Budget Masthead
alt   Line Item Search
|
Site Search
link to Mass.Gov
 
 
 
 
 
 

Budget Recommendations

Outside Section 29


Previous Outside Section      Next Outside Section     

Pension Reform

SECTION 29.   Section 1 of chapter 32 of the General Laws, as so appearing, is amended by striking out the definition of "regular compensation," in lines 378 through 457, inclusive, and inserting in place thereof the following:

"Regular compensation'', during any period prior to January 1, 1946, shall mean the full salary, wages or other compensation in whatever form, lawfully determined for the individual service of the employee by the employing authority, from which regular deductions were made pursuant to the provisions of chapter 32 applicable from time to time prior to such date; provided, that if the amount of such salary, wages or other compensation has been reduced or increased during any such period as a general temporary adjustment due to the cost of living or to other economic conditions, and if the board has received from the appropriate authority a written notice of such fact or if the board is satisfied of such fact after an investigation which it shall make prior to July 1, 1946 or which it shall make thereafter and not later than six months after a system becomes operative for the employees of any governmental unit, such amount shall, for the purpose of any computations made under the provisions of sections one to 28, inclusive, involving the use of an annual or an average annual rate of regular compensation during any such period, but not for the purpose of affecting any regular deductions already made, remain unaffected by such general temporary adjustment.

"Regular compensation'', subsequent to December 31, 1945, shall mean the salary, wages or other compensation in whatever form, lawfully determined for the individual service of the employee by the employing authority, not including bonus, overtime, severance pay for any and all unused sick leave, early retirement incentives, or any other payments made as a result of giving notice of retirement, but including evaluated maintenance as provided for in paragraph (c) of subdivision (1) of section 22, and including any part of such salary, wages or other compensation derived from federal grants except as provided in clause (xi) of paragraph (a) of subdivision (2) of section three; provided, that during any period subsequent to June 30, 1948, salary, wages or other compensation payable in the form of cost of living bonuses and cost of living pay adjustments shall be included in such term. In the case of a teacher employed in a public day school who is a member of the teachers' retirement system, salary payable under the terms of an annual contract for additional services in such a school and also compensation for services rendered by said teacher in connection with a school lunch program or for services in connection with a program of instruction of physical education and athletic contests as authorized by section 47 of chapter 71 shall be regarded as regular compensation rather than as bonus or overtime and shall be included in the salary on which deductions are to be paid to the annuity savings fund of the teachers' retirement system. In the case of police officers, firefighters and employees of a municipal department who are employed as fire alarm signal operators or signal maintenance repairmen, money paid for holidays shall be regarded as regular compensation rather than as overtime and shall be included in the salary on which deductions are to be paid to the annuity savings fund. Regular compensation shall also include all premiums paid by any governmental unit for the purchase of an individual or group annuity contract as authorized by section 18A of chapter 15 or section 37B of chapter 71. Regular compensation shall also mean compensation received by any member having made the election provided for in section 90G 1/2 or section 90G 3/4 and serving after age 70pursuant to section 90F, 90G or 90H.

"Regular compensation'', during any period subsequent to June 30, 2006, shall mean the salary, wages or other compensation in whatever form, lawfully determined for the individual service of the employee by the employing authority and paid to or on behalf of a member as remuneration for services actually rendered or as periodic payments for paid sick, personal, bereavement, or vacation leave taken during a period of employment, or for payments made pursuant to section 111F of chapter 41 in the year or part of a year to which the compensation is attributed. Such payments must be ordinary, normal, recurrent, repeated, and of indefinite duration, and paid pursuant to an official written policy of the employer, a written employment agreement, or a collective bargaining agreement. Such payments must be uniformly available for employees who are similarly situated relative to the purpose of the payment, provided that variations of payments due to merit shall not exclude them for that reason from regular compensation.

Provided they otherwise meet the requirements of this section, any amounts paid as educational incentives; any amounts paid as premiums for shift differentials; payments for length of service made recurrently to all employees in a collective bargaining unit having attained a specific length of service; payments for length of service made recurrently to all non-collective bargaining employees of an employer having attained a specific length of service; any amounts paid as cost-of-living bonuses or cost-of-living pay adjustments paid to all members of a collective bargaining unit or all non-collective bargaining employees of an employer; evaluated maintenance as provided for in paragraph (c) of subdivision (1) of section twenty-two; and any part of such salary, wages or other compensation derived from federal grants except as provided in clause (xi) of paragraph (a) of subdivision (2) of section three shall be considered regular compensation. Lump-sum or retroactive payments which would have been regular compensation if paid in the periods in which the services remunerated thereby were actually rendered will be allocated to said periods rather than being entirely attributed to the time of receipt for the purpose of determining a member's regular compensation.
Exclusions from regular compensation shall include, but not be limited to, any amounts paid for overtime hours worked beyond the member's normal work schedule; any amounts paid as premiums for working holidays, unless otherwise required by law; any amounts paid as bonuses other than qualified cost-of-living bonuses as described in this section; any amounts paid in lieu of or for unused vacation, sick leave, or other leave; severance pay; any amounts paid as early retirement incentives; any other payments made as a result or in anticipation of the member giving notice of retirement; and any extraordinary or ad hoc payment amount, such as any payment to an employee or group of employees which will not recur or which will recur for only a limited or definite term.