Press Releases: Pensions

As Pioneer Institute observes Sunshine Week,?we are disappointed by the legislature’s attempts to deny what the vast majority of voters want: an audit of the legislature by our State Auditor. Trying to avoid an audit further exacerbates the loss of public trust. After all, what are we left to think? Do they have something to hide? That is not the government our founders intended; nor is it what 72 percent of Massachusetts voters wanted. This year, during Sunshine Week, we are entirely focused on the top three actions to bring sunlight to the state legislature. They are: 

This issue of The House Call covers Massachusetts' recent legalization of accessory dwelling units, as well as a bill filed in the state legislature last month that would broadly prevent localities from enforcing certain housing-related regulations. 

A new study published by Pioneer Institute finds that issuing pension obligation bonds (POBs) to refinance $360 million of the MBTA Retirement Fund’s (MBTARF’s) $1.3 billion unfunded pension liability would only compound the T’s already serious financial risks.

Two identical bills to reward public employees with a retirement credit bonus for working during the COVID-19 emergency are currently pending in each chamber of the Massachusetts Legislature.  The bills would add billions of dollars in liabilities to public pension funds and reward workers based on their compensation, years of service and age rather than the type or duration of the work performed during the emergency, according to a new study published by Pioneer Institute.

Beacon Hill just put on full display what happens when it is awash in money. House Bill 2808 is entitled, “An Act relative to providing a COVID-19 retirement credit to essential public workers.”  It calls for adding three years of additional retirement credit to state “employees who have volunteered to work or have been required to work at their respective worksites or any other worksite outside of their personal residences during the COVID-19 state of emergency…” But upon reading the brief bill, it quickly becomes clear that this legislation is irresponsible in the extreme.

In a new brief, Pioneer shows that whistleblowers’ 2015 claim that the MBTA Retirement Fund (MBTARF) had been underreporting its unfunded pension liabilities has proven to have been accurate. In their study, Boston University Professor Mark T. Williams and Bernie Madoff whistleblower Harry...

More responsible assumptions about pension fund investment performance partially responsible for increase BOSTON – Despite several reform bills targeted at the Commonwealth’s public pension system in recent years, the unfunded actuarial accrued liability (UAAL) has continued to rise and is drawing closer to...

Now anyone can become a local pension system expert…  A stitch in time saves nine. But how much will the hole unravel before the seamstress gets the call? We all know procrastination is a bad habit, but it’s far worse if the...

Local retirement systems generate heavy costs, larger fiduciary risks BOSTON – Massachusetts’s 102 local pension systems typically report administrative costs that are much higher than those of the Massachusetts State Employees’ Retirement System (MSERS), according to a new study published by Pioneer Institute....

Quarter-century of data shows costs at up to six times valuation assumptions, suggests MBTARF financial picture was made to appear artificially rosy BOSTON – Data from valuation reports and other financial documents suggest that suspect actuarial practices may have helped misstate the...