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Bill

SD 3177

An Act relative to the purchase of out-of-state creditable service

194th Legislature (2025-2026) Introduced by Kelly Dooner

Permits Massachusetts public employees to purchase out-of-state work service credits for state pension eligibility, affecting retirement benefit calculations and pension fund liabilities.

Referred to the committee on Public Service
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Bill Summary · SD 3177

Legislative bill overview

SD 3177 allows Massachusetts public employees to purchase creditable service time from out-of-state employment toward their state pension benefits. This would enable workers who previously worked in other states' pension systems to buy back that service and have it count toward their Massachusetts retirement benefits.

Why is this important

Public employees who changed states mid-career currently cannot credit their prior out-of-state work toward their Massachusetts pension, potentially reducing their retirement income significantly. This bill addresses equity concerns for mobile workers and could make Massachusetts pension systems more competitive when recruiting experienced employees from other states.

Potential points of contention

  • Pension fund costs: Allowing service purchases without corresponding employee contributions during those years could increase unfunded liability and costs to taxpayers
  • Actuarial fairness: Workers buying back service years at current rates (rather than historical rates) may receive greater benefits than they would have if continuously employed in Massachusetts
  • Administrative complexity: Verification of out-of-state service, determining appropriate purchase prices, and coordinating with other state pension systems creates implementation challenges
  • Selective benefit: This primarily benefits mid-career job changers, potentially creating disparities between workers who stayed in one state versus those who moved

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

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