Bill > H2960

This bill modifies the provisions for non-Commonwealth entities participating in the state employees' retirement system by establishing clearer guidelines for pension contributions and penalties. Specifically, the bill requires districts, non-Commonwealth governmental units, and educational collaboratives to remit monthly payments to the state board of retirement for the employer's normal cost of retirement benefits, with the specific percentage determined by an actuary who will consider factors like employee demographics and governmental unit type. The bill introduces a new penalty provision that allows the state retirement board to charge an additional 10% fee for employers who fail to submit required contributions by the first day of the second month following the work month, and grants the board the right to pursue legal action for outstanding payments. The bill also provides a formal definition of a "non-Commonwealth governmental unit" and includes a provision that waives reimbursement requirements for calendar years 2013-2015, while mandating that reimbursements for 2016-2024 be remitted under terms prescribed by the board. The new contribution and penalty provisions will take effect on July 1, 2025, giving participating entities time to prepare for the changes.

Labor and Employment

https://malegislature.gov/Bills/194/H2960