Wacky Pension Hijinks, Pt. 2?
This morning’s Globe raises some interesting questions about the recent dismissal of a legislative aide. The individual in question was fired 11 days after she had reached her twentieth year of service. The key verb is ‘fired’ (as opposed to ‘quit’). By being fired after reaching the magic 20 years of service, Section 10 of Chapter 32 is triggered, allowing employees to begin collecting their full pension before the age of 55.
And curiously enough, a large percentage of those unlucky enough to be fired in this manner get fired almost immediately after reaching the 20 year mark. According to Commonwealth Magazine,
one-third of the 1,100 ‘Section 10’ pensions granted since 1990 were
to employees who had passed the 20 years of service minimum requirement by less than a year, and a remarkable 10 percent were granted to employees who had passed the milestone by less than a month.
For Pioneer’s own take on this loophole and the many other in the state pension system, come take a look at our compilation of an estimated $3 billion worth of ’em.