MACRS

The following is a summary of the remarks made by MACRS President Denis Devine before the Joint Committee on Public Service, which held a public hearing on November 9, 2009 to solicite public opinion on the report of the Special Commission on Pension Reform.

CHAIRMAN SPELLANE AND CHAIRMAN MCGEE

Members of the committee, members of the Great and General Court.

Thank you for allowing me to speak; I am Denis Devine, President of the Massachusetts Association of Contributory Retirement Systems. MACRS was incorporated in 1937, as an independent Non profit organization to promote the rights and benefits of the membership, present or future, for public retirement.

On Oct 18 2009, at the MACRS Fall Educational Conference, in Springfield Mass. With 300 + board members and staff present, a candid discussion of the Special Commissions’ proposals took place. And again on Oct 19, with 150 Board members present, another candid discussion took place of the report.

MACRS would like to first go on record as objecting to the make-up of the Special Commission. Only two retirement boards were represented; the executive director of the Teachers system and the executive director of the state retirement system. Ralph White, representing the Retiree Association, is a state board member. Ralph was the only retirement board trustee to serve on the Commission.

However, there are several references to retirement boards in the document, such as:

“the classification system presents a number of problems for retirement boards”

I find this not to be true. While one board from time to time may have to wrestle with a problem, this is fare from a majority of the boards and is not a reason to make wholesale changes.

The only two proposals that MACRS can support are:

#11 to improve the cost of living adjustment by raising the COLA base to $18,000.

#26 the extension of the current funding schedule. MACRS believes that the new COLA base should be built into the funding schedule extension.

MACRS opposes the other 30 proposals of the Study Commission report. I can go through them if you wish, but not in the allotted time period.

I ask that you, the Legislature, talk with the retirement boards in your districts. They are your local experts that did not halve a voice on this Special Commission.

I ask as this process moves forward, MACRS be given a seat at the table to help in developing sound pension policy.

Thank you for listening.

Denis P. Devine

MACRS President