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Patrick lays out pension reforms

By John C. Drake
Globe Staff / March 23, 2009
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Governor Deval Patrick laid out a series of proposed reforms to state and municipal pension systems yesterday, even though he and legislative leaders acknowledged that they are not likely to bring immediate relief to the state's budget crisis. They are needed, however, to restore public confidence in state government, he said.

"It's plain to us and plain, I think, to everybody, that the abuses and loopholes in the system are discrediting the system and distracting from the good work of state government and, frankly, just making everybody mad," Patrick said in an afternoon press briefing at his State House office. "That has to end, and it has to end now."

One House leader said the only way pension reform could help with the immediate budget crisis, which has lawmakers grappling with a deficit exceeding $1 billion for the current fiscal year, would be to put off some payments into the pension system, an option that, though it carries its own issues of fiscal responsibility, will be discussed.

"There's a desire to get some savings moving forward," said state Representative Robert P. Spellane, House chairman of the joint committee on public service, which will hold its first hearing on pension reform next Monday. "I would be hesitant to change the funding schedule, but to some degree I need to be responsive to the concerns of the Legislature."

Altering the pension schedule is something lawmakers are considering, but it was not included in Patrick's proposals yesterday.

Even though pension reform is unlikely to fix immediate fiscal problems, Patrick said yesterday the issue needs to be addressed now because reports of pension abuse had "cast a shadow" over all of state government. He said it was important to address that frustration as he looks to gather public support for an increased gas tax, service cuts, and other measures to close the state's ballooning budget deficit and address transportation funding shortfalls.

"The public, I think fairly, wants [us] to assure [them] we are doing everything we can to get all of the nonsense out of state government," Patrick said.

Most of the measures, which were first reported in the Globe yesterday, have been floated by Patrick and legislative leaders. The governor said yesterday that he was releasing them in a package in advance of a hearing next month on pension reform.

House Speaker Robert DeLeo and Senate President Therese Murray said in statements over the weekend that they were prepared to work with Patrick on pension reform, but yesterday they declined to respond to his specific proposals.

The announcement also comes as Patrick faces criticism over a series of personnel issues, including his hiring of a favored state senator for a $175,000-a-year state job and a Globe report that a relative of his transportation secretary was drawing a paycheck for a legislative job with no apparent duties. Last week, he said he was not worried about those "trivial" matters hurting his administration's credibility with the public, saying he was concerned with more "meaningful" matters.

He said yesterday that the remark was not directed at broader concerns about pension reform.

"I have never, ever said pension reform was trivial," the governor said. "Pension reform is exactly consistent with what I believe our mission is here, which is to focus on what we can do to make long-term and lasting change in government and for the people of the Commonwealth."

Still, critics said Patrick's earlier dismissal of concerns about government waste cast doubt on his commitment to reform.

"After Governor Patrick's description of stories about waste and patronage in state government as 'trivial,' one has to question whether or not his promise of real pension reform is as genuine as his promise to provide property tax relief or end the 'Big Dig' culture on Beacon Hill," Massachusetts Republican Party spokesman Barney Keller said in an e-mail to the Globe.

Patrick could not provide any estimate of what savings could be generated by the proposed changes, saying they are intended to bring about structural changes in the future, not short-term gains.

Among the proposed changes is ending a special perk for MBTA employees that allows them to retire and accept a full pension after 23 years of service, regardless of age. T employees have been able to retire in their 40s and collect an MBTA pension while simultaneously working in another state job.

Spellane said the two proposed reforms with the most momentum in the Legislature right now are ending a perk that allows state workers and legislators to earn credit toward their pension for a full year of service after serving just a day or more of a calendar year; and a quirk in the law that lets lawmakers who fail to win reelection or other employees whose jobs are eliminated to collect an enhanced pension before the standard retirement age.

John C. Drake can be reached at jdrake@globe.com.

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