Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H3857 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. 2660 FILED ON: 1/19/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 3857
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Carmine Lawrence Gentile
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 to provide retirement incentives in public higher education.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Carmine Lawrence Gentile13th Middlesex1/19/2023 1 of 8
16	16	HOUSE DOCKET, NO. 2660 FILED ON: 1/19/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 3857
18	18	By Representative Gentile of Sudbury, a petition (accompanied by bill, House, No. 3857) of
19	19	Carmine Lawrence Gentile for legislation to provide retirement incentives in public higher
20	20	education. Public Service.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Third General Court
24	24	(2023-2024)
25	25	_______________
26	26	An Act to provide retirement incentives in public higher education.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 SECTION 1. For the purposes of this act, the following word shall, unless the context
30	30	2clearly requires otherwise, have the following meaning:
31	31	3 “State employees retirement board” or “board”, the board established in section 18 of
32	32	4chapter 10 of the General Laws for the purposes of administering the state employees’ retirement
33	33	5system.
34	34	6 “State university”, an institution listed in section 5 of chapter 15A of the General Laws.
35	35	7 “State universities retirement incentive program” or “program”, the program established
36	36	8in section 3.
37	37	9 SECTION 2. (a) Notwithstanding any general or special law to the contrary, the state
38	38	10universities shall achieve direct payroll savings in fiscal year 2025 and beyond through
39	39	11implementation of this act. 2 of 8
40	40	12 (b) To achieve the savings required by subsection (a), a state university may: (i) offer 1-
41	41	13time incentive payments to encourage employees to resign or retire; or (ii) implement the
42	42	14retirement incentive program as described in sections 3 to 7, inclusive.
43	43	15 (b) The state universities shall, not later than March 20, 2024, provide notice to the state
44	44	16board of retirement on the number of employees anticipated to separate from state service, and
45	45	17anticipated timing, under clauses (i) and (ii) of subsection (b).
46	46	18 SECTION 3. (a) Notwithstanding chapter 32 of the General Laws or any other general or
47	47	19special law to the contrary, the state board of retirement shall establish and implement a
48	48	20retirement incentive for employees of state universities, to be known as the state universities
49	49	21retirement incentive program.
50	50	22 (b) To be considered eligible by the state board of retirement for any of the benefit
51	51	23options under the program, an employee shall: (i) be an employee, as of the effective date of this
52	52	24act and through the date of retirement established in section 4, of a state university, the board of
53	53	25trustees of which has approved participation in this program by January 1, 2024; (ii) be a
54	54	26member in service of the state employees’ retirement system pursuant to clause (i) of paragraph
55	55	27(a) of subdivision (1) of section 3 of chapter 32 of the General Laws as of the effective date of
56	56	28this act and have 25 years or more of creditable state service at the time of their program
57	57	29application; (iii) be classified in Group 1 of the state employees’ retirement system pursuant to
58	58	30paragraph (g) of subdivision (2) of said section 3 of said chapter 32 as of the effective date of
59	59	31this act; (iv) be eligible to receive a superannuation retirement allowance in the absence of the
60	60	32program pursuant to subdivision (1) of section 5 of said chapter 32 or subdivision (1) of section
61	61	3310 of said chapter 32 as of the effective date of this act; (v) have not notified, in writing, as of 3 of 8
62	62	34January 1, 2024, either the state university or the state board of retirement of their planned
63	63	35retirement or separation from the university within the next year; and (vi) file a timely
64	64	36application with the board pursuant to section 4.
65	65	37 (c) Notwithstanding subsections (a) and (b), the following employees shall not be eligible
66	66	38to receive any benefit from the program: (i) employees whose compensation is funded from a
67	67	39capital appropriation or federal grant, as each is defined in section 1 of chapter 29 of the General
68	68	40Laws, as of the filing date for the application pursuant to section 4; (ii) elected officials; and (iii)
69	69	41employees or members of the state employees’ retirement system who, as of the effective date of
70	70	42this act, are not contributing to the retirement system or have not completed reinstatement
71	71	43pursuant to section 105 of said chapter 32.
72	72	44 SECTION 4. Notwithstanding section 5 of chapter 32 of the General Laws, an eligible
73	73	45employee shall submit an application to the state board of retirement on or before April 1, 2024
74	74	46in order for the
75	75	47 employee to be eligible to receive the retirement benefit provided in this act. The
76	76	48retirement date requested in an eligible employee’s application shall be June 30, 2024 or, upon a
77	77	49state university’s local board of trustees’ approval for delay resulting from multiple employees
78	78	50from the same division choosing to participate in this program or university need, a delayed
79	79	51retirement date of no later than December 31, 2024. Employees may rescind their notice of
80	80	52retirement, up to the earlier of: (i) 1 week prior to their submitted retirement date; or (ii) 1 week
81	81	53prior to an offer of employment for a replacement hire in situations where a replacement hire has
82	82	54been approved. The application for retirement may be delivered to the state board of retirement
83	83	55in person, by mail or in a manner as the board may approve, including by electronic means. 4 of 8
84	84	56 SECTION 5. (a) An employee who is eligible for the state universities retirement
85	85	57incentive program may request in the application for retirement that the state board of retirement
86	86	58credit the employee with an additional retirement benefit pursuant to this section. Each such
87	87	59employee shall request and receive a combination of years of creditable service and years of age,
88	88	60in full-credit increments; provided however, that the sum of the years of creditable service and
89	89	61years of age shall not be greater than 6 total credits for the purposes of determining the
90	90	62employee’s superannuation retirement allowance pursuant to paragraph (a) of subdivision (2) of
91	91	63section 5 of chapter 32 of the General Laws. The employee’s state university of record shall pay
92	92	64to the state board of retirement 2.5 per cent of the participant’s highest 3-year annual average
93	93	65salary for each purchased credit up to a maximum of 6 purchased credits towards their retirement
94	94	66benefit, with 6 credits representing the aggregate payment of 15 per cent of the participant’s
95	95	67highest 3-year annual average salary. The program participant shall pay to the state board of
96	96	68retirement 4.5 per cent of the participant’s highest 3-year annual average salary, plus an
97	97	69additional 1.0 per cent of the participant’s highest 3-year annual average salary above $30,000,
98	98	70for each purchased credit (year of age or year of service) up to a maximum of 6 total purchased
99	99	71credits. Such payment, upon the participant’s approval, may be directed from the state university
100	100	72directly to the state board of retirement from compensated absences payouts at the time of the
101	101	73participant’s retirement. Failure of participants to make such payments for the purchase of credits
102	102	74to the state board of retirement shall result in no addition to the participant’s creditable years
103	103	75being considered in the determination of retirement benefits until payments are made.
104	104	76 Notwithstanding the credit, the total normal yearly amount of the retirement allowance,
105	105	77as determined pursuant to said section 5 of said chapter 32, of any employee who retires and 5 of 8
106	106	78receives the program benefit shall not exceed 80 per cent of the average annual rate of the
107	107	79employee’s regular compensation as determined pursuant to said section 5 of said chapter 32.
108	108	80 (b) An employee shall not: (i) be eligible for both of the 2 different retirement incentives
109	109	81as noted in clauses (i) and (ii) of subsection (b) of section 2 (b); (ii) become eligible for 1
110	110	82incentive by virtue of the application of a different incentive; and (iii) utilize the incentive to
111	111	83qualify for any other rights or benefits under chapter 32 of the General Laws. An employee who
112	112	84retires and receives an additional retirement benefit pursuant to this act shall be considered
113	113	85retired for superannuation purposes under said chapter 32 and shall be subject to said chapter 32.
114	114	86A married employee who retires and receives an additional benefit under this act shall be subject
115	115	87to the requirements of the second paragraph of subdivision (1) of section 12 of said chapter 32.
116	116	88 (c) Notwithstanding paragraph (a) of subdivision (2) of section 5 of chapter 32 of the
117	117	89General Laws, an eligible employee retiring under the state universities retirement incentive
118	118	90program who has served in
119	119	91 more than one group shall receive a retirement allowance as if the employee served only
120	120	92as a Group 1 employee for the entire length of state service and shall not receive a retirement
121	121	93allowance consisting of pro-rated benefits based upon the percentage of total years of service that
122	122	94the employee rendered in each group.
123	123	95 SECTION 6. The state board of retirement shall provide retirement counseling to
124	124	96employees who apply to retire under the state universities retirement incentive program or to
125	125	97eligible employees who request retirement counseling. Counseling services shall be scheduled
126	126	98between December 1, 2023 and April 1, 2024. Counseling by the board shall include, but need
127	127	99not be limited to: (i) a full explanation of the retirement benefits provided by the program; (ii) a 6 of 8
128	128	100comparison of the expected lifetime retirement benefits payable to an employee under the
129	129	101retirement incentive program and under chapter 32 of the General Laws; (iii) the election of a
130	130	102retirement option under section 12 of said chapter 32; (iv) the restrictions on employment after
131	131	103retirement; (v) the laws relative to the payment of cost-of-living adjustments to the retirement
132	132	104allowance; and (vi) the effect of federal and state taxation on retirement income. The group
133	133	105insurance commission shall provide counseling regarding the provision of health care benefits
134	134	106under chapter 32A of the General Laws. Each employee shall sign a statement that the employee
135	135	107has received counseling or has elected not to receive counseling prior to the approval by the
136	136	108board of the employee's application for superannuation benefits and the additional benefit
137	137	109provided by this act.
138	138	110 SECTION 7. Notwithstanding any general or special law or any collective bargaining
139	139	111agreement or other employment contract to the contrary and in consideration of the benefits
140	140	112conferred in this act, an employee who elects to retire under this act shall receive payment for
141	141	113accrued vacation time, buyback of pro-rated unused sick leave, and other benefits under the
142	142	114collective bargaining agreement or other employment contract. The board shall deny an
143	143	115application for the state universities retirement incentive program under this act by an employee
144	144	116who belongs to a bargaining unit for which a collective bargaining agreement inconsistent with
145	145	117this section is in effect at the time of the application unless the employee organization
146	146	118representing the employee has filed with the board and the secretary of administration and
147	147	119finance a statement waiving any inconsistent provisions of the agreement on behalf of all
148	148	120members of the bargaining unit who file applications for the retirement incentive program
149	149	121pursuant to this act. 7 of 8
150	150	122 SECTION 8. Notwithstanding section 91 of chapter 32 of the General Laws, an employee
151	151	123retired under this act may teach on a part-time basis or accept part-time state employment subject
152	152	124only to the limitations provided by law. A member who retired under the state universities
153	153	125retirement incentive program shall be eligible for reinstatement under section 105 of said chapter
154	154	12632. If an individual who receives an incentive through this program subsequently accepts full-
155	155	127time employment with any state agency, including a state university, the employee shall: (i)
156	156	128repay the cash incentive payment; or (ii) lose the additional creditable years of service or age. If
157	157	129the employee loses the additional creditable years of service or age, the state board of retirement
158	158	130shall repay the state university and employee, as appropriate, for any purchased service and age
159	159	131credits, with no interest, as determined by the state board of retirement.
160	160	132 SECTION 9. Not later than June 1, 2024, the secretary of administration and finance
161	161	133shall file with the house and senate committees on ways and means a report detailing: the
162	162	134number of employee applications received for the state universities retirement incentive
163	163	135program; the anticipated dates of
164	164	136 retirement for each participant; the official positions of the employees; and the impact of
165	165	137program participation on each state university’s ability to carry out its responsibilities as
166	166	138provided by law. Further, this report shall detail the implementation of clauses (i) and (ii) of
167	167	139subsection (b) of section 2, including: (i) the number of employees who plan to separate from
168	168	140state service pursuant to each clause; (ii) the timing of each planned separation; (iii) the official
169	169	141positions of the employees; (iv) the impact that all completed and anticipated separations will
170	170	142have on each state university’s ability to carry out its responsibilities as provided by law; and (v)
171	171	143the estimated net cost-savings in fiscal year 2025 through fiscal year 2028 for each state
172	172	144university associated with implementation of this program. 8 of 8
173	173	145 SECTION 10. Participating state university shall certify, to the state comptroller and the
174	174	146state board of retirement, the following information 15 days prior to the various dates of
175	175	147retirement: (i) the current annual salary as well as the salary at date of retirement of each
176	176	148individual who has enrolled in the state universities retirement incentive program; (ii) the item of
177	177	149appropriation in which the position is funded; (iii) the classification and title of the position; (iv)
178	178	150the retirement date for the person who will retire from the position; and, (v) the amounts of
179	179	151projected accrued vacation time, unused sick leave buyback or other accrued benefits for each
180	180	152employee as of the employee’s date of retirement.
181	181	153 SECTION 11. The executive director of the public employee retirement administration
182	182	154commission, established in section 49 of chapter 7 of the General Laws, shall analyze, study and
183	183	155evaluate the costs and actuarial liabilities attributable to the additional benefits payable pursuant
184	184	156to this act. Not later than September 30, 2028, the commission shall file a report with the
185	185	157secretary of administration and finance, the joint committee on public service and the house and
186	186	158senate committees on ways and means regarding its findings.
187	187	159 SECTION 12. Not later than November 30, 2028, the secretary of administration and
188	188	160finance shall file with the house and senate committees on ways and means a subsequent report
189	189	161detailing: (i) the number of employees participating in the state universities retirement incentive
190	190	162program; (ii) the estimated costs and savings in fiscal year 2025 through fiscal year 2028 as a
191	191	163result of the employees’ participation; and (iii) the number of positions that have been either
192	192	164refilled or not refilled during those periods. For each position that has not been refilled, the report
193	193	165shall detail how the duties and expertise associated with the position have been fulfilled or
194	194	166otherwise accounted for by the state university.