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. Subdivision (1) of section 4 of chapter 32 of the General Laws, as appearing in the 1998 Official Edition, is hereby amended by inserting after paragraph (g) the following paragraph:-
(g½) The period or periods before 1975 during which any member in service of the teachers' retirement system or any teacher who is a member of the State-Boston retirement system resigned for the purposes of maternity leave or was on unpaid leave of absence for such purposes from the governmental unit in which the member was employed as a teacher and had established membership in a Massachusetts contributory retirement system shall be allowed as creditable service, on a proportionate basis which the board shall determine according to rules and regulations adopted by the board and approved by the commission; provided, that no credit shall be allowed unless such member has paid into the Annuity Savings Fund of the system by December 31, 2001, in one sum or in installments, upon such terms and conditions as the board may prescribe, an amount equal to the deductions that would have been withheld had the member continued in service, as determined by the board, together with regular interest. No credit shall be allowed and no payment shall be accepted under this paragraph until such member shall have completed ten or more years of membership service, but if any such member completes ten years of service after December 31, 2001, the member shall be permitted to make payment under this paragraph within 18 months of the date she has completed ten years of service. The maximum creditable service allowable under this paragraph for any member shall not exceed four years.
SECTION 2. Section 5 of said chapter 32, as amended by section 12 of chapter 68 of the acts of 1999, is hereby further amended by adding the following subdivision:-
(4)(i) Notwithstanding the provisions of this chapter or any other general or special law to the contrary, there is hereby established an alternative superannuation retirement benefit program for members of the teachers' retirement system and teachers who are members of the State-Boston retirement system. Participation in said program shall be mandatory for all teachers hired on or after July 1, 2001. Such members shall make contributions to the teachers' retirement system or to the State-Boston retirement system at the rate of 11 per cent on all regular compensation. Any member of the teachers' retirement system or any teacher who is a member of the State-Boston retirement system before July 1, 2001 may elect to participate in the alternative superannuation retirement benefit program. Said election shall be made on or after January 1, 2001 and before July 1, 2001. Any member of a contributory retirement system who transfers into the teachers' retirement system or transfers into the State-Boston retirement system as a teacher may elect to participate in the alternative superannuation retirement benefit program; provided, that said election shall occur within 180 days of establishing membership in the teachers' retirement system or the State-Boston retirement system. The election to participate in the alternative superannuation retirement benefit program shall be irrevocable. Any member who elects to so participate shall be required to make a minimum of five years of retirement contributions at the rate of 11 per cent of regular compensation pursuant to section 22. If said member elects to retire before he has made said five years of contributions at 11 per cent, said member shall pay, in one sum or in installments as the board may prescribe, an amount equal to that which would have been withheld as regular deductions at the rate of 11 per cent from his regular compensation for such five year period based on his last 12 months of regular compensation less contributions made during said member's last five years of creditable service. Any inactive member who elects to retire before he has made said five years of contributions at 11 per cent shall pay, in one sum or in installments as the board may prescribe, an amount equal to that which would have been withheld as regular deductions at the rate of 11 per cent from his regular compensation for such five year period based on the last 12 months of regular compensation which would have been paid to said inactive member had said member continued in the position from which he is currently inactive less contributions made during said member's last five years of creditable service. Any schedule permitting an acceleration of contributions shall be consistent with the plan qualification requirements of the Internal Revenue Code and shall, where necessary to meet the requirements of the Internal Revenue Code, provide for an actuarial reduction of benefits by the actuary appointed by the commission in accordance with the provisions of section 21. Any member who elects to participate in the alternative superannuation retirement benefit program and pays additional contributions pursuant to this section and does not complete 30 years of creditable service shall upon termination from membership in or retirement from the system be reimbursed such additional contributions, plus regular interest, as determined by the teachers' retirement board or the State-Boston retirement board.
(ii) The normal yearly amount of the retirement allowance for an eligible employee who has completed at least 30 years of creditable service and has paid the full amount of regular deductions on the total amount of regular compensation as determined under paragraph (a) of subdivision (2), shall be based on the average annual rate of regular compensation as determined under said paragraph (a) and shall be computed according to the table contained in said paragraph (a) based on the age of such member and his number of years and full months of creditable service at the time of his retirement with the percentage of salary average in such computation to be increased by 2 per cent per year for each full year of service in excess of 24 years of creditable service. Such member shall have served for not less than 20 years as a teacher in order to be eligible to receive the benefit provided under this subdivision. For any member who retires before age 55, his age factor shall be determined in accordance with subdivision (1) of section 10. Any member who retires before completing 30 years of service shall receive a retirement allowance equal to the retirement allowance that the member would have been eligible for had he not participated in the alternative superannuation retirement benefit program.
The total normal yearly amount of the retirement allowance, as determined in accordance with this subdivision of any employee who retires and receives an additional benefit under the alternative superannuation retirement benefit program shall not exceed four-fifths of the average annual rate of his regular compensation received during any period of three consecutive years of creditable service for which the rate of compensation was the highest or of the average annual rate of his regular compensation received during the period or periods, whether or not consecutive, constituting his last three years of creditable service preceding retirement, whichever is greater.
SECTION 3. Subdivision (3) of section 21 of said chapter 32, as so appearing, is hereby amended by adding the following paragraph:-
(g) In consultation with the teachers' retirement board, review and analysis of information required under subdivision (4) of section 5 and the valuation of the annual costs and actuarial liabilities attributable to the additional benefits payable under said subdivision (4). The analysis shall focus on the contributions made by members and the normal cost of benefits, plus any other liabilities determined by the actuary to be a result of such benefit changes under said subdivision (4). The analysis shall also compare the total costs and actuarial liabilities attributable to those members who retire under the provisions of said subdivision (4) with the members classified in Group 1 of paragraph (g) of subdivision (2) of section 3 who do not retire under the provisions of said subdivision (4). Beginning January 1, 2002, and every year thereafter, the actuary shall forward such analysis to the teachers' retirement board, the clerks of the house of representatives and the senate, the house and senate committees on ways and means and the joint committee on public service.
SECTION 4. Subdivision (1) of section 22 of said chapter 32, as so appearing, is hereby amended by striking out paragraph (b) and inserting in place thereof the following paragraph:-
(b) The treasurer or other disbursing officer in charge of payroll in any governmental unit to which a system pertains, and the treasurer or other disbursing officer in charge of payrolls in any free public library the employees of which are eligible for membership in a system, shall, upon written notice from the board:
(i) withhold on each pay day 5 per cent of the regular compensation of each employee who is a member in service of the system, which is received on the day by the member on account of service rendered to him on or after January 1, 1946, and not later than the date of his attaining the maximum age for his group, in the case of an employee who entered the service of the commonwealth or a political subdivision thereof before January 1, 1975;
(ii) withhold on each pay day 7 per cent of the regular compensation of each employee who is a member in service of the system, which is received on the day by the member on account of service rendered by him on or after January 1, 1975, and not later than the date of his attaining the maximum age for his group, in the case of an employee who entered the service of the commonwealth or a political subdivision thereof on or after January 1, 1975, but before January 1, 1984;
(iii) withhold on each pay day 8 per cent of the regular compensation of each employee who is a member in service of the system, which is received on the day by the member on account of service rendered by him on or after January 1, 1984, and not later than the date of his attaining the maximum age for his group in the case of an employee who entered the service of the commonwealth or a political subdivision thereof on or after January 1, 1984, but before July 1, 1996;
(iv) withhold on each pay day 9 per cent of the regular compensation of each employee who is a member in service of the system, which is received on the day by the member on account of service rendered by him on or after July 1, 1996, and not later than the date of his attaining the maximum age for his group in the case of an employee who entered the service of the commonwealth or a political subdivision thereof on or after July 1, 1996;
(v) withhold on each pay day 12 per cent of the regular compensation of each employee who is a member of the state police appointed pursuant to section 10 of chapter 22C, and is a member in service of the system, which is received on the day by the member on account of service rendered by him on or after July 1, 1996, and not later than the date of his attaining the maximum age for his group in the case of an employee who entered the service of the state police on or after July 1, 1996; and
(vi) withhold on each pay day 11 per cent of the regular compensation of each employee who participates in the alternative superannuation retirement benefit program established under subdivision (4) of section 5 on account of such service rendered by him on or after July 1, 2001.
In the case of any teacher the withholding shall be made upon written notice from the school committee or board of trustees or other employing authority, to the treasurer or other disbursing officer of the political subdivision by which such teacher is employed.
SECTION 5. Paragraph (b½) of said subdivision (1) of said section 22 of said chapter 32, as so appearing, is hereby amended by adding the following sentence:- The additional contributions required under this paragraph shall not apply to any employee who participates in the alternative superannuation retirement benefit program established in subdivision (4) of section 5.
SECTION 6. Section 91 of said chapter 32, as so appearing, is hereby amended by adding the following paragraph:-
(e) Notwithstanding the provisions of paragraphs (a) to (d), inclusive, in any period during which there is a critical shortage of certified teachers available for employment in a school district, said school district may employ as a teacher or as a mentor to other teachers any person who has retired from the teachers' retirement system or the State-Boston retirement system. Any such retired person who renders service in a public school district as a teacher or as a mentor to other teachers shall be subject to all laws, rules and regulations governing the employment of teachers in the school district. Such person shall not be deemed to have resumed active membership in the teachers' retirement system or State-Boston retirement system and said service shall not be counted as creditable service toward retirement; but in the first two years immediately following the effective date of retirement, the earnings received by a teacher who retired pursuant to subdivision (4) of section 5 when added to any pension or retirement allowance he is receiving shall not exceed the salary that is being paid for the position from which he was retired or in which his employment was terminated.
SECTION 7. No employee shall be retired under the alternative retirement benefit program established under subdivision (4) of section 5 of chapter 32 of the General Laws before July 1, 2001.
House of Representatives, June 21, 2000.
This Bill having been returned by His Excellency the Governor with his objections thereto in writing (see House 5250) has been passed by the House of Representatives, notwithstanding said objections, two-thirds of the House (148 yeas to 5 nays) having agreed to pass the same. Senate, June 22, 2000.
Passed by the Senate, notwithstanding the objections of His Excellency the Governor, two-thirds of the members present (38 yeas to 1 nay) having approved the same.