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