1 of 1 HOUSE DOCKET, NO. 1651 FILED ON: 1/15/2025 HOUSE . . . . . . . . . . . . . . . No. 2960 The Commonwealth of Massachusetts _________________ PRESENTED BY: Margaret R. Scarsdale _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act relative to non-Commonwealth entities. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :DATE ADDED:Margaret R. Scarsdale1st Middlesex1/15/2025James B. EldridgeMiddlesex and Worcester2/3/2025 1 of 3 HOUSE DOCKET, NO. 1651 FILED ON: 1/15/2025 HOUSE . . . . . . . . . . . . . . . No. 2960 By Representative Scarsdale of Pepperell, a petition (accompanied by bill, House, No. 2960) of Margaret R. Scarsdale and James B. Eldridge relative to non-Commonwealth entities within the state employees’ retirement system. Public Service. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act relative to non-Commonwealth entities. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Subdivision 4 of section 28 of chapter 32 of the General Laws, as appearing 2in the 2022 Official Edition, is hereby amended by striking out paragraph (c) and inserting in 3place thereof the following paragraph (c):- 4 (c) Notwithstanding any general or special law to the contrary, each district, non- 5commonwealth governmental unit, or educational collaborative as authorized by the provisions 6of section four E of chapter forty, the employees of which have become, or which become 7members of the state employees’ retirement system under the provisions of this subdivision or 8any other previous act, shall remit to the state board of retirement as the employer's normal cost 9as determined by the actuary, of benefits earned during each year by such employees who are 10members of the state employees’ retirement system. 11 The actuary shall determine such cost as a percentage of the payroll of the district, non- 12commonwealth entity or collaborative for such employees based upon the most recent actuarial 2 of 3 13valuation of the state retirement system. The actuary may consider factors including types of 14governmental unit, employee demographic information, and employee group classification to 15help in the determination of said percentage. Said cost shall be paid monthly and deposited in the 16pension reserve fund of the state employees' retirement system. The actuary shall review the 17percentage determined in this paragraph at least every three years. 18 SECTION 2. Subdivision 4 of section 28 of chapter 32 of the General Laws, as so 19appearing, is hereby further amended by adding the following paragraph:- 20 (d) The state retirement board upon terms and conditions it may establish, may require a 21participating employer governed by this sub-section, who fails to remit either its normal cost 22amount as determined in paragraph (c), or the contributions made on behalf of employees who 23are members of the Massachusetts State Employees’ Retirement System as required by section 2422 of Chapter 32, by the first day of the second month following the work month, to pay an 25additional amount equal to 10% of the total amount of delinquent contributions. The state 26retirement board shall have the right to commence an action in contract for payment of 27outstanding amounts determined to be due in accordance with the provisions of this chapter. 28 SECTION 3. Section 28 of chapter 32 of the General Laws, as so appearing, is hereby 29further amended by inserting at the end thereof the following subdivision:- 30 (9) For the purposes of this section, “non-commonwealth governmental unit” shall mean 31an employer as defined in section one of chapter 32 whose employees are not employees of the 32commonwealth or an agency thereof, employed in a position in the service of the 33commonwealth, and whose regular compensation is not paid by the commonwealth, eligible for 3 of 3 34membership in the state employees’ retirement system and the requirements in connection 35therewith. 36 SECTION 4. Reimbursements currently outstanding to the state retirement board under 37paragraph (c) of sub-section (4) of section 28 of chapter 32 for calendar years 2013, 2014, and 382015 shall not be required. 39 Reimbursements currently outstanding to the state retirement board under paragraph (c) 40of sub-section (4) of section 28 of chapter 32 for calendar years 2016 through 2024, inclusive, 41shall be required and remitted under terms and conditions as may be prescribed by the board. 42 SECTION 5. Sections 1 and 2 of this act shall take effect on July 1, 2025.