Reforming State Government

Pension reform

With an unfunded pension liability of nearly 22 billion dollars, it would be hard to say that state government has done a good job managing the pension system. The state appropriation for that unfunded liability exceeds one billion dollars. The problem has been created because those who benefit from the pension system are the same people who have been writing the rules governing that system.

I support the plan which has been put forward by gubernatorial candidate Charlie Baker, which would cap pensions at $90,000 and raise the current retirement eligibility age from 55 to that of 60.

Further, we must end the so-called "hack high 3" benefit, whereby a state worker receives their pension benefit based on the maximum salary over three years - with no regard to the worker's salary for the history of employment with the Commonwealth.

This poor business practice has led to endless patronage appointments and favoritism so that many public employees receive an inflated pension based on a short term promotion, without regard for what their average salary was during their entire state service career.

By implementing these, and other reforms, we can operate our state pension system with the common sense of a real business.