spending

The Reckless Cost of Investment Mismanagement at the MBTA Retirement Fund

The maintenance of a separate retirement system has been an expensive luxury for the Massachusetts Bay Transportation Authority (MBTA), its employees and Massachusetts taxpayers. Had MBTA Retirement Fund assets been placed in the state pension fund since the beginning of 2001, their value would have been an estimated $902 million higher by year-end 2014. Contractually, employees must cover a quarter, or $225 million, of this unnecessary cost. The MBTA, which is heavily subsidized by taxpayer dollars, is responsible for the other three quarters of the loss, or $676 million.

Click here to read the full publication →