Massachusetts House Bill H1395

Massachusetts 2025-2026 Regular Session

• Introduced: 2/27/25
• Refer: 2/27/25
• Refer: 3/31/25

Caption

To provide retirement security to care workers

Impact

The establishment of this retirement account program is expected to have a significant impact on both the workforce and the overall approach to care services in Massachusetts. By facilitating retirement savings options for personal care attendants and family child care providers, the bill addresses long-standing financial insecurities faced by these critical workers. Additionally, it mandates that state employers contribute to the accounts, thus incentivizing retention and promoting stability within these sectors. The governance structure that includes labor representatives is also seen as a way to enhance worker engagement in decision-making processes surrounding their financial futures.

Summary

House Bill 1395, titled 'An Act to provide retirement security to care workers,' focuses on enhancing the financial security of personal care attendants and family child care providers in Massachusetts. Under this legislation, the Executive Office of Health and Human Services (EOHHS) and the Department of Early Education and Care (EEC) will develop an individual retirement account program. This program aims to allow eligible care workers to save for their retirement through payroll deductions and supported by contributions from the state. The involvement of specific labor organizations ensures that the interests of these workers are adequately represented in the program's development and governance.

Contention

While the bill presents various potential benefits, it may raise contention regarding the funding and structure of the program as well as the implications for state budgets. Advocates of the bill emphasize the need for such provisions to safeguard the welfare of care workers, while skeptics may highlight concerns over the state’s budgetary priorities and the sustainability of the employer contributions mandated by the bill. Furthermore, the involvement of labor organizations might raise questions about the operational framework of the program and balance between regulation and flexibility for employers.