| Date: | 10/09/1979 |
|---|---|
| Organization: | State Ethics Commission |
A special state employee may, pursuant to G.L. c. 268A, § 7(d), serve as a representative for the coordinator of the State Employee Deferred Compensation Plan, provided the employee does not participate in or have official responsibility for the contracting agency’s activities and files a disclosure of the employee’s financial interest with the State Ethics Commission.
You are a part-time employee of a state agency. You ask whether it violates the conflict of interest law, General Laws Chapter 268A, for you to serve as a representative of PEBSCO/Pilgrim, the Plan Coordinator for the State employee Deferred Compensation Plan.
In rendering this opinion, the Commission has been guided by the opinions of the Attorney General issued prior to November 1, 1978, the effective date of the Commission's jurisdiction over Chapter 268A matters. Furthermore, in rendering this opinion, the Commission has relied upon the facts as you have stated them and has not made any independent investigation of those facts.
The Massachusetts State Employee Deferred Compensation Plan consists of a contract between the state and an employee providing for the deferral of receipt of a specified amount of current earned income, and deferral of payment of taxes thereon, pending distribution in accordance with the option elected by the employees. See M.G.L. c.29, § 64. PEBSCO/Pilgrim, the Plan Coordinator administers the day-to-day operation of the Plan under the direction of the State Treasurer (the Plan Administrator) and an Oversight Committee. See M.G.L. c.29, § 38B and 64. In your private capacity, you contact state employees regarding their potential enrollment in the Plan. Your compensation is paid by the individual insurance carriers who participate in the deferred compensation program.
You are a "special state employee" as that term is defined in § 1(o). (Citation omitted). ... fellow employees in your unit, and that you will not make any sales or presentations to any agency employee. Therefore, your activities will not violate § 4, €7, nor do they give any appearances of impropriety under § 23.
Section 7 prohibits a state employee from having a direct or
indirect financial interest in a contract made by a state agency in which the Commonwealth or a state agency is an interested party. The deferred compensation agreement between the state and a state employee is a "contract" in which you have an indirect financial interest. However, the prohibitions of § 7 do not apply to a special state employee who does not participate in or have official responsibility for the activities of the contracting agency, so long as the special state employee files with the State Ethics Commission a statement making full disclosure of his interest in the contract. Section 7(d). Since your responsibilities as a special state employee do not involve you with any of the activities of the Plan Administrator or the Oversight Committee (see M.G.L. c.111, § 62I et seq) you may continue to serve as a representative of EBSCO/Pilgrim as long as you comply with the disclosure requirements of § 7(d).
End Of Decision
