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SD 977

An Act related to timely retirement payment

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

If full payment can't be calculated due to factors beyond the board's control, pay 90% of the estimated monthly amount, with annual reports to the Legislature.

House concurred
0
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Bill Summary · SD 977

Summary: An Act related to timely retirement payment (Senate Docket No. 977)

Overview

  • Bill number & title: SD 977 — An Act related to timely retirement payment
  • Introduced: February 27, 2025
  • Current status: House concurred (actions show referral to Public Service and House concurrence on Feb 27, 2025)
  • Classification: Proposed bill
  • Sponsorship: John J. Cronin (sponsor)
  • Context: Similar matter previously filed in the 2023-2024 session as Senate No. 1635.

Purpose and intent

The bill seeks to improve the timeliness of retirement payments by providing a temporary, partial payment mechanism when the retirement board cannot complete the calculation of the full monthly retirement payment due to circumstances beyond its control. The change is designed to avoid payment delays to retirees while ensuring transparency about the causes of delays.

Key provisions

  • The core amendment would modify Paragraph (B) of subdivision (1) of Section 13 of Chapter 32 of the General Laws.
  • New language (added after the words “allowance becomes effective”):
    • If circumstances beyond the retirement board’s control prevent the calculation of the full monthly payment by the first full payment date, the retirement board must pay 90% of its estimated full monthly payment until the circumstances are corrected.
    • The retirement board must annually notify the Massachusetts House and Senate of all circumstances beyond the board’s control that prevented the calculation of the full monthly payment by the first full payment date.

Who is affected

  • Affects public retirement boards within the Commonwealth of Massachusetts that administer monthly pension payments under Chapter 32 (e.g., state and local retirement systems).
  • Impacts current and future retirees who would otherwise experience a delay in receiving the full scheduled monthly payment due to administrative or logistical delays beyond the board’s control.
  • Requires ongoing accountability and transparency through annual reporting to the Legislature.

Procedural and timeline notes

  • Legislative actions:
    • 2025-02-27: Referred to the Committee on Public Service
    • 2025-02-27: House concurred
  • The bill does not specify an effective date beyond enaction; it would take effect upon passage unless otherwise stated in the enrolled bill.
  • Reporting requirement: Annual notification to the House and Senate regarding circumstances causing payment calculation delays.

Potential impacts and considerations

  • Financial impact: Temporary reduction to 90% of the estimated full monthly payment could affect retirees’ cash flow during the delay period, though the payment is described as a portion of the estimated amount.
  • Administrative transparency: Annual reporting could enhance legislative oversight of factors causing payment delays.
  • Policy objectives: Balances timely cash flow for retirees with the certainty that the full amount will be paid when the delay is resolved.

Note

The bill references “circumstances beyond the retirement board’s control” without enumerating specific scenarios, leaving interpretation to the retirement board and the courts.

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

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