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Bill

Bill

HD 4151

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

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

Allows Massachusetts public employees on unpaid parental leave to purchase pension service credit, increasing retirement benefits while raising pension system costs.

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Bill Summary · HD 4151

Legislative bill overview

HD 4151 allows employees who take unpaid parental leave in Massachusetts to purchase creditable service time toward their public employee pension benefits. This means time spent on unpaid parental leave would count toward pension vesting and benefit calculations as if the employee had been actively working and contributing.

Why is this important

Public employee pensions are typically calculated based on years of service and contributions. Without this provision, employees taking unpaid parental leave face reduced pension benefits and delayed vesting schedules, creating a financial penalty for family care. The bill addresses potential gender equity issues, as parental leave is disproportionately used by women, and could affect recruitment and retention of employees in caregiving years.

Potential points of contention

  • Cost to pension systems: Allowing service credit purchases without corresponding employee contributions increases liabilities for already-strained public pension funds, potentially requiring higher employer contributions or general revenue allocations
  • Fairness across employee groups: Private sector employees typically don't receive pension credit for unpaid leave; some argue public employees shouldn't receive preferential treatment that increases taxpayer burden
  • Who bears the cost: Unclear whether employees would pay to purchase the service credit or if taxpayers absorb the full cost; subsidized credit purchases represent a significant benefit not available to all workers

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

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