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Labor and Personnel Legislature expected to act on pension schedule in January
A proposal to extend pension funding schedules from 2030 to 2040 is scheduled to be taken up by the Legislature early in January.
The proposal was submitted by the Public Employee Retirement Administration Commission to the Special Commission on Pension Reform, which included it in its report of 32 ideas to improve the Massachusetts Contributory Retirement System.
The proposal would allow retirement systems to extend their funding schedules by 10 years subject to the following conditions:
• The municipal or regional retirement system would have to submit a new evaluation of its assets as of Jan. 1, 2010.
• The new funding schedule beginning in fiscal 2011 would require that the systems spend at least what they were required to spend in fiscal 2010.
The MMA has expressed concerns about the second requirement, as it could force communities to spend more on retirement than a new 30-year funding schedule may require.
The MMA is urging legislators to move quickly to extend the funding schedule. In order for the change to be effective for communities, it must be enacted early in January so cities, towns and regional retirement systems have enough time to complete new evaluations and get revised retirement numbers for fiscal 2011 budgeting purposes.
Labor and Personnel Legislature expected to act on pension schedule in January
Legislature expected to act on pension schedule in January
A proposal to extend pension funding schedules from 2030 to 2040 is scheduled to be taken up by the Legislature early in January.
The proposal was submitted by the Public Employee Retirement Administration Commission to the Special Commission on Pension Reform, which included it in its report of 32 ideas to improve the Massachusetts Contributory Retirement System.
The proposal would allow retirement systems to extend their funding schedules by 10 years subject to the following conditions:
• The municipal or regional retirement system would have to submit a new evaluation of its assets as of Jan. 1, 2010.
• The new funding schedule beginning in fiscal 2011 would require that the systems spend at least what they were required to spend in fiscal 2010.
The MMA has expressed concerns about the second requirement, as it could force communities to spend more on retirement than a new 30-year funding schedule may require.
The MMA is urging legislators to move quickly to extend the funding schedule. In order for the change to be effective for communities, it must be enacted early in January so cities, towns and regional retirement systems have enough time to complete new evaluations and get revised retirement numbers for fiscal 2011 budgeting purposes.
Written by MMA Legislative Director David Baier
