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HD 6109

A communication from the Office of the Inspector General (see Section 12 of Chapter 12A of the General Laws) submitting a report entitled: “Former CEO of Worcester Regional Retirement System Abused Public Funds”

194th Legislature (2025-2026)

The bill reports that the WRRS CEO abused public funds by heavy outside work during work hours, with weak board oversight and vague contracts, calling for tighter governance and re

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Bill Summary · HD 6109

Overview

HD 6109 (Session 194th, Massachusetts) presents a communication from the Office of the Inspector General (OIG) regarding a report titled “Former CEO of Worcester Regional Retirement System Abused Public Funds.” The document outlines the OIG’s findings and recommendations related to the former WRRS CEO, Michael Sacco, and discusses implications for WRRS, PERAC, and public retirement systems.

Note: The text provided is an inspector general report summary accompanying a legislative filing. The bill appears to be a reporting/documentation measure rather than a typical substantive statute establishing new programs or funds. The summary below focuses on the bill’s content as presented and its potential legislative and policy impact.

Main purpose and intent

  • To present the OIG’s findings from an investigation into alleged misuse of public funds and outside employment by the Worcester Regional Retirement System (WRRS) CEO, Michael Sacco.
  • To inform legislators and public leaders about potential weaknesses in governance, contract terms, and oversight of public retirement boards.
  • To prompt legislative consideration of reforms to reduce risk across the Commonwealth’s 104 public retirement systems, including improved governance provisions, contract clarity, and post-retirement earnings oversight.

Key provisions and changes described

  • Findings against Sacco:
    • Sacco allegedly continued heavy outside private practice while serving as WRRS CEO.
    • He attended hundreds of external retirement board meetings and other engagements during WRRS business hours, often from WRRS facilities.
    • He did not consistently disclose outside engagements or vacations; some absences were not properly tracked or reported.
    • His performance of WRRS duties was described as underperformed or neglected at times (e.g., limited staff meetings, delayed cybersecurity reporting, infrequent outreach to members and employers).
    • The contract terms with WRRS did not clearly limit outside work, hours, or use of WRRS resources; Board had modified terms over time, relying on verbal assurances rather than explicit written boundaries.
    • There were recommendations to claw back ill-gotten gains, strengthen future contract language, and increase oversight. Consideration of recalculating Sacco’s creditable service to reduce length-of-service for pension purposes was suggested.
  • Governance and contractual issues:
    • WRRS Board’s contract with Sacco lacked explicit limits on outside work, use of WRRS office for non-WRRS matters, and precise attendance expectations.
    • Board failed to implement robust monthly outside-activity reporting and timely corrective actions.
    • Front-loading of vacation time and other leave practices contributed to larger vacation payouts than typical WRRS employees.
  • Recommendations:
    • Claw back gains obtained through outside work where feasible.
    • Tighten external-work limits and public-resource use in future CEO contracts.
    • Improve ongoing oversight of CEO activity (attendance, reporting, performance).
    • PERAC (Public Employee Retirement Administration Commission) to cooperate with the WRRS in further investigation and potential recalculation of Sacco’s service credit.
    • Legislature to study systemic risk across Massachusetts’ retirement systems and consider mechanisms to better track post-retirement earnings for compliance.

Who/what would be affected

  • Primary: Worcester Regional Retirement System (WRRS), its Board of Trustees, and its members (retirees and active contributors).
  • External: Other Massachusetts public retirement boards (as Sacco served them) and PERAC, which oversees retirement systems.
  • Potential broader impact: The Legislature and state agencies may consider reforms to contract language, governance oversight, transparency requirements, and post-retirement earnings tracking to mitigate similar risks in all 104 public retirement systems.

Procedural and timeline aspects

  • The document is a formal OIG report dated March 11, 2026, transmitted to state legislative leadership (House and Senate Ways and Means committees) and key public officials.
  • It accompanies the bill HD 6109, which appears to be a reporting/receiving frame for presenting the OIG’s findings to lawmakers and initiating any related policy discussion or study.
  • Recommendations call for ongoing actions by WRRS, PERAC, and the Legislature, including potential further investigations and recalculation of service credits.

Plain-language takeaway

  • The OIG found extensive private-law work by the WRRS CEO during WRRS time, insufficient Board oversight, and contract terms that did not clearly constrain outside work or use of public resources.
  • The report urges stronger contract language, tighter governance and monitoring, potential clawback of ill-gotten gains, and consideration of systemic reforms to prevent similar issues across Massachusetts’ public retirement systems.
  • The bill seeks to inform lawmakers and may prompt further legislative study or policy changes to strengthen accountability and protect public funds.

Compiled from official sources — confirm details with the bill’s official record.

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