PETITION OF:

By Mr. Jones of North Reading, petition (accompanied by bill, House, No. 2583) of Bradley H. Jones, Jr., and others relative to the definition of "regular compensation", in the public employee retirement law. Public Service.

The Commonwealth of Massachusetts

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PETITION OF:

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In the Year Two Thousand and Seven.

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An Act relative to changing the definition of regular compensation.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 1 of said chapter 32 of the General Laws, as most recently amended by chapter 58 of the acts of 2006, is hereby amended by inserting at the end of the first paragraph of the definition of "Regular compensation" the following paragraph:-

Notwithstanding any provision of this chapter to the contrary, during any period subsequent to June 30, 2005, regular compensation shall mean the salary or wages, including differential payments for shifts, training, education, certification, and longevity, lawfully determined for the individual service of the employee by the employing authority. Such amounts shall not include, without limitation, bonus, overtime, evaluated maintenance, cash or non-cash allowances for specified purposes, such as housing, transportation, travel, and clothing, whether or not receipt of such an allowance requires evidence of expenditure for such purpose, 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, 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. "Regular compensation" shall include any part of such salary or wages derived from federal grants except as provided in clause (xi) of paragraph (a) of subdivision (2) of section 3; provided, that salary or wages payable in the form of cost of living bonuses and cost of living pay adjustments shall be included in regular compensation. 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 mean salary or wages received by any member having made the election provided for in section 90G½ or section 90G¾ and serving after age 70 pursuant to sections 90F, 90G or 90H.