Bill > H2805

This bill allows the South Shore Charter School, a school established under Massachusetts law, to join the State Employees Retirement System (SERS) through a voluntary board vote. Specifically, the bill enables all eligible employees who are not already part of the teachers retirement system to become Group 1 members of the SERS, effective January 1, 2017. The bill also provides employees with one opportunity to purchase creditable service for their prior work time at the charter school, which they can do by paying a lump sum or through installments equal to the contributions they would have made when joining the system, plus actuarial interest. Before implementing this provision, the SERS must seek a letter of determination from the Internal Revenue Service to ensure the action does not violate federal tax code requirements for qualified pension systems. If the IRS provides a favorable ruling, the SERS will notify eligible members of their ability to purchase past service time, and members will have 120 days to complete the purchase or enter an installment agreement. This legislation provides a pathway for charter school employees to gain retirement system membership and potentially retroactive service credit.

Labor and Employment

https://malegislature.gov/Bills/194/H2805