The Massachusetts Public Employee Retirement Administration Commission is requesting the state House and Senate not override Gov. Charlie Baker’s veto of a provision added to the fiscal year 2016 budget that would roll back part of a state pension reform law.
Under the provision, retirement systems could make follow-on investments with venture capital, private equity and real estate funds where they had already invested in the prior 10 years, without putting the matter through a rigorous proposal process.
In letters to legislators, PERAC members argued that the vetoed provision — Conference Committee Outside Section 55 — would “seriously weaken procurement requirements” for follow-on funds for private equity and real estate for Massachusetts retirement boards if overridden.
“We believe it’s counterproductive to an open and transparent government,” said Joseph E. Connarton, executive director of PERAC, in a phone interview about the vetoed measure.
The provision is one of two outside amendments that countered a major pension reform act, Chapter 176 of the Acts of 2011. The first one, which the governor signed, extends how often Massachusetts town and city retirement funds must put investment contracts and other jobs out to bid to seven years from five.