11 BEACON STREET, BOSTON, MASSACHUSETTS 02108-3024 SEPTEMBER 2021 President’s Message SHARE THE SUCCESS

FRANK VALERI funding since the mid-1970s. The here is no question that RETIREES state, along with most cities and the tremendous invest- SHOULD ALSO towns, did not begin to properly Tment success of the fund the employer’s pension contri- Commonwealth and local retirement BENEFIT FROM bution until pension funding reform systems should be celebrated. When ASSET GAINS in the mid-1980s. modern pension funding schedules Thirty-six years later, it is clear were implemented in the mid-1980s, systems is extremely important. For that these funding reforms not only no one could have envisioned the most public retirees, their pension is worked, but far exceeded the most high level of asset gains that would the primary – if not only – source of optimistic expectations. Those pen- come to fruition over the ensuing 36 retirement income. sion and retirement policy officials years. As we spell out in the accom- working within the Massachusetts’ Given the fact that Massachusetts panying article below, payroll con- systems for the past four decades public employees do not partici- tributions from active employees should be applauded for a job well pate in Social Security, the invest- (now averaging some 10% of salary) ment success of our public pension have steadily accelerated pension CONTINUED ON PAGE 3 u AGGRESSIVE FUNDING & PROPER INVESTMENT MEET GOALS hen the proper fund- new hires jumped from 5% to 7% ing of our 104 public Pension Systems On Target of salary. Social Security, in which Wretirement systems Massachusetts public employees began in 1985, the majority of For Full Funding do not participate, has charged a Massachusetts systems were woe- contribution rate of just 6.2% since fully underfunded. Back then the schedule. 1983. The Massachusetts rate then Commonwealth was the 2nd worst The success of our public pen- jumped to 8% in 1984 and 9% in unfunded system in the country – sion systems is due to three key fac- 1996. Employees with salaries over second only to West Virginia! tors: high employee contributions, $30,000 pay an additional 2%. Today, some 35 years later, the a commitment to proper employer Since July 1, 2001, teachers par- situation is starkly different. Without funding, and strong investment ticipating in Retirement Plus contrib- exception, all 104 systems are on returns. ute a flat 11% of their salary into the track to be fully funded by 2040, the This amazing progress is attrib- Mass. Teachers Retirement System. state’s statutory deadline. However, utable, at least in large part, to the State Police, hired on or after 1/1/96 nearly 1/3 systems are now on pace high level of pension contributions contribute a flat 12%. These two to be fully funded by the end of this paid by active employees since decade, a full 10-years ahead of 1975, when the contribution rate for CONTINUED ON PAGE 2 u The Voice of the Retired Public Employee

investment returns of the 35-year subsequent years through the pen- Pension running tally dating to 1985. As sion funding schedules, retirement the charts on pages 9-11 illustrate, law, oversight and sound invest- CONTINUED FROM PAGE 1 u across all 104 retirement systems ment practices have really paid off,” contribution rates are among the the 1, 5, 10 and 36-year investment remarks Association President Frank highest in the country and nearly returns far exceed benchmarks. Valeri, also an elected member of double that required under Social Over the past decade predictions the State Retirement Board. “A large Security. by economists and investment con- degree of the credit for where we find Employee contributions, com- sultants of a slowing global econ- ourselves today has to go to my pre- bined with the efforts of the leg- omy have led to a dramatic lowering decessor Ralph White, who founded islature, governor, treasurer, and of the assumed rate of investment Mass Retirees in 1968. Being a force auditor – along with organizations return for the state, teachers and of nature, Ralph played a defining like Mass Retirees and the public local retirement systems. Assumed role in the creation of the modern employee/teacher unions for nearly rates of return, which had been retirement systems and ensuring four decades – to maintain funding as high as an annualized rate of that the government maintained its of the employers’ share of the pen- 8.50% in 2012, have been lowered commitment to fully fund its share sion obligation has made a profound as far as 5.50% (Leominster). The over the years. difference since 1985. That’s about Commonwealth’s PRIM Board now “Given the results of the past when the modern pension funding uses an assumed rate of 7%, down decade, combined with what we schedule was largely adopted across from 8.25% in 2012. are currently witnessing in 2021, Massachusetts. Now 100% fully funded, we now know that predictions of an A long list of local officials also Leominster posted a return of 12.63% economic slowdown as the means helped lead the way in committing to in 2020. The city’s 5, 10 and 36-year to justify a far more conservative fully funding annual pension appro- returns are 10.37, 9.31 and 8.76% investment return assumption were priations, instead of allocating local respectively. During that same period just plain wrong. While the past does tax dollars elsewhere. For instance, PRIM returned 12.61, 10.42, 8.97 and not dictate the future, it should be the City of Boston is now close to full 9.62% respectively. Annualized, both clear that the assumed rate of return pension funding due to the efforts system’s returns are significantly is likely lower than is necessary and of former Mayors Ray Flynn, Tom higher than the assumed rate and far should not be reduced further. The Menino and Marty Walsh to closely exceed the rates needed to fully fund facts simply do not justify going any adhere to the city’s aggressive pen- the systems. lower.” sion funding schedule. Towns, like The latest composite returns Pension funding schedules are Wellesley, benefited greatly from across all 104 retirement systems based on a series of assumptions forward-thinking local officials such demonstrate strong investment designed to accurately predict the as Arnold Wakelin, who focused on returns that far outpace expected future financial obligations to be funding the town’s pension obliga- annualized rates of return. placed on the retirement system and tions well before it was popular to “What an amazing degree of ensure the fund’s sustainability over do so. success our retirement systems time. These assumptions, which have demonstrated over the past 36 include asset returns, member life EXCEPTIONAL INVESTMENT RETURNS years. Back in 1985, no one could expectancy, wage inflation, among have envisioned where we would other factors, including the annual Arguably, the span of the past be in 2021. However, the ground- COLA, are updated every two years. ten years has brought the best work that was laid back then and in Retirement System Investment Returns: Explanation of Variations This month’s edition of The Voice (which each system practices), individ- system approaches investing, as well contains detailed investment return ual returns vary due to differences in as how the government entity has and funded ratio information for all 104 investment strategy and the long-term approached meeting its own obliga- public retirement systems (see pages goals of the system. Individual asset tions. The one true constant across all 9-11 & 16). While this information is allocation, risk exposure, funded ratio systems is the employee contributions, instructive in examining the overall fis- and length of pension funding schedule which are firmly set by statute. Most of cal health and success of our retirement have a direct impact on annual returns. the other factors that go into funding systems since 1985, the individual num- How aggressively the government the systems can and do vary,” explains bers do not provide an explanation of entity has funded the employer’s contri- Mass Retirees CEO Shawn Duhamel, the variations in returns and funded lev- bution also has a direct impact on the who previously served as a member els between each individual retirement system’s funded ratio. of the Town of Plymouth Retirement system. “It is important to point out that dif- Board. Beyond sound investment practices ferences exist in how each retirement

2 September 2021

Tele-Town Hall ANNUAL MEETING meetings to keep our mem- bers informed and engaged. POSTPONED “I also want to ask those Rise in COVID-19 Cases Cause for Concern members who ue to increased public the rise. Even though most of our have not yet been vaccinated to health concerns regarding members have been vaccinated, please do so. The vaccines have Dthe rise of COVID-19 cases, there is still risk – especially from the proven to be both safe and effective. Mass Retirees has decided to post- Delta variant,” states Mass Retirees They also offer the best chance we pone our Annual Meeting sched- President Frank Valeri. “No one is have at controlling COVID-19 and uled for Friday, September 17, 2021. happy to have to postpone this meet- getting life back to normal. If you While we have yet to set an alterna- ing, especially me. We have come have questions or concerns about tive date, the hope is to hold an in- too far over the past 15 months to the vaccines, speak with your doctor. person Annual Meeting before the let our guard down and hold a meet- Don’t rely on 2nd and 3rd hand infor- end of the year. ing that could place our members in mation. Speak with a trusted expert “In good conscience, we cannot harm’s way. Time will come when we source for all medical advice.” hold an indoor meeting with several can safely gather again, hopefully hundred retirees at the same time before the end of 2021. Meanwhile, as the COVID-19 case count is on we will continue to hold virtual UPCOMING TELE-TOWN HALL MEETING TO PARTICIPATE: AUTO-CONNECT: By simply answering a call from us SEPTEMBER 17, 2021 (833-491-0336) at the time of the event. Simply answer (Friday) AT 1:00PM the call and remain on the line to join the meeting. MASS RETIREES DIRECT DIAL: Mass Retirees members can also directly dial into the tele-town hall meetings, at the time of the FALL UPDATE event, by calling 833-491-0336.

levels needed to fully fund the retire- Systems. President ment systems. With the historically high invest- CONTINUED FROM PAGE 1 u The 1, 5, 10 and 36-year returns ment gains experienced as the world also serve to throw cold water on emerges from the global pandemic, done. predictions of a global economic it is time to pause any further reduc- Since 1985, the Commonwealth’s slowdown that would result in sup- tions in the assumed rate of invest- Pension Reserves Investment pressed asset gains. These pre- ment return. The evidence simply Management (PRIM) Board has dictions, which took hold in the does not support predictions of a earned an average of 9.62%. This aftermath of the Great Recession, domestic or international economic is more than 2.6% higher than the have resulted in the Commonwealth slowdown. system’s current assumed rate of and many local retirement systems It is also about time that the return, which places Massachusetts significantly reducing the assumed tremendous asset gains of our on an aggressive pace to fully fund annual rate of investment return. retirement systems be shared with its pension obligations by 2036 – if Since 2013, the state has reduced public retirees – the very people who not sooner. PRIM’s assumed rate of return by worked to fund the system and who Statewide, the pension funding 1.25%, from 8.25% down to 7% in now rely on the system. outlook is just as strong across all 2021. This has directly impacted the It is no secret that our retirees 104 public retirement systems with system’s unfunded liability, adding are finding it increasingly difficult the composite 36-year return com- nearly $11 billion in new liabilities to make ends meet. Despite the ing in at 9.32%. in just 9 years which has resulted compounding effect of the annual Combined, these returns have in suppressing the funded ratios of COLA, the modest yearly increase generated billions in excess invest- the State and Teachers’ Retirement ment gains that are well above the CONTINUED ON PAGE 17 u

3 The Voice of the Retired Public Employee WEP REFORM LATEST DEVELOPMENTS Coalition Building Drives Congressional Support critical element to the increasingly engaged with pressing positive that our growing coalition is work being done to pass for passage of the bill, bringing tens having an impact. Calls, emails, and Alegislation reforming the of thousands of retirees to the fight. letters from our combined member- Social Security Windfall Elimination “Like our Association, these ship are making all the difference. Provision (WEP) has been the con- groups are not new to the issue of The key is to keep the pressure on struction of a true nationwide coa- the WEP or even advocating for it until we succeed.” lition of public retiree and active to change. What is new for 2021 is On Capitol Hill, talks con- employee organizations, whose the fact that we are now working tinue between Democrats and members are harmed by the WEP. together in close communication Republicans in the House over In the July edition of The Voice, and a coordinated manner. We are joining together behind a unified we reported that some 52 groups also in 100% agreement that the approach to WEP reform. As we had publicly endorsed H.R. 2337, most likely vehicle to bring relief to have previously reported, a differ- Congressman Richard Neal’s WEP our members, as well as fix the WEP ence of opinion rests with how the reform proposal. Since then, several for future generations of retirees, is new Social Security formula would additional organizations have joined Chairman Neal’s proposal,” explains be applied to future retirees and our efforts, including our close allies Mass Retirees Chief Executive Officer whether to sunset the hold harmless the Mass. Police Association (MPA). Shawn Duhamel. “The fact that at Public retiree organizations from the end of July we had 175 House across California have also become cosponsors for H.R. 2337 is proof CONTINUED ON PAGE 8 u PAC DRIVE DRAWS STRONG MEMBER RESPONSE

ach spring, our Association that we have the resources to defend launches the annual vol- THANK YOU retiree rights and promote the bet- Euntary fundraising drive terment of the retirement system,” for our Retired Public Employees explains Association President Frank Political Action Committee (PAC). For Your Valeri. “Since our founding in 1968, Once again, our members politics have played an important responded with great generosity. Support role in the formation of retirement We are happy to report that, year-to- benefits. A well-funded PAC allows date through July, more than 12,000 us to compete on the same level as members have each made an aver- Retirees PAC is to serve as the politi- private corporations and other mon- age contribution of $22.00. cal arm of Mass Retirees. This entails ied interests on Beacon Hill.” As members know, the PAC not only supporting candidates who Members who have not yet can only be used to support the support public retirees and issues of donated to the PAC in 2021 can still Association’s political interests direct importance to our members, do so through the end of the year. within Massachusetts at the state such as the COLA and retiree health Donations can be made online at and local levels. It is not a federal insurance, but also help educate www.MassRetirees.com or by mail. PAC, therefore the fund cannot be and engage members in the issues In addition, a 2nd PAC notification used to support federal candidates impacting your retirement. will be mailed in September to those (President, US Senate, Congress) “First, I want to thank those members who have not yet donated or toward national issues like Social members who chose to make a con- in 2021. Security WEP reform. tribution to the PAC. Your generosity The sole purpose of the Public goes a long way toward making sure

4 September 2021 UPDATES LEGISLATIVE STATE FY22 BUDGET PUBLICNEWS SERVICE HEARS NEW STATE & TEACHER COLA ASSOCIATION BILLS

e are eight months into the 2021-2022 n July 16th, 16 days after the start of Fiscal legislative session, and the State House Year 2022, Governor Baker signed the FY22 Wremains closed to the public. We are Ostate budget. The $48.1 billion budget was anticipating that this will continue into the fall and approved unanimously by both House and Senate many of the functions of the legislature will remain members. While this fiscal year’s budget process ran virtual. This includes committee hearings, such as on the normal cycle, leadership approached the pro- those by the all-important Joint Committee on Public cess with cautious optimism as we slowly began to Service. emerge from the pandemic. As we go to print, committees have begun to The conference committee report that was ramp up their virtual public hearing schedules. approved reflected significant changes to the eco- During a Public Service hearing on insurance and nomic outlook. The spending bill, which was increased by approximately $300 million after revenue estimates pension investment legislation, Mass Retirees sub- were increased by $4.2 billion, allowed House and mitted testimony on six Association sponsored bills. Senate negotiators to emerge with a spending bill that The first bill was in the pension investment cate- makes significant investments in the Commonwealth. H2607: An act relative to public retiree COLA gory, The FY22 budget includes the approval of 3% financing, filed by Representative Mark Cusack COLA for eligible state and teacher retirees (retiring (D-Braintree). In 1997, the State Legislature cre- before July 1, 2020). This marks the 23rd consecutive ated two separate COLA laws – one for state and year that a COLA has been approved. Despite the tim- teacher retirees (Section 102) and one for local retir- ing of the budget’s signing, the COLA will be retro- ees (Section 103). And since then, our members active to July 1, 2021 and most importantly, will be have been well served by these laws. That said, in the July pension direct deposits and checks. The the Association continues to advance proposals to conference committee report also included the full enhance COLA benefits (see President’s Message, p. funding of the Group Insurance Commission that 1) including this new initiative. Our bill creates a sep- was contained in the three prior versions from the arate COLA Reserve Fund in each of the 104 state, Governor and both legislative branches. Copays and teachers’ and local retirement systems. A system deductibles will remain stable for this fiscal year. will make deposits into the Reserve Fund, depending The increase in revenue allowed for House and upon the return on investment of its pension fund. If Senate leaders to earmark additional funding to a system’s investment return exceeds its assumed areas that would put the long-term fiscal health of (projected) rate of return, then a proportional share the Commonwealth on better footing. This included a of the excess investment return, that is attributable $1.2 billion infusion into the rainy-day fund, bringing to retiree/employee contributions in the pension the fund to $5.2 billion. This transfer is a dramatic shift fund, will be deposited in the Reserve Fund for future from just a few months ago when the plan was to uti- COLA liabilities. lize $1.5 billion from the fund to shore up operations. In addition to this COLA financing legislation, Another significant move was the decision to transfer an additional $250 million into the Commonwealth’s several pieces of legislation, related to pension Pension Liability Fund for the State and Teachers’ divestment, also received a public hearing. For more retirement systems. information on this topic see page 18. The conference committee report also contained Under the category of insurance, we offered language that would permanently increase the post testimony on 5 pieces of legislation. The first was retirement work hours from 960 to 1200 hours in a H2615/S1766: An act relative to health insurance for calendar year. The language, which was secured in surviving spouses filed by Representative Marjorie the House budget by Representative Mark Cusack Decker (D-Cambridge) and Senator Marc Pacheco (D-Braintree), was included as part of the conference (D-Taunton) would establish a minimum contribu- committee report. The change in the hours reflects tion rate by local governments and also allow for the more traditional 20-hour part-time work week. It

CONTINUED ON PAGE 19 u CONTINUED ON PAGE 16 u

5 The Voice of the Retired Public Employee Six Local Systems Increase COLA Base ASSET GROWTH SHARED WITH RETIREES

ll but one of the state’s (Chapter 32), all COLAs become a $13,000 for FY22, this marks the 104 public retirement permanent part of a retiree’s pen- 23rd consecutive year in which a 3% Asystems approved a sion. This compounding cumulative COLA has been paid. As is the case 3% COLA for FY22, to be paid on a impact substantially grows retirees’ with local COLA benefits, the State COLA base ranging from $12,000 to base pensions over time. and Teacher COLA is also cumula- $18,000 (see charts below, as well as The Blue Hills Regional and tive and can never be taken away. pages 9-11 and 16 for details). Methuen Retirement Systems have In addition, the unprece- Six retirement systems, with the joined Barnstable County, Bristol dented historic success of the approval of their respective local leg- County, Hampden County, Montague Commonwealth and local pension islative bodies, opted to increase the and Norfolk County retirement sys- investments creates an environ- COLA base for FY22. To date, a total tems in providing an $18,000 base. ment in which COLA benefits can of 81 public retirement systems have Members of these retirement sys- be improved without the need for increased the COLA base beyond the tems received a $540 annual COLA increased appropriations or changes $12,000 established in 1998. for FY22. to the pension funding schedules The value of the 3% COLA Concord and Malden each (see articles, page 1). increases $30 for each $1,000 incre- jumped their respective COLA bases ment in the COLA base. For exam- by $2,000, respectively, to $12,000 INTENTIONALLY AT $12,000 ple, a 3% COLA on the $12,000 base and $14,000. Neighboring commu- Unfortunately, not all retirees established in 1998 represents an nities Lynn and Swampscott each have reason to celebrate when it additional $360 annually. When paid increased their local bases by $1,000, comes to the COLA base. 23 munic- on a $13,000 base the COLA grows coming in at $15,000 and $14,000 for ipal retirement systems continue to to $390, then to $420 at $14,000 and FY22. so on. While the COLA base for State Under the state retirement law and Teacher retirees remains at CONTINUED ON PAGE 7 u MAXIMUM COLA BASE

$12,000 Base New Bedford Hampshire County Westfield Amesbury Newburyport Haverhill Worcester Andover Newton Hull Beverly Salem Milford $14,000 Base Braintree Shrewsbury Minuteman RSD Adams Brockton Southbridge Natick Berkshire County Chelsea Weymouth North Adams Boston Fall River Winthrop Northampton Clinton Fitchburg Revere Concord* Framingham $13,000 Base Springfield Dukes County Lawrence Attleboro State Easthampton Leominster Belmont Stoneham Essex County Marblehead Brookline Teachers Everett Marlborough Danvers Watertown Fairhaven Melrose Gardner West Springfield Falmouth

6 September 2021

pay a COLA on the same $12,000 them be on notice that we’re not within its pension funding schedule. base set by the legislature with the going to remain silent while local This means that the funding for the passage of the COLA reform law, retirees suffer.” COLA is built into the overall appro- Chapter 17, Acts of 1997. priation, which is paid independently Some of these systems, such MASSPORT STANDS ALONE AT 1.3% of annual spending decisions. Any as Leominster, have at times even potential savings from reducing a balked at paying the annual 3% Citing the financial fallout from COLA payment, if any, will not be COLA – despite being at or near fully the COVID-19 pandemic that has realized until the system’s next val- funded. negatively impacted air travel and uation in 2022. “Following the tremendous commerce moving through ship- “In the midst of a pandemic, with asset gains witnessed over the past ping ports, the Massport Retirement inflation rising, Medicare costs up year, at least 7 or 8 of the systems Board opted to grant just a 1.3% and housing costs in Massachusetts that maintain a $12,000 COLA base COLA for FY22 on a $14,000 base. at an all-time high, the decision to are now at a funded level above The 1.3% is based on the 2020 CPI, reduce the COLA could not have 75%. It is entirely unfair that the which was paid by Social Security in come at a worse time for retirees. Not success of these systems is not January 2021. to mention the fact that there is no being adequately shared with the Massport’s 849 retirees were not members of the system,” said Mass notified of the Board’s decision to financial justification for not paying Retirees President Frank Valeri. “I pay the CPI amount rather than the the full 3% COLA, especially when do know that the elected members full 3%, as allowed by law, until late the Massport retirement system has of several of these 23 systems are July. experienced a decade of incredi- actively working with local officials Despite the Board having refer- ble investment returns,” comments to increase the base. It goes without enced the Port Authority’s budget Mass Retirees CEO Shawn Duhamel. saying, but we are available to help constraints as reason for paying “Massport saw an investment return out in any way we can. a COLA of less than 3%, the deci- in 2020 of 16.78%, the same period of “However, there are also a hand- sion to reduce the FY22 benefit has time they are using as an excuse to ful of systems that are dominated by no impact on the system’s budget reduce benefits. They have a 5-year local officials with their own agendas appropriation whatsoever. return of 11.21%, with 10 years com- that are not favorable toward public Like nearly every public pen- ing in at 9.24%. Not to mention the retirees. In some limited cases, they sion system operating within fact that the system is fully funded have actively worked to undermine Massachusetts, Massport assumes and could essentially run itself.” the local retirement systems. Let the payment of an annual 3% COLA

104 RETIREMENT BOARDS

Gloucester Swampscott* Milton $17,000 Base Greenfield Wakefield Peabody Franklin County Hingham Waltham Quincy Lowell Holyoke Winchester Taunton Lexington Woburn $18,000 Base Massport 1.3% $16,000 Base Barnstable County Needham $15,000 Base Cambridge Blue Hills RSD* North Attleboro Arlington Malden* Bristol County Northbridge Chicopee Medford Hampden County Norwood Dedham Middlesex County Methuen* Pittsfield GLSD Plymouth County Montague Plymouth Lynn* Webster Norfolk County Reading Maynard Worcester County Wellesley Saugus MHFA Somerville MWRA *Changes since our September 2020 report

7 The Voice of the Retired Public Employee BERKSHIRE COUNTY KICKS OFF IN-PERSON MEETINGS

CEO Shawn Duhamel with Berkshire Cty District 1 Hwy Superintendents Assoc Pres. Justin Russell

n June, Mass Retirees partic- in-person again and the setting in ipated in the first in-person Active Workers Hindsdale was a perfect spot,” said Imeeting since March of 2020. Duhamel. “We are witnessing an At the invitation of the Increasingly increased interest in the WEP law Berkshire County District 1 Highway Interested in from active employees. Nearly Superintendents Association, Mass everyone present at the Berkshire Retirees CEO Shawn Duhamel WEP Reform meeting will one day be harmed by attended the group’s first post- the WEP in their retirement. It is in COVID-19 meeting on June 24th Superintendents Association have everyone’s best interest to pass a in Hindsdale, MA. The meeting increasingly been aware of and con- reform law through Congress. of roughly 50 active public work- cerned about the Social Security “One of the major difference ers from across Berkshire County Windfall Elimination Provision makers this Congressional session took place under the outdoor pavil- (WEP). is the level of interest and support ion at the Hindsdale Volunteer Fire “First off, I want to thank coming from active employees. The Department. Association President Justin Russell fight for WEP reform is no longer Like a growing number of active and Secretary Jerry Coppola for the being waged just by retirees.” public workers across the coun- invitation. It was wonderful to be try, the members of the Highway able to safely interact with people

clause be sunset or ended at some and Republican positions. Mr. Neal WEP Reform point in the future. Brady’s proposal and Mr. Brady have worked closely CONTINUED FROM PAGE 4 u in 2019 would have ended the current together on WEP and other issues WEP formula after forty years, after of mutual concern in the past. We clause contained within H.R. 2337. which time the new Social Security believe that same dynamic exists Under the current proposal, benefit would apply to all future now and are doing all we can to future retirees would see their Social retirees. Brady recently announced encourage a unified front in passing Security benefit calculated under his retirement from Congress at the WEP reform this Congressional ses- both the current WEP formula AND end of the current session in January sion,” continued Duhamel. the new formula, then receive the 2023. Congress is now in summer greater of the two benefits. “We have never viewed WEP recess and is scheduled to return to Republicans, following the lead as a partisan issue and believe that formal business shortly after Labor of Congressman Kevin Brady (R-TX), there is not all that much differ- Day in early September. appear to prefer the hold harmless ence between the current Democrat

8 September 2021 COMMONWEALTH’S 104 RETIREMENT SYSTEMS & PRIM INVESTMENT RETURNS & FUNDED RATIOS

ince the 2007 enactment of Reserves Investment Management) Frank Valeri. “Our members will not Chapter 68, PERAC (Public Board. It also contains the funded only be able to see how their sys- SEmployee Retirement ratios of the 104 systems based tem is performing, but also more Administration Commission) has upon their most recent valuation. fully understand the basis for our issued an annual Investment Report “We’d like to thank PERAC for message throughout this edition of that summarizes the current invest- publishing its 2020 Investment The Voice that retirees deserve their ment return and annualized past Report that as always, contains very fair share.” returns of all 104 retirement sys- pertinent information in such a clear The following report also con- tems and the state PRIM (Pension and concise format,” says President tains the COLA Base.

BOARD NAME - PRNT 2020 5YR 2020 10YR 2020 36YR 2020 FUNDED COLA BASE RATIO

Adams 8.00% 8.28% 6.46% 7.77% 67.4% $14,000 Amesbury 12.39% 10.34% 8.89% 8.25% 57.2% $12,000 Andover 12.42% 10.40% 8.99% 8.58% 47.3% $12,000 Arlington 11.94% 9.91% 8.72% 8.54% 54.6% $15,000 Attleboro 16.51% 11.65% 9.78% 9.25% 62.2% $13,000 Barnstable County 12.71% 10.56% 9.08% 7.83% 60.8% $18,000 Belmont 11.30% 9.55% 8.75% 9.38% 60.4% $13,000 Berkshire County 12.39% 10.35% 8.92% 9.14% 83.8% $14,000 Beverly 12.60% 10.44% 9.06% 8.77% 61.0% $12,000 Blue Hills Regional Vocational School 12.26% 10.27% 8.90% 8.84% 73.8% $18,000 Boston (City) 12.36% 9.62% 8.00% 8.93% 75.6% $14,000 Boston (Teachers) 12.23% 10.31% 8.89% NA 41.1% $14,000 Braintree 13.91% 10.35% 8.29% 8.80% 67.7% $12,000 Bristol County 12.21% 9.99% 8.68% 8.99% 60.1% $18,000 Brockton 9.87% 8.90% 7.32% 8.65% 60.6% $12,000 Brookline 12.81% 9.88% 7.93% 8.77% 59.6% $13,000 Cambridge 12.08% 10.08% 9.05% 9.35% 85.8% $16,000 Chelsea 12.53% 10.43% 8.97% 8.22% 69.6% $12,000 Chicopee 12.91% 10.36% 9.19% 8.81% 79.9% $15,000 Clinton 12.80% 10.44% 8.90% 8.01% 67.7% $14,000 Concord 10.23% 9.20% 8.68% 8.65% 88.6% $14,000 Danvers 12.16% 9.80% 7.52% 8.15% 60.3% $13,000 Dedham 12.71% 10.51% 9.05% 9.62% 83.1% $15,000 Dukes County 12.77% 11.59% 10.24% 8.29% 78.2% $14,000 Easthampton 12.47% 10.38% 8.96% 8.49% 74.9% $14,000 CONTINUED ON PAGE 10 u

9 The Voice of the Retired Public Employee COMMONWEALTH’S 104 RETIREMENT SYSTEMS & PRIM INVESTMENT RETURNS & FUNDED RATIOS CONTINUED FROM PAGE 9 u

IN PHOTOS BOARD NAME - PRNT 2020 5YR 2020 10YR 2020 36YR 2020 FUNDED COLA BASE RATIO

Essex Regional 12.17% 10.18% 9.01% 8.90% 53.8% $14,000 Everett 12.68% 10.54% 9.07% 8.67% 62.9% $14,000 Fairhaven 12.54% 10.38% 8.98% 9.41% 74.5% $14,000 Fall River 12.61% 10.10% 8.82% 8.55% 41.8% $12,000 Falmouth 10.36% 9.30% 8.73% 8.99% 67.1% $14,000 Fitchburg 12.27% 10.34% 8.83% 7.92% 47.6% $12,000 Framingham 12.39% 10.34% 8.94% 9.38% 72.8% $12,000 Franklin Regional 12.65% 10.14% 9.31% 8.59% 74.4% $17,000 Gardner 12.37% 10.37% 8.95% 9.49% 59.7% $13,000 Gloucester 12.69% 10.48% 9.02% 9.03% 49.1% $14,000 Greater Lawrence Sanitary District 18.28% 12.35% 9.80% 8.13% 87.6% $15,000 Greenfield 12.88% 10.53% 9.13% 8.71% 59.9% $14,000 Hampden County 12.24% 10.14% 8.85% 8.76% 48.7% $18,000 Hampshire County 12.19% 10.12% 8.29% 8.45% 62.4% $13,000 Haverhill 14.45% 10.50% 8.70% 9.97% 53.0% $13,000 Hingham 12.59% 10.62% 8.44% 9.23% 70.4% $14,000 Holyoke 16.42% 11.25% 10.23% 9.63% 69.0% $14,000 Hull 12.43% 10.42% 8.97% 8.18% 69.6% $13,000 Lawrence 12.45% 10.40% 8.95% 8.07% 55.4% $12,000 Leominster 12.63% 10.37% 9.31% 8.76% 100.9% $12,000 Lexington 13.86% 10.90% 8.30% 9.00% 80.4% $14,000 Lowell 12.13% 10.08% 8.74% 9.18% 58.2% $17,000 Lynn 12.11% 10.09% 9.01% 8.24% 52.7% $15,000 Malden 18.02% 10.59% 9.43% 9.82% 72.9% $16,000 Marblehead 12.43% 10.41% 8.98% 9.34% 62.3% $12,000 Marlborough 14.98% 9.77% 8.11% 8.51% 75.0% $12,000 MHFA (MA Housing Finance Agency) 14.02% 10.73% 8.12% 7.76% 94.8% $15,000 Massport 16.78% 11.21% 9.08% 9.24% 90.2% $14,000 MWRA (MA Water Resources Authority) 13.42% 9.55% 8.48% 8.33% 88.2% $15,000 Maynard 13.87% 9.76% 8.89% 8.12% 72.2% $15,000 Medford 12.18% 8.61% 7.40% 8.77% 61.3% $16,000 Melrose 11.82% 9.87% 8.54% 8.53% 58.3% $12,000 Methuen 12.60% 10.55% 9.38% 8.27% 56.2% $18,000 Middlesex County 12.26% 9.95% 8.72% 8.56% 48.1% $16,000 Milford 12.20% 10.31% 8.85% 8.43% 61.3% $13,000

10 September 2021 COMMONWEALTH’S 104 RETIREMENT SYSTEMS & PRIM INVESTMENT RETURNS & FUNDED RATIOS

BOARD NAME - PRNT 2020 5YR 2020 10YR 2020 36YR 2020 FUNDED COLA BASE BOARD NAME - PRNT 2020 5YR 2020 10YR 2020 36YR 2020 FUNDED COLA BASE RATIO RATIO

Milton 12.46% 10.38% 8.97% 9.47% 82.6% $15,000 Minuteman Regional School District 12.33% 10.13% 8.71% 9.52% 86.0% $13,000 Montague 12.49% 10.36% 8.95% 9.25% 78.1% $18,000 Natick 14.74% 10.87% 9.54% 8.41% 63.9% $13,000 Needham 12.48% 10.33% 8.88% 9.70% 65.6% $14,000 New Bedford 14.40% 11.32% 9.08% 8.40% 46.9% $12,000 Newburyport 12.71% 10.24% 8.86% 8.43% 64.9% $12,000 Newton 11.98% 10.23% 8.89% 8.78% 54.9% $12,000 Norfolk County 11.23% 9.57% 8.34% 8.67% 63.5% $18,000 North Adams 18.62% 10.97% 9.95% 9.80% 83.3% $13,000 North Attleboro 14.82% 10.99% 9.86% 8.93% 73.2% $14,000 Northampton 18.39% 10.80% 9.84% 9.63% 69.2% $13,000 Northbridge 12.75% 10.53% 9.06% 9.46% 71.9% $14,000 Norwood 15.29% 11.75% 9.27% 9.36% 78.4% $14,000 Peabody 12.56% 10.42% 9.00% 8.81% 49.3% $15,000 Pittsfield 12.04% 10.02% 8.86% 8.38% 49.3% $14,000 Plymouth 10.07% 9.96% 9.19% 8.93% 51.9% $14,000 Plymouth County 14.62% 9.83% 8.42% 9.16% 61.0% $16,000 PRIM 12.61% 10.42% 8.97% 9.62% NA NA Quincy Data not available at press time 45.0% $15,000 Reading 12.44% 10.28% 8.95% 9.36% 75.0% $14,000 Revere 12.36% 10.31% 8.86% 8.57% 63.5% $13,000 Salem Contributory 12.41% 10.29% 8.73% 8.34% 59.2% $12,000 Saugus 12.89% 10.47% 9.02% 9.34% 77.4% $14,000 Shrewsbury Contributory 12.74% 10.83% 9.59% 9.31% 93.4% $12,000 Somerville 27.59% 13.77% 11.31% 9.60% 62.7% $14,000 Southbridge 12.46% 10.41% 8.83% 8.28% 62.9% $12,000 Springfield 12.70% 10.61% 9.16% 8.62% 28.9% $13,000 State 12.69% 10.50% 9.05% 9.55% 63.7% $13,000 MTRS (Mass. Teachers) 12.78% 10.48% 9.04% 9.56% 51.7% $13,000 Stoneham 7.85% 9.36% 8.46% 8.82% 78.1% $13,000 Swampscott Contributory 12.68% 10.25% 9.13% 9.20% 59.6% $14,000 Taunton 11.60% 10.08% 9.02% 9.66% 74.5% $15,000 Wakefield 12.50% 10.42% 9.03% 9.73% 64.7% $14,000 Waltham 14.05% 10.29% 9.26% 8.85% 56.8% $14,000 CONTINUED ON PAGE 16 u 11 The Voice of the Retired Public Employee RETIREMENT BOARDS ELECTIONS & APPOINTMENTS

The other members making the REMEMBERING reappointment include Jennifer Gallant, retired Fire Captain James Dunham*, Heta Patel, retired JIMMY CUTICCHIA Police Captain Donald Emerson. ANDOVER RETIREE WAS FIERCE ADVOCATE The Retirement Administrator for Easthampton is Kymme Wood. July 4th brought the sad news of Firefighters of Massachusetts (PFFM) Greenfield – Retired firefighter the passing of retired Andover Fire Lt. District 4. Bill Devino* had no opposition in James (Jimmy) Cuticchia following a “Unfortunately, we lost an being elected to his 12th three-year long and valiant bat- immensely fierce advocate for his term on the Greenfield Retirement tle with occupational fellow retirees. Jimmy always did his Board. Other Board members cer- cancer. homework and was well versed in both tifying the election results include A life-long res- the retirement and municipal health Angelica Desroches, Kyle Phelps, ident of Andover insurance laws,” recalls Association Marianne Fisk and Frances Stotz. and dedicated Mass General Counsel Bill Rehrey. “We Shari Hildreth is the administrator. Retirees member worked closely with Jimmy and his fel- Hampden County – Hampden since his retirement low Andover retirees when the town County Advisory Council appointed JAMES CUTICCHIA in 2014, Jimmy was unjustly increased premium contribu- Wilbraham Treasurer, Tom Sullivan ANDOVER an elected member tion rates. The case went all the way to as their representative on the and former chairman the Supreme Judicial Court, where the Hampden County Retirement Board. of the Andover Retirement Board. retirees’ won! The victory was largely He will replace Laurel Placzek, who Jimmy was instrumental in fighting due to Jimmy not giving up on what retired from the Agawam Treasurer/ for the rights of public employees and he knew to be the right thing to do. Collector’s position earlier this year. retirees alike. This is especially true “It goes without saying, but Jimmy when advocating for COLAs or defend- The other members on the Board Cuticchia will be greatly missed.” ing Andover retirees from unfair cuts include, retired Agawam firefighter, In recent years, Jimmy focused in health insurance benefits. Karl Schmaelzle, who also serves his attention on increasing Andover’s After entering public service as the Mass Retirees Western COLA benefits. He felt strongly that as a dispatcher in 1980, Jimmy Mass. District Vice President, the investment success of the retire- was appointed to the Andover Fire retired Palmer Town Clerk, Patricia ment system should be shared with Department in 1984 and promoted to Donovan, Patrick O’Neil and retired the system’s beneficiaries – a senti- lieutenant a decade later. He would Agawam Town Clerk, Richard ment shared by Mass Retirees. also serve as President of Local 1658 Theroux*. Julianne Bartley serves and Vice President of Professional as the Board’s Executive Director. Hingham – Hingham Board Andover – The declared the winner by the Board. of Selectmen reappointed Eileen Andover Retirement The other members declaring the McCracken as their representative Board declared election were, Thomas Hartwell, and the Hingham Retirement Board Firefighter Eric Haley Green*, Blackwell Taylor and reappointed Charles Cristello as Teichert elected to Elena Kothman, who also serves as their fifth member. The other Board fill the vacancy of the Board’s executive director. members include Susan Nickerson*, long-time elected Easthampton – Easthampton Deputy Police Chief, David Jones member Lieutenant Retirement Board members reap- and Jean Montgomery. Hingham’s ERIC TEICHERT ANDOVER Jim Cuticchia. Eric pointed retired Lieutenant from the Retirement Board Administrator is was the only can- Springfield Fire Dept., Cornelius didate for the vacancy and was Sullivan as their fifth member. CONTINUED ON PAGE 13 u

12 September 2021

Aksana Holmes. Pin Yin Chai and Paul Hynes, Esq. The Narkewicz appointed Charlene Nardi Lawrence – The Lawrence Board’s executive secretary is Joseph to replace Susan Wright as Finance Retirement Board members voted to Petty, who also serves as the Mayor Director, who is retiring after 17 appoint Sheryl Wright as the Board’s for the City of Worcester. years of service with Northampton. 5th member. Their former 5th mem- MWRA – Jim Fleming* Esq, was Ms. Nardi was the town adminis- ber, retired Lawrence teacher, Bill declared elected, without opposi- trator for the Town of Williamsburg Bateman, passed away suddenly on tion to the Mass Water Resources and the Town of Chesterfield. The June 15th. Sheryl Wright is a retired Authority by the MWRA Retirement other remaining members on the Northampton City Auditor. The Board Board. Jim has served as one of the Northampton Board are Joyce members making the appointment two elected members since before Karpinski*, Michael Lyons, Tammy include Ramona Ceballos, Thomas the reorganization of the retirement Suprenant and Thomas Sullivan. The Cuddy, Kevin Loughlin and former board’s five-member structure. The Board’s Retirement Administrator is Retirement Board Deputy Director, other members on the Board include David Shipka. Gina Rizzo. The Board’s executive Andrew Pappastergion, Thomas Northbridge – Incumbent retired director is Diane Cockroft. Durkin, Kevin McKenna and Frank police officer, John Meagher, Jr* Lynn – Retired Zecha, who also serves as Retirement was reelected to a new three-year firefighter “Buzzy” Board Director in Brookline. The term on the Northbridge Retirement Barton was unop- Board’s Executive Director is Carolyn Board. Meagher, was unopposed and posed in his 7th Russo. declared the winner by the Board reelection bid to the Natick – The Natick Board of and will begin his ninth term. Also Lynn Retirement Selectmen reappointed Eliot Lurier serving on the Board are trustees Board. Barton, a as their appointment to the Natick Neil Vaidya, Sharon Susienka, retired former outstand- Retirement Board for his second School Director of Operations George BUZZY BARTON ing High School term. Natick’s other Board mem- Murray and Thomas Frieswyk. LYNN Basketball coach bers include Arti Mehta, Nicholas Scott McGrath is the Northbridge and player, is also Mabardy, Michael Reardon and Retirement Board Administrator. up for reelection this fall to the Lynn Michael Melchiorri*. The Board City Councilor at Large position that Director is Kathleen Bacon. he has held for a number of years. Northampton – Mayor David CONTINUED ON PAGE 16 u The other elected member is retired firefighter Rich Biagiotti CFA, who serves with Stephen 88 Spencer, and Michael Marks, Esq.*and Association PRIM’S CLIENT President Frank Valeri. The executive director is Lynn native Gary Brenner. SERVICES OFFICE Mass Housing – Antonio Torres was declared elected by the Mass. Housing Finance DANIELE SUCCEEDS TODISCO Agency (MHFA) At the PRIM (Pension Reserves all of the state’s 102 local retirement Retirement Board, Investment Management) Board, systems. As Client Services Director, as he ran unop- Francesco Daniele Francesco’s responsibilities include posed for his has succeeded Paul managing client relationships with sixth term. Also, Todisco as its Director the local retirement systems and Board members of Client Services. also working closely with the PRIM welcomed Lisa Recently we reported Advisory Council and the SRBTF LISA SERAFIN Serafin* as the new MASS HOUSING on Todisco’s retire- (State Retiree Benefits Trust Fund) Ex-Officio mem- ment after decades Board that is the focus of our article on ber and Chairwoman of the Mass. of public service (see page 14. Housing Retirement Board. Lisa FRANCESCO DANIELE May Voice). Having According to Association Serafin was elected Treasurer, a role PRIM DIR. OF CLIENT SERVICES previously held by Andris Silins. begun his profes- Executive Vice President Paul Shanley, Ms. Serafin, who joined the Mass. sional career in the “As one of two elected PRIM Board Housing Board in 2016, is a Principal private sector, Daniele joined PRIM members, I’ve had numerous oppor- with Redgate Real Estate Advisors. in 2016, working with Todisco in the tunities to observe Francesco in action Mr. Silins will be retiring after serv- Client Services Office. over the past few years. I’m fully confi- ing twenty-four years with the Board. Among its many functions, PRIM dent that he will do an outstanding job Also serving on the Board are retired manages and invests all or a por- and do his predecessor Paul proud.” MHFA employee Mike Fitzmaurice, tion of the pension funds for almost

13 The Voice of the Retired Public Employee STATE OPEB FUND CONTINUES GROWTH Almost $2.5 Billion in Assets

PEB is an acronym that was amended, allowing local gov- and Worcester recently joining the our members know well, ernments to transfer their OPEB ranks.” Ohaving heard it from funds into the SRBT. It should be us for more than a decade and a noted that prior to the 2011 change half. OPEB refers to Other Post- in the law, local governments had ASSET VALUE: Employment Benefits, which con- created their own OPEB trusts. They MORE THAN DOUBLED IN 5 YEARS sists almost entirely of future retiree did so either with special legislation McGovern continued, “When we health care costs. or adopting the local option law, reported on the value of the SRBT sponsored by Mass Retirees and assets five years ago (May 2016 enacted in 2008 that allows local Voice), we highlighted that it was SRBT HISTORY governments to establish their own approaching $1 Billion – in fact, at Briefly, we saw the issue of OPEB trust. $939 Million. Well not only was the future retiree health care costs $1 Billion milestone reached over assume even greater prominence in the past 5 years, but the asset value 2004. That’s when a private sector LOCAL PARTICIPATION INCREASING has increased an outstanding 150% board, called GASB (Government “Since we reported on the Town to $2.48 Billion.” Accounting Standards Board), final- of Hingham being the first to partici- Of the $2.48 Billion, approxi- ized a new accounting Rule 45 for pate in SRBT, the number of local par- mately $771 Million are assets of the state and local governments, entitled ticipants has significantly grown,” local participants. That represents Other Post-Employment Benefits or according to Voice Publisher Nancy a little over 30% of the SRBT assets OPEB. It required them to disclose Delaney. “In 2019, there were 69, up being invested by PRIM. on their financial papers the future from the 56 participants two years McGovern concludes, “It’s inter- costs of post-employment benefits, earlier. esting to note that five years ago, including retiree health care costs. “And now – another two years local participation accounted for And the new OPEB Rule extended later – 76 cities, towns districts and about $198 Million in SRBT assets. beyond the reporting of these costs. authorities have transferred their Today’s assets are almost three State and local officials were also OPEB funds to the SRBT.” At the end times that amount. That’s amazing, expected to show how they intended of last year, the Town of Bellingham’s and we shouldn’t be surprised to see to pay it off. request to join was approved, while It was three years later (2007) just this year the City of Worcester CONTINUED ON PAGE 15 u that the State Retiree Benefits Trust and the Town of East Bridgewater (SRBT) was created as Section 24 became the latest participants. of the state group insurance law “Since the PRIM Board invests it grow even more.” (Chapter 32A), to “solely meet lia- the SRBT funds, its Client Services bilities of the state employees’ Office, directed by Francesco SRBT retirement system for healthcare Daniele (see related article, p. 13) and other non-pension benefits for has the added role of outreach to Participants retired members of the system.” local governments and retirement Here is a listing of cities, In other words, the SRBT became boards, educating them about SRBT, towns, districts and authorities and remains the Commonwealth’s as well as PRIM and explaining how that have opted to transfer their OPEB trust whose funds are invested it invests their OPEB funds,” com- OPEB Funds to the SRBT than by the state PRIM (Pension Reserves ments Association official Nancy create and maintain their own Investment Management) Board. McGovern. “And as the numbers trust fund. See related article on And SRBT’s scope expanded four show, they have been succeeding in local OPEB trusts on p. 15. years later – in 2011. that role, even during the pandemic That’s when the state OPEB law with Bellingham, East Bridgewater

14 September 2021 ....and some have their own OPEB trusts While several communities have 2004. Among them were the towns trusts for future healthcare costs.” deposited their OPEB Funds with the of Arlington, Bedford, Brookline, “It’s noteworthy that after the SRBT, there are others that made Hingham, Lexington, Needham, law was changed in 2011, allow- the decision to manage and invest Quincy, Waltham, Wellesley and ing communities to transfer their locally. And like the state, they’ve Winchester. OPEB funds to the SRBT, some of been successful at it. According to Legislative Liaison those listed above did so includ- By way of background, commu- Nancy McGovern, “Each of these ing Bedford, Brookline, Hingham, nities were creating trusts for future communities was successful in hav- Needham and Wellesley. But not all retiree healthcare costs even before ing special legislation enacted that have adopted the 2011 option.” GASB finalized its Rule 45 (OPEB) in authorized them to establish OPEB SPOTLIGHT ON PLYMOUTH “In fact, other communities earlier, Association sponsored have enacted special legisla- legislation was enacted in 2008 tion to create their own OPEB (Chapter 479) allowing the cre- Trust,” continued McGovern. ation of local OPEB Trusts, as an “That includes the Town of TOM KELLEY Plymouth.” Ed Note: As reported (CHAIRMAN - PLYMOUTH CONTINUED ON PAGE 19 u RETIREMENT BOARD)

Towns Acton Burlington Holliston Milton Stockbridge Amherst Chelmsford Ipswich Montague Tewksbury Ayer Cohasset Lancaster Needham Wakefield Bedford Dalton Lenox North Andover Wayland Bellingham Dedham Lincoln Northborough Wellesley Blackstone Dracut Longmeadow Northfield Westwood Boxford East Bridgewater Manchester-By-The-Sea Orleans Wilmington Braintree Franklin Marblehead Provincetown Brewster Harvard Medfield Reading Brookline Hingham Middleton Sherborn Cities Beverly Fitchburg Leominster New Bedford Newburyport Newton Worcester Regional School Districts Districts & Authorities BiCounty Educational Collaborative, Franklin, MA Boston Redevelopment Authority Concord Area Special Education (CASE) Collaborative Byfield Water District Greater Lowell Regional Technical School Fall River Housing Authority Lincoln-Sudbury Regional School District Franklin Regional Council of Governments Lower Pioneer Valley Educational Collaborative Lawrence Housing Authority Manchester Essex Regional School District Lowell Regional Transit Authority (LRTA) Nashoba Regional School District Marblehead Municipal Light Department Old Rochester Regional School District Massachusetts School Building Authority Shawsheen Valley Technical High School, Billerica, MA Mass Water Resources Authority Pilgrim Area Collaborative (PAC), Pembroke, MA Quabbin Health District South Hadley Fire District Wakefield Municipal Gas & Light Department

15 The Voice of the Retired Public Employee Retirement Systems CONTINUED FROM PAGE 10 u

BOARD NAME - PRNT 2020 5YR 2020 10YR 2020 36YR 2020 FUNDED COLA BASE RATIO

Watertown 13.42% 10.09% 8.76% 8.51% 91.7% $14,000 Webster 9.61% 9.21% 8.46% 8.23% 58.4% $16,000 Wellesley 12.51% 10.42% 9.01% 9.99% 77.7% $18,000 West Springfield 18.19% 10.55% 9.71% 8.53% 66.4% $13,000 Westfield 15.26% 10.65% 9.96% 9.03% 73.5% $13,000 Weymouth 15.65% 10.35% 8.89% 9.89% 65.6% $12,000 Winchester 12.60% 9.70% 7.98% 9.06% 80.5% $14,000 Winthrop 12.60% 10.44% 8.83% 8.83% 83.2% $12,000 Woburn 12.58% 10.47% 9.08% 9.45% 61.1% $14,000 Worcester 11.87% 10.03% 8.03% 8.89% 63.9% $13,000 Worcester Regional 12.53% 10.28% 8.82% 8.39% 46.4% $16,000 COMPOSITE 12.80% 10.38% 8.93% 9.31% NA NA

retirement, an additional $15,000. The language to increase the hours from 960 State Budget earnings restriction was last changed to only 975 hours per calendar year, the CONTINUED FROM PAGE 5 u in 2014, and there are no plans to make Legislature has taken the initial steps to must be noted that the language only changes to this portion of the law in restore the original language as we’ve changes the hours limitation. The earn- this proposal. However, the Governor requested. Since there are additional ings restriction still remains the differ- sent back new language to legislature steps in the process, please look to ence between a retiree’s pension and to increase the hours from 960 to only our Hotline, website, video emails and the current salary of the job from which 975 hours per calendar year. other media outlets for updates. they retired, plus after the first year of While the Governor sent back new Group, LLC Boston. He has replaced Retirement Board appointed a new Elections Thomas Clough as the Board’s fifth member, Brian Perry, who is CONTINUED FROM PAGE 13 u fifth member. The members mak- a retired invest- ing the appointment were Sharon ment banker from Peabody – Richard Yagjian* Angstrom, Carol Roberts, firefighter the Webster Five was reappointed by the Peabody David Gentile* and retired custo- Cent Savings Bank Retirement Board members as the dian Joseph Coughlin. The Board to replace Daniel 5th Member of the Board for his Administrator is Colleen Loughlin. Bonnette. The other ninth term. The other members Springfield – Retired Police members on the serving on the Board are Michael Officer, Thomas Scanlon* was Board making the Gingrich, Edward Lomasney, overwhelmingly reelected to the BRIAN PERRY appointment were retired Fire Lieutenant and Mass Springfield Retirement Board by WEBSTER Robert Craver*, Retirees Northern Area V.P., Joseph receiving 823 votes and his chal- Timothy Bell, Eleanor Doros DiFranco, Sr. and Linda Cavallon. lenger, DPW Engineer, Vladimir and James Hoover. The Board The Peabody Retirement Board’s Caceres receiving 176 votes. It will Administrator is Kristin LaPlante. Pension Administrator is James be Mr. Scanlon’s fourth term on Wellesley – Wellesley Freeman. the Board. The other members on Retirement Board members reap- Reading – the Board include Patrick Burns, pointed Charles Cahill as their Reading Retirement Haskell Kennedy, Jr., Philip Mantoni 5th member for his fourth term Board members and retired Police Lieutenant Robert on the Board. Other Board mem- appointed a new Moynihan, elected Treasurer of the bers include Sheryl Strother, fifth member, John Mass. Association of Contributory David Kornwitz*, Michael Leach Halsey, retired Retirement Systems (MACRS). The and Timothy Barros. The Board’s Ex. VP, Chief of Executive Director for the Springfield Administrator is Lynn Whynot. JOHN HALSEY Operations Officer system is Susana Baltazar. READING at the Colony Webster – The Webster *Denotes Chair 16 September 2021 MORE ABOUT CHAPTER 69 AND THE PECS THAT IT CREATED s you’ve read in the July Voice, the Association’s role, involving Andover Holden Alocal health insurance, took on Arlington Holliston even greater significance with the passage Bedford Hyannis of Chapter 69, the 2011 Municipal Insurance Bellingham Lee Law. If a community implemented the law and Belmont Lenox created a PEC (Public Employee Committee), Billerica Middleton then Mass Retirees appointed the retiree des- ignee on that committee. Concord Methuen We anticipated that a number of commu- Chelmsford New Bedford nities would be implementing the law and Danvers Northampton so they have, which means our PEC appoint- Dedham North Andover ments have also expanded. It’s important to Everett Plymouth note that while several communities adopted Fairhaven Reading Chapter 69, they did not proceed any further Fall River Salem in the process. They did not implement the law by creat- Framingham Scituate ing a PEC and entering into an agreement with Great Barrington Sharon it. So what we’ve listed at the right, are those Hadley Westfield communities that took the next step forward Halifax Winchester with a PEC on which we’ve designated the Haverhill retiree representative.

incrementally improved on an ongo- million per year! Successful pen- President ing basis. sion investment practices, which are CONTINUED FROM PAGE 2 u Second, we have proposed the largely funded by public employees’ creation of an additional Enhanced contributions, should not result in COLA benefit designed to help long- the government using excess gains cannot keep pace with inflation. term public retirees catch up with as the means to supplement the Basic Medicare premiums alone inflation. This enhanced or “Senior” employer’s responsibility to fund the have increased $48 a month since COLA benefit would kick in begin- system. 2013. As we explain within the article ning after 15 years of retirement for Operating outside of Social on page 6 & 7, growth of the COLA retirees who had at least 20-years of Security should not absolve the benefit has been curtailed due to the public service prior to retirement. employer of the responsibility restraints imposed by rigid pension If history is a guide, it is safe to to contribute its share toward an funding schedules. assume that we will soon witness employee’s retirement nor of the However, the time has come to some municipal and state officials need to provide a meaningful COLA share the amazing historical invest- proposing that excess pension benefit. Now is the time for these ment success with retirees, for fund earnings be used to reduce issues to be addressed. whom the retirement system exists the government’s appropriation In the past year alone, the state’s to serve. Mass Retirees believes that to the retirement system. A reduc- PRIT Fund has grown by $20.7 billion. this shared success should take the tion in government funding should Local retirement systems, many of form of improved and expanded only take place in coordination with which invest within PRIT, have done COLA benefits for retirees. retiree benefit enhancements. just as well. These historic gains, Our Association proposes a two- By not participating in Social along with the success of the past 36 step approach for COLA improve- Security, Massachusetts state and years, must be shared with the bene- ments. First, the traditional COLA local governments do not pay the ficiaries for whom these funds exist. base to which the annual benefit mandatory 6.2% federal payroll is applied should continue to be tax – a savings of more than $700

17 The Voice of the Retired Public Employee

cite environmen- various political activists focused on CAUTIOUS tal concerns, but a variety of causes. also economic as “Over the many decades that APPROACH WITH large segments of various divestment plans have been the global econ- proposed, the position taken by Mass DIVESTMENT omy shift toward Retirees has been one of caution. renewable energy Our Association did support divest- sources. This con- ment from South Africa, as well as Several Legislative Proposals Filed cept has gained pop- from certain companies involved in ularity across a wide Northern Ireland and those doing topic that was raised spectrum of global business with Iran. In each case, during our June Tele- investors, including Saudi Arabia’s divestment served to reinforce US ATown Hall Meeting was own Public Investment Fund (PIF) – foreign policy,” recalls Association regarding the issue of pension fund which has taken a very public stance CEO Shawn Duhamel. “However, divestment. on diversifying the oil-rich kingdom’s these are select cases that fit within During the question-and-answer sovereign wealth fund. official policy views. In general, we segment with Pension Reserves In addition to bills requiring pub- must take a very cautious approach Investment Management (PRIM) lic pension fund divestment from cer- when it comes to any policy that Board Executive Director / Chief tain types of fossil fuel investments, could negatively impact our pension Investment Officer Michael Trotsky, additional legislation now pending systems. Our members rely on these the importance of keeping politics out on Beacon Hill targets other types of funds in their retirement. of the operation of our public pension investments for divestment based on “In our view, investment deci- systems was briefly discussed. This political or moral grounds. sions are best left to qualified pro- applies to both the operation of the Examples include bills requiring fessionals and made without political board itself, as well as the system’s divestment from Raytheon, due to interference. Public pension systems investment practices. the company’s production and sale of should not be singled out or used to A growing trend here in military equipment to Saudi Arabia, support a political agenda or ideo- Massachusetts, as well as through- as well as bills divesting from com- logical point of view. Heading down out the country, is to encourage pub- panies producing ammunition and that road, regardless of the merits, is lic pension systems, as well as both firearms, nuclear weapons or doing a very dangerous and slippery slope public and private endowments, to business in Myanmar (Burma). that can only lead to investment divest of certain investment hold- While the application of divest- returns being placed at risk. ings from the system’s portfolio. For ment dates back several decades “At the end of the day, if our pub- instance, recently there has been a lot and is credited with helping to end lic retirement systems suffer then our of focus on the divestment of stocks Apartheid in South Africa, as well members suffer. Looking out for the or investments involving fossil fuels. as the political violence that once best interest of our members is our Those advocating for divestment gripped Northern Ireland, its appeal sole focus.” of fossil fuel investments not only has spread in recent years as a tool of WAIVER EXTENSION UPDATE n the days leading up to the were left in the conference commit- June 15th expiration of the Restrictions tee, including the language pertain- IGovernor’s state of emergency ing to the extension of the special related to the COVID-19 pandemic, In Effect waiver. We have continued to work the House and Senate swiftly acted with our legislative allies to advo- on legislation that would extend did not include language to extend cate for the extension. some policy measures related to the waiver. In an unusual move, the The expiration of the state of the pandemic. The Senate acted on House and Senate named a confer- emergency on June 15th means their version of the legislation on ence committee the same day to that the restriction of 960 hours and June 11th. Senator Michael Brady work out the differences in the ver- earnings restriction of the difference (D-Brockton) was able to secure sions and send a final document to between a retiree’s public pension an amendment that would extend the Governor. benefit and the annual salary their the Special Post Retirement Work When the conference committee former job currently pays, plus an waiver until December 15, 2021. The report emerged late in the evening of additional $15,000, will be in effect House completed a version of the June 15th it was only a partial report from June 15, 2021, until December legislation on June 15th, the day that pertained to items included in 31, 2021. the state of emergency expired and both versions. All the other items

18 September 2021

we’ve averaged almost double-digit money manager for OPEB that we investment returns over the past five have for our pension funds. As we Plymouth years, including 10.07% in 2020. see it, Rhumbline has performed CONTINUED FROM PAGE 15 u “So, when we created our OPEB exceptionally well, producing excel- alternative to special legislation. Trust back in 2013, we didn’t adopt lent returns for us on both accounts. “Plymouth has always exhib- the state local option (Chapter 479) “Also, the town has stepped up ited a strong spirit of independence since it didn’t allow local retirement and continued to make appropria- and work ethic when it comes to boards to manage and invest OPEB tions to the Trust. We’re looking at its pension fund and health insur- funds. We successfully enacted a some $1 Million this year.” ance programs,” according to special law, Chapter 113, that has Duhamel offers the following Association CEO Shawn Duhamel, our retirement board in charge of observations. “It’s a very positive who was raised there and served the town’s OPEB Trust.” Ed Note: sign to see that communities, dis- on its retirement board. “Yes, we As reported earlier, Chapter 218, tricts and authorities are attempting have,” adds Plymouth Retirement enacted in 2018 – some 5 years to address future retiree healthcare Board Chairman Tom Kelley, retired after Plymouth’s special legislation costs, either with the SRBT or their police officer and a longstanding – allows local retirement boards to own trust fund. Their efforts have Association member. manage and invest OPEB funds. continued despite the recent chal- “We manage and invest our Currently, the Plymouth lenges from the pandemic. Thank pension funds and don’t partic- Retirement Board is managing you.” ipate in the state PRIT (Pension almost $9 Million in the Trust. Kelley Reserves Investment Trust). And continues, “The Board has the same

benefit that appropriately reflects act relative to group insurance current funeral/burial costs, our bill costs for certain public retirees filed Leg. News raises the basic life insurance bene- by Representative John Mahoney CONTINUED FROM PAGE 5 u fit for state retirees who are insured (D-Worcester), H2660: An act fur- through the state’s Group Insurance ther regulating the withdrawal of the retention of coverage should a Commission (GIC) from $5,000, local subscribers from the com- surviving spouse remarry. We spot- which was set in 1985 – more than mission filed by Representative lighted this and other legislation 35 years ago - to $10,000. As a result Thomas Golden (D-Lowell) and related to survivor benefits in the of Association sponsored legisla- S1713: An act relative to the com- July Voice. tion, municipalities already have position of the Group Insurance H2708/S1676: An act further reg- the option of setting higher basic Commission, filed by Senator Paul ulating group insurance benefits for life insurance benefits; therefore, no Feeney (D-Foxborough). state employees and retired state further legislation is required for the We anticipate that the hear- employees, filed by Representative local level. ing schedule will pick up now that John Lawn (D-Watertown) and The final three pieces that the FY 2022 budget and legislation Senator Brendan Crighton (D-Lynn), we submitted testimony on are addressing pandemic related poli- was also heard. In order to offer a related to the Group Insurance cies have been completed. more comprehensive life insurance Commission. They are H2719: An

The following members of our Association have recently passed away. We extend our deepest sympathy to their families.

ANDERSON, PAUL D. – N. Reading, MA DENTY, MARY I. – Plymouth, MA HERRICK, JOHN B. – Strafford, NH (Survivor, Mass Bay Community College) (Waltham District Court) (Whittier Reg Voc Tech Teacher) ANDREW, MARJORIE – Cambridge, MA DEVINE, LAWRENCE J. – E. Longmeadow, MA HURLEY, RICHARD D. – Westwood, MA (Middlesex County Engineering Dept.) (E. Longmeadow School Department) (Medfield Police Department) BAME, VERLYNE E. – Winter Haven, FL DINES, SALLY S. – Baldwinville, MA JOHNSON, CONSTANCE D. – Southwick, MA (Cape Cod Community College) (Fitchburg Housing Authority) (Southwick School Department) BARNES, EDITH R. – Searcy, AR FAVAZZA, JOSEPH – Gloucester, MA KENNEY, DAVID W. – Easthampton, MA (Somerset Teacher) (Gloucester) (State Dept. Developmental Services) BERZON, FAYE C. – Canton, MA FOLEY, EVIN A. – Quincy, MA KIDDER, BRUCE G. – Elloree, SC (Massasoit Community College) (State Higher Education) (Concord Fire Department) BOEN, WALLACE E. – Brockton, MA FRENCH, ALDEN P. – Bedford, MA LABA, MARGARET C. – Whitinsville, MA (S. Easton Teacher) (Bedford Police Department) (Northbridge Teacher) BURNS, GAIL K. – Bellingham, MA GIARDINA, GENE – Lynn, MA LeBLANC, LOUIS J. – Fitchburg, MA (State Dept. of Mental Health) (North Shore Community College) (Fitchburg Fire Department) BYLINSKI, JOSEPHINE – Worcester, MA GLOVER, KENNETH – Melrose, MA LIKELY, A. NIKKI – Auburndale, MA (Survivor, Worcester Police Dept.) (State Police) (Survivor, Newton Police Dept.) COLANTONI, JOSEPH – Palm Bay, FL GRANATA, ANTHONY – Concord, MA McGOVERN, ROBERT E. – Jamaica Plain, MA (State Dept. of Transportation) (State) (Boston Redevelopment Authority) COTTER, EDWARD J. – North Weymouth, MA HEINTZ, PATRICIA E. – Otisfield, ME McMANN, CATHIE M. – Milton, MA (Middlesex Court) (Waltham Teacher) (Quincy Teacher) DALEY, NORMA M. – Dennisport, MA HEMEON, MARY E. – Gloucester, MA MARTIN, LILLIAN K. – Townsend, MA (Brookline Library) (Lexington School Department) (Townsend Teacher) Continued on back page 19 RETIRED STATE COUNTY AND MUNICIPAL EMPLOYEES NONPROFIT ORG. ASSOCIATION OF MASSACHUSETTS U.S. POSTAGE 11 BEACON STREET • BOSTON, MASSACHUSETTS • 02108-3024 PAID BOSTON, MASS. FRANK VALERI, President PERMIT 54933 SHAWN DUHAMEL, Chief Executive Officer JOSEPH CONNARTON, Treasurer JUDITH LANGONE, Secretary THOMAS BONARRIGO, Legislative Chairman PAUL SHANLEY, Executive V. Pres. RALPH WHITE, V. Pres., At Large TIM HANNIGAN, V. Pres., Berkshire District KARL SCHMAELZLE, V. Pres., Western District ED PIETREWICZ, V. Pres., Central District DENIS DEVINE, V. Pres., Middlesex District JOE DiFRANCO, Sr., V. Pres., Northern District BILL FLIPPIN, V. Pres., Eastern District STEVE RIVARD, V. Pres., Southeastern District ROBERT POWILATIS, V. Pres., Plymouth Cape/Islands CHERYL STILLMAN, Executive Board DAN TURCO, Executive Board ANNE WASS, Executive Board WILLIAM G. REHREY, Legal Counsel NANCY McGOVERN, Legislative Liaison

VISIT OUR ASSOCIATION’S WEB SITE: www.massretirees.com God Bless America. September 2021

DECEASED MEMBERS (continued)

MARTIN, ROBERT J. – Taunton, MA POWERS, CAROLYN – Taunton, MA STRUZZIERO, ANTHONY A. – Saugus, MA (State Trial Court) (Taunton State Hospital) (Saugus School Department) MATTOS, RONALD J. – N. Ft. Myers, FL RATTRAY, DONALD N. – Melrose, MA SWANSON, JAMES E. – Walpole, MA (Cambridge Fire Department) (Melrose Fire Department) (Boston School Department) MEDAL, HECTOR E. – Boothbay Harbor, ME REAGAN, BARBARA A. – Salem, NH TALBOT, WILLIAM H. – Somerset, MA (Boston Fire Department) (Brockton Teacher) (State Dept. of Public Safety) MEDEIROS, LUCILLE C. – S. Dartmouth, MA REBELLO, NELSON – Sharon, MA THAYER, PHILLIP P. – Hanover, MA (Survivor, Acushnet School Department) (Sharon Teacher) (Duxbury Police Department) MELLACE, ARTHUR – Peabody, MA REYNOLDS, SHARON A. – Barre, MA THIBAULT, KATHLEEN M. – Westport, MA (Revere Teacher) (Fitchburg Teacher) (Westport Teacher) MESPELLI, MARY A. – Framingham, MA RIVEST, ESTELLE A. – Holyoke, MA THOMPSON, LOUISE R. – Loda, IL (Framingham Teacher) (Holyoke Community College) (Brookline Teacher) MOLINO, GINO A. – Reading, MA ROCHE, MARLENE J. – Holland, MA TOOMEY, WILLIAM P. – Methuen, MA (Revere Teacher) (State D.S.S. - D.M.R.) (Nashoba Valley Tech Teacher) MULLALY, JAMES E. – Millville, MA ROSELLI, ANTHONY M. – Reading, MA TOSI, ANN M. – Plymouth, MA (Bellingham Teacher) (Milton Teacher) (Plymouth Teacher) MULLOY, WILLIAM E. – Weymouth, MA SAHAGIAN, AGNES B. – Holden, MA TWOMEY, JAMES J. JR. – Jamaica Plain, MA (Boston Fire Department) (State Dept. of Social Services) (State, House Clerk) MURPHY, JAMES F. – Milton, MA SANDERS, PAUL T. – Emerald Isle, NC WAITE, DONALD G. – Center Conway, NH (Suffolk Probate Court) (Boston Police Department) (Town of Middleboro) MURPHY, MICHAEL K. – Fitchburg, MA SANTA MARIA, EDMUND A. – Roslindale, MA WALSH, JESSIE A. – Whitman, MA (Fitchburg Fire Department) (Cambridge Water Department) (Plymouth County Hospital) MURRAY, RICHARD – Thornton, NH SANTOS, JANICE – New Bedford, MA WALSH, MARY C. – Mechanicsburg, PA (Weymouth Police Department) (New Bedford Teacher) (New Bedford Teacher) NOVAK, DIANE T. – West Springfield, MA SATERIALE, GEORGE R. – Medford, MA WARD, ROBERT M. – Quincy, MA (Southampton Teacher) (State Police) (Suffolk County Sheriff’s Department) O’DEA, CAROL F. – Lowell, MA SERLEY, MARGARET F. – Madbury, NH WESTERLUND, ROBERT I. – Brockton, MA (State Treasury Department) (Andover Teacher) (Brockton Fire Department) O’NEIL, HENRY C. JR.– Newton, MA SHAWCROSS, JOHN F. – Woburn, MA WILCOX, ANN E. – N. Conway, NH (State Welfare Department) (State M.W.R.A.) (Framingham Teacher) ORPIK, STANLEY J. – Concord, MA SHEA, JAMES F. – Westfield, MA WILK, CAMILLE J. –Fuquay, NC (Concord Fire Department) (Westfield Teacher) (Survivor, State) PAULEY, DAVID E. – Ipswich, MA SILVA, ROGER L. – New Bedford, MA WILLIAMS, PAUL A. – Bradford, VT (Danvers Teacher) (New Bedford Teacher) (Northampton Teacher) PELLETIER, MICHAEL W. – Greenfield, MA SLATTERY, LETITIA M. – Leominster, MA WILSON, JEFFREY A. – Oxford, MA (State Dept. of Environmental Management) (State Welfare Department) (Oxford Fire EMS Department) PELLETIER, RONALD P. – Gardner, MA STAPLETON, LEO D. – South Weymouth, MA WOLPERT, LIBBY S. – Millis, MA (State, Dept. of Mental Retardation) (Boston Fire Department) (Medfield State Hospital) PESA, PETER –Milton, GA STEELE, MARY M. – South Weymouth, MA WOODLEY, ROSA L. – Lauderhill, FL (State Dept. of Revenue) (Boston Health & Hospitals) (Boston City Hospital)