Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Paragraph (c) of subdivision (4) of section 28 of chapter 32 of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by adding the following three sentences:-

Notwithstanding any provisions of this paragraph to the contrary, educational collaboratives, as authorized by the provisions of section four E of chapter forty, shall annually reimburse the state board of retirement for the employer's normal cost as determined by the actuary, of benefits earned during each year by such collaborative employees who are members of the state employees' retirement systems. The actuary shall determine such cost as a percentage of the payroll of the collaborative for such employees based upon the most recent actuarial valuation of the state retirement system. Said reimbursed amount shall be deposited in the pension reserve fund of the state employees' retirement system.

SECTION 2. Section 5D of chapter 40 of the General Laws, as so appearing, is hereby further amended by striking out the fifth paragraph and inserting in place thereof the following paragraph:-

The commissioner of revenue shall establish rules, regulations and procedures requiring counties, cities, towns, and districts to recover employee pension costs from federal grant monies. Each spending agency of said counties, cities, towns and districts shall, at such time and in the manner as said commissioner shall prescribe, authorize and direct the treasurer to initiate such procedures as said commissioner shall establish to transfer to the pension reserve fund for the system of which such federally funded employee is a member, an amount equal to the employer's normal cost of retirement benefits, as determined by the actuary pursuant to chapter thirty-two, which are incurred as a result of said federal grant. Expenditures for the payment of salaries to be made from any federal grant shall not be made until the full amount of such pension costs are recovered in accordance with such procedures as said commissioner shall establish. The commissioner of administration shall develop a schedule phasing in the full assessment of such normal costs, provided that full normal costs shall be assessed against all federal grant payrolls not later than October first, nineteen hundred and eighty-eight. If any federal granting authority refuses to allow the pension cost recovery provided for in this paragraph, the amount of any such recovery so refused, upon final adjudication of said refusal, shall be transferred from the pension reserve fund back to the spending agency.