Chelsea Housing Authority (CHA) officials anticipate that the state Board will reverse the Chelsea Retirement Board’s decision from last month regarding whether to confiscate former CHA Director Michael McLaughlin’s personal pension contributions.
Tom Standish, CHA Board Chair, stated: “fblikebutton_button” “We’re very pleased that the state Board is going to look at the decision of the Chelsea Retirement Board. Our expectations are it will be given a fair hearing and will result in a reversal of the Retirement Board’s decision.”
Following an eight-month review process, the Retirement Board concluded last month that it lacked authority to seize McLaughlin’s personal pension contributions, which totaled $252,000, and return the funds to the CHA for repairs and damage resulting from McLaughlin’s criminal conduct during his tenure.
Over 43 years of contributions, McLaughlin had accumulated this amount. The question of his full pension—which includes the state’s matching contributions—remains unresolved at the Retirement Board.
The state retirement board, known as PERAC, reviewed the local decision earlier this month and expressed significant disagreement with numerous aspects of the local Board’s conclusions.
PERAC members reportedly raised many questions about the decision, with several inquiries being particularly forceful.
This review and discussion led to scheduling a comprehensive hearing for June 12, where PERAC will hear arguments from all parties involved in the case.
Chelsea Retirement Board Chair Joe Siewko explained: “PERAC’s chair had requested additional information from us. We’ve been invited to come back for the hearing and obviously we’ll go. Hopefully, on June 12, all the issues here will be resolved.”
The matter received extensive consideration at last Thursday’s Retirement Board meeting, conducted largely in executive session. Communications regarding the situation were similarly protected at that time.
The June 12 hearing at PERAC is also expected to be held in executive session as a private proceeding.
On May 28, the CHA briefly addressed the matter during its monthly meeting.
McLaughlin was convicted last summer of income misrepresentation and entered a guilty plea this month in Federal Court to conspiracy to defraud the United States—charges arising from the covert manipulation of federal and state housing inspections.