SEPTEMBER 6, 2024: As we head into fall, Mass Retirees is directly involved in and focused on several important areas of direct importance to public retirees. In this week’s report we offer an overview of what you need to know, as well as what to expect over the coming four months.
But first, I’d like to thank those members who took the time to vote in this week’s Primary Election. Two of our endorsed candidates, Marjorie Decker and Matt Muratore, appear to have narrowly won their respective primary elections by less than 100 votes each. While potential recounts have yet to be determined, every single vote matters and our members played an important part in standing with those candidates who stand with you as a public retiree.
I also want to remind you that our Annual Meeting takes place one week from today, Friday September 13th at 11:00 AM at the enVision Hotel & Conference Center. Conveniently located just off routes 95 and 495 at 31 Hampshire Street, Mansfield, the hotel has plenty of parking and offers an excellent venue for our Annual Meeting. Please look to page 3 in the October Voice for a full list of our upcoming meetings and Tele-Town Hall event.
Speaking of The Voice, our latest newsletter is on the way to you now. Some of you may actually have it in our mailbox today. In addition to reporting on the latest news impacting public retirees, we have also published a detailed report on the investment returns, funding status, and COLA base of all 104 Massachusetts public retirement systems. This information is particularly important at a time when the policy spotlight has returned to improving the COLA.
This is a great segway into what we are focused on heading into fall.
Special COLA Commission
Our primary policy focus here in Massachusetts this fall, and likely into 2025, is the Special COLA Commission. First proposed by our Association and initiated by Governor Healey before receiving legislative approval, the Special Commission’s focus will be on three main aspects of the COLA: Increasing the State/Teacher retirees’ COLA base, recommending COLA funding methods that can be adopted at both the state and local levels of government, and the creation of a new senior or enhanced COLA benefit for long-term retirees (those retired for 15 or more years).
The Commission, on which Mass Retirees has a seat, is anticipated to get underway in early October. However, preliminary conversations and background research have already begun amongst public pension experts as we prepare to hit the ground running.
We have nominated Association President Frank Valeri to serve as our Association’s designee on the Commission.
Post Retirement Work Task Force
In addition to the Special COLA Commission, our Association also holds a seat on the Task Force charged with examining post retirement public sector work. As you may know, public retirees are allowed to return to public sector employment here in Massachusetts but are restricted in the hours they can work and earnings in a calendar year.
Like the COLA Commission, the Task Force will review the current law and system to make recommendations on potential changes. Given the fact that many Association members are currently working in a post-retirement public sector job, we are particularly interested in improving the system to make the rules less confusing and convoluted.
Mass Retirees has nominated Association Treasurer Joseph Connarton to serve as our designee on the Task Force.
Blue Cross Blue Shield Municipal Health Insurance Summit
For the 2nd year running, our friends at BCBS of Massachusetts will host a Municipal Health Insurance Summit, in which Mass Retirees will play a direct role. This year’s event takes place on October 1, 2024, at the BCBS offices in Hingham, MA.
The focus of the Summit are the health insurance plans offered at the municipal level and which are subject to bargaining through local Public Employee Committees (PECs). By law, Mass Retirees is the appointing authority for the local retiree representative serving on each PEC.
Given the complexities of health insurance in 2024 and the importance of the bargaining process to a favorable outcome for both retirees and active public employees, the Summit serves as an important resource for those local retirees and active employees serving on both PECs and insurance advisory committees (IACs).
Nancy McGovern and I are participating in the Summit, alongside our public employee union allies, BCBS officials, and health insurance experts. If you serve on a PEC or IAC, or are a municipal retiree (including retired teachers) who is interested in serving please contact Nancy at mcgovern@massretirees.com.
State Group Insurance Commission Prepares for FY26
When the state’s 17-member Group Insurance Commission reconvenes on September 19, it will mark the official start of the planning process for FY26. While specific decisions regarding future plan design changes and premium costs will not come for several months (with most decisions taking place early in 2025) the discussions and planning behind these decisions begins months in advance.
Mass Retirees has a long history of closely monitoring and working directly with the GIC to represent the interests of retirees insured under the GIC’s umbrella of health plans. As we have stated in the past, the decisions made by the GIC also have a direct and often immediate impact on local retirees and retired teachers insured through municipal governments. This means that there is a lot riding on the decisions made by the GIC.
With healthcare inflation continuing to rise, there is growing pressure on state and local insurance plans to find new ways to contain costs. In the past cost containment, meant more restrictive plan design and cost shifting through higher copayments and deductibles. Under the leadership of GIC Executive Director Matt Veno, the agency has avoided further attempts at cost shifting and has maintained current out-of-pocket costs for six consecutive fiscal years. However, rising premiums will undoubtedly bring new pressure to cut costs.
Finally, we will continue to work with the GIC to encourage and help facilitate a Medicare Buy-In program that will bring needed relief to the 10,000 GIC enrollees who are over the age of 65 and not eligible for Medicare. Our hope is that progress will soon be made on this important initiative.
Congressional Action on Social Security WEP & GPO
As we reported in our August 23rd update, pressure has never been higher for Congress to act on the issues of the Social Security Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). While legislation aiming to fully repeal both federal laws now have supermajority support in both the House of Representatives and the US Senate (first time ever for a Senate bill), the Congressional leadership from both major parties has yet to act on moving either bill forward.
And beyond whispers of a potential compromise proposal emerging in early summer, no bipartisan alternative to full repeal has formally been proposed in either branch of Congress. Meanwhile, a strong push is underway to force H.R.82 to the House floor for a vote. It is believed that a bipartisan discharge petition will likely be filed in the House when Congress returns to session next week. Rarely utilized, for a discharge petition to be successful it requires the minimum support of a majority of members of the House (218). Congressional records indicate that there are currently 15 discharge petitions on various issues pending before the House – none of which having the required majority support to advance.
We will have more to say on this subject in the coming weeks, once Congress is back in session.
The same applies to all the topics I touched on above. When information becomes available as the situation evolves, our members will be amongst the first to know.
Meanwhile, we look forward to seeing you at our Annual Meeting on the 13th or at one of our five Area meetings taking place across Massachusetts this fall. Again, please look to page 3 of the October Voice for a full calendar of upcoming events and save the date!
Watch the video report by clicking here to play.
With great appreciation,
Shawn
Shawn Duhamel
Chief Executive Officer
Mass Retirees Association