Many at MBTA retire before new law cuts benefits
The MBTA saw an unusual spike in retirements this month, weeks after Governor Deval Patrick signed a law that will reduce some benefits for workers who retire before they turn 65.
The changes in the retirement plan do not take effect until Jan. 1, meaning workers who retire before then will receive the old benefit.
MBTA managers are waiting to see whether the trend continues throughout the year, as they try to cope with a partial hiring freeze that will leave some vacant positions unfilled. The recent retirees include key people: the chief of operations for the Red Line, the top mechanic for the subway system, and the head of security.
"Part of the concern will be the amount of knowledge that you lose," said Jonathan Davis, chief financial officer for the Massachusetts Bay Transportation Authority.
Davis said managers are concerned that more workers will leave between now and December.
This month, 55 MBTA employees retired, not including those who left on disability. Over the past five years, the T lost an average of a dozen employees to retirement in the month of May, according to data provided by the MBTA at the Globe's request. December is usually a more popular month, with an average of 56 employees declaring retirement.
The T requires workers to make their retirements effective on the first day of the month of their choosing.
"Obviously, the number for May, looking at the average for other years, is higher, but not an extraordinary number of people," said Daniel A. Grabauskas, general manager of the MBTA. "Time will tell, I guess, what happens in the next several months."
Patrick signed a transportation bill on April 17 that requires MBTA workers retiring next year to pay 15 percent of their health insurance if they are under the age of 65. Current retirees and those who retire before next year get free insurance for life. Some employees may not be affected until 2010 because of existing union contracts. The MBTA's retirement benefits are some of the most generous in the country.
Unions lobbied to prevent more significant changes and sent letters to employees last month explaining those that passed. Stephan MacDougall, president of the Boston Carmen's Union, Local 589, which represents many bus and subway drivers, could not be reached for comment yesterday.
There has been confusion over the changes in benefits, with some workers concerned they would lose more than the recent law required. In November, the T signed an agreement to preserve most other core retirement benefits through 2010. Many workers were unaware of the agreement, leading to a flurry of questions, said Stephen Crawford, spokesman for the MBTA Retirement Board.
The T has 6,300 employees, so it would take many more retirements to make a noticeable difference in daily operations, Grabauskas said.
"We work very hard to have a good bench to draw on," he said. "I think it is something to keep an eye on if you have a spike, but not something we couldn't deal with."
Grabauskas said he will meet with Bernard Cohen, state transportation secretary, to determine which jobs get filled. The MBTA has been dipping into its reserves to pay operating expenses and is under pressure to save money to avoid fare hikes.
Noah Bierman can be reached at nbierman@globe.com.
