Stop holding retirees’ pension increases hostage

IT WAS NO BIG surprise when legislative leaders tried to sneak through a generous perk for themselves on the back of an important bill to stabilize the State Retirement System and protect tens of thousands of state retirees. Sweetening up their own pension system is something lawmakers try to do periodically, and they always do it quietly.

But what happened last week, after the House had reversed course and rejected the new legislative perk, reached a new low, at least in terms of what lawmakers have done out in the open: The Ways and Means Committee voted 13-11 to kill the underlying proposal, which guarantees 2 percent annual cost of living adjustments for state retirees. Representatives didn’t kill the bill because they thought it was a bad idea. They killed it because they weren’t going to get their perk.

This was extreme petulance: If we can’t have a hot fudge sundae, we won’t let anyone have one.

The people who are hurt by this petty, self-serving vote — teachers, police officers, those who cleaned the restrooms at the State House and investigated allegations of child abuse — have devoted their lives to serving the state. They retired based on the wink-and-nod promise that their paychecks would be adjusted annually to keep pace with inflation. But the Legislature got reckless with the pension system, so now there’s not enough money to keep that promise.

The bill didn’t guarantee full COLAs. In fact, it all but guaranteed retirees wouldn’t receive one this year, because it prohibited more than the 2 percent increase until the pension system is stronger. That plan came from a task force of retirees, government employees, business leaders and policy wonks. The idea of adding a 2 percent COLA to the Legislature’s own special, absurdly generous pension system came from Ways and Means Chairman Dan Cooper and Senate Finance Chairman Hugh Leatherman.

The 13 House members who voted to kill the main pension bill last week said it just wasn’t fair to cover government retirees without also covering legislators.

That’s deeply offensive. Taxpayers already contribute $3 to legislators’ pensions for every dollar they contribute to state employees’, and our part-time legislators can draw those pensions while they’re still in office and even keep growing them at taxpayer expense after they’re kicked out. So, for example, perk opponent Rep. Herb Kirsh notes that he already draws a $32,000 legislative pension — $8,400 more than a legislative salary. A regular state employee would have to work 55 years just to receive a pension that is equal to his old paycheck.

The task force’s plan is sound, and endorsed by 16 of the 17 members, including such fiscal hawks as Comptroller General Richard Eckstrom and former interim Treasurer Ken Wingate. (Gov. Mark Sanford’s appointee abstained, but spoke highly of the proposal.)

And it is needed, to ensure that retirees get at least part of what the state all but promised them and to keep officials from further overburdening the system.

The Ways and Means Committee should reverse itself, or the full House should override its action. And just so there’s no problem with legislative deadlines, the Senate should act, immediately, to pass Sen. Leatherman’s bill — with the legislative COLA stripped out.

If legislators believe they deserve bigger pensions, they should introduce a separate bill to increase them. But they need to stop holding state retirees — and the health of the State Retirement System — hostage.