Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H2583 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	HOUSE DOCKET, NO. 1577 FILED ON: 1/18/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 2583
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	David Henry Argosky LeBoeuf
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to the Massachusetts State Employees Retirement System.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:David Henry Argosky LeBoeuf17th Worcester1/18/2023Deborah B. GoldbergTreasurer, Office of the State
16	16	Treasurer and Receiver General
17	17	1/23/2023Lindsay N. Sabadosa1st Hampshire2/9/2023 1 of 5
18	18	HOUSE DOCKET, NO. 1577 FILED ON: 1/18/2023
19	19	HOUSE . . . . . . . . . . . . . . . No. 2583
20	20	By Representative LeBoeuf of Worcester, a petition (accompanied by bill, House, No. 2583) of
21	21	David Henry Argosky LeBoeuf, Deborah B. Goldberg and Lindsay N. Sabadosa relative to
22	22	further regulating the state employees retirement system. Public Service.
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Third General Court
26	26	(2023-2024)
27	27	_______________
28	28	An Act relative to the Massachusetts State Employees Retirement System.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. Subdivision 6 of section 22 of chapter 32 of the General Laws, as appearing
32	32	2in the 2020 Official Edition, is hereby amended in paragraph (b) by inserting after the final
33	33	3sentence the following two sentences:- For each calendar year beginning subsequent to
34	34	4December thirty-first, two thousand and twenty-three, ''regular interest'' shall mean interest
35	35	5credited at a rate established by the commission, equal to the increase of the most recent
36	36	6Consumer Price Index for New England issued by the United States Bureau of Labor Statistics.
37	37	7The rate established by the commission shall be taken to the nearest tenth of one per cent;
38	38	8provided that the rate established by the commission shall not exceed two per cent.
39	39	9 SECTION 2. Subdivision 4 of section 28 of chapter 32 of the General Laws, as appearing
40	40	10in the 2020 Official Edition, is hereby amended by striking out paragraph (c) and inserting in
41	41	11place thereof the following paragraph (c):- 2 of 5
42	42	12 (c) Notwithstanding any general or special law to the contrary, each district, non-
43	43	13commonwealth governmental unit, or educational collaborative as authorized by the provisions
44	44	14of section four E of chapter forty, the employees of which have become, or which become
45	45	15members of the state employees retirement system under the provisions of this subdivision or
46	46	16any other previous act, shall remit to the state board of retirement as the employer’s normal cost
47	47	17as determined by the actuary, of benefits earned during each year by such employees who are
48	48	18members of the state employees’ retirement system.
49	49	19 The actuary shall determine such cost as a percentage of the payroll of the district, non-
50	50	20commonwealth entity and collaborative for such employees based upon the most recent actuarial
51	51	21valuation of the state retirement system. The actuary may consider factors including types of
52	52	22governmental unit, employee demographic information, and employee group classification to
53	53	23help in the determination of said percentage. Said cost shall be paid monthly and deposited in
54	54	24the pension reserve fund of the state employees’ retirement system. The actuary shall review the
55	55	25percentage determined in this paragraph at least every three years.
56	56	26 SECTION 3. Subdivision 4 of section 28 of chapter 32 of the General Laws, as so
57	57	27appearing, is hereby further amended by adding the following paragraph:-
58	58	28 (d) The state retirement board upon terms and conditions it may establish, may require a
59	59	29participating employer governed by this sub-section, who fails to remit either its normal cost
60	60	30amount as determined in paragraph €, or the contributions made on behalf of employees who are
61	61	31members of the Massachusetts State Employees Retirement System as required by section 22 of
62	62	32Chapter 32, by the first day of the second month following the work month, to pay an additional
63	63	33amount equal to 10% of the total amount of delinquent contributions. The state retirement board 3 of 5
64	64	34shall have the right to commence an action in contract for payment of outstanding amounts
65	65	35determined to be due in accordance with the provisions of this chapter.
66	66	36 SECTION 4. Section 28 of chapter 32 of the General Laws, as so appearing, is hereby
67	67	37further amended by inserting at the end thereof the following subdivision:-
68	68	38 (9) For the purposes of this section, “non-commonwealth governmental unit” shall mean
69	69	39an employer as defined in section one of chapter 32 whose employees are not employees of the
70	70	40commonwealth or an agency thereof, employed in a position in the service of the
71	71	41commonwealth, and whose regular compensation is not paid by the commonwealth, eligible for
72	72	42membership in the state employees retirement system and the requirements in connection
73	73	43therewith.
74	74	44 SECTION 5. Section 8 of chapter 32A of the General Laws, as so, is hereby amended by
75	75	45inserting after the fourth paragraph the following sentence:- All amounts withheld under the
76	76	46provisions of section 19 and section 19A of chapter 32 forwarded by the state retirement board to
77	77	47the commission as provided by this section from pensions or retirement allowances issued in the
78	78	48month of the death of any retiree, survivor or beneficiary shall be returned to the state retirement
79	79	49board by the commission.
80	80	50 SECTION 6. Chapter 25 of the Acts of 2009 is hereby amended by striking section 139
81	81	51in its entirety and inserting in place thereof the following section:-
82	82	52 Section 139. Notwithstanding the provisions of any general or special law to the contrary,
83	83	53employees of the Massachusetts Department of Transportation as defined in Section 8 of this Act
84	84	54who are hired after the effective date of this act shall become members of the Massachusetts
85	85	55State Employees’ retirement system, and notwithstanding the provisions of any general or 4 of 5
86	86	56special law to the contrary including, but not limited to, paragraph (c) of subdivision (8) of
87	87	57section 3 of chapter 32 of the General Laws, said system shall be responsible for all liability
88	88	58attributable to said service of such employees. The liabilities attributable to any other service of
89	89	59such employees shall be recoverable by the commonwealth pursuant to the terms of paragraph
90	90	60(c) of subdivision (8) of section 3 of chapter 32 of the General Laws.”
91	91	61 SECTION 7. Said chapter 25 of the Acts of 2009 is hereby amended by striking section
92	92	62159 in its entirety and inserting in place thereof the following section:-
93	93	63 Section 159. (a) Effective upon the date of dissolution of the Massachusetts Turnpike
94	94	64Authority: (1) the Massachusetts Turnpike Authority Employees' Retirement System shall be
95	95	65dissolved ; (2) all members of the Massachusetts Turnpike Authority Employees’ Retirement
96	96	66System shall become members of the Massachusetts State Employees’ Retirement System; (3)
97	97	67the management of benefits of the dissolved Massachusetts Turnpike Authority employees'
98	98	68retirement system shall be transferred to the state board of retirement in section 18 of chapter 10
99	99	69of the General Laws which board shall have with respect thereto the general powers and duties
100	100	70set forth in subdivision (5) of section 20 of said chapter 32, including the reimbursement for
101	101	71liabilities attributable to the service of such members with other governmental units recoverable
102	102	72pursuant to the terms of paragraph (c) of subdivision (8) of section 3 of chapter 32 of the General
103	103	73Laws; (4) all data, files, papers and records and other materials of the Massachusetts Turnpike
104	104	74Authority retirement board provided for in paragraph (b) of subdivision (41/2) of said section 20
105	105	75of said chapter 32 shall be transferred to and held by the state board of retirement; (5) ownership
106	106	76and control of all the assets of the dissolved Massachusetts Turnpike Authority Employees'
107	107	77Retirement System in the custody of the secretary-treasurer of the authority shall be transferred
108	108	78to the Pension Reserves Investment Management Board and be made assets of the Massachusetts 5 of 5
109	109	79State Employees’ Retirement System; and (6) the Massachusetts Turnpike Authority retirement
110	110	80board in said paragraph (b) of subdivision (4 1/2) of said section 20 of said chapter 43 shall be
111	111	81abolished; provided, however, that the members and officers thereof shall be authorized to do all
112	112	82such things and take all such action as may be necessary or desirable to be done or taken by them
113	113	83to effectuate the transfers to be made pursuant to this section.
114	114	84 (b) Effective upon the date of dissolution of the Massachusetts Turnpike Authority, the
115	115	85payment of all annuities, pensions, retirement allowances and refunds of accumulated total
116	116	86deductions and of any other benefits granted under the sections 1 to 28, inclusive, of said chapter
117	117	8732 are hereby made obligations of the commonwealth.
118	118	88 SECTION 8. Notwithstanding any general or special law to the contrary, reimbursements
119	119	89currently outstanding to the state retirement board under paragraph € of sub-section (4) of section
120	120	9028 of chapter 32 for calendar years 2013, 2014, and 2015 shall not be required.
121	121	91 SECTION 9. Notwithstanding any general or special law to the contrary, reimbursements
122	122	92currently outstanding to the state retirement board under paragraph (c) of sub-section (4) of
123	123	93section 28 of chapter 32 for calendar years 2016 and after shall be required and remitted under
124	124	94terms and conditions as may be prescribed by the board.
125	125	95 SECTION 10. Sections 1 and 2 of this act shall take effect on July 1, 2024.
126	126	96 SECTION 11. Section 6 shall take effect on January 1, 2010.
127	127	97 SECTION 12. Section 7 shall take effect on July 1, 2009.