NORTHAMPTON — An estimated $5.8 million in pension liabilities has been transferred from Hampshire County’s communities to the state retirement system.
The transfer is the result of legislation passed late Jan. 5 by the state House and Senate that paves the way for the final dissolution of the Hampshire Council of Governments. The bill goes next to the governor.
“I feel quite happy that the delegation was able to join together in the service of our cities and towns and ask the state to do the right thing,” said Sen. Jo Comerford, D-Northampton.
The Hampshire Council of Governments, also known as HCG, is the successor to Hampshire County Government. In 2019 HCG announced its intention to dissolve, citing financial issues related to the pension and health care liabilities of county retirees it was responsible for as well as a downturn in its energy business.
Since then, HCG has been divesting itself of assets and programming. The bill passed last week should allow this process to be completed.
A key part of the legislation transfers the pension liabilities of HCG’s retirees to the state. For all of 2020, the cost for these pensions was born by the Hampshire County Retirement System and its 37 units. These units include towns like Amherst that haven’t been members of HCG for years. In 2018, HCG warned county communities could become liable for millions in long-term liability if the organization ceased to exist.
“This is very important legislation for all the communities in Hampshire County to have pass,” said Amherst Town Manager Paul Bockelman.
Amherst would have been the largest contributor to funding the liability. Bockelman said that while the cost to Amherst is not gigantic on a yearly basis, it would have proved quite significant over time.
“It’s an important action for protecting the towns of Hampshire County,” said Sen. Adam Hinds, D-Pittsfield, of the bill.
Rep. Natalie Blais, D-Sunderland, said all 12 members of the Hampshire County legislative delegation worked together to pass the bill. She noted that pension payments for HCG retirees will not be cut because of the transfer.
Other elements of the bill include transferring an HCG-owned cell tower in Goshen to the town and removing HCG from the governance structure of the Hampshire County Regional Housing Authority.
Bera Dunau can be reached at bdunau@gazettenet.com.