Budget & Several Impactful Bills Pending
The end of the 2023-2024 legislative session is fast approaching with full formal session wrapping up on July 31st. While the House and Senate will continue to meet informally after that date until the next session begins in 2025, full formal sessions, those sessions that every member is present, finish. Any legislation that would require a roll call vote will not be taken up by the branches after July 31st. During informal sessions legislation is moved on a voice vote and it takes only one member to object and the process stops.
As we look towards July 31st , several large pieces of legislation are still on the agenda for the House and Senate, many requiring the completion of a conference committee report. One of those is the Fiscal Year 2025 budget.
Beyond the special COLA commission and the basic life insurance that were included in the House budget and will be before the conference committee, there were also other line items that impact public retirees included in both the House and Senate versions.
One is the funding of the Group Insurance Commission which provides insurance for state retirees and active members as well as approximately 50 municipalities and agencies. For FY2025 the GIC will be funded at $2,169,893,912. In addition, there was an appropriation of $4.5 billion, which reflects the Commonwealth’s obligation for year 2 of the 3-year pension funding schedule. Finally, both versions include a 3% annual COLA for the state and teachers’ retirement system.
The Senate included a special Task Force on post-retirement work public service in the budget. The 16-member commission, on which the Mass Retirees Association will have a seat, will be charged with reviewing the process for calculation and oversight of post retirement work earnings. Currently a retiree can return to public service work but is limited to 1200 hours in a calendar year and can earn the difference between the retiree’s pension and the current salary being paid for the position from which they retired. If you have been retired more than a full calendar year, a retiree can earn an additional $15,000.
Like that of the COLA Commission and the basic life, this language will be subject to conference committee. Traditionally, the conference committee has completed their work and the budget has been approved by early July.
There are also several impactful bills related to health care awaiting action. The House and Senate bills would address hospital oversight, long term care and prescription drugs. There is also an omnibus bill related to municipalities awaiting action by both branches, which includes a commission on other post-employment benefits (OPEB). The Mass Retirees will also have a seat on that commission.
We will provide a complete wrap of our legislation as well as other actions taken by the legislature in our October edition.