EIBP “Paying Off” During Initial Operation
As one of the two elected members of the Mass State Retirement Board (MSRB), President Frank Valeri initiated the idea of an estimated first payment plan, with the support of the other elected member, Theresa McGoldrick, Esq. It soon gained the support of Treasurer Deb Goldberg and fellow Board members, Archie Gormley and Maureen Valente who voted to implement an Estimated Initial Benefit Payment (EIBP) Program.
In late 2022, the Massachusetts State Retirement Board adopted a new policy to allow for the establishment of an EIBP. Due to many years of plan changes initiated by pension reform measures, increased number of retirees, Covid 19 pandemic and increased oversight requirements, the wait time for first payment of retirement benefits by the State Board had significantly increased over the past decade.
Under the direction of Treasurer Deb Goldberg, who serves as the Chair, and Executive Director Kathyrn Kougias, the members of the State Retirement Board approved a new policy to essentially allow State retirees to get their first check within 60 days of their retirement date. Waiting times had developed to be up to four or five months (142 days) before the implementation of the EIBP.
SIGNIFICANT REDUCTION BY 50% IN AVERAGE WAIT TIME
After a lengthy software adjustment period and staffing enhancements, the State Retirement Board has made great strides in improving its performance after a difficult pandemic-era period. State Board staff, under the direction of Executive Director Kathryn Kougias and Deputy Executive Director/COO Sandor Zapolin, have guided the implementation of this new program which has significantly reduced waiting times since February, 2024.
How much of a reduction? Let’s look at the numbers. The wait time for new retirees to receive their first retirement allowance payment has decreased from an average of 142 days in fiscal year 2022 to 71 days in fiscal year 2025. That translates into a 50% reduction in wait time!
The EIBP Program began processing only a limited number of applicants beginning in early February, 2024 but by the end of January, 2025 it was reported to Board members at its recent February meeting that close to 60% of new retirees were receiving pension payments within sixty days of retirement dates. The total applicants approved for first payment this fiscal year under the new EIBP were 654 of the total 1,157 first pays by the State Board.
Valeri offered the following observation. “No question the EIBP Program is paying off during its initial operation as we see with the positive results so far. I want to thank the Board staff for all their work in making this program a success from its outset.”