Baddour Acts to Reform Essex Regional Retirement Board
Senator Steven A. Baddour (D-Methuen) took strong action today to bring accountability, transparency and respect for the law to the Essex Regional Retirement Board (ERRB). Senator Baddour co-sponsored legislation with colleagues in the Northeast Legislative Caucus to address the widespread allegations of improper acts by the board through a series of reforms, including the requirement that the Public Employee Retirement Administration Commission (PERAC) appoint a receiver to oversee and direct the operations of the board. The bill was developed by state Senate Assistant Minority Leader Bruce Tarr (R-Gloucester) with the collaboration of numerous caucus members.
The bill is co-sponsored by Senator Thomas McGee ( D-Lynn), and Representative Robert Fennell (D-Lynn), who chair the caucus with Tarr, and Senators Susan Tucker (D-Andover) and Fred Berry (D-Peabody), and Representatives Brad Hill (R-Ipswich), Mary Grant (D-Beverly), Harriet Stanley (D-West Newbury), Brad Jones (R-North Reading), Ann-Margaret Ferrante (D-Gloucester), Ted Speliotis (D-Danvers), John Keenan (D-Salem) and Lori Ehrlich (D-Marblehead).
“Today we are taking a critical step toward restoring the integrity and stability of a retirement system which needs reform. Thousands of public employees are depending on it for their future; they and the taxpayers who are contributing to its operations deserve the transparency and accountability that it has been lacking,” said Senator Tarr.
Under the dictates of the bipartisan and bicameral bill, the appointed receiver would be charged with restoring sound and prudent management to the ERRB, and would have the authority:
1. To exercise any function or power of the board or its employees.
2. To appoint or remove any employee of the board.
3. To remove for cause any member of the board with 30 days’ notice. The dismissed board member can appeal the receiver’s decision to PERAC. Any seat vacated in this manner will be filled by election.
4. To subpoena from the board or system any documents relevant to the receiver’s administration of the system.
5. To promulgate rules and regulations for the board.
6. To alter or rescind any decision by the board or its employees within 14 days.
7. To oversee and discharge all other duties of the board, with the authority to delegate any of these powers and duties as the receiver sees fit.
When the receiver leaves the position, all board seats will be vacated and new elections will be held. Current board members, as well as members removed by the receiver, will be allowed to be candidate in the following elections, but the receiver will not be eligible for the board.
Senator Baddour said, “This bill clearly addresses the serious issues raised regarding the administration of the Essex County Regional Retirement Board. When this legislation moves forward we will have fundamentally changed how this board operates, and how oversight of the board is conducted.” Baddour continued,” By allowing PERAC to appoint a receiver to administer and direct the Essex Regional Retirement Board, proper sensible management will be re-established.”
Additional reform components of the bill include provisions to:
1. Prohibit the chief executive officer from also serving as the chairman of the board.
2. Require that the first member of the board be a chief executive officer of one of the member towns, units, or districts of the retirement system, and elected by those member towns, units, or districts by a vote weighted by the number of members in the retirement system.
3. Provide that the chairman will be elected from among the members of the board.
4. Ban all members and employees of the board from serving as lobbyists.
5. Give the ERRB advisory council, made up of the treasurers of all the member towns, units, and districts, the power to approve the expense and administration budget of the retirement system.
The reform bill reflects the collective input of caucus members, who developed consensus around the pressing need for reform over the past several weeks. The legislators were assisted in the process by municipal officials from throughout the region.
