As you may know, 2024 is the 2nd year of the two-year legislative cycle which runs concurrent with the state legislature’s two-year term in office. Per legislative rules, the formal session ends on July 31, 2024. While the legislature will continue to meet twice a week in informal sessions until the first week of January, when the new 2025-26 session begins, no budgetary or controversial matters are voted outside of formal sessions.
In practice, that means that some four months remain in which the majority of Mass Retirees proposed legislation has a realistic chance of being acted on in 2024. All of the bills listed below had a public hearing in 2023. The eight proposals that have received a favorable report have been discharged to either the House or Senate. As a rule, bills carrying a House number go to the House, while Senate bills are discharged to the Senate. However, there are exceptions to the rule that could be based on the overall focus of one branch or the other at a given time.
For instance, two of the favorably reported bills pertain to veterans. (See spotlight on our veteran proposals, page 7.) With the Joint Committee on Veterans Affairs reportedly crafting an omnibus bill that may be voted on this spring, the Committee may have an interest in the newly reported bills. This is particularly true given the fact that the Senate sponsor of our veterans’ proposals, Senator John Velis (D-Westfield), is Senate co-chair of the Veterans Committee. Together with the House co-chair, Rep. Jerry Cassidy (D-Brockton), the Committee is closely considering how our bills might fit into the omnibus bill.
Another issue that is being considered outside of the normal committee process is the COLA. As you know, at our request Governor Maura Healey has proposed the creation of a Special COLA Commission. Once formed, the Commission will examine new ways to fund increases in the State/Teacher retirees’ COLA base, as well as explore new COLA benefits geared toward long-term retirees (those retired 15-years or more).
As such, the Public Service Committee chose to hold our COLA proposals in committee for the time being and given an extension order until June 30th. This makes sense given the bigger picture and what the Special Commission will be tasked with studying.
The remaining six bills in the Association Legislative Program were reported to a study order by the Committee. This does not mean the legislation will not have any further action. In some cases, another version of the legislation may have moved forward or as in the case of the GIC related Medicare Buy-In bill work will continue along other tracks.
For the remainder of the session our primary focus will be on continuing to advance these eight proposals forward with the goal of each becoming state law. Second, the creation of the Special COLA Commission (on which Mass Retirees will have a seat) within the FY25 state budget is critical.
GOVERNOR’S PROPOSED MUNICIPAL BILL
Governor Maura Healey has filed An Act empowering municipalities and local governments (the Municipal Empowerment Act) in late January. The bill, S2571, was filed in the Senate and then split between the Joint Committee on Municipalities and Regional Government and the Joint Committee on Revenue for the public hearing process. While the legislation would have an impact on a variety of areas of municipal government, two sections in particular, Section 83 and Section 16 would impact all public retirees. These two sections were heard by the Joint Committee on Municipalities and Regional Governments, at a hearing in late February. The Association took part in the hearing, offering public testimony.
Section 83 of the legislation which would create a special commission on retiree health insurance, also known as Other Post Retirement Benefits (OPEB). The commission would be studying current and future costs of public retiree healthcare and propose cost containment measures. As drafted, Mass Retirees would have a seat on the commission.
This commission is modeled after the 2012 commission of the same name. At that time, several municipal governments and budget watchdog groups pushed for cuts in future retiree healthcare benefits as a means of cutting costs.
While our Association continues to support and help promote initiatives aimed at gaining control over the growth of healthcare costs, we staunchly oppose cost shifting and steps that would restrict or reduce the quality of the benefits. It is entirely unfair to target retirees’ healthcare benefits as a source of cost savings. Rising healthcare costs are a source of concern for all citizens of Massachusetts and the problem is not unique to public retirees nor are public retirees the cause. Therefore, public retirees should not be singled out as a source for future cost savings.
Section 16 of the legislation proposes a new waiver of post-retirement work restrictions under certain circumstances. The public entity would need to demonstrate there is a critical shortage within their agency, municipality, or specific job titles. Upon approval by the Executive Office of Administration and Finance the waiver would be applied and retirees would be allowed to work without the hours and earnings restriction for the specified period. As drafted the language does not create permanent change or blanket waiver to the current law. Retirees who are working post-retirement are playing a critical role in ensuring there are no gaps in essential services. To that end, it is important that they have a clear set of parameters, whether under this proposed language, the current law or permanent changes to the law apply, so they remain in compliance.
Finally, along with the work the legislature will do on the municipal bill, the House and Senate will begin the FY25 budget process in April. The House will file their version mid-April followed by the Senate in May.
The following list are the bills that were released with a favorable report from the Joint Committee on Public Service and referred on:
- HB2475 – An Act relative to certain option B and option C retirees – Rep. Chan – Referred to House Ways & Means
- HB2495 – An Act relative to health insurance for surviving spouses – Rep. Decker – Referred to Joint Health Care Financing
- HB2626/SB1753 – An Act relative to the veteran allowance for public retirees – Rep. Parisella / Senator Velis – Referred to House Ways & Means
- HB2494/SB1662 – An Act relative to protecting local retiree – Rep. Day / Senator Feeney – Referred to Senate Rules
- HB2578- An Act further regulating group insurance benefits for state employees and retired state employees (Basic Life) – Rep. Lawn – Referred to House Ways & Means
- HB2625 – An Act relative to estimated first pension payments to certain public retirees – Rep. Parisella – Referred to House Ways & Means
- SB1678 – An Act relative to the annual allowance for certain survivors of public retirees and employees – Senator Freidman – Referred to Senate Ways & Means
- SB1752 – An Act relative to the definition of veteran for public retirees – Senator Velis – Referred to Senate Ways & Means