Lawmakers frustrated by earlier attempts to corral the Essex Regional Retirement Board are filing legislation to reform retirement boards statewide and change the makeup of the Essex board in particular.
One bill would direct the Public Employee Retirement Administration Commission, the state agency that oversees retirement boards, to appoint a receiver with almost unlimited power to monitor and control the activities of the board. The other bill would simply give the state agency the authority to take such action.
The two bills, one being introduced today by state Sen. Bruce Tarr, R-Gloucester, the other by state Sen. Fred Berry, D-Peabody, would both prohibit Executive Director Timothy Bassett from serving as both the retirement board's chairman and its executive director.
Tarr's bill would also dramatically redefine board membership and relieve all current board members of their seats within a year.
Berry's bill would set term limits for all board members.
Both bills drew wide support from area legislators. Among those who have signed onto one of the bills so far are Reps. John Keenan, D-Salem; Mary Grant, D-Beverly; Ted Speliotis, D-Danvers; Brad Hill, R-Ipswich; Lori Ehrlich, D-Marblehead; Brad Jones, R-North Reading; Harriett Stanley, D-West Newbury; Ann-Margaret Ferrante, D-Gloucester; and Robert Fennell, D-Lynn. Senators who have signed on include Susan Tucker, D-Andover; Steven Baddour, D-Methuen; and Thomas McGee, D-Lynn.
Tarr's bill would largely overhaul legislation drafted when Essex County was all but dissolved in 1999 and the retirement board was created.
The changes would require that a town administrator, town manager or school superintendent would fill the board seat currently occupied by Bassett, who is elected by fellow board members. They would also prohibit any active or retired member of the retirement system from taking the seat currently held by Katherine O'Leary, who is a retiree.
Other provisions of the bill would give municipalities more control over board decisions and its budget.
Receivership is an extraordinary remedy usually reserved for agencies faced with a mountain of debt or in some other immediate danger of failure.
State Rep. Brad Hill, R-Ipswich, whose district includes many of the towns that contribute to the retirement system, said constituents have been pressing legislators for action like this.
"It's clear enough has gone on with this board," Hill said. "We were hearing from town official after town official and citizen after citizen that they were not pleased."
A number of town administrators and managers have been meeting behind the scenes in recent months drafting proposals for changes on the board.
Tarr said many of the provisions of his bill grew out of those suggestions.
He also said the decision to demand a receiver be appointed sprang from the frustration of state officials, as well.
"PERAC clearly feels the need to act, but it doesn't have a lot of authority," he said.
Members of the Northeast Legislative Caucus, legislators from the North Shore and Merrimack Valley, met recently to discuss taking action to tackle the retirement board.
Rep. Mary Grant said the proposed changes in the composition of the board are meant to restore the balance lawmakers intended when it was created.
Critics have complained the board acts in the best interests of its active and retired members, whose benefits are protected by law, but with scant regard for the taxpayers who help fund the system.
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