Let the Coral Gables Unions Beware: Time of Change

This is a Democratic Governor and this is a small sign that the days of out-of-control pensions and public employee unions is coming to an abrupt end.  Let the Coral Gables Commission and Mayor get the message.

The retirement age for Massachusetts state workers would be raised to 67 for new state employees and incentives for early retirement would be eliminated as part of a pension reform package announced by Gov. Deval Patrick.

The proposal, announced Tuesday, would also reduce by 0.5% each the 9% contribution rate for new employees and 11% contribution rate for teachers, according to a news release from Mr. Patrick.

The current retirement age for state employees is 60; current employees’ retirement age would not be affected.

Also included is an anti-spiking rule to limit annual salary increases that would count toward a pension to no more than 7% of the average earnings over the last two years plus inflation.

The proposal would ban elected officials who previously retired as state employees and are receiving a state pension from collecting the pension while in office.

via Massachusetts governor proposes pension reform – Pensions & Investments.

About Stephen E. McGaughey
International consultant in economic development programs and projects

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