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SD 794

An Act regulating education administrator retirement

194th Legislature (2025-2026) Introduced by John Velis

The bill allows eligible education administrators to buy back prior non-public school special education service as creditable retirement service, via a 5% deposit plus interest.

House concurred
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Bill Summary · SD 794

Summary of Senate Docket No. 794 — An Act regulating education administrator retirement

Status: House concurred
Introduced: February 27, 2025
Classification: Proposed bill (public service)

Overview

This bill amends Chapter 32 of the General Laws to create a new option for creditable service for certain education administrators who previously worked in non-public schools delivering special education services funded by the Commonwealth. It allows eligible individuals to buy back a portion of prior service related to those roles, converting that time into creditable service toward retirement.

What the bill would do

  • Adds a new provision (Subsection 1P of Section 4) that grants creditable service for specific prior employment.
  • Applies to a member of a contributory retirement system who is currently an education administrator and who previously supervised the provision of special education services in non-public schools in the Commonwealth, where tuition for all taught pupils was financed in part or in full by the Commonwealth.
  • Enables such individuals to establish that prior period as creditable service before retirement begins.

Key provisions and mechanics

  • Method of credit: The member deposits into the annuity savings fund of their retirement system an amount equal to:
    • Five percent (5%) of the compensation received during the relevant period, plus
    • Buyback interest calculated to the date of deposit.
  • Deposit options: The deposit can be made as a single lump sum or in one or two installments, under terms prescribed by the retirement board.
  • Timing: The eligibility and creditability apply before the date on which the retirement allowance becomes effective.
  • Board authority: The retirement board determines the specific terms and conditions for the buyback, including how the 5% and interest are calculated and applied.

Eligible parties (who would be affected)

  • Members of contributory retirement systems who are currently education administrators.
  • Individuals who previously supervised the provision of special education services in non-public schools with Commonwealth-funded tuition for all pupils served.
  • These individuals would gain an avenue to convert prior service into creditable service for retirement purposes, potentially affecting their retirement benefit calculation.

Procedural/timeline aspects

  • Legislative actions:
    • 2025-02-27: Referred to the Joint Committee on Public Service.
    • 2025-02-27: House concurred with the Senate version.
  • The bill has a history of similar proposals filed in prior sessions (e.g., Senate No. 1751 of 2023-2024).

Potential impacts and considerations

  • Individual impact: Affects retirement planning for eligible education administrators by enabling a funded buyback of prior non-public special education service.
  • Financial mechanics: Requires a 5% upfront and/or installment deposit of compensation plus buyback interest; terms are set by the retirement board.
  • System-wide effects: The provision is designed to integrate a specific line of service into creditable retirement, with governance resting with the board for implementation.

Note: This summary reflects the bill text and stated provisions as introduced; it does not constitute legal advice.

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

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