Bill

H 2134

An Act relative to municipal unemployment insurance reform

194th Legislature (2025-2026) Introduced by Kim Ferguson and 3 co-sponsors

Bill H 2134 limits unemployment benefits for municipal employees in education and reduces benefits by 65% for those also receiving pensions, impacting their financial support.

Accompanied a study order, see H5362

WeVote Research Nonpartisan

Bill Summary · H 2134

Summary of Bill H 2134: An Act Relative to Municipal Unemployment Insurance Reform

Purpose and Intent

Bill H 2134 aims to reform municipal unemployment insurance provisions in the Commonwealth of Massachusetts. The primary intent is to clarify eligibility for unemployment benefits for municipal employees, particularly those working in educational institutions, and to adjust the benefits calculation for individuals receiving pensions or retirement pay.

Key Provisions

The bill proposes the following amendments to Chapter 151A of the General Laws:

Section 1: Eligibility for Benefits

Amendment to Section 28A:
- Introduces a new subsection (e) stating that municipal employees providing services to educational institutions will not be eligible for unemployment benefits under the same conditions outlined in subsections (a) through (c). This effectively limits the circumstances under which these employees can claim benefits.

Section 2: Reduction of Benefits

Amendment to Section 29:
- Adds a new provision (7) that stipulates a reduction in unemployment benefits for individuals who are also receiving pension or retirement payments. Specifically:
- Benefits will be reduced by 65% of the pension amount that is attributable to the week in question.
- This reduction applies only if the individual worked for the separating employer for at least 75% of their total service time related to the pension.
- Payments under the Social Security Act are exempt from this reduction.

Who Would Be Affected

Municipal Employees: Those employed by municipalities, particularly in educational roles, may find their eligibility for unemployment benefits restricted.
Individuals Receiving Pensions: Employees who are transitioning to unemployment while also receiving pension benefits will see a significant reduction in their unemployment compensation.

Procedural Aspects

Hearing Schedule: The bill's hearing has been rescheduled to November 17, 2025, from 11:00 AM to 12:20 PM in room B-1, with a virtual hearing option available.
Legislative Journey: The bill was introduced on February 27, 2025, and has been referred to the committee on Labor and Workforce Development. The Senate has concurred with the bill's progression.

Related Bills

This bill is associated with House Docket No. 3528, which it replaces.

Conclusion

Bill H 2134 seeks to reform the unemployment insurance framework for municipal employees in Massachusetts, particularly affecting those in educational roles and those receiving retirement benefits. The proposed changes aim to clarify eligibility and adjust benefit calculations, which could have significant implications for affected individuals.

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