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H 2946

An Act enabling employees on unpaid parental leave to purchase creditable service

194th Legislature (2025-2026) Introduced by Sean Reid

Massachusetts bill allows public employees to purchase pension credit for unpaid parental leave, increasing retirement benefits but potentially raising pension fund costs.

Hearing scheduled for 09/15/2025 from 01:00 PM-05:00 PM in A-1
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Bill Summary · H 2946

Legislative bill overview

H 2946 allows Massachusetts employees who take unpaid parental leave to purchase creditable service time toward their public employee pension. This means workers can buy back the time they were absent from work, counting it as if they had been actively employed for pension calculation purposes. The bill addresses a gap where parental leave—while job-protected—currently doesn't count toward retirement benefits.

Why is this important

Public employee pensions calculate benefits based on years of service, so unpaid leave directly reduces retirement income. This bill affects employee retirement security and could influence decisions about whether workers can afford to take parental leave. It also has fiscal implications for pension funds, which must account for the additional service credits being purchased.

Potential points of contention

  • Cost to pension funds: Allowing employees to purchase service credits increases long-term pension liabilities, potentially requiring higher employer contributions or adjustments to benefit calculations
  • Equity concerns: The ability to "buy back" service time may disadvantage lower-income workers who cannot afford the purchase price, potentially widening retirement security gaps
  • Precedent and scope: Questions about whether this should extend to other types of unpaid leave (sabbaticals, medical leave) and whether it applies to all public employees or specific groups

Compiled from official sources — confirm details with the bill’s official record.

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