Massachusetts Senate Bill S1864

Massachusetts 2025-2026 Regular Session

• Introduced: 2/27/25
• Refer: 2/27/25

Caption

Relative to the creditable service of former employees of the Massachusetts Development Finance Agency

Impact

The enactment of S1864 would likely amend existing state laws governing retirement benefits, particularly those related to the retirement system under chapter 32 of the General Laws. By allowing the 'buyback' of service, it ensures that former employees who might otherwise lose their retirement benefits linked to their tenure at the Massachusetts Development Finance Agency can retain those benefits by fulfilling certain payment criteria. This could potentially attract skilled employees back into public service roles, impacting recruitment strategies for government agencies.

Summary

Bill S1864, entitled 'An Act relative to the creditable service of former employees of the Massachusetts Development Finance Agency', aims to provide a pathway for former employees of the Agency to have their prior service credited towards their retirement benefits. Specifically, the bill allows former employees who have established membership in a retirement system to retroactively credit up to five years of service, provided they pay the appropriate retirement contributions to their retirement fund during their active membership. This provision is beneficial for those who may have worked at the Agency and later joined another governmental office or body after its dissolution or reorganization.

Contention

While the bill seeks to rectify the employment histories of former employees of the Massachusetts Development Finance Agency, debates could arise regarding its fiscal implications. Concerns may be voiced about the additional strain this 'buyback' option could place on the retirement system funding, especially if many individuals choose to take advantage of this provision. Skeptics might argue that it raises sustainability questions for the state's pension funds, while proponents maintain it recognizes and legitimizes the work done by those employees in public service.