The phrase of the day is “affordability,” the cruel actuality that for too many Individuals there’s extra month than cash, extra payments than paycheck, and a future clouded by financial uncertainty.
So as to add insult to harm, Massachusetts taxpayers aren’t simply overlaying their very own prices, however shelling out for the bloated salaries of high-ranking public workers and their subsequent ballooning pensions.
Because the Herald reported, pension payouts to state retirees, each educators and different public workers, have jumped nearly 18% for the reason that pandemic.
The state Comptroller reviews $6.6 billion is now being paid to retirees yearly. Amongst that tally are 5 prime recipients who have been paid $300,000-plus in 2025, data present.
“What this says is it’s fairly nice for a number of however not everyone,” mentioned nationwide pension watchdog Anthony Randazzo.
If Massachusetts is seeking to change the state seal, “fairly nice for a number of however not everyone” would make a becoming motto.
Gov. Maura Healey and different state officers bemoan federal funding cuts for important packages, however the money retains flowing to high-end public retirees, who see six-figure pensions mirror their big-bucks-at-taxpayers-expense careers.
As they are saying, should be good.
For these within the non-public sector, pensions are a rarity. Solely 15% of personal business employees had entry to an outlined profit pension plan in March 2023, based on the Bureau of Labor Statistics. The remainder depend on what they will save in a 401 (okay), if they will, and maintain out hope that Social Safety will cowl a significant share of post-retirement bills.
These getting six-figure Mass. pension payouts aren’t laying aside retirement till they’re 70, whether or not they need to or not, due to the elevated Social Safety advantages working till then will carry. And so they don’t have to fret in regards to the Social Safety system itself falling off a cliff within the years forward.
For them, taxpayers are the guardrail that retains public pensions firmly on observe.
In his group’s annual report, Randazzo co-authors a warning that public pension plans are nonetheless in a “fragile monetary situation.” That truth locations Massachusetts thirty seventh with $33.3 billion in unfunded legal responsibility, based on the Equable Institute, the place Randazzo is the manager director.
Randazzo cautioned that Massachusetts is inserting a burden on youthful taxpayers to maintain funding the pension system till it’s paid off. The issue is, youthful taxpayers (24-44) are the group with the very best fee of outmigration from the state, based on mass.gov.
Massachusetts misplaced 13,700 residents aged 25 to 34 in 2022 and in complete practically 24,000 prime working age adults. Housing costs are excessive, the price of dwelling is dear, why ought to they need to take the autumn for deep-pocketed public retirees?
This isn’t sustainable, irrespective of how a lot Massachusetts officers kick the can down the highway.
We are able to’t be the state the place it’s “fairly nice for a number of.”
