11 BEACON STREET, BOSTON, MASSACHUSETTS 02108-3024 JULY 2021 STRONG LOCAL INVESTMENT RETURNS reliminary local retirement it’s not a surprise that 2/3’rds of our board investment returns Preliminary Reports Show: systems ended up between 12-13%. Pfor 2020 appear to have Most Systems Keep Pace But another positive factor of these been as good as, if not better than, With Or Surpass State returns are at least 22 systems with our state PRIT Fund returns that we returns beyond the PRIT earnings!” reported in our May issue of The earnings between 12% and 13%, Final 2020 investment earnings Voice. gross of fees, with 86 systems over for all 102 local systems will be pro- With 2020 local retirement board 12%, gross of fees. (see chart on vided in PERAC’s Annual Investment investment earnings still being con- page 2) Report later this year. firmed by PERAC (Public Employee In response to these early num- In our last issue we reported that Retirement Administration bers President Frank Valeri stated, our state pension fund, known as the Commission), the early preliminary “This number of systems being in PRIT Fund, which supports all State numbers show most systems gen- the ballpark with the strong PRIT employees and municipal teachers erally doing equally as well as last returns is not only a product of last realized an increase of 12.1% during year’s PRIT return of 12.1%, net of year’s market, but also because 2020. This followed a jump of 16.7% fees. PERAC has indicated some more than half of our systems are in 2019, increasing the net value of 64 local systems have reported all, or mostly investing with PRIT. So, CONTINUED ON PAGE 2 u NATIONAL WEP REFORM DRIVE CONTINUES Thousands Join Campaign Demanding Congressional Action coast-to-coast grassroots of current public employees who aligned to get a deal done that brings campaign is now under- will one day be harmed by the relief to current retirees now harmed A way to advocate for the federal law, a growing number of by the WEP, as well as to create a passage of H.R. 2337, Congressman Massachusetts public employee CONTINUED ON PAGE 3 u Richard Neal’s proposal to reform the unions have taken on an active role Social Security Windfall Elimination in supporting Neal’s proposal (see Provision (WEP). list pages 6 & 7). INSIDE THIS ISSUE The bill, filed on April 1, 2021, “I want to thank the has the support of more than 50 state Massachusetts public employee SURVIVOR and national public retiree associa- unions who have endorsed H.R. 2337 BILL SPONSORS tions, unions and retirement advo- for their support and ongoing efforts Pages 10 & 11 cacy organizations. As of June 1, H.R. to help pass this bill into law. WEP 2337 had gained 160 Congressional is just as much an active employee REP. CLAIRE CRONIN cosponsors – including the entire problem as it is a retiree problem,” Massachusetts delegation. said Association President Frank ASSOCIATION’S With more than 74,000 MA res- Valeri. “With the support of Richie GENESISPage 9 idents currently impacted by the Neal and our Congressional delega- Pages 14,15, & 17 WEP and hundreds of thousands tion, I believe that the stars are now FORMER PRESIDENT RALPH WHITE The Voice of the Retired Public Employee Strong LOCAL Returns RETIREMENT SYSTEMS CONTINUED FROM PAGE 1 u 2020 INVESTMENT RETURN RATES (PRELIMINARY SURVEY) 12.01% - 13.00% 65% Under 12.00% 12.01% - 13.00% 13.01% - 15.00% Over 15.00% Rate of Return Number of Systems* % of Reported Systems* Over 9% 15.00% Under 12.00% 13 13% 13% 13% 12.01% - 13.00% 64 65% Under 13.01% - 15.00% 13.01% - 15.00% 12.00% 13 13% Over 15.00% 9 9% *These preliminary findings are based upon the 2020 investment returns for 99 of the 102 local retirement systems. A complete report on all systems will be officially issued by PERAC later this year. the PRIT Fund by some $17.6B after systems gain from these excess “If 2021 earnings continue in a paying $3B in State and teacher earnings. similar trend, our COLA initiatives, retiree benefits. “With our investment assump- including our COLA Enhancement for A big part of pension funding tions being pushed lower over the Long Term Career retirees, deserve schedules is based on the “assumed” past several years, these investment very serious consideration,” accord- rates of return. When a schedule earnings have continued to provide ing to Valeri in response to these assumes it will make less, the more the systems with tremendous gains. results. it costs to fund, but when earnings An update will be included in our make more than such assumption, next (September) Voice. PRIT UPDATE ood news continues will be our guest speaker at the June with PRIT’s strong per- STRONG Tele-Town Hall (see details, p. 7), “In Gformance through this what has been a challenging and year’s first quarter (Jan – March PERFORMANCE volatile year, our strong returns rep- 2021). As our members know from resent both pension security for our the May issue, the PRIM (Pension CONTINUES beneficiaries and also an important Reserves Investment Management) improvement in the finances of the Board reported that the PRIT (Pension INTO 2021 Commonwealth.” Reserves Investment Trust) Fund It’s noteworthy that the state posted a double-digit return of 12.1%, recently lowered the actuarial target net of fees. This return translates into net of fees, on its investments during return to 7.0% for its pension funding a $21B net investment gain during Calendar Year 2020. schedule. There’s no question that the this period, which includes this year’s At its May meeting, PRIM investment returns, being reported first quarter. announced that the Fund’s one-year here, far exceed that threshold, creat- According to PRIM’s Executive performance from March 2020 through ing a very substantial surplus. Director & CIO Michael Trotsky, who March 2021 was an outstanding 30%, 22 July 2021 WEP Reform CONTINUED FROM PAGE 1 u NATIONWIDE PETITION DRIVE GROWING See Details in Text Below new fairer Social Security formula enemy of the good.” the petition. for future retirees. While this petition is digital and “However, the key to our success COAST-TO-COAST PETITION DRIVE exists only on the Internet, mem- hinges on the willingness to com- bers without internet access can still promise. I know that many organiza- Working with the national help by writing or calling your local tions are still focused on full repeal Public Retirees Alliance, which our member of Congress. of the WEP and the Government Association founded in 2019 with the “As an organization, Mass Pension Offset laws. Until recently, Texas Retired Teachers Association, Retirees has been fighting the WEP that was the position of Mass Mass Retirees began a nationwide law since it was first created by Retirees as well. Unfortunately, the petition campaign aimed at pass- Congress in 1983. I’ve personally reality is that after 38 years of failed ing H.R. 2337 this Congressional been involved in every effort to either attempts at full repeal it is clear that session. The bill would increase the repeal or reform the WEP since com- the national support does not exist. monthly Social Security benefit of a ing to work for the Association in retiree now impacted by the WEP up 1994. Over the past 27 years, one of to $150 ($1,800 annually) indexed to the biggest challenges we’ve faced is inflation. The proposal also changes not being able to identify or directly the Social Security formula for those communicate with the retirees out- not yet eligible for a benefit to create side of Massachusetts who are also a fairer calculation that is based on harmed by the WEP,” explains Mass employment under Social Security Retirees CEO Shawn Duhamel. “The vs. employment not covered by internet and social media are prov- Social Security. ing to be game changers. We can “The most viable path forward Since the digital petition was now find the other organizations to bring relief from the WEP is launched on May 14, more than 7,000 with an interest in WEP reform and to focus on passing a reform bill, public retirees and active employ- such as H.R. 2337.” speak directly with them. They can ees from all across the country also find us, which is exactly what SHAWN DUHAMEL have signed on to “Tell Congress to MASS RETIREES CEO our allies in Los Angeles County did pass Social Security WEP Reform!”. last winter. Our various groups are “As I have said in the past, we Within Massachusetts alone, more than 3,500 retirees put their name to cannot allow the perfect to be the CONTINUED ON PAGE 6 u 3 The Voice of the Retired Public Employee 2021-2022 LEGISL ATIVE PROGRAM BILL NUMBE RS ASSIGNED TOM BONARRIGO LEGISLATIVE CHAIRMAN who are 65 or over and not Medicate ith the Public Service Committee gear- eligible, into Medicare by July 1, 2023 ing up for the current session, we can report that all of our bills in the Mass W 5. LOCAL WITHDRAWAL Retirees 2021-2022 Legislative Program, have been FROM GIC. assigned a bill number. More details on each bill H2660 (Rep. Tom Golden) were provided in the March Voice. Extends from December 1 to “We’ll be testifying on each of them when they March 1 the date by which a local come up for a hearing,” according to Legislative government must notify the Chairman Tom Bonarrigo.