In The News: Pensions

Michael Widmer, president of the Massachusetts Taxpayers Foundation, said agreeing to reopener clauses is a "dangerous practice" for municipalities, although he couldn't comment specifically on Westford's contracts. "It's a risky proposition for any community, especially in this era with very tight budgets," he said. "It just makes it more difficult to manage your compensation costs."

Municipal health insurance: Widmer sees the big change in municipal health insurance as a much more effective and immediate way to achieve cost savings than the pension reform. It also showed that the Democrats who rule Beacon Hill aren't always ruling at organized labor's behest. The new law gives cities and towns plenty of flexibility to scale back generous health plans, without offering any less than what's available to state employees. Widmer says he believes the savings have already exceeded the early estimates of $100 million a year. That's money that can be used to protect the jobs of teachers, police and firefighters.

The bill follows a measure passed by the House in Arciero's last term that eliminated such pensions for elected officials, and this latest step has seen praise from government watchdogs, such as Michael J. Widmer of the Massachusetts Taxpayers Foundation. "Special pensions are very costly and should be eliminated," said Widmer. "They are just another example of sweetheart deals."

The Massachusetts Legislature has approved an overhaul of the state’s pension system that would raise the minimum retirement age for future state employees to 60. The measure aims to save $5 billion over the next 30 years and reduce the state’s $17 billion unfunded pension liability. Backers also say it will help preserve the state’s credit rating, which was recently upgraded by Standard & Poor’s.

“It’s a positive step,” said Massachusetts Taxpayers Foundation President Michael Widmer. “On the other hand, the pension legislation applies only to new hires, so it won’t have any short-term impact of any significance."

Taxpayers have a right to know about a public employee’s extended sick leave, and how a municipality is handling their claims, said Mike Widmer, president of the Massachusetts Taxpayers Foundation. "They’re paying for it, and it reflects a policy that they have a right to know about,” Widmer said.

"There is clearly a double standard, in which public sector benefits are out of line with what's available in the private sector," said Michael Widmer, president of the Massachusetts Taxpayers Foundation, a nonpartisan public policy organization. "It's a divide in cities and towns because the public, most of whom work in the private sector — the voters — are being asked to support and pay for benefits they've long since lost or never had."

People are living longer, which is why the age at which those in the private sector can collect Social Security keeps going up; and some 39 other states, according to the Massachusetts Taxpayers Foundation, have enacted reforms similar to those being contemplated on Beacon Hill.

eople are living longer, which is why the age at which those in the private sector can collect Social Security keeps going up; and some 39 other states, according to the Massachusetts Taxpayers Foundation, have enacted reforms similar to those being contemplated on Beacon Hill.

On the upside, cuts in the Senate measure will save $9 billion over 30 years, according to calculations by the Massachusetts Taxpayers Foundation.

“The rating agencies expect $5 billion in savings,’’ said Widmer, and it is “enormously important’’ that the state hit the target. If the agencies lose confidence in the finances of state government, they could reduce the Massachusetts bond rating, which would increase the cost of borrowing money.