Embattled retirement board chair spars with towns

May 13, 2021 | Sarah Heinonen
sheinonen@thereminder.com

LONGMEADOW/HAMPDEN – Tensions continue to flare between the Hampden County Retirement Board (HCRB) Chair Richard Theroux and the leaders of the towns that pay into the system. Since an audit by the Public Employee Retirement Administration Commission (PERAC) released in February that found what it called “questionable” financial decisions, the towns, school districts and other units have expressed growing mistrust of the board. Two of the most vocal units are the towns of Hampden and Longmeadow.

At the April 29 meeting of the board, Theroux claimed that Longmeadow has “not been a fan of the retirement system,” and dismissed the actions of the Longmeadow Select Board on April 20 to investigate withdrawal from the regional system.

Theroux touted the board’s decision to invest in the state-run Pensions Reserves Investment Trust (PRIT) fund in 2008. He railed against coverage in the Republican newspaper calling the HCRB “precarious” and said that the fund’s balance is double that of 13 years ago. The fund increased by $46.1 million during the 2020 calendar year.

A joint letter from the towns of Hampden and Longmeadow to the HCRB read, in part, “The statements made by Chairman Theroux at today’s meeting regarding the towns of Hampden and Longmeadow not being happy about the return on investment are inaccurate and ignore the real reasons our communities are concerned.” It went on to say that the towns were acting “out of a concern for the lack of accountability and responsibility the Board has shown as a result of the PERAC audit.”

Even before the audit came to light, a long-term source of conflict between the board and the member units has been the dramatic increases in assessments that the members must pay into the system.

Theroux explained during the meeting that a formula is used to calculate assessment increases. As an example, Executive Director Julianne Bartley said that the town of Hampden had an 8 percent increase in salaries in 2020 and there is already a “flat 8 percent” increase, bringing the total to 16 percent.

HCRB member Karl J. Schmaelzle said that the state had changed retirement laws in the mid-1980s and assessments are now required and are calculated based on the market.

“The appropriations won’t change, no matter who sits in these chairs,” Theroux said.

Theroux related a conversation that he had had with a Longmeadow Select Board member in which Theroux was asked how to keep the assessment from increasing. He responded by saying, “Not have your retirees go to Florida and just live a few years and die off.” Theroux admitted it was a “crass” statement.

“Chairman Theroux’s cavalier attitude and defensive statements speak loudly about what he finds important,” said the letter from Hampden and Longmeadow. “He is using his role on the Retirement Board for personal gain and had the audit not uncovered that, he would have continued. All Board members who continue to sit by and attend these meetings are complacent in allowing this behavior to continue. He needs to be removed from the board. The Board members need to take a vote of no confidence and remove him immediately.”

Both towns have signed resolutions calling for the resignation of the entire board as well as of Bartley. Since the audit, one member has resigned. May 3 was Laurel Plazcke’s last day serving on the board. Thomas Sullivan, a member of the Advisory Council, was elected to take her position as Advisory Council chair, and as such, will sit on the board.

While Bartley confirmed to Reminder Publishing that Theroux plans to resign, she said, there has been “no formal letter with a date from the chairman.” When he does resign, a new chair will be selected by the remaining four members of the board.

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