Kafka, Galvin Join Massachusetts House in Passing Pension Reform

A press release from the office of Representative William C. Galvin:

Stoughton’s two state representatives, Louis L. Kafka (D-Stoughton) and William C. Galvin (D-Canton) joined their colleagues in the Massachusetts House of Representatives in unanimously approving pension reform, with a vote of 151-0.

Under the new guidelines, the minimum retirement age for state employees will increase from 55 to 57. Employees that start after January 1, 2012, will have their pension based on an average of 5 years of regular compensation instead of 3.

Current employees that receive a promotion are now required to serve in the new role for a year to receive any increased pension rate. 

The proposal also establishes a minimum pension of $15,000 for state workers who have spent 25 years in state government.

Finally, this legislation establishes a commission to study other public employee benefits, pension classification and disability retirements.

It is estimated these changes will save the state $6.4 billion.

This bill will now go to conference committee for discussion between the House and Senate.

“In regards to pension reform, I feel these are common sense changes, which are in the best long term interest of the residents of the Commonwealth, including those invested in the state pension system,” stated Representative Galvin.

“Simply put, these reforms will bring much needed savings to the Commonwealth, said Representative Kafka. “There is an immediate savings and depending on the commission’s study the potential for increased savings down the road.”