Bill > S1359

This bill establishes a special commission to investigate the feasibility of replacing the current defined benefit pension plan for future state employees with a defined contribution plan. A defined benefit plan is a traditional pension where employees receive a guaranteed monthly income in retirement, often based on their salary and years of service. In contrast, a defined contribution plan, like a 401(k), involves employees and/or employers contributing to an individual investment account, with the retirement income depending on investment performance. The commission will be comprised of legislative leaders, appointed members from both the Senate and House of Representatives, the Treasurer and Receiver General, and five members appointed by the governor with pension expertise. This commission is tasked with submitting a report detailing its findings, recommendations, and any proposed legislation to the governor, legislative leaders, and the chief justice of the supreme judicial court within one year of its appointment.