Bill
H 1395
Creates a state-supported 403(b)-style retirement program for PCAs and family child care providers with employer and matching contributions, union governance, and enrollment within
H 1395 — An Act to provide retirement security to care workers
Overview
H 1395 proposes establishing a dedicated retirement savings program for personal care attendants (PCAs) and family child care providers in Massachusetts. The core idea is to create a 403(b) or similar individual retirement account (IRA) program funded by both employee contributions and minimum state employer contributions, with governance and collective bargaining provisions to support worker representation and financial literacy.
Purpose and intent
- Expand retirement security for PCAs and family child care providers by creating a state-supported IRA program.
- Ensure ongoing employer contributions and an employee-employer matching framework.
- Facilitate labor relations involvement in program design and operation through organized labor representation.
Key provisions and changes
- Program design and scope
- Establishes a 403(b) or substantially similar IRA program for PCAs (as defined in 118E, sec. 70) and for family child care providers (defined in ch. 15D, sec. 17(a)).
- The Department of Medical Assistance (MassHealth) is designated as the Employer for purposes of making contributions under the Act for PCAs; the PCA Quality Workforce Council is the Employer for collective bargaining purposes; the Department of Early Education and Care (EEC) is the Employer for family child care providers.
- The program must allow eligible individuals to contribute via payroll deductions and other means; include ongoing governance participation by labor organizations representing eligible workers; and involve a 9-member governance board with representation from the relevant labor organizations (at least two representatives for PCA labor organizations and two for family child care provider labor organizations).
- Contributions and governance
- Establishes a minimum state employer contribution to each eligible retirement account (contributed with each paycheck in addition to regular wages; may be a percentage of wages).
- Establishes a minimum state employer matching contribution at a rate of dollar-for-dollar matching, equal to 100% of the employee’s contribution, potentially subject to a cap as a percentage of the employee’s own contribution.
- Program management must be professional, efficient, cost-effective, and with little to no fees charged to participants.
- Includes a union-run retirement benefit orientation and access to financial literacy programs.
- Implementation timeline
- EOHHS and EEC must design and implement the program and enrollment procedures no later than one year after passage.
Affected parties
- Personal care attendants (PCAs) and family child care providers, as defined by the cited statutes.
- Employers: MassHealth (as it relates to PCAs), PCA Quality Workforce Council (for bargaining), and EEC (for family child care providers).
- Labor organizations representing PCAs and family child care providers.
Procedural/timeline notes
- Introduced: February 27, 2025.
- Referred to: Health Care Financing; later actions reflect Senate concurrence and committee movements.
- Hearing: Scheduled for June 25, 2025, 1:00 PM–5:00 PM (A-1).
- Related bill: HD 1580 replaces this measure.
- Enactment would require program enrollment procedures within one year of passage.
Compiled from official sources — confirm details with the bill’s official record.
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