1 of 3 HOUSE DOCKET, NO. 21 FILED ON: 1/2/2025 HOUSE . . . . . . . . . . . . . . . No. 21 The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act relative to Chapter 32 Section 8 and modifications of retirement allowances. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 Paragraph (a) of Subdivision (1) of Section 8 of Chapter 32, as most recently amended by 2Section 69 of Chapter 140 of the Acts of 2024, is hereby amended by striking “ without a 3medical or vocational rehabilitation program, or whether such member's return to his former or 4similar job within the same department would likely be expedited by participation in a medical 5or vocational rehabilitation program”. 6 Said Paragraph (a) is further amended by striking the 3rd and 4th paragraphs. 7 Paragraph (a) of Subdivision 2 of Section 8 is hereby amended by striking “if following 8the completion of a rehabilitation program required under subdivision (1), a regional medical 9pane so finds,” 10 Subdivision (3) of Section 8 of Chapter 32, is hereby amended by striking subdivision (3) 11and inserting in its place: 2 of 3 12 (3) Modifications of retirement allowances.If as a result of such medical report by a 13regional medical panel, as a result of the submission of earnings information under section 14ninety-one A, the commission finds that such retired member is engaged in gainful occupation 15and has excess earnings, for three or more consecutive years, which result in the repayment of 16his or her entire retirement allowance pursuant to section 91A, said member’s retirement 17allowance shall be modified prospectively. 18 When a determination is made that a retirement allowance shall be modified, the retiree 19and the appropriate Retirement Board will be notified, and the retiree will be given the 20opportunity to be heard by the Commission or its designee. When the determination is final, the 21retiree and the appropriate Retirement Board will be advised. The retiree may appeal the 22Commission’s determination to the Contributory Retirement Appeal Board pursuant to section 2316. Such modification shall remain in effect, for at least one year, unless such medical report 24finds that the mental or physical condition of such member has deteriorated. If the annual rate of 25his earnings should later be changed, the yearly amount of his pension shall be further modified 26by reinstating, increasing, reducing, or suspending it, as the case may be. 27 The applicable Retirement Board may pay over to a health insurance carrier that portion 28of the allowance to maintain the disability retiree’s health insurance coverage. A retiree whose 29allowance is modified pursuant to this process will continue to be considered as a disability 30retiree for purposes of chapter 32A, chapter 32B, chapter 34B, and section 100B of chapter 41. 31 The public employee retirement administration commission shall, subject to the 32provisions of section fifty of chapter seven, promulgate regulations establishing, and providing a 33system for annually adjusting for inflation and such other equitable factors as the commission 3 of 3 34deems relevant, the fair amount of outside income that may be earned by a member retired 35pursuant to section six or seven, and shall promulgate regulations for the determination of the 36potential earnings of any such retired member based upon such member's functional capacity, 37age, education, and experience.