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HOUSE DOCKET, NO. 1158 FILED ON: 1/18/2023
HOUSE . . . . . . . . . . . . . . . No. 2427
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
James Arciero
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act relative to cost of living adjustments for retired public employees of the Commonwealth.
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PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:James Arciero2nd Middlesex1/17/2023Colleen M. Garry36th Middlesex1/18/2023Marilyn FrankREAM (Retired Educators Association
of Massachusetts), 6 Chamberlain
Road, Westford, MA 01886
1/18/2023Bud L. Williams11th Hampden1/20/2023Vanna Howard17th Middlesex1/30/2023 1 of 5
HOUSE DOCKET, NO. 1158 FILED ON: 1/18/2023
HOUSE . . . . . . . . . . . . . . . No. 2427
By Representative Arciero of Westford, a petition (accompanied by bill, House, No. 2427) of
James Arciero and others relative to cost of living adjustments for retired public employees of
the Commonwealth. Public Service.
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act relative to cost of living adjustments for retired public employees of the Commonwealth.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Section 22D of said Chapter 32, as appearing in the 2010 Official Edition,
2is amended by inserting in line 32 after the word “approve” the following words: —provided
3further, however, that in the event that a system has accepted the provisions of paragraph (j) of
4Section 103, the funding schedule, and any updates thereto, shall be designed to reduce the
5unfunded actuarial liability of said system to zero as of such year, that may be subsequent to June
630, 2028, as the commission shall approve.
7 SECTION 2. Paragraph (c) of Section 102 of said Chapter 32, is amended by striking out
8in each instance the dollar amount “$13,000” and inserting in place thereof the following dollar
9amount:—$16,000.
10 SECTION 3. Section 103 of said Chapter 32 is amended by inserting the following new
11paragraph:— 2 of 5
12 (j) Notwithstanding the provisions of paragraph (a) to the contrary, the board of any
13system may, by accepting the provisions of this paragraph as hereinafter provided, elect to pay a
14cost-of-living adjustment on a base amount greater than $16,000. Acceptance of this paragraph
15shall be by a majority vote of the board of such system, subject to the approval of the legislative
16body. For the purpose of this paragraph, “legislative body” shall mean, the city council in
17accordance with its charter, in the case of a town, the town meeting, in the case of a county or
18region, the county or regional retirement board advisory council, in the case of a district, the
19district members, and, in the case of an authority, the governing body. Acceptance of this
20paragraph shall be deemed to have occurred upon the filing of the certification of such vote with
21the commission. A decision to accept the provisions of this paragraph may not be revoked.
22 SECTION 4: Subdivision (3) of section 21 of Chapter 32 is hereby amended by striking
23out paragraph (f) and inserting in place thereof the following paragraph:
24 (f) the preparation and filing with the general court, of a report, annually, in the month of
25January, on the computation of any increase in the United States Consumer Price Index and the
26percentage thereof in the previous year by the Commissioner of Social Security, including a
27statement that such increase in said Consumer Price Index during the last previous year requires
28a cost of living increase in the retirement allowances, pensions or annuities of eligible members,
29as defined in sections 102 and 103, equal to the percentage increase in the Consumer Price Index
30or 3 per cent, whichever is greater.
31 SECTION 5: Section 102 of Chapter 32 is hereby amended by striking out paragraph (a)
32and inserting in place thereof the following paragraph: 3 of 5
33 (a)The actuary in the commission shall annually in the month of January file with the
34clerk of the house of representatives the report prepared in accordance with paragraph (f) of
35subdivision (3) of section 21. The retirement allowance, pension or annuity of every member of
36the state employees’ system and the teachers’ retirement system who has received a retirement
37allowance, pension or annuity on June 30 of the preceding fiscal year, or of a spouse or other
38beneficiary of such member who has received a retirement allowance, pension or annuity on
39June 30 of the prior fiscal year, shall be increased by the percentage as determined by the
40actuary’s report; provided that notwithstanding the actuary’s report the cost of living increase
41shall be at least three percent. The cost of living adjustment shall be applied each July 1. Said
42cost of living increase shall be funded from the investment income account of the state
43employees’ and state teachers’ systems. The sum of the dollar amount of each cost of living
44increase, together with the amount of retirement allowance, pension or annuity to which the cost
45of living per cent factor is applied, shall become the fixed retirement allowance, pension or
46annuity for all future purposes, including the application of subsequent cost of living adjustments
47in future years.
48 SECTION 8. Section 102 of Chapter 32 is hereby amended by adding after paragraph (c)
49the following clauses:
50 (i) In any case as of June 30, 2021 but prior to June 30, 2024 where such former
51employee, spouse, or other beneficiary is receiving an annual retirement allowance, pension or
52annuity which is eighty-five percent of the maximum social security benefit or more exclusive of
53additional annuity obtained by special purchase under paragraph (g) of subdivision (1) of section
5422 or any similar law, the cost of living adjustment shall be in an amount determined by applying
55the per centum of change determined pursuant to paragraph (a) to the sum of eighty-five percent 4 of 5
56of the maximum social security benefit. Whenever a cost of living adjustment is granted pursuant
57to said paragraph (a), the dollar amount of such increase as determined in said paragraph (a) shall
58be added to each retirement allowance, pension or annuity which is in excess of said maximum
59base amount. The sum of the dollar amount of such cost of living adjustments, together with the
60amount of retirement allowance, pension or annuity to which the cost of living per centum factor
61is applied and any amounts in excess of said eighty-five percent of the maximum social security
62benefit shall become the fixed retirement allowance, pension or annuity for all future purposes
63including the application of subsequent cost of living adjustments in future years; provided,
64however, that the limitations of this paragraph shall continue to apply.
65 (ii) In any case as of June 30, 2024 but prior to June 30, 2028 where such former
66employee, spouse, or other beneficiary is receiving an annual retirement allowance, pension or
67annuity which is ninety-five percent of the maximum social security benefit or more exclusive of
68additional annuity obtained by special purchase under paragraph (g) of subdivision (1) of section
6922 or any similar law, the cost of living adjustment shall be in an amount determined by applying
70the per centum of change determined pursuant to paragraph (a) to the sum of ninety-five percent
71of the maximum social security benefit. Whenever a cost of living adjustment is granted pursuant
72to said paragraph (a), the dollar amount of such increase as determined in said paragraph (a) shall
73be added to each retirement allowance, pension or annuity which is in excess of said maximum
74base amount. The sum of the dollar amount of such cost of living adjustments, together with the
75amount of retirement allowance, pension or annuity to which the cost of living per centum factor
76is applied and any amounts in excess of said ninety-five percent of the maximum social security
77benefit shall become the fixed retirement allowance, pension or annuity for all future purposes 5 of 5
78including the application of subsequent cost of living adjustments in future years; provided,
79however, that the limitations of this paragraph shall continue to apply.
80 (iii) In any case as of June 30, 2028 where such former employee, spouse, or other
81beneficiary is receiving an annual retirement allowance, pension or annuity which is one hundred
82percent of the maximum social security benefit or more exclusive of additional annuity obtained
83by special purchase under paragraph (g) of subdivision (1) of section 22 or any similar law, the
84cost of living adjustment shall be in an amount determined by applying the per centum of change
85determined pursuant to paragraph (a) to the sum of one hundred percent of the maximum social
86security benefit. Whenever a cost of living adjustment is granted pursuant to said paragraph (a),
87the dollar amount of such increase as determined in said paragraph (a) shall be added to each
88retirement allowance, pension or annuity which is in excess of said maximum base amount. The
89sum of the dollar amount of such cost of living adjustments, together with the amount of
90retirement allowance, pension or annuity to which the cost of living per centum factor is applied
91and any amounts in excess of said one hundred percent of the maximum social security benefit
92shall become the fixed retirement allowance, pension or annuity for all future purposes including
93the application of subsequent cost of living adjustments in future years; provided, however, that
94the limitations of this paragraph shall continue to apply.