State Looks to Close Unemployment Double Dipping Loophole
Friday, March 30, 2012
State officials yesterday appointed the final member of a blue ribbon commission that is to investigate allegations of abuses of jobless benefits by public employees.
But the panel won’t file its report until mid-June, as the legislative season enters its final weeks.
Meanwhile, city officials in Worcester are in the midst of their own review after discovering some police officers were collecting unemployment checks after hitting the mandatory retirement age of 65.
However, state officials say they won’t be rushed.
“All parties will move as quickly and efficiently as possible, but it is important that this review is granted due process given the impact any potential changes may have,” said Greg Freed, a spokesman for the state Executive Office of Labor and Workforce Development.
Beating the legislative clock
Two state lawmakers, two mayors, two public employee union officials, a taxpayer advocate and a judge have been named to the state panel that will investigate abuses to the unemployment system.
Michael Widmer, president of the Massachusetts Taxpayers Association and member of the new commission, said he hopes to target some of the more flagrant abuses this year.
Widmer contends retired police officers and school teachers on summer break who collect unemployment checks fit that category.
For his part, Gov. Deval Patrick has already filed legislation, but it only takes on small piece of the issue.
Widmer said however other issues that panel will explore may have to wait until 2013 to be addressed.
“If there are one or two simple fixes, that would be possible, but if it’s more complicated than that, it would have to wait until 2013,” he said.
City also reviewing situation
The state review comes as Worcester officials probe potential double dipping by police officers and city employees
City officials have shelled out more than $1.8 million in jobless benefits over the past four years, with the biggest hit coming in 2008. School officials, in turn, have spent more than $2 million during the same period on unemployment benefits.
Still, how much such shenanigans may be adding to the Worcester’s unemployment costs remains an open question.
Worcester officials have begun compiling a report on the issue at the request of City Councilor Konstantina Lukes.
An initial review found evidence of four officers having collected unemployment checks after retiring from 2009 to 2011.
Worcester’s human resources department is now scouring records from previous years to see if there were other cases as well.
Some police officers have argued they are entitled to the payments since they are forced to retire at 65.
James DelSignore, the city’s auditor, said he only found out about the double dipping after hearing of one officer who dropped by the unemployment office after filing his retirement papers.
“I didn’t know these guys were getting it and when I found out, I hit the ceiling,” he said.
Police weigh in
"I certainly support a change in the law that allows an individual to collect unemployment after reaching mandatory retirement age and obtaining a pension,“ said Worcester Police Chief Gary Gemme.
But he added mandatory retirement rules should also be examined as well.
“I do believe some consideration should be given to extending the mandatory retirement age for individuals who are healthy and can perform the essential functions of the position they held,” Gemme said. “The longer a productive person remains on the payroll system the less of an impact there is on the retirement system. It is a little disingenuous to force a healthy and productive person into retirement and then criticize that same person for taking advantage of a legal practice. Everyone benefits when the loophole is closed and a healthy productive worker has the option to stay employed."
Police union officials say they also want to see the rules tightened up.
While officers are legally entitled to claim the unemployment money, Sgt. Donald Cummings, president of I.B.P.O. Local 504, which represents Worcester’s police captains, lieutenants and sergeants, said he has only heard of a couple cases, none involving his union.
In fact, only Beacon Hill may be able to completely seal off this loophole, and that would require a change in the law, he said.
“If they want to change that law, I don’t think there would be any argument from the police unions,” Cummings said.
No quick solution?
In a good sign, the Patrick Administration is throwing its weight behind efforts to close the loopholes, said Widmer of the Massachusetts Taxpayers Foundation.
Still, Widmer cautioned the issue may turn out to be more complicated to fix than it seems right now.
“What looks simple often turns out to be more complicated,” he said.
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