Retirees ask for veto on pension fixes

capitolA group representing retired public employees has written a letter urging Governor Steve Bullock to veto the bill fixing the very pension systems they rely on.

The letter from Association of Montana Retired Public Employees President Russell Wrigg  faults the bill (HB454) for reducing the annual cost of living increases guaranteed to retirees.

“The Association feels betrayed by your office and is adamantly opposed to House Bill 454 at this time,”  Wrigg writes to the governor, “House Bill 454 could have been modified in a way that would be much more palatable to the Association and its members, and all retirees, without inflicting the harm that it has.”

Montana’s two biggest retirement systems are facing more than a $4 billion shortfall over the next 30 years if the bills passed by the legislature to shore up those plans are not signed by the governor. The measures balance the budgets of the pensions by requiring both employers and employees pitch in more money, some natural resource or general fund money is kicked in, and benefits are reduced slightly. It’s that last part that has angered retirees.

The AMRPE initially supported the fix to the Public Employee Retirement System, before it was amended to reduce the cost of living increases. Wrigg says the AMRPE was not consulted on those amendments.

“It is our understanding that your office was actively involved in those amendments that further trampled on the rights of retirees,” Wrigg writes in his letter.

Gov. Bulllock’s Budget Director Dan Villa says the administration understands the concerns of the retirees on the reductions and admits they will likely be found unconstitutional.

“We believe that ultimately when current and retired employees bring challenge to them that they will be successful,” Villa said, adding the bill fixes the retirement system with or without the reduction in yearly raises which he said just make the fix more aggressive.

“When and if they are found unconstitutional by the state courts, we will still have a solvent public pension system that does not increase taxes and we’ll be the first state in the country to do so,” Villa said.

Wrigg said he wants the pension fix bills to pass without the raise reductions–he would prefer that to them dying through a veto. He says the group will consider legal actions against the bills if the governor signs them, which is expected. But, he doesn’t approve of the tactic.

“Legislation through litigation is really not the way to solve our problems in this state,” he said.

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