Security Bill for those receiving a State Pension prior to January 1, 1990.

              It employs a formula that will give a one-time increase to their pensions

              but will be added to them permanently.

              Information on the Benefit

              ·      Must be retired prior to January 1, 1990

              ·      Will not be in lieu of a COLA for that year but in addition.

              ·      One time increase but added permanently

              ·      Addresses approximately 6, 200 members of MTRS and BTRS.

              Formula

              Years of Creditable Service x Years in Retirement x 2.

              35 Y/S x 20 Y/R = 700 x 2 = $1,400 added to this person’s pension.

              15 Y/S x 20 Y/R= 300 x 2= $600 added to this person’s pension.

              40 Y/S x 30 Y/R = 1200 x 2= $2,400 added to this person’s pension.

              30 Y/S x 18 Y/R = 540 x 2= $1,080 added to pension.

              Health Insurance Notice

              There is a bill that I would like to see MRU continue to support even though we are not the ones asking for it to be filed. Tim Bassett of the Essex County Retirement System asked Senator McGee to file the following:

              Legislation that would require a 30 days written notice and a hearing must be held for retirees before a town/city/district/regional school district/ etc. could reduce the amount the municipality pays for hospital, group life, surgical, medical dental or other health insurance for its retirees. This bill gives retirees a voice in what will happen to their health insurance premiums or coverage.

              Tim assures me this bill will be refilled and welcomes our willingness to work with him on its passage.

              General Information

              Legislative update on any retirement issue affecting both active and retired teachers of the Commonwealth of Massachusetts can be found here.

              This site will enable you to reach any Senator or Representative on Beacon Hill. By simply clicking on their name , you will get complete information on them, and access to their email address.

              The email address of members of the Senate followed by the House of Representatives is located at this site.

              Tips on writing effective letters to elected officials can be found here. If you scroll down on this site you will find how to locate writing addresses for U.S. Senators, Represtnatives and Supreme Court Justices. Also there ate the "always" and "nevers in writing to them as well as how to identify legislation when writing to them.

              State Legislation