PAX Centurion - January / February 2013

Page 24 • PAX CENTURION • January/February 2013 617-989-BPPA (2772) More from the HILL By James Barry, BPPA Legislative Agent Special Commission on Retiree Healthcare completes work T he Special Commission on Retiree Healthcare com- pleted its work and has endorsed a proposal that, if passed into law, will save Massachusetts taxpayers at least $15-$20 billion over the next thirty years. These cost savings will be from tighter eligibility for retiree health care benefits. Most police and fire employees (Group Four) will not be impacted and current retirees and accidental (ILD) retirees are protected. Following ninemonths of lengthy hearings of utmost impor- tance to public retirees and current employees. In the beginning however, what the impact of such a reform would be was uncertain. The Massachusetts Retirees Association led the way, working with the AFL- CIOandother unions, wewere able to pass a full exemption from the reform for all current retirees and most active em- ployees near retirement age. Sitting on the Commis- sion for employees/retirees were Shawn Duhamel from Mass. Retirees, Andrew Powell of the AFT Mas- sachusetts, represented the AFL-CIO. AnneWass from the Massachusetts Teachers Association also served as the Commission’s Co-Chair. Working together as a team throughout the nine-month process, Duhamel and Powell were able to secure a permanent prohibitiononamunicipality increasing contribution rates on existing retirees. It is unfortunate that theMMA, despite achiev- ing what will likely exceed $12 billion in savings, could not do the right thing and support this proposal.” “BetweenMunicipal Healthcare Reform (Chapter 69), Pension Reform (Chapter 176) and this new reform proposal some public employees and retirees are being required to pay more and work longer for fewer benefits. While we agree that dealing with unfunded healthcare liabilities is necessary, we also have to find ways to guarantee retirees certainprotections,” explainedSeanDuhamel of Mass. Retirees. Governor Deval Patrick is expected to transform the Com- mission’s report into a legislative proposal, which will be filed in conjunction with his FY14 Budget in mid-January 2013. The proposal would then go to the House, where the legislative process will begin. So we do not have a legislative proposal to look at yet. We will be working to see that these protections are incorporated and injured in the line of duty retirements are protected. “I wish it weren’t the case, but I fully expect the leadership of the MMA to fight us every step of the way on this. Appar- ently, no level of savings is ever enough for them,” said Mass Retirees Association President RalphWhite. “Labor and the Retirees really went the extra mile here to strike a balanced deal. If it’s not good enough to theMMA and they want to take away the few protections that we were able to win, then I’m happy to have that fight.” The protections in the report won early support from the other Commission members, State Treasurer Steve Grossman, Assis- tant Senate Majority Leader Jack Hart and Representa- tive John Scibak, chair- man of the Joint Committee on Public Service. Senator Michael Knapik, Repre- sentative Jay Barrows, GIC Executive Director Dolores Mitchell and ANF Assis- tant Secretary Greg Mennis joined with Commission Chairman Henry Dormitzer. Proposed reforms include: Years of Service w/Age Requirement Future public employee retirees shall be required to complete twenty (20) years of service and have reached the age of 60 (group 1), 55 (group 2), and 50 (group 4) Pro-Rating Contributions Future public employee retirees shall receive a health plan employer contribution based on a pro-rated scale based on completed years of service upon retirement. When the language is actually presented in legislative form we will have a full look at what we are working with but all the Commission’s “proposals” appear to offer reformwith real protections for employees. Watch this space.