OPINION: Public Pensions Should Not Be Treated as a Slush Fund

Public service workers across Massachusetts and the nation have dedicated their careers to government roles with the understanding that their contributions to pension systems would secure a stable, vested retirement. They paid into these funds for decades, trusting that elected officials would honor that compact. These promises are sacred.

Raiding pension assets for unrelated political spending is a profound betrayal of that trust. It undermines the security retirees counted on, exposes the funds to partisan risks and potential losses, and erodes confidence in the entire system. Public employees aren't asking for special treatment; they simply want what they earned, without politicians gambling it away on pet projects.

This dangerous idea has gained sudden traction among some Democrats, who seem eager to tap these funds amid budget pressures, rather than make tough choices on spending priorities. In Massachusetts, Governor Maura Healey's support for a former proposal in the Mass Wins Act to direct $50–100 million from the state pension system (via the PRIM Board) into economic development grants exemplifies this danger. This would have carved out an exemption to standard investment guidelines, with no clear mechanism to return the principal to the pension fund. It's not a prudent investment; it's treating retirement savings as a slush fund for grants, setting a dangerous precedent that could lead to further raids.

Healey's push risked alienating the very public workers and unions who form a core part of her base, while exposing the pension system to volatility for short-term political gains. Even more telling is the silence from State Treasurer Deb Goldberg, who chairs both the PRIM Board responsible for investing these assets and the Massachusetts State Retirement Board. This is why I spoke up and joined opposition from unions like SEIU Local 509 and NAGE.

During my decade of local service in Belmont, Massachusetts, I fought to reduce the administrative costs and reform the investment practices of our retirement system. By fully vesting in the state-run fund (PRIT), Belmont ultimately accessed lower management fees and superior returns. Politicizing PRIT investments makes a mockery of the good-faith decision Belmont and many other Massachusetts cities and towns made to join the state fund.

Goldberg has said nothing to defend PRIT's integrity. Retirees and workers deserve vocal leadership from the Treasurer to protect their vested benefits, not quiet acquiescence to a proposal that gambled with their future.

Luckily, this proposal has been shelved. But, depending on how this election turns out, we may see it again next year. That is why I testified last week before the Joint Committee on Bonding, Capital Expenditures, and State Assets. Employees, retirees, and taxpayers need a strong voice defending their interests. I will always be that voice.

This troubling trend is not unique to Massachusetts. New York City Mayor Zohran Mamdani has pushed to delay or restructure massive pension contributions to close budget gaps. This effectively borrows against future obligations and saddles taxpayers (and potentially retirees) with higher long-term costs reminiscent of the city's 1970s fiscal crisis. Such moves prioritize immediate spending over sustainable funding, risking insolvency and higher taxes down the line for everyone.

We must stop Democrats raiding public union pensions before they bankrupt the rest of us. Public employees earned their retirement through service and contributions. It's not their job to bail out fiscal mismanagement.

Lawmakers should reject these attempted diversions, uphold fiduciary duties, and focus on policies that grow the economy and fully fund obligations without compromising trust. Retirees, workers, and taxpayers are watching.

Elizabeth Dionne is the Republican candidate for Massachusetts State Treasurer. She brings a decade of experience balancing local budgets and protecting public service workers’ contracts and pensions, including nine years working to reform Belmont’s pension system to deliver better returns for taxpayers, while safeguarding retirees.