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SENATE DOCKET, NO. 1997 FILED ON: 1/20/2023
SENATE . . . . . . . . . . . . . . No. 1689
The Commonwealth of Massachusetts
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PRESENTED BY:
Anne M. Gobi
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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 non-Commonwealth entities within the state employees’ retirement system.
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PETITION OF:
NAME:DISTRICT/ADDRESS :Anne M. GobiWorcester and HampshireDeborah B. Goldberg, Treasurer and
Receiver General
Treasurer 1 of 3
SENATE DOCKET, NO. 1997 FILED ON: 1/20/2023
SENATE . . . . . . . . . . . . . . No. 1689
By Ms. Gobi, a petition (accompanied by bill, Senate, No. 1689) of Anne M. Gobi and Deborah
B. Goldberg, Treasurer and Receiver General for legislation relative to non-Commonwealth
entities within the state employees’ retirement system. Public Service.
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act relative to non-Commonwealth entities within the 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. Paragraph (c) of sub-section 4 of section 28 of chapter 32 of the General
2Laws, as appearing in the 2020 Official Edition, is hereby amended to read as follows:
3 (c) Notwithstanding any general or special law to the contrary, each district, non-
4commonwealth governmental unit, or educational collaborative as authorized by the provisions
5of section four E of chapter forty, the employees of which have become, or which become
6members of the state employees retirement system under the provisions of this subdivision or
7any other previous act, shall remit to the state board of retirement as the employer's normal cost
8as determined by the actuary, of benefits earned during each year by such employees who are
9members of the state employees' retirement system.
10 The actuary shall determine such cost as a percentage of the payroll of the district, non-
11commonwealth entity and collaborative for such employees based upon the most recent actuarial
12valuation of the state retirement system. The actuary may consider factors including types of 2 of 3
13governmental unit, employee demographic information, and employee group classification to
14help in the determination of said percentage. Said cost shall be paid monthly and deposited in
15the pension reserve fund of the state employees' retirement system. The actuary shall review the
16percentage determined in this paragraph at least every three years.
17 SECTION 2. Sub-section (4) of section 28 of chapter 32 is hereby amended by adding
18the following paragraph:
19 (d) The state retirement board upon terms and conditions it may establish, may require a
20participating employer governed by this sub-section, who fails to remit either its normal cost
21amount as determined in paragraph (c), or the contributions made on behalf of employees who
22are members of the Massachusetts State Employees Retirement System as required by section 22
23of Chapter 32, by the first day of the second month following the work month, to pay an
24additional amount equal to 10% of the total amount of delinquent contributions. The state
25retirement board shall have the right to commence an action in contract for payment of
26outstanding amounts determined to be due in accordance with the provisions of this chapter.
27 SECTION 3. Reimbursements currently outstanding to the state retirement board under
28paragraph (c) of sub-section (4) of section 28 of chapter 32 for calendar years 2013, 2014, and
292015 shall not be required.
30 Reimbursements currently outstanding to the state retirement board under paragraph (c)
31of sub-section (4) of section 28 of chapter 32 for calendar years 2016, 2017 and 2018 shall be
32required and remitted under terms and conditions as may be prescribed by the board.
33 SECTION 4. For purposes of section 28 of chapter 32, “non-commonwealth
34governmental unit” shall mean an employer as defined in section one of chapter 32 whose 3 of 3
35employees are not employees of the commonwealth or an agency thereof, employed in a position
36in the service of the commonwealth, and whose regular compensation is not paid by the
37commonwealth, eligible for membership in the state employees retirement system and the
38requirements in connection therewith.
39 SECTION 5. Sections 1 and 2 of this act shall take effect on July 1, 2024.