Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1689 Compare Versions

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22 SENATE DOCKET, NO. 1997 FILED ON: 1/20/2023
33 SENATE . . . . . . . . . . . . . . No. 1689
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Anne M. Gobi
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act relative to non-Commonwealth entities within the state employees’ retirement system.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :Anne M. GobiWorcester and HampshireDeborah B. Goldberg, Treasurer and
1616 Receiver General
1717 Treasurer 1 of 3
1818 SENATE DOCKET, NO. 1997 FILED ON: 1/20/2023
1919 SENATE . . . . . . . . . . . . . . No. 1689
2020 By Ms. Gobi, a petition (accompanied by bill, Senate, No. 1689) of Anne M. Gobi and Deborah
2121 B. Goldberg, Treasurer and Receiver General for legislation relative to non-Commonwealth
2222 entities within the state employees’ retirement system. Public Service.
2323 The Commonwealth of Massachusetts
2424 _______________
2525 In the One Hundred and Ninety-Third General Court
2626 (2023-2024)
2727 _______________
2828 An Act relative to non-Commonwealth entities within the state employees’ retirement system.
2929 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
3030 of the same, as follows:
3131 1 SECTION 1. Paragraph (c) of sub-section 4 of section 28 of chapter 32 of the General
3232 2Laws, as appearing in the 2020 Official Edition, is hereby amended to read as follows:
3333 3 (c) Notwithstanding any general or special law to the contrary, each district, non-
3434 4commonwealth governmental unit, or educational collaborative as authorized by the provisions
3535 5of section four E of chapter forty, the employees of which have become, or which become
3636 6members of the state employees retirement system under the provisions of this subdivision or
3737 7any other previous act, shall remit to the state board of retirement as the employer's normal cost
3838 8as determined by the actuary, of benefits earned during each year by such employees who are
3939 9members of the state employees' retirement system.
4040 10 The actuary shall determine such cost as a percentage of the payroll of the district, non-
4141 11commonwealth entity and collaborative for such employees based upon the most recent actuarial
4242 12valuation of the state retirement system. The actuary may consider factors including types of 2 of 3
4343 13governmental unit, employee demographic information, and employee group classification to
4444 14help in the determination of said percentage. Said cost shall be paid monthly and deposited in
4545 15the pension reserve fund of the state employees' retirement system. The actuary shall review the
4646 16percentage determined in this paragraph at least every three years.
4747 17 SECTION 2. Sub-section (4) of section 28 of chapter 32 is hereby amended by adding
4848 18the following paragraph:
4949 19 (d) The state retirement board upon terms and conditions it may establish, may require a
5050 20participating employer governed by this sub-section, who fails to remit either its normal cost
5151 21amount as determined in paragraph (c), or the contributions made on behalf of employees who
5252 22are members of the Massachusetts State Employees Retirement System as required by section 22
5353 23of Chapter 32, by the first day of the second month following the work month, to pay an
5454 24additional amount equal to 10% of the total amount of delinquent contributions. The state
5555 25retirement board shall have the right to commence an action in contract for payment of
5656 26outstanding amounts determined to be due in accordance with the provisions of this chapter.
5757 27 SECTION 3. Reimbursements currently outstanding to the state retirement board under
5858 28paragraph (c) of sub-section (4) of section 28 of chapter 32 for calendar years 2013, 2014, and
5959 292015 shall not be required.
6060 30 Reimbursements currently outstanding to the state retirement board under paragraph (c)
6161 31of sub-section (4) of section 28 of chapter 32 for calendar years 2016, 2017 and 2018 shall be
6262 32required and remitted under terms and conditions as may be prescribed by the board.
6363 33 SECTION 4. For purposes of section 28 of chapter 32, “non-commonwealth
6464 34governmental unit” shall mean an employer as defined in section one of chapter 32 whose 3 of 3
6565 35employees are not employees of the commonwealth or an agency thereof, employed in a position
6666 36in the service of the commonwealth, and whose regular compensation is not paid by the
6767 37commonwealth, eligible for membership in the state employees retirement system and the
6868 38requirements in connection therewith.
6969 39 SECTION 5. Sections 1 and 2 of this act shall take effect on July 1, 2024.