Bill > H2843

This bill establishes a retirement incentive program for employees of state universities in Massachusetts, designed to help these institutions achieve direct payroll savings in fiscal year 2027 and beyond. The program allows eligible state university employees who are members of the state employees' retirement system, have at least 25 years of creditable state service, and are classified in Group 1, to receive additional retirement benefits by purchasing up to 6 credits of service or age. Participants must apply by April 1, 2024, with a retirement date of June 30, 2026 (or potentially by December 31, 2026 with approval). To participate, employees must pay 4.5% of their highest 3-year average salary for each credit, with their state university paying an additional 2.5%, and the total retirement allowance cannot exceed 80% of the employee's regular compensation. The bill includes provisions for retirement counseling, restrictions on post-retirement employment, and requires detailed reporting on the program's implementation and financial impact. Notably, employees who take full-time state employment after retiring under this program must either repay their cash incentive or lose the additional service credits. The legislation aims to provide flexibility for state universities while managing their workforce and budget needs.

Labor and Employment

https://malegislature.gov/Bills/194/H2843