Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H2825 Compare Versions

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

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 3445 FILED ON: 1/17/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 2825
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Ann-Margaret Ferrante
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 expanding access to retirement savings.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Ann-Margaret Ferrante5th Essex1/17/2025 1 of 4
16	16	HOUSE DOCKET, NO. 3445 FILED ON: 1/17/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 2825
18	18	By Representative Ferrante of Gloucester, a petition (accompanied by bill, House, No. 2825) of
19	19	Ann-Margaret Ferrante for legislation to expand access to retirement savings for certain state
20	20	employees. Public Service.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Fourth General Court
24	24	(2025-2026)
25	25	_______________
26	26	An Act expanding access to retirement savings.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 SECTION 1. Section 64 of chapter 29 of the General Laws, as appearing in the 2022
30	30	2Official Edition, is hereby amended by striking, in line 31, the words “independent contractors”
31	31	3and inserting in place thereof the following:- contracted employees
32	32	4 SECTION 2. Said section 64 of said chapter 29 of the General Laws, as so appearing, is
33	33	5hereby further amended by inserting at the end thereof the following paragraph:-
34	34	6 The state treasurer, on behalf of the commonwealth, may establish an automatic
35	35	7enrollment feature within the deferred compensation program. The automatic enrollment feature
36	36	8shall not require prior authorization by an employee, and is hereby deemed to be an exception to
37	37	9the provisions of the Massachusetts Wage Act or any other state law requiring employee
38	38	10authorization for a payroll deduction or any similar ordinance of a governmental body. The
39	39	11details of the automatic enrollment feature shall be set forth in the deferred compensation plan
40	40	12document and shall include, but not be limited to, the following provisions: 2 of 4
41	41	13 (a) automatic enrollment shall apply only to new employees of the commonwealth,
42	42	14meaning employees hired on or after June 1, 2024; provided, however, that for any
43	43	15commonwealth agencies or departments that purchase or make payments to an individual or
44	44	16group annuity contract, custodial account, or any other investment authorized under section
45	45	17403(b) of the Internal Revenue Code for its employees, automatic enrollment shall only apply at
46	46	18said agency’s or department’s discretion and affirmative election;
47	47	19 (b) automatic enrollment shall apply only to new employees of a “governmental body”,
48	48	20as defined in section 64B of chapter 29 of these general laws, if the governmental body elects to
49	49	21implement the automatic enrollment feature for its employees;
50	50	22 (c) automatic enrollment may not require more than the IRS safe harbor maximum
51	51	23deferral percentage;
52	52	24 (d) the amount of compensation deferred by an automatically-enrolled employee shall
53	53	25automatically increase by a specified amount each year unless the participating employee elects
54	54	26not to participate in auto escalation or elects to defer a different amount than specified;
55	55	27 (e) an employee who is automatically enrolled shall no more than ninety days to
56	56	28discontinue participation in the plan;
57	57	29 (f) an automatically-enrolled employee who discontinues participation in the plan within
58	58	30ninety days shall receive a refund of their account as soon as practicable after discontinuing
59	59	31participation; 3 of 4
60	60	32 (g) a qualified default investment option to receive contributions by any automatically-
61	61	33enrolled employee who does not choose an investment alternative to receive the employee’s
62	62	34contributions; and
63	63	35 (h) notice requirements to automatically-enrolled participants in accordance with the
64	64	36Internal Revenue Code and applicable IRS Rulings.
65	65	37 SECTION 3. Section 64B of chapter 29 of the General Laws, as so appearing, is hereby
66	66	38amended by inserting between the third and fourth paragraphs the following new paragraph:-
67	67	39 The treasurer or, in the absence of the treasurer, the chief financial officer by whatever
68	68	40name that person is called, on behalf of a governmental body, may, at its own election,
69	69	41implement an automatic enrollment feature within its deferred compensation program established
70	70	42pursuant to this section 64B, chapter 29. The automatic enrollment feature shall not require
71	71	43advance authorization by an employee and is hereby deemed to be an exception to the provisions
72	72	44 of the Massachusetts Wage Act or any other state law requiring employee authorization
73	73	45for a payroll deduction or any similar ordinance of a governmental body. Subject to the election
74	74	46of each governmental body, any such auto enrollment feature permitted as a part of a
75	75	47governmental body’s deferred compensation program shall only apply to new employees of a
76	76	48governmental body hired on or after June 1, 2024 and such deferred compensation program will
77	77	49be required to include the specifications for auto enrollment detailed in subsections (b) through
78	78	50(h), inclusively, of section 64 of chapter 29 of said General Laws.
79	79	51 SECTION 4. Section 64E of chapter 29 of the General Laws, as appearing in the 2022
80	80	52Official Edition, is hereby amended by striking, in lines 5 and 6, the words “and employing not
81	81	53more than 20 persons,” 4 of 4
82	82	54 SECTION 5. Said section 64E of said chapter 29, as so appearing, is hereby further
83	83	55amended by inserting at the end thereof the following subsection:-
84	84	56 (g) Notwithstanding any general or special law to the contrary, the state treasurer, or
85	85	57designee, may seek to reduce operating expenses for the plan through private donations or grants,
86	86	58which may include direct and indirect fundraising.