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HD 1651

An Act relative to non-Commonwealth entities

194th Legislature (2025-2026) Introduced by Jamie Eldridge and 1 co-sponsor

The bill requires non-Commonwealth districts, units, and collaboratives with SERS members to pay the employer normal cost for benefits earned, monthly, with penalties for late paym

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Bill Summary · HD 1651

Summary: An Act relative to non-Commonwealth entities (House Docket No. 1651)

Status: Introduced and docketed in the 2025-2026 General Court session; effective date provisions apply if enacted.

Purpose and intent

The bill extends participation in Massachusetts’ State Employees’ Retirement System (SERS) to certain non-Commonwealth employers—specifically districts, non-commonwealth governmental units, and educational collaboratives—by requiring these entities to contribute the employer normal cost for benefits earned by their employees who are members of SERS. The goal is to ensure these employers share the actuarial cost of benefits and to strengthen the financial sustainability of the retirement system.

Key provisions

  • Section 1 (amendment to G.L. ch. 32, §28, subd. 4, para. (c)):

    • Requires each district, non-commonwealth governmental unit, or educational collaborative (as authorized by sec. 4E of ch. 40) with employees who are or become SERS members to remit the employer’s normal cost for benefits earned in the year.
    • The employer normal cost is determined by the actuary as a percentage of the payroll for those employees, based on the most recent actuarial valuation.
    • Payments are made monthly and deposited into the SERS Pension Reserve Fund.
    • The actuary must review the rate at least every three years.
    • Factors the actuary may consider include unit type, demographics, and employee group classification.

  • Section 2 (new subsection 4(d) to G.L. ch. 32, §28):

    • The Massachusetts State Retirement Board may require a participating employer to pay an additional 10% of delinquent contributions if the employer fails to remit the required normal cost or other required contributions by the first day of the second month after the work month.
    • The Board may pursue collection via contract actions.

  • Section 3 (new subdivision (9) to §28):

    • Defines “non-commonwealth governmental unit” as an employer whose employees are not Commonwealth employees, whose regular compensation is not paid by the Commonwealth, but who are eligible for SERS membership.

  • Section 4:

    • Reimbursements outstanding to the State Retirement Board for calendar years 2013–2015 are not required.
    • Reimbursements for calendar years 2016–2024 are required and remitted under terms set by the Board.

  • Section 5:

    • The act’s Sections 1 and 2 take effect on July 1, 2025.

Who would be affected

  • Districts, non-commonwealth governmental units, and educational collaboratives whose employees are (or become) members of SERS.
  • These entities would become responsible for paying the state retirement system’s normal cost for their employee members, similar to Commonwealth employers.

Financial and enforcement implications

  • Increases in ongoing employer costs for participating non-Commonwealth entities, computed as a percentage of payroll.
  • Regular monthly transfers to the SERS Pension Reserve Fund.
  • Potential late-payment penalties (10% of delinquent amounts) and possible contract actions for collection.
  • Transitional aspect regarding past reimbursements: forgiveness for 2013–2015, but formal collection for 2016–2024.

Timing and implementation

  • Effective date for Sections 1 and 2 is July 1, 2025, with section 3 providing definitions to support implementation.
  • Active actuarial review cadence establishes ongoing re-estimation of the normal cost rates every three years.

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

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