LONGMEADOW — The Longmeadow Select Board discussed the possibility of parting ways with Hampden Country Regional Retirement System at its Jan. 21 meeting. However, doing so would be complicated and expensive, with no guarantee that the town would fare better on the other side.
Longmeadow is one of 18 towns whose retirement investments are managed by the Hampden Country Regional Retirement System. The system also manages retirement investment for several housing authorities, school committees and WESTCOMM Regional Dispatch. In a 2021 audit of the retirement system, the Public Employee Retirement Administration Commission found gross mismanagement of funds between 2017 and 2019. At the same time, the system’s member towns were being charged sharp year-over-year increases to achieve 100% liability funding by a 2036 deadline.
Select Board member Mark Gold said that since that time, he and Town Manager Lyn Simmons have been “exhaustively” trying to change the system from within, while also working to pass legislation that would reorganize the entity and instill transparency. To date, those efforts have not been fruitful.
Changing tactics, Simmons spoke with Longmeadow’s attorneys at Mead, Talerman & Costa about how to extricate the town from the retirement system. She reported to the board that there is no mechanism in place that would allow the town to leave the retirement system. Phasing out the use of the system by using an alternative for new employees is not an option, the lawyers said. Instead, legislation would need to be passed by the state.
Gold opined that it was “highly likely” that other towns would join them in leaving the retirement system.
Simmons and Finance Director Ian Coddington reviewed the possibility of joining the Hampshire County Retirement System, although Simmons noted the town could potentially join other regional systems. Coddington compared the Hampden County Regional Retirement System to the Hampshire County Retirement System and found their administration costs are similar over time. Both systems invest through Massachusetts Pension Reserves Investment Management and over the past nine years, the Hampden County Regional Retirement System only slightly outperformed the Hampshire Country system’s return on investment.
Where the Hampshire County Retirement System surpassed its neighbor, however, was in terms of a fully funded liability. In 2014, the Hampden County Regional Retirement system was 51% funded. Despite a consistent 8% increase in the amount of money towns are assessed each year, the system was 52% funded in 2022. The Hampshire County Retirement System has moved from 58% to 68% liability funding over the same period. Gold said the Hampshire County Retirement System covered more of the liability with smaller assessment increases than Hampden County Regional Retirement System.
If Longmeadow were to seek legislation to part from the retirement system, there would be considerable costs. Not only would there be a fee associated with exiting, any system the town joined might want Longmeadow to fund its employees’ retirement liability at the same level as its other member towns. Gold suggested the town could bond for the difference in liability coverage. Simmons said the cost of the split is not known because of the number of variables, including which system the town might join, but she said she would investigate it further. However, she cautioned that the benefits of any system the town may join could change in the future.
“There’s no playbook to follow here,” said Select Board Chair Vineeth Hemavathi. However, he said the 8% yearly increases are “not sustainable.” Simmons agreed and said it was worth pursuing “if we have the chance to save $100,000.”
Ageism allegation
During the public comment period, Tom Shea described comments made at the Dec. 16 Select Board meeting as being ageist. At the meeting, the board voted 3-2 to appoint Michael McLane to a three-year term on the Board of Assessors. The seat was vacated mid-term in 2023, and Richard Foster was approached to serve the rest of the term. Foster had applied to be reappointed for the full term. Gold and Select Board member Andrew Lam voted for him because as Gold said, Foster had “stepped up” when needed.
However, Select Board member Dan Zwirko, Hemavathi and Levine voted in favor of McClane. Zwirko had said, “I personally believe that this committee should have new eyes when we’re talking about assessments.” He said, “Richard would do a good job, as well [but] it’s time we had new people who are stepping up to serve.”
Levine had also praised Foster for his work on behalf of the town. However, he said, “We have a new assessor in place, and I think we should get some new eyes on these issues that have been plaguing us for the years, and I think a fresh start would be good.” Levine referred to a Dec. 2 discussion with Assessor Maria Cataldo about the lack of accurate commercial property values due to few property sales.
Hemavathi noted that McLane, with whom he had served on the Fiber Task Force, was able to “find common ground and articulate that really well to move our discussion forward” when there was an impasse on the task force.
In the time since the appointment, Michael Zeller, the chair of the Board of Assessors resigned, citing the same comments from Dec. 16 that Shea referenced. Because Foster was on the Board of Assessors for only one year, Zeller said he had “new eyes.” He said he felt the board believed “the apple cart should be turned over, regardless of outcome or the betterment of the Longmeadow Board of Assessors.” Zeller, who had written a letter backing Foster for the position, said that the Board of Assessors would be hamstrung while waiting for McLane to finish the course required to serve on the board.
Addressing Shea’s comments, Levine said, “Those accusations are absolutely untrue. There’s more to appointments and reappointments than past service.”
