Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H2843 Compare Versions

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

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2	2	HOUSE DOCKET, NO. 250 FILED ON: 1/7/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 2843
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Carmine Lawrence Gentile
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 to provide retirement incentives in public higher education.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Carmine Lawrence Gentile13th Middlesex1/7/2025James B. EldridgeMiddlesex and Worcester2/10/2025Danillo A. Sena37th Middlesex1/31/2025 1 of 8
16	16	HOUSE DOCKET, NO. 250 FILED ON: 1/7/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 2843
18	18	By Representative Gentile of Sudbury, a petition (accompanied by bill, House, No. 2843) of
19	19	Carmine Lawrence Gentile, James B. Eldridge and Danillo A. Sena for legislation to provide
20	20	retirement incentives in public higher education. Public Service.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE HOUSE, NO. 3857 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 to provide retirement incentives in public higher education.
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. For the purposes of this act, the following word shall, unless the context
32	32	2clearly requires otherwise, have the following meaning:
33	33	3 “State employees retirement board” or “board”, the board established in section 18 of
34	34	4chapter 10 of the General Laws for the purposes of administering the state employees’ retirement
35	35	5system.
36	36	6 “State university”, an institution listed in section 5 of chapter 15A of the General Laws.
37	37	7 “State universities retirement incentive program” or “program”, the program established
38	38	8in section 3. 2 of 8
39	39	9 SECTION 2. (a) Notwithstanding any general or special law to the contrary, the state
40	40	10universities shall achieve direct payroll savings in fiscal year 2027 and beyond through
41	41	11implementation of this act.
42	42	12 (b) To achieve the savings required by subsection (a), a state university may: (i) offer 1-
43	43	13time incentive payments to encourage employees to resign or retire; or (ii) implement the
44	44	14retirement incentive program as described in sections 3 to 7, inclusive.
45	45	15 (b) The state universities shall, not later than March 20, 2026, provide notice to the state
46	46	16board of retirement on the number of employees anticipated to separate from state service, and
47	47	17anticipated timing, under clauses (i) and (ii) of subsection (b).
48	48	18 SECTION 3. (a) Notwithstanding chapter 32 of the General Laws or any other general or
49	49	19special law to the contrary, the state board of retirement shall establish and implement a
50	50	20retirement incentive for employees of state universities, to be known as the state universities
51	51	21retirement incentive program.
52	52	22 (b) To be considered eligible by the state board of retirement for any of the benefit
53	53	23options under the program, an employee shall: (i) be an employee, as of the effective date of this
54	54	24act and through the date of retirement established in section 4, of a state university, the board of
55	55	25trustees of which has approved participation in this program by January 1, 2026; (ii) be a
56	56	26member in service of the state employees’ retirement system pursuant to clause (i) of paragraph
57	57	27(a) of subdivision (1) of section 3 of chapter 32 of the General Laws as of the effective date of
58	58	28this act and have 25 years or more of creditable state service at the time of their program
59	59	29application; (iii) be classified in Group 1 of the state employees’ retirement system pursuant to
60	60	30paragraph (g) of subdivision (2) of said section 3 of said chapter 32 as of the effective date of 3 of 8
61	61	31this act; (iv) be eligible to receive a superannuation retirement allowance in the absence of the
62	62	32program pursuant to subdivision (1) of section 5 of said chapter 32 or subdivision (1) of section
63	63	3310 of said chapter 32 as of the effective date of this act; (v) have not notified, in writing, as of
64	64	34January 1, 2026, either the state university or the state board of retirement of their planned
65	65	35retirement or separation from the university within the next year; and (vi) file a timely
66	66	36application with the board pursuant to section 4.
67	67	37 (c) Notwithstanding subsections (a) and (b), the following employees shall not be eligible
68	68	38to receive any benefit from the program: (i) employees whose compensation is funded from a
69	69	39capital appropriation or federal grant, as each is defined in section 1 of chapter 29 of the General
70	70	40Laws, as of the filing date for the application pursuant to section 4; (ii) elected officials; and (iii)
71	71	41employees or members of the state employees’ retirement system who, as of the effective date of
72	72	42this act, are not contributing to the retirement system or have not completed reinstatement
73	73	43pursuant to section 105 of said chapter 32.
74	74	44 SECTION 4. Notwithstanding section 5 of chapter 32 of the General Laws, an eligible
75	75	45employee shall submit an application to the state board of retirement on or before April 1, 2024
76	76	46in order for the employee to be eligible to receive the retirement benefit provided in this act. The
77	77	47retirement date requested in an eligible employee’s application shall be June 30, 2026 or, upon a
78	78	48state university’s local board of trustees’ approval for delay resulting from multiple employees
79	79	49from the same division choosing to participate in this program or university need, a delayed
80	80	50retirement date of no later than December 31, 2026. Employees may rescind their notice of
81	81	51retirement, up to the earlier of: (i) 1 week prior to their submitted retirement date; or (ii) 1 week
82	82	52prior to an offer of employment for a replacement hire in situations where a replacement hire has 4 of 8
83	83	53been approved. The application for retirement may be delivered to the state board of retirement
84	84	54in person, by mail or in a manner as the board may approve, including by electronic means.
85	85	55 SECTION 5. (a) An employee who is eligible for the state universities retirement
86	86	56incentive program may request in the application for retirement that the state board of retirement
87	87	57credit the employee with an additional retirement benefit pursuant to this section. Each such
88	88	58employee shall request and receive a combination of years of creditable service and years of age,
89	89	59in full-credit increments; provided however, that the sum of the years of creditable service and
90	90	60years of age shall not be greater than 6 total credits for the purposes of determining the
91	91	61employee’s superannuation retirement allowance pursuant to paragraph (a) of subdivision (2) of
92	92	62section 5 of chapter 32 of the General Laws. The employee’s state university of record shall pay
93	93	63to the state board of retirement 2.5 per cent of the participant’s highest 3-year annual average
94	94	64salary for each purchased credit up to a maximum of 6 purchased credits towards their retirement
95	95	65benefit, with 6 credits representing the aggregate payment of 15 per cent of the participant’s
96	96	66highest 3-year annual average salary. The program participant shall pay to the state board of
97	97	67retirement 4.5 per cent of the participant’s highest 3-year annual average salary, plus an
98	98	68additional 1.0 per cent of the participant’s highest 3-year annual average salary above $30,000,
99	99	69for each purchased credit (year of age or year of service) up to a maximum of 6 total purchased
100	100	70credits. Such payment, upon the participant’s approval, may be directed from the state university
101	101	71directly to the state board of retirement from compensated absences payouts at the time of the
102	102	72participant’s retirement. Failure of participants to make such payments for the purchase of credits
103	103	73to the state board of retirement shall result in no addition to the participant’s creditable years
104	104	74being considered in the determination of retirement benefits until payments are made. 5 of 8
105	105	75 Notwithstanding the credit, the total normal yearly amount of the retirement allowance,
106	106	76as determined pursuant to said section 5 of said chapter 32, of any employee who retires and
107	107	77receives the program benefit shall not exceed 80 per cent of the average annual rate of the
108	108	78employee’s regular compensation as determined pursuant to said section 5 of said chapter 32.
109	109	79 (b) An employee shall not: (i) be eligible for both of the 2 different retirement incentives
110	110	80as noted in clauses (i) and (ii) of subsection (b) of section 2 (b); (ii) become eligible for 1
111	111	81incentive by virtue of the application of a different incentive; and (iii) utilize the incentive to
112	112	82qualify for any other rights or benefits under chapter 32 of the General Laws. An employee who
113	113	83retires and receives an additional retirement benefit pursuant to this act shall be considered
114	114	84retired for superannuation purposes under said chapter 32 and shall be subject to said chapter 32.
115	115	85A married employee who retires and receives an additional benefit under this act shall be subject
116	116	86to the requirements of the second paragraph of subdivision (1) of section 12 of said chapter 32.
117	117	87 (c) Notwithstanding paragraph (a) of subdivision (2) of section 5 of chapter 32 of the
118	118	88General Laws, an eligible employee retiring under the state universities retirement incentive
119	119	89program who has served in more than one group shall receive a retirement allowance as if the
120	120	90employee served only as a Group 1 employee for the entire length of state service and shall not
121	121	91receive a retirement allowance consisting of pro-rated benefits based upon the percentage of total
122	122	92years of service that the employee rendered in each group.
123	123	93 SECTION 6. The state board of retirement shall provide retirement counseling to
124	124	94employees who apply to retire under the state universities retirement incentive program or to
125	125	95eligible employees who request retirement counseling. Counseling services shall be scheduled
126	126	96between December 1, 2025 and April 1, 2026. Counseling by the board shall include, but need 6 of 8
127	127	97not be limited to: (i) a full explanation of the retirement benefits provided by the program; (ii) a
128	128	98comparison of the expected lifetime retirement benefits payable to an employee under the
129	129	99retirement incentive program and under chapter 32 of the General Laws; (iii) the election of a
130	130	100retirement option under section 12 of said chapter 32; (iv) the restrictions on employment after
131	131	101retirement; (v) the laws relative to the payment of cost-of-living adjustments to the retirement
132	132	102allowance; and (vi) the effect of federal and state taxation on retirement income. The group
133	133	103insurance commission shall provide counseling regarding the provision of health care benefits
134	134	104under chapter 32A of the General Laws. Each employee shall sign a statement that the employee
135	135	105has received counseling or has elected not to receive counseling prior to the approval by the
136	136	106board of the employee's application for superannuation benefits and the additional benefit
137	137	107provided by this act.
138	138	108 SECTION 7. Notwithstanding any general or special law or any collective bargaining
139	139	109agreement or other employment contract to the contrary and in consideration of the benefits
140	140	110conferred in this act, an employee who elects to retire under this act shall receive payment for
141	141	111accrued vacation time, buyback of pro-rated unused sick leave, and other benefits under the
142	142	112collective bargaining agreement or other employment contract. The board shall deny an
143	143	113application for the state universities retirement incentive program under this act by an employee
144	144	114who belongs to a bargaining unit for which a collective bargaining agreement inconsistent with
145	145	115this section is in effect at the time of the application unless the employee organization
146	146	116representing the employee has filed with the board and the secretary of administration and
147	147	117finance a statement waiving any inconsistent provisions of the agreement on behalf of all
148	148	118members of the bargaining unit who file applications for the retirement incentive program
149	149	119pursuant to this act. 7 of 8
150	150	120 SECTION 8. Notwithstanding section 91 of chapter 32 of the General Laws, an employee
151	151	121retired under this act may teach on a part-time basis or accept part-time state employment subject
152	152	122only to the limitations provided by law. A member who retired under the state universities
153	153	123retirement incentive program shall be eligible for reinstatement under section 105 of said chapter
154	154	12432. If an individual who receives an incentive through this program subsequently accepts full-
155	155	125time employment with any state agency, including a state university, the employee shall: (i)
156	156	126repay the cash incentive payment; or (ii) lose the additional creditable years of service or age. If
157	157	127the employee loses the additional creditable years of service or age, the state board of retirement
158	158	128shall repay the state university and employee, as appropriate, for any purchased service and age
159	159	129credits, with no interest, as determined by the state board of retirement.
160	160	130 SECTION 9. Not later than June 1, 2026, the secretary of administration and finance
161	161	131shall file with the house and senate committees on ways and means a report detailing: the
162	162	132number of employee applications received for the state universities retirement incentive
163	163	133program; the anticipated dates of retirement for each participant; the official positions of the
164	164	134employees; and the impact of program participation on each state university’s ability to carry out
165	165	135its responsibilities as provided by law. Further, this report shall detail the implementation of
166	166	136clauses (i) and (ii) of subsection (b) of section 2, including: (i) the number of employees who
167	167	137plan to separate from state service pursuant to each clause; (ii) the timing of each planned
168	168	138separation; (iii) the official positions of the employees; (iv) the impact that all completed and
169	169	139anticipated separations will have on each state university’s ability to carry out its responsibilities
170	170	140as provided by law; and (v) the estimated net cost-savings in fiscal year 2027 through fiscal year
171	171	1412030 for each state university associated with implementation of this program. 8 of 8
172	172	142 SECTION 10. Participating state university shall certify, to the state comptroller and the
173	173	143state board of retirement, the following information 15 days prior to the various dates of
174	174	144retirement: (i) the current annual salary as well as the salary at date of retirement of each
175	175	145individual who has enrolled in the state universities retirement incentive program; (ii) the item of
176	176	146appropriation in which the position is funded; (iii) the classification and title of the position; (iv)
177	177	147the retirement date for the person who will retire from the position; and, (v) the amounts of
178	178	148projected accrued vacation time, unused sick leave buyback or other accrued benefits for each
179	179	149employee as of the employee’s date of retirement.
180	180	150 SECTION 11. The executive director of the public employee retirement administration
181	181	151commission, established in section 49 of chapter 7 of the General Laws, shall analyze, study and
182	182	152evaluate the costs and actuarial liabilities attributable to the additional benefits payable pursuant
183	183	153to this act. Not later than September 30, 2030, the commission shall file a report with the
184	184	154secretary of administration and finance, the joint committee on public service and the house and
185	185	155senate committees on ways and means regarding its findings.
186	186	156 SECTION 12. Not later than November 30, 2030, the secretary of administration and
187	187	157finance shall file with the house and senate committees on ways and means a subsequent report
188	188	158detailing: (i) the number of employees participating in the state universities retirement incentive
189	189	159program; (ii) the estimated costs and savings in fiscal year 2027 through fiscal year 2030 as a
190	190	160result of the employees’ participation; and (iii) the number of positions that have been either
191	191	161refilled or not refilled during those periods. For each position that has not been refilled, the report
192	192	162shall detail how the duties and expertise associated with the position have been fulfilled or
193	193	163otherwise accounted for by the state university.