A plan to serve up bonuses to public employees who worked throughout the pandemic will wind up costing taxpayers billions and further strain the state’s already overburdened pension system, watchdogs warn.
The bill would allow workers to cash in on three extra years of service for their pensions when they retire if they worked — or volunteered to work — outside their home anytime between March 10 and Dec. 31 of last year, according to the legislation filed by state Rep. Jonathan Zlotnik, D-Gardner, and Sen. John Velis, D-Westfield. Sen. Nick Collins, D-Boston, filed a companion bill in the Senate.
“Sponsors have openly stated that they do not know how much it will cost. In my view is is outrageously irresponsible to even consider bill like this without knowing how much it will cost,” said Greg Sullivan, research director for the Pioneer Institute and a former state inspector general.
The bill is sponsored by more than 100 state representatives and senators.
“By my estimate, it will cost the state billions,” Sullivan continued, explaining it’s nearly impossible to pin down the true numbers.
The bill directs the secretary of administration and finance to identify all public employees who volunteered or were required to work at job sites or outside of their homes during the pandemic state of emergency. Sullivan said that’s only one key factor in determining the actual cost.
During a hearing last week, Zlotnik characterized the bonus as recognition for police and corrections officers, public works employees and others who kept going to work as many stayed home.
“This was the time when these essential services were most important, the people being asked to perform them were most at risk coming into contact with members of the public and with co-workers,” Zlotnik said during the hearing. “They continued to do their jobs, often exhibiting flexibility and creativity and an effort to ensure that those needs were met. It is in recognition of that effort that we offer this bill.”
Sullivan said he has “no objection” to rewarding those who continued reporting for duty amid the pandemic but said the bill could mean payouts well into the six figures — and includes lawmakers themselves.
UMass President Marty Meehan, for example, would earn another $750,000 through retirement, he said.
“This super expensive giveaway will be paid for on the backs of regular working people,” Sullivan said.
Massachusetts has $43 billion in unfunded pension obligations. State data show the system is 63% funded, while the Massachusetts teachers fund was 51.7% funded as of two years ago.
“This will lead to some outrageous bitter feelings from people who work in retail stores, health-care workers in the private industry who are all going to be paying literally billions of dollars to give bonuses to public employees,” Sullivan said.
