Relative to employees of the Dedham Westwood Water District
Impact
This bill will necessitate collaboration between the Norfolk County retirement system and the Public Employee Retirement Administration Commission. Upon the bill's effective date, the retirement system must seek a legal determination from the Commission’s tax counsel to ensure that implementing the buyback does not jeopardize the system’s compliance with the Internal Revenue Code. The requirement for such a determination is significant, as it highlights the delicate balance between providing benefits to employees and adhering to federal tax regulations governing qualified retirement plans.
Summary
House Bill 2917 pertains to the regulation of creditable service buybacks within the Norfolk County retirement system, specifically for employees of the Dedham-Westwood Water District. The bill seeks to amend previous legislation to better accommodate certain employees' retirement benefits, ensuring they have the opportunity to purchase service time that contributes towards their retirement package. This aims to establish clearer guidelines while addressing the complexities of retirement fund compliance under federal law.
Contention
One of the notable points of contention surrounding the bill may arise from the stipulation that its provisions are contingent upon receiving a favorable ruling from the Commission. This contingency could lead to apprehension within the employee community regarding the potential limitations on their retirement options. Moreover, the timeline for notifying employees about their eligibility for purchase of service time, which is set within specific periods after receiving the ruling, may also reflect on the urgency and responsiveness required from the Norfolk County retirement system.