Bill
H 2917
The bill allows Dedham-Westwood Water District employees to buy back prior service time only if PERAC tax counsel finds IRS compliance; requires notification within 60 days and pur
Purpose and intent
- The bill seeks to modify how certain Dedham-Westwood Water District (DWWD) employees may purchase service time (creditable service) within the Norfolk County Retirement System, with the aim of clarifying the process and ensuring tax-compliance.
Key provisions
- Section 2 (new text to replace 2014 Act, Ch. 192, §§2–3):
- Within 60 days after the act’s effective date, the Norfolk county retirement system must request a legal determination from the Public Employee Retirement Administration Commission (PERAC) tax counsel. The request is to assess whether implementing this act would preserve compliance with the Internal Revenue Code as it applies to qualified pension systems. The retirement system must provide all relevant documentation to assist PERAC.
- Section 3 (new text; conditions and timelines):
- Section 1 (the substantive purchase provision) shall take effect only if PERAC’s tax counsel issues a favorable determination or ruling stating that the described purchase of service time will not cause noncompliance with the IRS code.
- If a favorable determination is obtained, the retirement system must, within 60 days, notify eligible members about their eligibility and the costs of purchasing service.
- Eligible members must then purchase the service within 120 days of notification, either in a single lump sum or through an installment agreement.
- Note: The precise “purchase of service time described in this section” references Section 1, which is not included in the provided text, but is the core buy-back provision subject to the tax-determinative condition described above.
Affected parties
- Primary: Dedham-Westwood Water District employees eligible to purchase prior service credits.
- Secondary: Norfolk County Retirement System; Public Employee Retirement Administration Commission (PERAC); PERAC’s tax counsel.
- Potential fiscal impact on the retirement system depends on the number of eligible employees who opt to buy back service and the terms of payment.
Procedural and timeline aspects
- Trigger for action: Favorable PERAC tax-counsel determination.
- Deadlines if favorable determination is issued:
- 60 days to notify eligible employees of costs and eligibility.
- 120 days to complete purchase (lump sum or installments) after notification.
- Conditional effect: Section 1 cannot take effect without the favorable determination.
Status and legislative history
- Introduced: February 27, 2025.
- Current status: Read third, amended and passed to be engrossed (as of November 5, 2025).
- Related bill: HD 3968 (replaces).
Notes
- The bill hinges on IRS compliance; without a favorable tax determination, the proposed buy-back provision cannot take effect. The text does not specify the exact cost amounts or the number of eligible employees, which would be determined during implementation.
Compiled from official sources — confirm details with the bill’s official record.
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