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Bill

H 33

An Act relative to the definition of wages for retirement calculations

194th Legislature (2025-2026)

Massachusetts bill redefines wage calculation methods for public employee retirement pensions, potentially increasing or decreasing retirement benefit amounts.

Hearing scheduled for 04/14/2025 from 01:00 PM-04:00 PM in A-1
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Bill Summary · H 33

Legislative bill overview

H 33 modifies how "wages" are defined and calculated for public employee retirement benefits in Massachusetts. The bill adjusts which types of compensation are included when determining pension calculations, potentially affecting how much retiring public employees receive.

Why is this important

Pension calculations directly impact the financial security of retirees and the long-term costs to municipalities and the state. Even small changes to wage definitions can result in significant differences in lifetime retirement payouts for thousands of public employees and substantial budget implications for taxpayers.

Potential points of contention

  • Scope of compensation included: Disagreement over whether overtime, bonuses, severance pay, or other forms of compensation should count toward pension calculations
  • Fiscal impact: Uncertainty about costs to state and local government budgets if changes increase pension obligations
  • Fairness to different employee groups: Questions about whether the definition change applies equally to all public sectors (teachers, police, fire, administrative staff) or creates inequities

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

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