The largest union for the MBTA filed a lawsuit to overturn an arbitrator’s decision that would fundamentally alter the T’s $1.9 billion retirement program.
The Boston Carmen’s Union Local 589 is fighting against several reforms, including raising the retirement age, which would affect when workers are eligible for full pension payments.
The union said in its case against the MBTA that the arbitrator’s decision “throws the whole system into a state of financial disarray and leaves members and pension administrators alike unable to anticipate when they may retire and how much money they will get.”
Jim Evers, president of Carmen’s Local 589, said, “We are continuing to engage with MBTA management to continue ongoing discussions on different administrative problems surrounding benefits, and those conversations have been positive.”
“The court filing was an interim step meant to guarantee that the parties had time to continue that fruitful engagement and build the required structure to serve ridership, the community, and employees.”
According to Evers, the union and MBTA representatives have been actively meeting to hash out a final deal as late as last Friday.
Employees would no longer need to be at least 55 years old to be eligible for standard pension benefits under the arbitrator’s ruling; instead, they would need to be at least 65. This equates to 2.46% of the highest annual average basic pay received during three years of service.
After realizing how “dramatic” the changes would be for workers, the T “immediately ramped up discussions” with Carmen’s Union and is now trying to come to a final arrangement that will be advantageous to all parties, according to MBTA spokesperson Joe Pesaturo.
“The MBTA is fully committed to working closely with union leadership to improve the pension agreement and guarantee the long-term stability of the pension plan for both present employees and future generations of T workers,” Pesaturo said.
If an employee has 25 years of service and is 55 years old, they are entitled to full benefits. Employees hired before December 6, 2012, are qualified under a previous system that allows them to retire after 23 years of service. The long-standing “23-and-out” rule was abolished in 2009, leading to many early retirements.
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