Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H2742 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	HOUSE DOCKET, NO. 3714 FILED ON: 1/17/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 2742
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	James Arciero
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to cost of living adjustments for retired public employees of the Commonwealth.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:James Arciero2nd Middlesex1/17/2025Dennis C. Gallagher8th Plymouth1/17/2025Colleen M. Garry36th Middlesex1/25/2025Christopher Hendricks11th Bristol1/23/2025 1 of 5
16	16	HOUSE DOCKET, NO. 3714 FILED ON: 1/17/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 2742
18	18	By Representative Arciero of Westford, a petition (accompanied by bill, House, No. 2742) of
19	19	James Arciero and others relative to cost of living adjustments for retired public employees of
20	20	the Commonwealth. Public Service.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE HOUSE, NO. 2427 OF 2023-2024.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Fourth General Court
26	26	(2025-2026)
27	27	_______________
28	28	An Act relative to cost of living adjustments for retired public employees of the Commonwealth.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. Section 22D of said Chapter 32, as appearing in the 2010 Official Edition,
32	32	2is amended by inserting in line 32 after the word “approve” the following words: —provided
33	33	3further, however, that in the event that a system has accepted the provisions of paragraph (j) of
34	34	4Section 103, the funding schedule, and any updates thereto, shall be designed to reduce the
35	35	5unfunded actuarial liability of said system to zero as of such year, that may be subsequent to June
36	36	630, 2028, as the commission shall approve.
37	37	7 SECTION 2. Paragraph (c) of Section 102 of said Chapter 32, is amended by striking out
38	38	8in each instance the dollar amount “$13,000” and inserting in place thereof the following dollar
39	39	9amount:—$16,000. 2 of 5
40	40	10 SECTION 3. Section 103 of said Chapter 32 is amended by inserting the following new
41	41	11paragraph:—
42	42	12 (j) Notwithstanding the provisions of paragraph (a) to the contrary, the board of any
43	43	13system may, by accepting the provisions of this paragraph as hereinafter provided, elect to pay a
44	44	14cost-of-living adjustment on a base amount greater than $16,000. Acceptance of this paragraph
45	45	15shall be by a majority vote of the board of such system, subject to the approval of the legislative
46	46	16body. For the purpose of this paragraph, “legislative body” shall mean, the city council in
47	47	17accordance with its charter, in the case of a town, the town meeting, in the case of a county or
48	48	18region, the county or regional retirement board advisory council, in the case of a district, the
49	49	19district members, and, in the case of an authority, the governing body. Acceptance of this
50	50	20paragraph shall be deemed to have occurred upon the filing of the certification of such vote with
51	51	21the commission. A decision to accept the provisions of this paragraph may not be revoked.
52	52	22 SECTION 4: Subdivision (3) of section 21 of Chapter 32 is hereby amended by striking
53	53	23out paragraph (f) and inserting in place thereof the following paragraph:
54	54	24 (f) the preparation and filing with the general court, of a report, annually, in the month of
55	55	25January, on the computation of any increase in the United States Consumer Price Index and the
56	56	26percentage thereof in the previous year by the Commissioner of Social Security, including a
57	57	27statement that such increase in said Consumer Price Index during the last previous year requires
58	58	28a cost of living increase in the retirement allowances, pensions or annuities of eligible members,
59	59	29as defined in sections 102 and 103, equal to the percentage increase in the Consumer Price Index
60	60	30or 3 per cent, whichever is greater. 3 of 5
61	61	31 SECTION 5: Section 102 of Chapter 32 is hereby amended by striking out paragraph (a)
62	62	32and inserting in place thereof the following paragraph:
63	63	33 (a)The actuary in the commission shall annually in the month of January file with the
64	64	34clerk of the house of representatives the report prepared in accordance with paragraph (f) of
65	65	35subdivision (3) of section 21. The retirement allowance, pension or annuity of every member of
66	66	36the state employees’ system and the teachers’ retirement system who has received a retirement
67	67	37allowance, pension or annuity on June 30 of the preceding fiscal year, or of a spouse or other
68	68	38beneficiary of such member who has received a retirement allowance, pension or annuity on
69	69	39June 30 of the prior fiscal year, shall be increased by the percentage as determined by the
70	70	40actuary’s report; provided that notwithstanding the actuary’s report the cost of living increase
71	71	41shall be at least three percent. The cost of living adjustment shall be applied each July 1. Said
72	72	42cost of living increase shall be funded from the investment income account of the state
73	73	43employees’ and state teachers’ systems. The sum of the dollar amount of each cost of living
74	74	44increase, together with the amount of retirement allowance, pension or annuity to which the cost
75	75	45of living per cent factor is applied, shall become the fixed retirement allowance, pension or
76	76	46annuity for all future purposes, including the application of subsequent cost of living adjustments
77	77	47in future years.
78	78	48 SECTION 8. Section 102 of Chapter 32 is hereby amended by adding after paragraph (c)
79	79	49the following clauses:
80	80	50 (i) In any case as of June 30, 2021 but prior to June 30, 2024 where such former
81	81	51employee, spouse, or other beneficiary is receiving an annual retirement allowance, pension or
82	82	52annuity which is eighty-five percent of the maximum social security benefit or more exclusive of 4 of 5
83	83	53additional annuity obtained by special purchase under paragraph (g) of subdivision (1) of section
84	84	5422 or any similar law, the cost of living adjustment shall be in an amount determined by applying
85	85	55the per centum of change determined pursuant to paragraph (a) to the sum of eighty-five percent
86	86	56of the maximum social security benefit. Whenever a cost of living adjustment is granted pursuant
87	87	57to said paragraph (a), the dollar amount of such increase as determined in said paragraph (a) shall
88	88	58be added to each retirement allowance, pension or annuity which is in excess of said maximum
89	89	59base amount. The sum of the dollar amount of such cost of living adjustments, together with the
90	90	60amount of retirement allowance, pension or annuity to which the cost of living per centum factor
91	91	61is applied and any amounts in excess of said eighty-five percent of the maximum social security
92	92	62benefit shall become the fixed retirement allowance, pension or annuity for all future purposes
93	93	63including the application of subsequent cost of living adjustments in future years; provided,
94	94	64however, that the limitations of this paragraph shall continue to apply.
95	95	65 (ii) In any case as of June 30, 2024 but prior to June 30, 2028 where such former
96	96	66employee, spouse, or other beneficiary is receiving an annual retirement allowance, pension or
97	97	67annuity which is ninety-five percent of the maximum social security benefit or more exclusive of
98	98	68additional annuity obtained by special purchase under paragraph (g) of subdivision (1) of section
99	99	6922 or any similar law, the cost of living adjustment shall be in an amount determined by applying
100	100	70the per centum of change determined pursuant to paragraph (a) to the sum of ninety-five percent
101	101	71of the maximum social security benefit. Whenever a cost of living adjustment is granted pursuant
102	102	72to said paragraph (a), the dollar amount of such increase as determined in said paragraph (a) shall
103	103	73be added to each retirement allowance, pension or annuity which is in excess of said maximum
104	104	74base amount. The sum of the dollar amount of such cost of living adjustments, together with the
105	105	75amount of retirement allowance, pension or annuity to which the cost of living per centum factor 5 of 5
106	106	76is applied and any amounts in excess of said ninety-five percent of the maximum social security
107	107	77benefit shall become the fixed retirement allowance, pension or annuity for all future purposes
108	108	78including the application of subsequent cost of living adjustments in future years; provided,
109	109	79however, that the limitations of this paragraph shall continue to apply.
110	110	80 (iii) In any case as of June 30, 2028 where such former employee, spouse, or other
111	111	81beneficiary is receiving an annual retirement allowance, pension or annuity which is one hundred
112	112	82percent of the maximum social security benefit or more exclusive of additional annuity obtained
113	113	83by special purchase under paragraph (g) of subdivision (1) of section 22 or any similar law, the
114	114	84cost of living adjustment shall be in an amount determined by applying the per centum of change
115	115	85determined pursuant to paragraph (a) to the sum of one hundred percent of the maximum social
116	116	86security benefit. Whenever a cost of living adjustment is granted pursuant to said paragraph (a),
117	117	87the dollar amount of such increase as determined in said paragraph (a) shall be added to each
118	118	88retirement allowance, pension or annuity which is in excess of said maximum base amount. The
119	119	89sum of the dollar amount of such cost of living adjustments, together with the amount of
120	120	90retirement allowance, pension or annuity to which the cost of living per centum factor is applied
121	121	91and any amounts in excess of said one hundred percent of the maximum social security benefit
122	122	92shall become the fixed retirement allowance, pension or annuity for all future purposes including
123	123	93the application of subsequent cost of living adjustments in future years; provided, however, that
124	124	94the limitations of this paragraph shall continue to apply.