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Boston Herald
Boston Herald
14 Mar 2023
Sean Philip Cotter


NextImg:New MBTA, Carmen agreement would allow T to hire some retirees part-time

The MBTA’s Carmen’s union has voted in favor of a pension agreement that throws out the unpopular arbitration agreement from last year and allows the worker-strapped T to hire up to 125 retirees as part-time employees.

The Boston Carmen’s Union Local 589 said its membership voted unanimously in favor of the agreement, which retroactively would apply back to 2018 and would run through 2028.

In terms of the actual pay, there’s something for both sides — the max pension cap for a member would rise from 75% to 80%, but it would take an extra two and a half years of work to get there. In order to cap out, current employees would would work 32.5 years, rather than the current 30 it takes to reach 75%.

On the flip side, all working carmen would kick an extra 1.25% of their pay for the next five years into the retirement fund starting this July. Employees currently contribute to the MBTA’s retirement fund at a 9.33% rate, and the T kicks in three times that.

These proposed changes are according to a copy of a summary of the agreement that was distributed to members earlier this month ahead of the vote. That summary, obtained by the Herald, is what the members voted to pass on Sunday, though final ratification won’t be the case until the MBTA’s board approves it, and it can be amended by further union votes until then.

Local 589, which represents around 6,000 bus drivers, conductors and the like at the struggling T, posted a quick missive on its website about the vote that happened Sunday, showing a room full of people and saying, “We had a great turnout. It was a unanimous vote in favor of ratifying the pension agreement.”

The preliminary agreement contains a provision that would allow the MBTA, which continues to struggle to fill open jobs, to hire up to 125 retirees on a part-time basis.

“These retirees will continue to receive their pensions and other retirement benefits while actively employed by the Authority,” the summary reads, but it adds that they wouldn’t be continuing to contribute to the plan or accruing more benefits. The retirees would be able to work up to 1,200 hours per year.

This comes following an arbitration decision last year that neither side seemed particularly enthused about. Though the specifics were complex, it would have raised the retirement age for many employees from 55 to 65. There was general consternation that this would lead to a surge in retirements in an already struggling workforce.

This agreement, which would throw out the arbitration decision, would keep it at 55 for current employees and put it at 65 for new hires, though those new hires could retire earlier with a 6%-per-year penalty.

The T itself didn’t have much to say, telling the Herald, “The proposed pension agreement must be approved by the MBTA Board of Directors. There is no final agreement at this time.”