Article 22 - Retirement Board Stipends

ARTICLE 22. To see if the Town will accept the provisions of Mass. Gen. Laws c. 32, § 20(6) to provide a stipend to members of Concord Retirement Board of not more than $4,500 per year paid from funds under the control of the Retirement Board; or take any other action relative thereto.

Article Explanation

This article is inserted in the warrant at the request of the Concord Retirement Board. By taking favorable action on this Article, the Town will accept a local option which pays the stipend available to members of the Concord Retirement Board. Chapter 176 of the Acts of 2011, An Act Providing for Pension Reform and Benefit Modernization, ("the Act"), substantively changed the retirement plan for public employees in Massachusetts by adjusting retirement benefits and by providing significant enhancements to the governance and operations of the Commonwealth's retirement boards.

With reference to governance of retirement boards, the Act requires that all retirement board members follow enhanced procurement requirements and apply increased fiduciary oversight of the retirement system's investments. Under the Act, retirement board members are required to complete mandatory education and training and must file annual statements of financial interests and acknowledgements of compliance with the conflict of interest and retirement laws. Penalties for non-compliance are substantial, and non-compliance may be considered a breach of fiduciary obligations for which a Board member would be personally liable.

In recognition of the increased responsibilities and accountability of retirement board members, the Legislature has provided a local option amendment to Mass. Gen. Laws. c. 32 § 20(6) which sets the stipend to be paid to board members from funds under the control of the Retirement Board in an amount "not less than $3,000 and not more than $4,500 per year."

Article Motion

Mr. Fulton moves that the Town take affirmative action on Article 22 as printed in the Warrant.