State vote would raise pensions

MALDEN -- The state Board of Higher Education voted unanimously yesterday to count housing allowances as a part of the pension of the state's 29 public college and university leaders, a decision expected to cost roughly $12,000 a year.

In the past, the housing allowances had not been included in presidents' regular compensation, but the Supreme Judicial Court's March decision about former University of Massachusetts president William M. Bulger's pension led to the new policy.

The state, abiding by the decision that allows Bulger to increase his pension by incorporating his past housing allowance as part of overall compensation, will also make up for past contributions. In the past, housing allowances were not consistently included as part of regular compensation and, hence, pension payments.

The new policy puts the retirement plans for college presidents in line with the SJC decision, board member Jeanne-Marie Boylan said yesterday.

The overall cost to the state, about $1,000 per president annually, depends on how many years each president or chancellor has been vested in the optional retirement plan and how many years that individual elects to buy back. About 12 public college presidents and chancellors are vested in the plan, according to a spokeswoman for the board.

Kathleen Schatzberg, president of Cape Cod Community College, said including housing allowances in regular compensation is common in higher education throughout the country.

"I think it's fair because it is a form of compensation," said Schatzberg. "When you make a decision to take a job, you make it based on what you know about salaries and benefits."

Libby DeVecchi -- spokeswoman for Jack Wilson, president of the University of Massachusetts system -- said Wilson has participated in the optional retirement plan for about three years and keeps his own housing. Wilson earns a $45,000 housing allowance and makes $360,000 a year. Under the new policy, Wilson will get to count his allowance toward his pension.

Last year, the American Council on Education surveyed 2,148 public and private college presidents nationwide and found that 20 percent received housing allowances and 28 percent lived in university-provided residences.

April Simpson can be reached at asimpson@globe.com.