Massachusetts Senate Bill S2522

Massachusetts 2023-2024 Regular Session

• Introduced: 11/14/23
• Refer: 11/14/23
• Refer: 1/29/24

Caption

Relative to the creditable service of former employees of the Massachusetts Development Finance Agency

Impact

The passage of S2522 would directly impact the retirement landscape for former employees of the Massachusetts Development Finance Agency. By enabling these employees to buy back service credits, the bill seeks to improve the financial security and retirement benefits for individuals who may have previously been employed in roles with different compensation structures. This change is seen as a positive step towards recognizing the contributions of these employees and ensuring their retirement credits reflect their total public service in the state.

Summary

Bill S2522, introduced by Senator Barry R. Finegold, aims to enhance the retirement benefits of former employees of the Massachusetts Development Finance Agency. Specifically, the bill allows these former employees to be credited for their prior service in a retirement system, as long as they pay the corresponding retirement deductions into the annuity savings fund of their current retirement system. This provision is designed to address gaps in service credit that may disadvantage individuals transitioning from the Development Finance Agency to other roles within the public sector.

Contention

While the bill appears to have support for its intent to offer more equitable retirement benefits, notable points of contention could arise regarding the funding implications of allowing such buybacks. Critics may argue about the long-term financial impact on the state's retirement systems and whether this sets a precedent for other public sector employees seeking similar benefits. Additionally, the mechanics of how these deductions would be calculated and paid back into the system could lead to further discussions regarding fairness and administrative feasibility.