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H 4079

An Act relative to public retirees and reforming post-retirement employment and earnings limits

194th Legislature (2025-2026) Introduced by Kip Diggs and 1 co-sponsor

Raises MA post-retirement hourly cap to 1,320 hours, adds 900-hour cap for out-of-state retirees, and creates centralized PERAC monitoring, reporting, and penalties.

Accompanied a study order, see H5312 (under House Rule 27)
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Bill Summary · H 4079

Summary of House Bill H.4079 (H 4079)

An Act relative to public retirees and reforming post-retirement employment and earnings limits

Bill at a glance

  • Introduced: May 5, 2025
  • Status: Hearing rescheduled to September 17, 2025 (from 1:00 PM–2:00 PM); hearing time updated to reflect new end time. Senate concurrence occurred on May 8, 2025. Referred to the committee on Public Service on May 5, 2025.
  • Related bill: HD 2429 (replaces)
  • Effective date: January 1, 2026
  • Primary sponsor: Representative Kip A. Diggs

Purpose and intent

The bill seeks to reform post-retirement employment for Massachusetts public retirees by increasing the earnings cap threshold and establishing a more centralized framework to monitor, report, and enforce post-retirement employment rules. It aims to:
- Update the earnings cap to allow higher allowable earnings for public retirees while maintaining safeguards against improper use of retirement benefits.
- Create a consistent, state-level system to monitor hours and earnings for retirees employed by Commonwealth public entities, including hires from out-of-state.

Key provisions (section-by-section)

Section 1: Amendments to Section 91 of Chapter 32 (General Laws)

  • Replaces the current hourly cap figure of 1,200 with 1,320 in two places (lines 96 and 111 of the referenced text).
  • Establishes a new subsection (f) within Section 91:
    • Requires individuals described in subsection (b) to adhere to the 1,320 hourly cap in subsections (b) and (c).
    • Mandates compliance with all other earnings and reporting requirements.

Section 3: New Section 91D inserted

  • (a) Out-of-state retirees employed by Commonwealth public entities:
    • Earnings cap: public earnings may not exceed 50% of the annual salary of the position.
    • Hours cap: total hours worked in a calendar year may not exceed 900 hours.
  • (b) Public employers hiring out-of-state retirees:
    • Must report employment status, position, and compensation to the Public Employee Retirement Administration Commission (PERAC) within 30 days of hire.
    • Must ensure compliance with the reduced earnings limits.
  • (c) PERAC responsibilities:
    • Develop a centralized monitoring system for earnings and hours of all retired public employees employed by Commonwealth entities.
    • Publish an annual compliance report, including data on out-of-state retirees.
  • (d) Penalties for noncompliance:
    • Employers failing to meet reporting requirements face administrative fines up to $5,000 per noncompliant instance.
  • (e) Penalties for out-of-state retirees:
    • If knowingly exceeding limits, must return all excess earnings and pay a financial penalty equal to 25% of excess earnings.
  • (f) Hiring priority and incentives:
    • Commonwealth public entities should prioritize hiring Commonwealth retirees for Section 91 positions.
    • Eligibility for state funding incentives if hiring favors Commonwealth retirees.
  • (g) Online tools:
    • PERAC must develop an online calculator to help retirees compute earnings limits and assist public employers in compliance.
  • (h) Public awareness:
    • PERAC to launch a public awareness campaign about post-retirement employment compliance.

Section 4: Effective date

  • Takes effect on January 1, 2026.

Who is affected

  • Public retirees receiving a Massachusetts public pension and who seek or hold post-retirement employment under the General Laws.
  • Public employees and employers within the Commonwealth who hire retirees.
  • Out-of-state retirees working for Massachusetts public entities.
  • Public Employer Retirement Administration Commission (PERAC) and state workforce.
  • Taxpayers and public funds, given potential fines, penalties, and incentives.

Compliance, enforcement, and incentives

  • Reporting: Employers must report hires of out-of-state retirees within 30 days.
  • Monitoring: PERAC to oversee a centralized earnings/hours monitoring system and publish annual compliance data.
  • Penalties: Administrative fines up to $5,000 per noncompliant instance; 25% penalty on excess earnings for misreporting out-of-state retirees.
  • Incentives: State funding incentives for entities prioritizing Commonwealth retiree hires.
  • Tools: Online earnings calculator and a public awareness campaign to ensure understanding of new rules.

Implementation timeline

  • 2026: Law take effect on January 1, 2026.
  • Ongoing: PERAC to implement central monitoring system, online calculator, and annual reporting; employers to begin reporting new requirements upon hiring.

Practical considerations

  • The higher 1,320 cap (versus prior 1,200) increases permissible earnings but is paired with a robust framework to monitor hours and enforce limits.
  • The 900-hour cap for out-of-state retirees creates a stricter regime for non-MOMB (Massachusetts) retirees working within Commonwealth entities.
  • The added reporting and penalties aim to deter noncompliance and improve transparency.

Notes on status and process

  • The hearing originally scheduled in early 2025 was rescheduled to 9/17/2025, with updated end-time for the hearing, in addition to ongoing committee consideration.
  • The bill reflects a broader effort to reform post-retirement employment rules within the Commonwealth and aligns with related policy aims (e.g., central monitoring, penalties, and prioritization of Commonwealth retirees).

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

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