Session Laws

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to immediately provide for a reform of the pension systems of the commonwealth and its political subdivisions, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

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. Sections one hundred and two, one hundred and three, and one hundred and four of chapter six of the General Laws are hereby repealed.

SECTION 2. Section 50 of chapter 7 of the General Laws, as appearing in the 1986 Official Edition, is hereby amended by adding the following paragraph:-

Any rules or regulations recommended by said commissioner which require the approval of the general court shall be referred by the appropriate clerks to the appropriate standing committee of the general court. Within fifteen days of receipt of any such recommendations, such committee shall transmit in writing to said commissioner its suggestions, if any, for modifications in said recommended rules and regulations. Within fifteen days of receipt of such suggestions, said commissioner shall resubmit to such committee such recommended rules and regulations, together with any modifications made thereto. No such rules and regulations shall take effect except in accordance with the provisions of this section.

SECTION 3. Chapter 10 of the General Laws is hereby amended by inserting after section 35G the following section:-

Section 35H. There shall be, in the office of the state treasurer but not subject to his control, a retirement law commission of seven members, consisting of three members appointed by the governor, with the advice and consent of the council, and three members appointed by the state treasurer with the advice and consent of the council, and a seventh member chosen by the first six members who shall be the chairman and who shall serve for a term of five years. Of the three appointments allotted to the governor, and the state treasurer, respectively, the terms of service shall be determined as follows: the first such appointments by the governor and the treasurer shall be for a term of three years, the second such appointments shall be for a term of four years, and, the third such appointments shall be for a term of five years. The members shall serve without compensation but shall receive their necessary expenses incurred in the discharge of their official duties. Upon the expiration of the term of an appointed member, or the chairman, or a vacancy otherwise created in said positions, the successor for said position shall be appointed in the manner aforesaid for the same term as his predecessor, or for the remainder of his term, whichever is applicable.

Said commission shall conduct continuing studies of the operation of all provisions of law relative to retirement allowances, pensions, or annuities; the administration of pensions by state, county, city, and town agencies; and shall study the potential cost of provisions of existing law and of all proposed changes. Said commission shall file a copy of all such reports, investigations, and studies with the board of the applicable system, and the commissioner of public employee retirement as well as, in the case of reports, investigations, and studies relative to the state employees' retirement system, the teachers' retirement system, and any other pension liabilities assumed by the commonwealth, with the commissioner of administration and the house and senate committees on ways and means. Each such actuarial valuation report and accompanying experience investigation shall be so filed no later than ten months after the date as of which the system is valued, except that each such report and accompanying investigation for the state employees' retirement system, the teachers' retirement system, and any other pension liabilities assumed by the commonwealth shall be so filed no later than six months after the date as of which the system or other assumed pension liability is valued.

Said commission shall report annually to the governor and to the general court its activities and accomplishments, and such recommended legislation as may be necessary to effect desirable changes in the retirement law and to promote a more efficient administration thereof. It shall forthwith deliver to the house and senate committees on ways and means any and all documents, reports, data, statistics, and any other information which either committee may from time to time request from said commission. It may prepare and publish reports for the information of employees concerning benefits available and procedures to be followed, and reports to the public to promote more adequate understanding of the retirement policies and problems of the commonwealth.

Said commission may appoint an executive secretary who shall not be subject to chapter thirty-one and who shall receive such salary as the commission with the approval of the governor and council may fix and may appoint such other assistants, consultants, investigators, and experts as it deems necessary to carry out the provisions of this section. Said commission shall be provided with adequate offices in the state house or elsewhere in the city of Boston. It may call upon any department, board, commission, or officer of the commonwealth or any subdivision thereof for such information as it may desire in the course of its duties. It may hold public hearings and shall have the power to summon witnesses and to require the production of books, records, and papers.

For the purposes of this section the term "system" shall mean system as defined in section one of chapter thirty-two.

SECTION 4. Section 16 of chapter 15 of the General Laws, as appearing in the 1986 Official Edition, is hereby amended by striking out, in line 11, the word "insurance" and inserting in place thereof the words:- public employee retirement.

SECTION 5. The first paragraph of section 9A of chapter 22 of the General Laws, as so appearing, is hereby amended by adding the following sentence:- Subsequent to January first, nineteen hundred and eighty-eight, no person who smokes any tobacco product shall be eligible for appointment as a uniformed member of the division of state police, and no person so appointed after said date shall continue in such office or position if such person thereafter smokes any tobacco product; the personnel administrator shall promulgate regulations for the implementation of the provisions of this sentence.

SECTION 6. The second paragraph of section 2 of chapter 27 of the General Laws, as so appearing, is hereby amended by adding the following sentence:- Subsequent to January first, nineteen hundred and eighty-eight, no person who smokes any tobacco product shall be eligible for appointment as an employee of the department in a position or office the regular or incidental duties of which require the care, supervision, or custody of prisoners, criminally insane persons or defective delinquents and no person so appointed after said date shall continue in such office or position if such person thereafter smokes any tobacco product; the personnel administrator shall promulgate regulations for the implementation of the provisions of this sentence.

SECTION 7. Subsection (f) of section 6B of chapter 29 of the General Laws, as so appearing, is hereby amended by striking out, in line 294, the words "State Employees' Pension Reserve fund" and inserting in place thereof the words:- Commonwealth's Pension Liability Fund.

SECTION 8. Section 39 of chapter 31 of the General Laws, as so appearing, is hereby amended by striking out the third paragraph and inserting in place thereof the following paragraph:-

If a permanent employee who has become separated from his position because of disability shall be subsequently capable of employment as determined pursuant to section eight of chapter thirty-two by the retirement board, as defined in section one of chapter thirty-two, such employee shall be placed in a position in the same or similar title in the department from which he was separated or any other department prior to the appointment from any civil service list; provided, however, that in the event that such placement of such employee occurs after a period of time greater than five years from the date of such separation or results in such employee occupying a position in a different title from the title of the position from which he was separated, such placement right shall be subject to the completion by such employee of a retraining program established by the appointing authority, and approved by the personnel administrator.

SECTION 10. Said chapter 31 is hereby further amended by inserting after section 61 the following two sections:-

Section 61A. The administrator, with the secretary of public safety and the commissioner of public health shall establish initial health and physical fitness standards which shall be applicable to all police officers and firefighters when they are appointed to permanent, temporary, intermittent, or reserve positions in cities and towns or other governmental units. Such standards shall be established by regulations promulgated by the administrator after consultation with representatives of police and firefighter unions, and the Massachusetts Municipal Association.

Notwithstanding the provisions of this paragraph, any municipality may adopt, subject to collective bargaining, stricter health and physical fitness standards. Such initial health and physical fitness standards shall be rationally related to the duties of such positions and shall have the purpose of minimizing health and safety risks to the public, fellow workers and the police officers and firefighters themselves.

No person appointed to a permanent, temporary, intermittent, or reserve police or firefighter position after January first, nineteen hundred and eighty-eight shall perform the duties of such position until he shall have undergone initial medical and physical fitness examinations and shall have met such initial standards. The appointing board or officer shall provide initial medical and physical fitness examinations within thirty days of the appointment. If such person fails to pass an initial medical or physical fitness examination, he shall be eligible to undergo a reexamination within sixty days of the date of the failure of the initial examination. If he fails to pass the reexamination, his appointment shall be rescinded. No such person shall commence service or receive his regular compensation until such person passes the health examination or reexamination.

The administrator, shall establish in-service health and physical fitness standards which shall be applicable to all police officers and firefighters in permanent, temporary, intermittent, and reserve positions in cities and towns. Such standards shall be established by regulations promulgated by the administrator after consultation with representatives of police and firefighters unions, and the Massachusetts Municipal Association. Notwithstanding the provisions of this paragraph, any municipality may adopt, subject to collective bargaining, stricter in-service health and physical fitness standards. Such in-service health and physical fitness standards shall be rationally related to the duties of such positions and shall have the purpose of minimizing health and safety risks to the public, fellow workers, and the police officers and firefighters themselves. Such standards shall take into account the age of the police officer or firefighter.

All police officers and firefighters in such positions shall undergo in-service medical and physical fitness examinations at such time intervals as the administrator shall determine, but no less frequently than once every two years. Any police officer or firefighter appointed to such a position after January first, nineteen hundred and eighty-eight shall be required to maintain his health and physical fitness at a level which meets such in-service standards. If a police officer or firefighter appointed to such a position after January first, nineteen hundred and eighty-eight fails to pass such an in-service examination, he shall be eligible to undergo a reexamination within sixty days of the date of the in-service medical or physical fitness examination failed. If he fails the reexamination, he shall be eligible to undergo a second reexamination within ninety days of the date of the first reexamination. If he fails to pass the second reexamination, his appointment shall be terminated or not renewed as the case may be. A police officer or firefighter who fails an in-service examination may continue to receive his regular compensation provided that he undergoes a reexamination within sixty days. If he fails the reexamination, his regular compensation shall be suspended pending the outcome of the second reexamination.

If the appointment of a police officer or firefighter is terminated or not renewed in accordance with this section, he may apply for superannuation, ordinary disability, or accidental disability retirement benefits as provided in chapter thirty-two. A police officer or firefighter whose appointment is terminated or not renewed because of his failure to meet in-service health or physical fitness standards shall not be presumed by virtue of such termination or nonrenewal to be disabled for pension purposes.

The administrator shall establish procedures for the administration of such medical and physical fitness examinations by cities and towns. Such examinations may be administered at the police academy or at the firefighting academy in accordance with such procedures.

The provisions of this section shall apply to all police officers and firefighters in cities, towns, districts, or other governmental units which have accepted the provisions of this section and section sixty-one B.

The personnel administrator shall submit regulations promulgated pursuant to this section to the clerks of the house of representatives and senate, who shall refer said regulations to the appropriate standing committee of the general court. Within fifteen days of said referral, said committee shall transmit in writing to the administrator its recommendations, if any, for modifications to said regulations. Within fifteen days of receipt of any such recommendations, the administrator shall resubmit said regulations to said committee together with any modifications made thereto. If the general court takes no final action relative to said regulations within forty-five days of the date on which said regulations are first referred to said committee, said regulations shall be filed with the state secretary pursuant to the provisions of section five of chapter thirty A. No such regulations shall take effect until filed with the state secretary in accordance with the provisions of this paragraph.

Section 61B. Any city, town, district or other governmental unit which accepts the provisions of this section shall establish a wellness program for police officers and firefighters, if any, employed in such city, town, district or other governmental unit. Such wellness program shall be in accordance with the minimum requirements established by the department of public health pursuant to section two hundred and three of chapter one hundred and eleven. The commonwealth and any agencies or authorities thereof shall establish such programs for any police officers or firefighters employed by said commonwealth, agencies or authorities and shall be deemed to have accepted this section for the purposes of section sixty-one A. Any city, town, district, or other governmental unit, but not including the commonwealth, its agencies or authorities, which accepts the provisions of this section and provides wellness programs pursuant thereto shall be reimbursed for the lesser of (i) one-half the costs thereof or (ii) an amount equal to one hundred dollars per employee, by the commonwealth, upon certification by the secretary of public safety. Said secretary shall certify the amount of such reimbursement to be paid to such city, town, district, or other governmental unit from information filed on or before September first of each year with said secretary by the appointing authority.

SECTION 11. The third paragraph of section 64 of said chapter 31, as so appearing, is hereby amended by adding the following sentence:- Subsequent to January first, nineteen hundred and eighty-eight, no person who smokes any tobacco product shall be eligible for appointment as a uniformed member of the metropolitan district police, the Massachusetts bay transportation authority police force, or the capitol police force, or of the public works building police, and no person so appointed after said date shall continue in such office or position if such person thereafter smokes any tobacco product; the personnel administrator shall promulgate regulations for the implementation of the provisions of this sentence.

SECTION 12. Section 1 of chapter 32 of the General Laws, as so appearing, is hereby amended by striking out the definition of "Actuarial equivalent" and inserting in place thereof the following definition:-

"Actuarial equivalent", any benefit of equal value when computed upon the basis of the Combined Annuity Table of Mortality set back one year and interest at the rate of three per cent per annum.

SECTION 13. Said section 1 of said chapter 32, as so appearing, is hereby further amended by striking out the definition of "Board" and inserting in place thereof the following definition:-

"Board", the appropriate retirement board established under the provisions of section twenty having jurisdiction of any contributory retirement system established under the provisions of sections one to twenty-eight, inclusive, or under corresponding provisions of any special laws, or the pension reserves investment management board established under the provisions of section twenty-three, or the metropolitan water resources authority retirement board.

SECTION 14. Said section 1 of said chapter 32, as so appearing, is hereby further amended by inserting after the definition of "Commissioner" the following three definitions:-

"Commonwealth funding schedule", the plan established by the commissioner of administration after reviewing all reports prepared pursuant to section thirty-five H of chapter ten and subdivision (3) of section twenty-one of chapter thirty-two, and approved by the general court and the house and senate committees on ways and means pursuant to the provisions of section twenty-two C which establishes the schedule of payments necessary pursuant to said section twenty-two C to pay the normal cost of benefits for the commonwealth and amortizes over the forty year period beginning July first, nineteen hundred and eighty-eight any unfunded actuarial liability of the commonwealth, including any other pension obligations of a system or of the commonwealth relative to future pension liabilities which the commonwealth may by general or special law assume on behalf of any system other than the state employees' or teachers' retirement systems, and further including the commonwealth's share for the costs of any cost of living adjustments pursuant to section one hundred and two, and those which are associated either with teachers employed by the city of Boston or with cost-of-living adjustments or other benefits for members of systems other than the state employees' retirement system and the teachers' retirement system who are not teachers employed by the city of Boston. Said schedules shall be published by said commissioner and filed with the clerks of the senate and house of representatives, and with the retirement law commission.

The said commissioner shall revise such funding schedule after each actuarial valuation report prepared pursuant to section twenty-one to reflect any increase or decrease in the projected actuarial liability that may result from, without limitation, a review of the actuarial, economic and demographic assumptions on which such funding schedule is based; provided, however, that the house and senate committees on ways and means shall have reviewed and approved in advance such actuarial, economic, and demographic assumptions and the manner and methodology used in the development of the actuarial reports and recommendations, prior to the consideration of said actuarial valuations, reports, and schedules.

"Commonwealth's pension liability", the financial obligation of the commonwealth to pay all retirement benefits pursuant to this chapter for the state employees' and teachers' retirement systems, and to reimburse local retirement systems for cost of living adjustments pursuant to section one hundred and two and including any other pension obligations of a system or of the commonwealth relative to future pension liabilities which the commonwealth may assume by general or special law on behalf of any system other than the state employees' and teachers' retirement systems, and the commonwealth's financial obligations which are associated either with the teachers employed by the city of Boston or with cost-of-living adjustments or other benefits for members of systems other than the state employees retirement system and the teachers retirement system who are not teachers employed by the city of Boston.

"Commonwealth's Pension Liability Fund", the fund established under the provisions of subdivision (8) of section twenty-two for monies appropriated and set aside to meet all financial obligations for retirement benefits by the commonwealth, except such obligations as are payable from the Annuity Savings Fund and Annuity Reserve Fund of the state employees' and teachers' retirement systems.

SECTION 15. Said section 1 of said chapter 32, as so appearing, is hereby further amended by inserting after the definition of "Fiduciary" the following definition:-

"Funding system", any retirement system other than the state employees' retirement system and teachers' retirement system which accepts the provisions of section twenty-two D and adopts a funding schedule.

SECTION 16. Said section 1 of said chapter 32, as so appearing, is hereby further amended by inserting after the definition of "Membership service" the following definition:-

"Normal cost", that portion of the actuarial present value of the retirement system benefits and expenses which is allocated by the funding method to the twelve-month period following the valuation date of the most recent actuarial valuation report pursuant to section twenty-one in such actuarial valuation report. In determining the normal cost, the actuary shall utilize the most recent actuarial valuation report whether prepared pursuant to section twenty-one or pursuant to section thirty-five H of chapter ten and pursuant to the provisions of section twenty-two C.

SECTION 17. The definition of "PRIM board" of said section 1 of said chapter 32, as so appearing, is hereby amended by inserting after the word "Fund", in line 343, the words:- and appropriated and set aside for the payment of pension obligations and future liability, including money in the Commonwealth's Pension Liability Fund.

SECTION 18. The definition of "Regular compensation" of said section 1 of said chapter 32, as so appearing, is hereby amended by adding the following sentence:- Regular compensation shall also mean compensation received by any member having made the election provided for in section ninety G 1/2 and serving after having attained age seventy pursuant to section ninety F or ninety G.

SECTION 19. Said section 1 of said chapter 32, as so appearing, is hereby further amended by inserting after the definition of "Retirement allowance" the following definition:-

"Retirement system funding schedule", the plan established by a retirement board, and approved by the actuary, after reviewing all reports prepared pursuant to section thirty-five H of chapter ten and subdivision (3) of section twenty-one of chapter thirty-two, which establishes the payments necessary pursuant to section twenty-two D to pay the normal cost of benefits for the system and amortizes over the forty-year period beginning July first, nineteen hundred and eighty-nine, or nineteen hundred and ninety, any unfunded actuarial liability of the system. Said schedule shall be published by said board and filed with the clerks of the government units participating in the system. The actuary may require said board to revise such funding schedule after each actuarial valuation report prepared pursuant to section twenty-one to reflect any increase or decrease in the projected actuarial liability that may result from a review of the actuarial, economic and demographic assumptions on which such funding schedule is based.

SECTION 20. Paragraph (g) of subdivision (2) of section 3 of said chapter 32, as so appearing, is hereby amended by striking out the first paragraph (g) and inserting in place thereof the following paragraph:-

Department heads shall furnish to the board within thirty days after employing any new personnel or after the receipt of a written request therefor, a statement giving the name, address, title, rate of regular compensation, duties, date of birth and length and class of service of each employee in his department, and shall notify the board within thirty days of any change in the title, address, rate of compensation, duties or service of any employee in his department. Thereupon the board shall classify each member in one of the following groups:.

SECTION 21. Subdivision (7) of said section 3 of said chapter 32, as so appearing, is hereby amended by striking out paragraph (b) and inserting in place thereof the following paragraph:-

(b) In no event shall the total benefits received by such member from all such systems be greater than he would have received had his total regular compensation been received from a single governmental unit. The amount of any pension, retirement allowance or other benefit to be paid on account of any person who is a member of two or more such systems shall be computed and paid in such proportions as may be ordered by the actuary. No pension or retirement allowance shall become effective on account of any such person's membership in one system until the date the member terminates his service in any other governmental unit. Any board may conduct separate medical examinations for any member who is a member of two or more systems; provided, however, that the commissioner may suspend or otherwise limit such examination upon recommendation of the regional medical panel if it determines such second examination would be unnecessary based on the evidence of the first examination. Any such person so jointly employed shall have all the rights and be subject to the liabilities under the provisions of sections one to twenty-eight, inclusive, as a member of each such system, and his liability for regular deductions and his right to benefits from each system shall be based upon his regular compensation received from the governmental unit to which such system pertains.

SECTION 22. Said subdivision (7) of said section 3 of said chapter 32, as so appearing, is hereby further amended by striking out paragraph (d) and inserting in place thereof the following paragraph:-

(d) If any person who is a member of two or more systems terminates his service in one governmental unit other than by retirement but continues in service in one or more other governmental units, his membership in the system pertaining to the former governmental unit shall thereupon be transferred to the system of the governmental unit to which he is devoting the major portion of his employment and the provisions of subdivision (8) of this section shall be applicable; provided, however, that an individual awarded a disability pension from the system pertaining to the former governmental unit who continues his service in one or more other governmental units shall waive receipt of the disability retirement allowance during the period of such continued service, and provided further, that the membership of such individual awarded a disability pension shall not thereupon be transferred to the system of the governmental unit to which he is donating the major portion of his employment. In no event shall any member be eligible to receive a retirement allowance from one system while continuing in service in any governmental unit, except as provided for in section ninety-one, or in section twenty-six of chapter six hundred and seventy of the acts of nineteen hundred and forty-one, or in chapter sixteen of the acts of nineteen hundred and forty-two as amended. In no event shall any member who terminates his service in one governmental unit be entitled to withdraw his accumulated total deductions from the system pertaining to such governmental unit while still retaining his membership in any other system, except for the purpose of transfer thereof to such other system.

SECTION 23. Paragraph (c) of subdivision (8) of said section 3 of said chapter 32, as so appearing, is hereby amended by inserting after the first sentence the following two sentences:- The actuary shall consider length of service and whether the respective systems have elected to accept the provisions of paragraph (b 1/2) of subdivision (1) of section twenty-two when computing such portions. No system which has not accepted the provisions of said paragraph shall be assessed any costs for service in any other system which has accepted the provisions of said paragraph.

SECTION 24. Paragraph (l) of subdivision (1) of section 4 of said chapter 32, as so appearing, is hereby amended by inserting after the word "system", in line 123, the words:- who most recently became a member prior to January first, nineteen hundred and eighty-eight, and.

SECTION 25. Said subdivision (1) of said section 4 of said chapter 32, as so appearing, is hereby further amended by inserting after paragraph (l) the following paragraph:-

(l 1/2) Any member of a retirement system who most recently became a member on or after January first, nineteen hundred and eighty-eight, and is engaged in a teaching position and who has previously served in a position in the state department of education under the control of the commissioner of education but who was paid directly by the federal government from federal funds, may establish such service as creditable service by depositing in the annuity savings fund of the system of which he is a member the amount which would have been withheld as regular deductions from his salary for such service, plus regular interest to the date of such deposit.

SECTION 26. Paragraph (n) of said subdivision (1) of said section 4 of said chapter 32, as so appearing, is hereby further amended by inserting after the word "system", in line 143, the words:- who most recently became a member prior to January first, nineteen hundred and eighty-eight and.

SECTION 27. Said subdivision (1) of said section 4 of said chapter 32, as so appearing, is hereby further amended by inserting after paragraph (n) the following paragraph:-

(n 1/2) Any member of a retirement system who first became a member on or after January first, nineteen hundred and eighty-eight, and who previously served in a position with the Veterans Employment Service of the United States Employment Service and who, during such service, was attached to and served at offices of the Division of Employment Security, but who was paid directly by the Federal Government from federal funds, may establish such service as creditable service by depositing in the annuity savings fund of the system of which he is a member the amount which would have been withheld as regular deductions from his salary for such service, plus regular interest to the date of such deposit.

SECTION 28. Paragraph (a) of subdivision (3) of said section 4 of said chapter 32, as so appearing, is hereby amended by adding the following sentence:- The board shall issue said prior service certificate within six months of the filing of a statement of service of any member.

SECTION 29. Said subdivision (3) of section 5 of said chapter 32, as so appearing, is hereby amended by adding the following paragraph:-

(e) The personnel administrator together with the commissioner of public health and the secretary of public safety shall establish health and physical fitness standards for employees referred to in section ninety-four, except those to whom section sixty-one A of chapter thirty-one applies. Such standards shall be established by regulations promulgated by the administrator after consultation with representatives of police, firefighter and other public safety unions, and the Massachusetts Municipal Association. Notwithstanding the provisions of this paragraph, any municipality may adopt, subject to collective bargaining, stricter health and physical fitness standards. Such standards shall be reasonably adjusted to reflect the age and experience of such employees. Such standards shall be utilized by boards to determine whether any such individuals employed after January first, nineteen hundred and eighty-eight are allowed to continue in employment in accordance with the procedures established in said section sixty-one A. Such standards shall be used to determine the employee's ability to perform his duties and are not to be construed to be the same as disability standards. Said personnel administrator shall establish a program of initial and in-service medical and physical fitness examinations in which such employees shall be required to participate at regular intervals. This section shall apply in all cities, towns, districts or other governmental units which accept the provisions of section five A.

The personnel administrator shall submit said regulations to the clerks of the house of representatives and senate, who shall refer said regulations to the appropriate standing committee of the general court. Within fifteen days of said referral, said committee shall transmit in writing to the administrator its recommendations, if any, for modifications to said regulations. Within fifteen days of receipt of any such recommendations, the administrator shall resubmit said regulations to said committee together with any modifications made thereto. If the general court takes no final action relative to said regulations within forty-five days of the date on which said regulations are first referred to said committee, said regulations shall be filed with the state secretary pursuant to the provisions of section five of chapter thirty A. No such regulations shall take effect until filed with the state secretary in accordance with the provisions of this paragraph.

SECTION 30. Said chapter 32 is hereby further amended by inserting after section 5 the following section:-

Section 5A. Any city, town, district or other governmental unit which accepts the provisions of this section shall establish a wellness program for employees referred to in section ninety-four, except those to whom section sixty-one A of chapter thirty-one applies, if any, employed in such city, town, district or other governmental unit. Such wellness program shall be in accordance with the minimum requirements established by the department. The commonwealth and any agencies or authorities thereof shall establish such programs for any such employees employed by said commonwealth, agencies, or authorities, and shall be deemed to have accepted this section for the purposes of paragraph (e) of subdivision (3) of section five.

Any city, town, district or other governmental unit but not including the commonwealth, its agencies or authorities, which accepts the provisions of this section and provides wellness programs pursuant thereto shall be reimbursed for the lesser of (i) one-half the costs thereof or (ii) one hundred dollars per employee, by the commonwealth, upon certification by the secretary of public safety. The secretary shall certify the amount of such reimbursement to be paid to such city, town, district or other governmental unit from information filed on or before September first of each year with said secretary by the appointing authority.

SECTION 31. Subdivision (1) of section 6 of said chapter 32, as appearing in the 1986 Official Edition, is hereby amended by striking out the first sentence and inserting in place thereof the following five sentences:- Any member in service who becomes totally and permanently incapacitated for further duty before attaining age fifty-five and after completing fifteen or more years of creditable service, or any such member who is a veteran as defined in section one who becomes totally and permanently incapacitated for further duty before attaining the maximum age for his group and after completing ten or more years of creditable service, or any member in service in a retirement system accepting the ten year option provided for by this paragraph who becomes totally and permanently incapacitated for further duty before attaining age fifty-five and after completing ten or more years of creditable service, upon his written application on a prescribed form filed with the board and with his respective employer, or upon such an application by the head of his department after a hearing, if requested, as provided for in subdivision (1) of section sixteen and subject to the conditions set forth in said section sixteen and in this section, shall be retired for ordinary disability as of a date which shall be specified in such application and which shall be not less than fifteen days nor more than four months after the filing of such application but in no event later than the maximum age for his group, nor earlier than the last day for which he received regular compensation. Any system may accept the ten year option provided for by this paragraph by majority vote of the board of each such system, subject to the approval of the legislative body. For purposes of this subdivision, "legislative body" shall mean a town meeting in a town, the city council in a city, the county retirement board advisory council in a county, and the district members in a district. Acceptance shall be deemed to have occurred upon the filing of a certification of such votes with the commissioner. For the purposes of this section, the state teachers' and state employees' retirement systems shall be deemed to have accepted the provisions of this section.

SECTION 32. Said section 6 of said chapter 32, as so appearing, is hereby further amended by striking out subdivision (3) and inserting in place thereof the following subdivision:-

(3) Regional Medical Panels. - (a) No member shall be retired for a disability under the provisions of this section or section seven unless he has been examined first by a regional medical panel and unless the physicians on such panel, after such examination, shall review the pertinent facts in the case, and such other written and oral evidence as the applicant and the employer may present to be reviewed in making a determination of the member's medical condition. No physician having previously examined the member, except as part of a prior disability medical panel, shall serve on the regional medical panel examining the member. At the conclusion of such examination, but in not more than sixty days, the panel shall certify to the board in writing whether such physicians on said panel find that such member is mentally or physically incapacitated for further duty and that such incapacity is likely to be permanent, and in any case involving a retirement under section seven, the panel physicians shall state further whether or not the disability is such as might be the natural and proximate result of the accident or hazard undergone on account of which retirement is claimed under said section seven.

For the purposes of this section the following terms shall have the following meanings:

"Associated physicians", a physician providing services under this section who, has a direct and substantial financial interest unrelated to his service under this chapter which can be reasonably effected by another physician serving on the same medical panel in such a manner and to such an extent as to make it unlikely that the physician would be able to exercise independent judgment in providing such services; provided, however, that a physician providing said services through a disability review organization shall not be considered an associated physician; provided, further, that the physician has no direct and substantial financial interest in the profit and loss of said organization in such a manner and to such an extent as to make it unlikely that the physician would be able to exercise independent judgment.

Such regional medical panel shall be appointed by the commissioner of public employee retirement from a pool of physicians developed after consultation with representatives of the Massachusetts Medical Society and the department of public health and shall consist of three physicians, who shall not be associated physicians, and who shall be selected for the purpose of examining the member whose retirement is under consideration and shall, so far as practicable, be skilled in the particular branch of medicine or surgery involved in the case.

Said examination shall be conducted in accordance with the standards outlined by the commissioner in rules and regulations promulgated pursuant to this chapter.

(b) Any medical examination of any member under the provisions of sections six to eight, inclusive, shall be conducted as soon as practicable and at a time and place convenient for all of the interested parties; provided, however, that such examinations shall so far as practicable occur within a region established by the commissioner of public employees retirement which has a reasonable geographical proximity to the board and member. The arrangement for such examination shall be made by the commissioner after sufficient notice to the retirement board and applicant and shall be conducted on a timely basis. In the case of any such examination of an employee of the commonwealth, the state retirement board shall notify the state agency having jurisdiction over the said employee to designate a physician to assist the state retirement board in representing the commonwealth in the medical panel examinations; and provided, further, that in the case of any teacher, the school committee or board of trustees having jurisdiction over such teacher shall upon request of the teachers' retirement board, designate a physician in representing the municipality or other governmental body.

If the panel fails to meet within sixty days after appointment by the commissioner to conduct their examination, or at any earlier time upon the request of the applicant, the commissioner shall require the three physicians to meet separately to conduct such examinations and the employer's physician and member's physician shall have the opportunity to attend each such examination. Upon receipt of such a request from an applicant, the commissioner shall establish such separate examinations as soon as practicable thereafter.

(c) The physicians composing the regional medical panel may obtain x-ray plates or other medical evidence which, in their judgment is necessary to determine the natural and proximate cause, nature and degree of disability of such member and shall obtain any existing evidence from initial and in-service examinations conducted pursuant to section sixty-one A of chapter thirty-one. The member and the employer may each be represented by counsel. A physical examination of such member shall be conducted by the medical panel.

The medical panel, after completing such examinations pursuant to this section, shall within sixty days report their findings and recommendations to the board. The regional medical panel shall attach to their finding a certificate, approved by the commissioner, certifying that their findings were arrived at independently of each other and free of undue influence of any kind.

At the discretion of the member and his physician and the employer and its physician, said physicians may be present and may answer questions from the panel during the decision making process of the panel; provided, however, that neither physician shall have a vote in the final determination of such panel; and provided, further, that either physician may disagree with the findings of such panel and may indicate such opinion by signing and noting their objections on an appropriate medical certificate and by submitting a written statement as to their medical opinion involving such case.

Upon receipt of such medical panel report, the board shall within thirty days notify the employee and governmental unit in writing of the panel's finding.

The fees and expenses of physicians for services on any medical panel and all expenses for obtaining x-rays or other medical evidence in connection with such examination shall upon the approval of the commissioner be paid by the commonwealth in accordance with a fee and expense schedule established by the house and senate committees on ways and means. Such fees of the physician designated by the applicant which are not reimbursed by a third party shall also be paid by the commonwealth in accordance with said fee schedule. No such fees shall be paid unless the appropriate certificate provided herein has been filed.

(d) On the request of the state board of retirement or the teachers' retirement board, the commissioner shall designate a physician or physicians to advise such board in the determination of applications for ordinary disability retirement, accidental disability retirement, or in case of an application for accidental death benefit.

SECTION 33. Paragraph (a) of subdivision (2) of section 7 of said chapter 32, as so appearing, is hereby amended by striking out clauses (ii) and (iii), and inserting in place thereof the following two clauses:-

(ii) A yearly amount of pension equal to seventy-two per cent of the annual rate of his regular compensation on the date such injury was sustained or such hazard was undergone, or equal to seventy-two per cent of the average annual rate of his regular compensation for the twelve-month period for which he last received regular compensation immediately preceding the date his retirement allowance becomes effective, whichever is greater; provided, however, that for any employee who was not a member in service on or before January first, nineteen hundred and eighty-eight or who has not been continuously a member in service since that date, the total yearly amount of the sum of such pension and the annuity as determined in accordance with the provisions of clause (i) shall not exceed seventy-five per cent of the annual rate of regular compensation as determined in this paragraph; and provided further, that no individual who is a member in service on January first, nineteen hundred and eighty-eight, whose allowance is limited by the seventy-five per cent limitation as established in this paragraph shall receive an amount of pension that is less than seventy-two per cent of such individual's regular compensation on said January first, nineteen hundred and eighty-eight; and

(iii) A yearly amount of additional pension determined at the rate of three hundred and twelve dollars yearly for any surviving unmarried child of such member who is under age eighteen or who was over said age and physically or mentally incapacitated from earning on the date of such member's retirement; provided, however, that in the state and teachers' systems and any other system electing to adopt the supplemental dependent allowance, the yearly amount of such additional pension shall be determined by the actuary as hereinafter provided. Such additional pension on account of any child shall be paid only so long as such child survives, remains unmarried and is under the age of eighteen or, if over said age, remains physically or mentally incapacitated from earning or, if over said age and under age twenty-one, is a full-time student at an accredited educational institution. The words "full-time student" shall mean a child who is in full-time attendance in an accredited educational institution offering full-time courses of study equivalent to or higher than secondary school study. The words "accredited educational institution" shall mean any school, college, or university that is licensed, approved, or accredited, as the case may be, in the state in which it is located. Beginning July first, nineteen hundred and eighty-eight, the additional pension provided by the supplemental dependent allowance shall be fixed at a rate of four hundred and fifty dollars for each eligible child. Beginning July first, nineteen hundred and eighty-nine, the supplemental dependent allowance rate shall be increased by an amount equal to the percentage increase of the cost of living determination made by the general court for such year pursuant to section one hundred and two. Systems may adopt the supplemental dependent allowance by an affirmative vote of the retirement board, ratified by the chief executive officer and legislative body as defined in paragraph (c) of subdivision (8) of section twenty-two. Adoption of the supplemental allowance by any system may not be revoked.

SECTION 34. Subdivision (2) of said section 7 of said chapter 32, as so appearing, is hereby amended by inserting after paragraph (b) the following paragraph:-

(b 1/2) The normal yearly amount of the allowance of any member retired under the provisions of this section and classified in Group 1, Group 2, or Group 4 who at the time of such retirement had attained the age of fifty-five and who at the time of such retirement had accrued fewer than ten years of creditable service shall be adjusted on the last day of the month in which he attains the age of sixty-five to that to which he would be entitled under the provisions of section five as prescribed for a member of his group, if he were to be retired for superannuation upon the attainment of age sixty-five except that,

(i) in place of the average annual rates of compensation referred to in paragraph (a) of subdivision (2), an amount shall be used which is equal to the yearly amount of his pension for the year ending on the last day of the month in which he attained age sixty-five, divided by the percentage by which his annual rate or average annual rate of regular compensation was multiplied to determine the yearly amount of his pension at the time he was retired under the provisions of this section; and

(ii) to the number of years and full months of creditable service accrued at the time of his retirement under the provisions of this section shall be added, in accordance with regulations to be promulgated by the commissioner of public employee retirement, a number of years and full months of creditable service corresponding to the period for which he has received an allowance under this section. Nothing in section ten shall be held to contravene any of the provisions of this paragraph.

SECTION 35. Subdivision (3) of said section 7 of said chapter 32, as so appearing, is hereby amended by striking out paragraph (a) and inserting in place thereof the following paragraph:-

(a) Lapse of time or failure to file notice of an injury sustained or a hazard undergone as provided for in subdivision (1) of this section or subdivision (1) of section nine, as the case may be, shall not be a bar to proceedings under either of said sections if such member received payments on account of such injury or hazard under the provisions of chapter one hundred and fifty-two or in case he was classified in Group 2, Group 3 or Group 4 and not subject to the provisions of chapter one hundred and fifty-two, if a record of such injury sustained or hazard undergone is on file in the official records of his department.

SECTION 36. Paragraph (b) of subdivision (4) of said section 7 of said chapter 32, as so appearing, is hereby amended by striking out the third sentence and inserting in place thereof the following sentence:- All such payments due under the provisions of this paragraph from the second governmental unit shall be charged to the pension funds of the system pertaining thereto, or if there is no such system then they shall be paid by such government unit from a special appropriation, and as received they shall be credited to or appropriated for the pension fund of the system pertaining to the first governmental unit.

SECTION 37. Section 8 of said chapter 32, as so appearing, is hereby amended by striking out subdivision (1) and inserting in place thereof the following subdivision:-

(1) Reexamination of Members. - (a) The board may require any member retired for disability under the provisions of section six or seven who has not attained age sixty or, in the case of a member so retired subsequent to his sixtieth birthday, the age of sixty-five, to submit to a mental or physical examination pursuant to paragraph (b) once in each year during the five-year period next succeeding the date of his retirement, and in each three-year period thereafter, by the regional medical panel provided for in subdivision (3) of section six, or upon a written request thereof by any such member. The board shall permit such examination at any time before he attains age sixty or sixty-five, as applicable, but not more frequently than once in any twelve-month period. If such member shall refuse to submit to any such required examination, his retirement allowance may be discontinued, and if such refusal continues for one year thereafter, all his rights in and to the pension provided for in section six or seven shall be revoked by the board.

(b) Each retirement board shall, subject to the provisions of paragraph (a), establish a program for the reevaluation of members retired on a disability under the provisions of this chapter which shall consist of the following:-

(i) No less often than once in each year during the five-year period next succeeding the date of his retirement and once every three years thereafter prior to his attainment of the age of sixty, or in the case of a member retired subsequent to his sixtieth birthday, the age of sixty-five, each retired member shall be subject to a desk review of his disability conducted by the board.

(ii) If, as a result of such desk review, as a result of the submission of earnings information under section ninety-one A, or as a result of the completion of a rehabilitation program under subdivision (5) of section twenty-one, the board determines that the disability warrants further review, the board shall petition the commissioner to appoint either a single physician or a three member regional panel to examine the retired member, notwithstanding the time limitations of paragraph (a). If a single physician is appointed, he shall conduct an independent reexamination and shall forward his recommendations to the board and the commissioner.

(iii) If the single physician recommends that a further examination of the retired member is warranted, the board shall immediately petition the commissioner for the establishment of a three member regional medical panel to conduct a reexamination of the member within sixty days.

SECTION 38. Paragraph (b) of subdivision (2) of said section 8 of said chapter 32, as so appearing, is hereby amended by striking out the second sentence and inserting in place thereof the following two sentences:- Any creditable service in effect for him at the time of his retirement for disability shall thereupon be restored to full force and effect, and upon his subsequent retirement he shall be entitled to a normal yearly amount of retirement allowance computed as though such disability retirement and reinstatement had not taken place. No additional member contributions shall be required as a precondition of receiving any such creditable service.

SECTION 39. Said section 8 of said chapter 32, as so appearing, is hereby further amended by striking out subdivision (3) and inserting in place thereof the following subdivision:-

(3) Modifications of retirement allowance. - If, as a result of the report of such medical panel, as a result of the submission of earnings information under section ninety-one A, or as a result of the completion of a rehabilitation program under subdivision (5) of section twenty-one, the board finds that such retired member is engaged or is able to engage in gainful occupation and that the annual rate of his actual or potential earnings is less than his regular compensation as defined in this subdivision, but is more than the difference between such regular compensation and the normal yearly amount of his retirement allowance, then the yearly amount of his pension shall be reduced, and if his actual or potential earnings are more than such regular compensation, his pension shall be suspended. Notwithstanding any other provisions of this section, if such retired member submits earnings information pursuant to section ninety-one A, indicating earnings in excess of regular compensation, as therein described, such member's pension shall be reduced as provided for in this subdivision and shall not be increased for a period of one year unless a medical panel finds that the mental or physical condition of such member has deteriorated. If the annual rate of his earnings should later be changed, the yearly amount of his pension shall be further modified by reinstating, increasing, reducing, or suspending it, as the case may be. The yearly amount of such reduced or modified pension at all times shall be equal to the excess, if any, of the amount of such regular compensation over the sum of the yearly amount of regular life annuity payable to him under clause (i) of Option (a) of subdivision (2) of section twelve and the annual rate of his current actual or potential earnings, but in no event shall it exceed the yearly amount of the pension originally granted to him as adjusted pursuant to section one hundred and two. For purposes of this subdivision, regular compensation means, subject to further definition by regulations of the division of public employee retirement administration, regular compensation which would have been payable during the preceding year had the member continued in service in the grade held by him at the time he was retired. The commissioner of public employee retirement administration shall, subject to the provisions of section fifty of chapter seven, promulgate regulations for the determination of the potential earnings of any such retired member based upon such member's functional capacity, age, education and experience. Any such modification may be appealed by the member to the contributory retirement appeals board.

Unless the board, as a result of the report of such medical panel finds that the mental or physical condition of such retired member has improved, no such reduction shall be based on the potential earnings of such retired member prior to the later of (i) the thirteenth month following the date on which such initial finding is made by said board or (ii) the nineteenth month following the date on which such member was retired. Any member subject to a reduction other than upon the report of a medical panel may request a medical panel as provided for in subdivision (1). If such request is filed within fifteen days of the initial finding of the board, no reduction shall be made until the medical panel report is received by said board and the initial finding is confirmed or altered by such board.

SECTION 40. Said section 8 of said chapter 32, as so appearing, is hereby further amended by adding the following subdivision:-

(4) The commissioner of public employee retirement may require any member retired for disability under the provisions of section six or seven who has not attained the of sixty or, in the case of a member so retired subsequent to his sixtieth birthday, the age of sixty-five to participate in an evaluation to determine whether such member might benefit from a medical or vocational rehabilitation program. Such evaluation may include medical examinations, vocational testing and meetings and consultation with physicians and vocational counselors to consider and design a suitable rehabilitation program. Such rehabilitation programs shall include only services which shall appear on a list established by the commissioner pursuant to subdivision (5) of section twenty-one or as specifically approved by said commissioner. If such member shall refuse to submit to any such evaluation, his retirement allowance may be discontinued, and if such refusal continues for one year thereafter all his rights in and to the pension provided for in section six or seven shall be revoked by the board.

If, following evaluation, the board determines that such retired member may benefit from such a rehabilitation program, the board shall offer to provide such rehabilitation program for such member and shall pay the costs of the program less any benefits payable under insurance policies of the member for such programs and less any scholarships or grants otherwise available for such programs. If the commissioner approves the rehabilitation program offered by the board, said commissioner shall reimburse the board for the costs of such program. No such program shall extend longer than fifty-two weeks unless the commissioner so approves. No member shall be required to participate in any rehabilitation program. Any such member who, in the determination of the commissioner, might benefit from any such program may, if denied access to such a program by the board, appeal such denial to the commissioner. If, upon such appeal, the commissioner determines that such member might benefit from such rehabilitation program, he shall approve and offer to provide and pay for such program.

SECTION 41. Subdivision (3) of section 11 of said chapter 32, as so appearing, is hereby amended by striking out, in lines 109, 128, 133 and 136 the words "pension reserve fund" and inserting in place thereof, in each instance, the words:- Pension Reserve Fund or the Commonwealth's Pension Liability Fund.

SECTION 42. Option (c) of subdivision (2) of section 12 of said chapter 32, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

Joint and Last Survivor Allowance. - A lesser retirement allowance which shall be payable to such member during his lifetime, with the provisions that two-thirds of the yearly amount of such lesser retirement allowance shall be continued during the lifetime of and paid to such surviving eligible beneficiary as such member shall have nominated in his written election of this option; provided, however, that such eligible beneficiary shall receive not less than two-thirds of the retirement allowance such member is receiving at the time of his death; and provided, further, that if such eligible beneficiary dies on or after the date such lesser retirement allowance becomes effective and before the death of such member, such member thereafter shall be paid a full retirement allowance and may not choose another option. Such full retirement allowance shall be determined by multiplying the amount of the lesser retirement allowance at the time of the death of such eligible beneficiary by a fraction the numerator of which is the yearly amount of the full retirement allowance which such member would have received at the time his retirement allowance became effective if he had elected that it be paid in accordance with the terms of Option (a), and the denominator of which is the yearly amount of the lesser retirement allowance which such member received at the time his retirement allowance first became effective.

SECTION 43. The second paragraph of said Option (c) of said subdivision (2) of said section 12 of said chapter 32, as so appearing, is hereby amended by striking out the second and third sentences and inserting in place thereof the following two sentences:- The yearly amount of such lesser retirement allowance shall be determined so that the actuarial value of the prospective payments to such member, including those for a full retirement allowance made in accordance with the first paragraph of this option, and to such eligible beneficiary shall, on the date such allowance becomes effective, be the actuarial equivalent of the value on such date of the full retirement allowance specified in Option (a). Any such lesser retirement allowance payable under this option shall be divided between annuity and pension in the same proportion as the corresponding full retirement allowance specified in said Option (a) is so divided, and any such full retirement allowance payable under this option shall be divided between annuity and pension in the same proportion as the lesser retirement allowance which it replaces.

SECTION 44. Option (d) of said subdivision (2) of said section 12 of said chapter 32, as so appearing, is hereby amended by striking out the eighth paragraph and inserting in place thereof the following paragraph:-

Any eligible beneficiary or spouse having a right under this option may, within ninety days from the date that the board mailed notice regarding the right of election to the spouse or eligible beneficiary, make any make-up payments which at the time of death the member had a right to make for the purpose of obtaining credit for service rendered by the member prior to his last becoming a member.

SECTION 45. Subdivision (1) of section 14 of said chapter 32, as so appearing, is hereby amended by striking out, in lines 7 and 8, the word "thirty-five A" and inserting in place thereof the words:- thirty-four B, thirty-five A, thirty-five F.

SECTION 46. Said chapter 32 is hereby further amended by inserting after section 14 the following section:-

Section 14A. Third Party Recovery. If a member or beneficiary entitled to a pension under the provisions of section six, seven or nine, also has a right to recover lost wages from any party other than his employer by reason of the same injury or death of such member, the amount of any such recovery for lost wages shall be offset against and payable in lieu of any pension payable on his account under the provisions of said sections according to a schedule approved by the actuary which is consistent with that set forth in paragraph (c) of subdivision (1) of section fourteen. If any such member or beneficiary neglects or fails to prosecute fully such right, the board shall prosecute such right on the member's behalf. In the event the member or beneficiary fails to cooperate with the board in its prosecution thereof the board may, during the period of such failure, suspend such member's or beneficiary's right to further payment under the provisions of section six, seven or nine.

SECTION 47. Section 15 of said chapter 32, as so appearing, is hereby amended by adding the following subdivision:-

(4) Forfeiture of pension upon misconduct. - In no event shall any member after final conviction of a criminal offense involving violation of the laws applicable to his office or position, be entitled to receive a retirement allowance under the provisions of section one to twenty-eight, inclusive, nor shall any beneficiary be entitled to receive any benefits under such provisions on account of such member. The said member or his beneficiary shall receive, unless otherwise prohibited by law, a return of his accumulated total deductions; provided, however, that the rate of regular interest for the purpose of calculating accumulated total deductions shall be zero.

SECTION 48. Section 16 of said chapter 32, as so appearing, is hereby amended by striking out subdivision (4) and inserting in place thereof the following subdivision:-

(4) Right of Appeal to Contributory Retirement Appeal Board. - There shall be an unpaid contributory retirement appeal board which shall consist of three members as follows: an assistant attorney general who shall be designated in writing from time to time by the attorney general who shall act as chairman, the commissioner of public employee retirement or an assistant who shall be designated in writing, from time to time, by the said commissioner, and a member appointed by the governor for a term of five years. In the event the matter before the contributory retirement appeal board deals with any matter related to disability retirement or interim benefits as awarded by the division of administrative law appeals, the commissioner of public health or his designee shall substitute for the commissioner of public employee retirement.

The members of the contributory retirement appeal board shall be compensated for any expenses incurred in the performance of their official duties. On matters other than those subject to review by the district court as provided for in subdivision (3), or other than those which would have been subject to review had the requirement for the minimum period of creditable service been fulfilled, any person when aggrieved by any action taken or decision of the retirement board or the commissioner of public employee retirement rendered, or by the failure of a retirement board or the commissioner of public employee retirement to act, may appeal to the contributory retirement appeal board by filing therewith a claim in writing within fifteen days of notification of such action or decision of the retirement board or the commissioner, or may so appeal within fifteen days after the expiration of the time specified in sections one to twenty-eight, inclusive, within which a board or the commissioner must act upon a written request thereto, or within fifteen days after the expiration of one month following the date of filing a written request with the board or the commissioner if no time for action thereon is specified, in case the board or the commissioner failed to act thereon within the time specified or within one month, as the case may be. The contributory retirement appeal board, after giving due notice, shall, not less than ten nor more than sixty days after filing of any such claim of appeal, assign such appeal to the division of administrative law appeals for a hearing. The division of administrative law appeals shall maintain the official records of the contributory retirement appeal board. The contributory retirement appeal board shall pass upon the appeal within six months after the conclusion of such hearing, and its decision shall be final and binding upon the retirement board involved and upon all other parties to the appeal, and shall be complied with by such board and by such parties. Any person, upon making an appeal involving a disability retirement allowance, shall be permitted to retire for superannuation retirement, if otherwise eligible, pending the decision of the contributory retirement appeal board, but in no event shall such action prejudice the person from receiving any further benefits which the contributory retirement appeal board may grant in its decision nor shall the person upon a finding in favor of the employer be required to reimburse the employer for payments made prior to the decision of the contributory retirement appeal board.

On appeals involving disability or where medical reports are part of the proceedings, the contributory retirement appeal board may request further information from the members of the appropriate regional medical panel, or may employ a registered physician to advise them in determination of an appeal.

The contributory retirement appeal board shall have the power to subpoena witnesses, administer oaths and examine such parts of the books and records of the parties to a proceeding as relate to questions in dispute. Fees for such witnesses shall be the same as for witnesses before the courts in civil actions, and shall be paid from the Appropriation Fund of the division of administrative law appeals.

The contributory retirement appeal board, acting through the division of administrative law appeals, shall arrange for the publication of its decisions and the cost of such publication shall be paid from the Appropriation Fund of the division of administrative law appeals.

The contributory retirement appeal board shall establish a fee structure for appeals brought under this section, which shall be subject to the approval of the commissioner of administration.

The division of administrative law appeals shall submit to the contributory retirement appeal board on an annual basis a report on the status of all cases that have been assigned to the division of administrative law appeals for a hearing.

SECTION 49. Section 18 of said chapter 32, as so appearing, is hereby amended by inserting after subdivision (1) the following subdivision:-

(1A) Filing of Reports and Penalties for Failure to File. - The treasurer or other disbursing officer in charge of payroll in any governmental unit or agency to which a system pertains, upon request from the board or the commissioner shall submit such written information as shall be required by the provisions of section one to twenty-eight, inclusive, or by rules and regulations of the board or the commissioner consistent with the law. If the board or the commissioner determines that there has been unreasonable delay in filing of any such required information, the board or the commissioner shall so notify in writing such treasurer or other disbursing officer. If within thirty days thereafter, the board or the commissioner has not received such required information, it shall so notify the treasurer or other disbursing officer and the chief executive officer for the governmental unit. The board or the commissioner may petition the superior court to compel compliance with this section and enforce the penalty thereunder.

SECTION 50. Paragraph (b) of subdivision (3) of section 20 of said chapter 32, as so appearing, is hereby amended by striking out the second and third sentences and inserting in place thereof the following sentence:- Said board shall consist of three members as follows: the county treasurer, who shall be a member ex officio and serve as chairman, one member hereinafter referred to as the elected member, and one member of the county retirement board advisory council who shall be elected by a majority of those present and voting at a public meeting of said council, properly posted, called specifically for such election pursuant to paragraph (g).

SECTION 51. Subdivision (5) of said section 20 of said chapter 32, as so appearing, is hereby amended by striking out, in lines 657 and 658, the words "as provided for in subdivision (3) of section six".

SECTION 52. Paragraph (g) of said subdivision (5) of said section 20 of said chapter 32, as so appearing, is hereby amended by adding the following four sentences:-

If the commissioner determines that there has been unreasonable delay in the filing of any such required data, the commissioner shall so notify such board in writing. If within thirty days thereafter the commissioner has not received such required data, he shall so notify the board and the chief executive officer for the governmental unit or units to which the system pertains. The commissioner may petition the superior court to compel compliance with this paragraph. To ensure the maintenance of accurate and current membership records and payment information, the commissioner may, for any system which fails to submit the requested information within sixty days of the second board notification, send his agent or agents to examine the records and accounts of the system and to direct such actions by the board or its employees as may be required to comply with acceptable recordkeeping and accounting standards.

SECTION 53. Paragraph (h) of said subdivision (5) of said section 20 of said chapter 32, as so appearing, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- Investments of the system shall be carried at values determined by the commissioner in accordance with the requirements of paragraph (b) of subdivision (1) of section twenty-one.

SECTION 54. Paragraph (i) of said subdivision (5) of said section 20 of said chapter 32, as so appearing, is hereby amended by striking out the first and second sentences and inserting in place thereof the following six sentences:- Each board shall prepare annually a report which shows the financial condition of the system as of December thirty-first of the previous year in a manner which can be easily understood by the members of said system. Such report shall contain information showing the financial transactions of the previous year, statistical information with reference to the membership of the system, a summary of the findings of any timely audit reports, a summary of the board's investment policy, a summary of the system's investment portfolio as of December thirty-first of the previous year, and information with regard to the system's most recent actuarial valuation including the unfunded actuarial liability as of the valuation date. Each board shall file a copy of its report with the governmental unit in which the system is established. A copy of the report or a summary thereof shall be made available upon request to each member of the system and to other interested persons. Each board shall annually, on or before July first, furnish to each member of the system an annual statement for the previous calendar year relative to the status of the member's account. Such statement shall show either the total contribution since the member entered the retirement system, the total amount of interest which has accrued, and the combined total in the account as of the end of the previous calendar year, or the regular deductions for the previous calendar year, additional deductions, if any, for the previous calendar year, regular interest credited for the previous calendar year, and accumulated total deductions as of the close of the previous calendar year.

SECTION 55. Said subdivision (5) of said section 20 of said chapter 32, as so appearing, is hereby amended by adding the following:-

(k) Upon the written request of any member or his authorized representative, each board shall provide such member or representative, within thirty days of receipt of such request, a written notice of the benefits to which such member is or may be entitled under the provisions of this chapter, including the dates on which such member will become eligible to receive such benefits, and the effect of such benefits, if any, on any benefits such member may be eligible to receive pursuant to the federal social security act. Such notice shall be on a form prescribed by the commissioner of the division of public employee retirement administration.

SECTION 56. Said chapter 32 is hereby further amended by inserting after section 20A the following section:-

Section 20B. Indemnification. - In any civil action brought against a member, employee or the investment committee of the state retirement board, the teachers' retirement board, or any member or employee of the pension reserves investment management board the defense or settlement of which is made by the attorney general or by an attorney employed by said board, such member, committeeman or employee shall be indemnified for all expenses incurred in the defense thereof and shall be indemnified for damages to the same extent as provided for public employees in chapter two hundred and fifty-eight; provided, however, that the claim arose out of acts performed by such member, committeeman or employee while acting within the scope of his official duties; and provided, further, that no member, committeeman or employee shall be indemnified for expenses in an action or damages awarded in such action, in which there is shown to be a breach of fiduciary duty, an act of willful dishonesty or an intentional violation of law by such member, committeeman or employee.

SECTION 57. Paragraph (a) of subdivision (1) of section 21 of said chapter 32, as appearing in the 1986 Official Edition, is hereby amended by striking out the first two sentences and inserting in place thereof the following five sentences:- The commissioner of public employee retirement shall prescribe and supervise methods of accounting and recordkeeping for each system maintained under the provisions of this chapter. To ensure the maintenance of accurate and current membership records and payment information, the commissioner, for any board which fails to submit the requested information upon notice as prescribed in subdivision (5) of section twenty, may send his agents to examine the records and accounts of the board and to direct such action by the board or its employees as may be required to comply with acceptable recordkeeping and accounting standards. The commissioner shall require each board to keep in convenient form such data as is required for the purpose of valuing the assets, determining the liabilities of the system, making actuarial investigation of the experience of the system, and for promulgating rules and regulations governing the administrative procedures and for maximizing the assets of such system. Such data shall be submitted to the office of the commissioner of public employee retirement within such time as he may specify. The commissioner or his agent shall conduct an in-depth field examination of each board at intervals not exceeding three years to ascertain its financial condition, its ability to fulfill its obligations, whether all parties in interest have complied with the laws applicable thereto, and whether the transactions of the board have been in accordance with the rights and equities of those in interest.

SECTION 58. Said subdivision (1) of said section 21 of said chapter 32, as so appearing, is hereby further amended by striking out paragraph (b) and inserting in place thereof the following paragraph:-

(b) Each such system, except any system appropriating funds pursuant to a funding schedule adopted in accordance with the provisions of section twenty-two C or twenty-two D as the case may be, shall be credited in its financial accounts with its investments having a fixed term and rate, if amply secured in the judgment of the commissioner of public employee retirement and not in default as to principal or interest, as follows: if purchased at par, with the par value; if purchased above or below par, with an amortized value so determined as to yield approximately the effective rate of interest at which the purchase was made and to bring the value to par at the date of maturity or at the date the security is first callable at par if prior thereto; provided, however, that the purchase price of any such security shall not be taken at a higher value than its actual market value when purchased; and provided, further, that the value of any security on the date of any valuation thereof shall not be taken at a higher value than its callable value, if any, on such date. The commissioner of public employee retirement shall have full power and discretion in determining the methods of calculating values according to the foregoing rules, and the values found by him in accordance with such methods shall be final and binding; provided, however, that any investments in United States savings bonds purchased on a discount basis may be credited at their redemption value or at their amortized value, as the board shall determine. The commissioner of public employee retirement shall also have full power and discretion in determining the method of calculating the values of any other investments of any system; provided, however, that the calculation of such values shall be consistent with methods prescribed by the Government Accounting Standards Board or methods allowed by the Employee Retirement Income Security Act, so-called.

SECTION 59. Subdivision (2) of said section 21 of said chapter 32, as so appearing, is hereby amended by striking out, in lines 85 and 98, in each instance, the word "deputy".

SECTION 60. Said section 21 of said chapter 32, as so appearing, is hereby further amended by striking out subdivision (3) and inserting in place thereof the following subdivision:-

(3) Duties of the Actuary. - The commissioner or his actuary or other agent with his approval shall be the technical advisor of the board of each such system in matters relating to the applicable provisions of this chapter, and in matters relating to the operation of the system, and shall perform such actuarial duties as are required in connection therewith, including, but not limited to:-

(a) the approval of the amount of allowances under the provisions of said chapters, provided, however, that in the case of any system which calculates allowances with an automated system, the actuary shall instead review and approve said automated system, and any allowances calculated by an approved automated system shall be deemed to have been approved by the actuary; provided, further, that for any such system which calculates such allowances with an automated system, the commissioner may require from time to time and the system shall provide any additional information relative to the use of such automated system that the commissioner may deem appropriate; and provided, further, that any system failing to submit any such allowances for review shall be subject to such intervention and supervision as the commissioner deems necessary pursuant to the provisions of subdivision (1);

(b) the review of all actuarial valuation reports prepared pursuant to the provision of paragraph (k) of subdivision (5) of section twenty or the provisions of section twenty A of chapter ten;

(c) the preparation of an actuarial valuation report for each system;

(d) the periodic review of the mortality and experience of each system; and

(e) such other investigations as the commissioner shall deem necessary.

The commissioner of administration shall require the preparation of triennial actuarial valuation reports, with the first one to be completed as of January first, nineteen hundred and eighty-eight and experience investigations every six years in such manner as he deems most appropriate.

(i) The periodic experience investigation required shall accompany every other actuarial valuation report and shall cover the six-year period ending as of the end of the year preceding the date for which the actuarial valuation report is filed. For the initial filing pursuant to this chapter, the experience investigation shall be made for the six-year period ending as of the end of the plan year occurring on or after December thirty-first, nineteen hundred and eighty-seven and before December thirty-first, nineteen hundred and eighty-eight. The experience investigation shall be filed with the commissioner of administration, the commissioner of public employee retirement, and the clerks of the house and senate.

(ii) The actuarial valuation report and experience investigation required shall be prepared under the supervision and at the direction of the commissioner of administration, and said commissioner shall also be responsible for the filing of the documents. The actuarial valuation report and experience investigation shall be signed by said commissioner indicating that to the extent of his understanding and knowledge, the report or investigation represents a true and accurate portrayal of the actuarial, financial and demographic condition of the retirement systems.

(iii) Each actuarial valuation report and experience investigation is a public record. The commissioner of administration shall take whatever steps are deemed necessary to insure that the information contained in the actuarial valuation report or experience investigation is made available to active members or benefit recipients of the retirement systems.

(iv) The actuarial valuation report shall contain actuarial exhibits, financial exhibits and demographic exhibits. The actuarial exhibits shall be prepared and certified by an enrolled actuary. The remaining exhibits may be prepared by a qualified person other than an enrolled actuary. The financial and demographic exhibits shall be prepared as of the year ending immediately prior to the valuation date.

(v) For each retirement system, all applicable actuarial exhibits shall be prepared in accordance with the entry age normal actuarial cost method with entry age established as the actual entry age for all plan members unless there are compelling reasons of an actuarial nature for the use of an alternative actuarial cost method.

(vi) The actuarial cost method shall be used to value all aspects of each retirement system, unless there are compelling reasons of an actuarial nature for the use of approximation techniques other than the actuarial cost method for aspects of the retirement system other than the retirement benefit.

(vii) The actuarial exhibits shall use actuarial assumptions which are, in the judgment of the actuary and the commissioner of administration, the best available estimate of future occurrences in the case of each assumption in the aggregate. With respect to economic actuarial assumptions, which shall include estimates of rates of future occurrences concerning, but not necessarily limited to, increases in salary, growth in state revenues, post retirement adjustments, investment earnings, asset appreciation or depreciation and procedures to determine the actuarial value of assets used in the preparation of actuarial valuations of the retirement system and other actuarial calculations, documentation explaining and justifying the choice of assumptions shall accompany the report. The actuarial exhibits shall measure all aspects of the retirement system in accordance with modifications in the statutory benefits, if any, and salaries which as of the valuation date are known or can reasonably be expected to be in force during the ensuing calendar year.

SECTION 61. Subdivision (5) of said section 21 of said chapter 32, as so appearing, is hereby amended by striking out paragraphs (b), (c) and (d) and inserting in place thereof the following four paragraphs:-

(b) The commissioner shall in conjunction with the industrial accident department establish a list of medical and vocational rehabilitation facilities, both public and private, and physicians as are available to render competent medical rehabilitation services for disabled persons. Medical rehabilitation services shall include medical, surgical, hospital, prosthesis, and physical restoration services. No medical rehabilitation facility shall be considered as qualified unless it is established to provide rehabilitation services for persons suffering from some specialized or general type of disability within the field of employment injury, and unless such facility is operated under the supervision of a licensed physician or licensed physical therapist qualified to render rehabilitation services and is staffed with trained and qualified technicians. No physician or physical therapist shall be considered as qualified unless he has had experience for a reasonable term of years in a qualified rehabilitation facility.

(c) The commissioner shall make available to every board the list of qualified physicians and medical and vocational rehabilitation facilities. The commissioner shall also review proposed rehabilitation programs not contained in such lists which may be submitted to the commissioner by boards from time to time for approval. If the commissioner finds that such proposed rehabilitation programs meet equivalent standards as those qualified facilities on the list, the commissioner shall approve such programs. The commissioner shall monitor the quality of rehabilitation programs and facilities and the utilization of rehabilitation programs by each board, including the successful completion of such programs and the effect of such programs on the finances of the public employee retirement system.

(d) As soon as practicable following notice of the retirement of a member for disability under section six, seven, or twenty-six, the commissioner shall conduct an evaluation to determine whether such member might benefit from a medical or vocational rehabilitation program listed in paragraph (b) or otherwise approved by the commissioner. To assist in this determination the commissioner may require any such member to be examined by a physician qualified to render rehabilitation services or by a vocational counselor selected by the commissioner, or both, for a recommendation as to the need and nature of any such rehabilitation program. If the commissioner determines that such member might benefit from any such program, he shall so notify such member and the retirement board which shall select a public or private rehabilitation agency having a rehabilitation program suitable for such member. Such member shall meet with the agency selected and shall cooperate with the agency in the design of a suitable rehabilitation program. If the board determines that such retired member may benefit from such rehabilitation program, and that the program is reasonable in its terms and cost, the board shall approve and offer to provide and pay for such program as provided in section eight. If the commissioner approves the rehabilitation program offered by the board, said commissioner shall reimburse the board for the costs of such program. No member shall be required to participate in any such rehabilitation program. Notwithstanding the provisions of sections eight and ninety-one A there shall be no reduction in the retirement allowance of any member participating in a rehabilitation program approved by the commissioner on account of actual or potential earnings arising out of such rehabilitation program. Any such member who, in the determination of the commissioner, might benefit from any such program may, if denied access to such a program by the board, appeal such denial to the commissioner. If, upon such appeal, the commissioner determines that such member might benefit from such rehabilitation program, he shall approve and offer to provide and pay for such program.

(e) The commissioner shall keep a record of all disabled members subject to or receiving rehabilitation and shall provide that record to the retirement boards.

SECTION 62. Said section 21 of said chapter 32, as so appearing, is hereby further amended by adding the following subdivision:-

(6) Public Employee Retirement and Disability Data System. - The commissioner of public employee retirement administration shall establish and maintain a comprehensive system of data relative to the contributory retirement and disability systems. The data system shall include sufficient information:-

(a) to produce accurate and up-to-date actuarial valuations, reports, and projections for each retirement system;

(b) in each of the areas of (1) disability retirement pursuant to sections six and seven, (2) disability after retirement pursuant to section five, (3) compensation pursuant to chapter one hundred and fifty-two, and (4) leave without loss of pay pursuant to section one hundred and eleven F of chapter forty-one, to review the status of each disabled individual as well as to review and report disability rates, types of disability, types of occupational injuries, effects of particular risk factors, effects of wellness and rehabilitation programs, and costs of disability programs, and to compare employment statistics by occupation with disability statistics;

(c) to produce an annual report of the investment portfolio, return on investment, and management performance of each retirement system;

(d) to index the decisions of the contributory retirement appeal board and other interpretations of retirement and disability law; and

(e) to calculate and record assessments on each retirement system by the division of public employee retirement administration.

Each board shall provide the commissioner with such information as the commissioner deems necessary to establish and maintain the data system. The executive head of each governmental unit of the head of each department shall provide the commissioner each year with such employment and occupational information as he deems necessary to establish and maintain the data system, in such form as he requires.

The commissioner shall make any information or data collected pursuant to this section available to the retirement law commission upon request of said commission.

SECTION 63. The first paragraph of section 22 of said chapter 32, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- All the assets of each system as they exist at the commencement of business on January first, nineteen hundred and forty-six, and all the assets of each system received, acquired or held on or after such date shall, subject to the provisions of sections one to twenty-eight, inclusive, be credited according to the purposes for which they are received, acquired or held to one of the seven following funds in the system: the Annuity Savings Fund, the Annuity Reserve Fund, the Pension Fund, the Special Fund for Military Service Credit, the Expense Fund, the Pension Reserve Fund, and the Commonwealth's Pension Liability Fund.

SECTION 64. Subdivision (1) of said section 22 of said chapter 32, as so appearing, is hereby amended by inserting after paragraph (b) the following paragraph:-

(b 1/2) The provisions of section fifty of chapter three hundred and sixty-seven of the acts of nineteen hundred and seventy-eight shall not apply to any member of the state employees' and state teachers' retirement system, or systems electing to accept the provisions of this paragraph. Any system may accept the provisions of this paragraph by majority vote of the board of each such system, subject to the approval of the legislative body. For purposes of this paragraph "legislative body" shall mean a town meeting in a town, the city council in a city, the county retirement board advisory council in a county, and the district members in a district. Acceptance shall be deemed to have occurred upon the filing of a certification of such votes with the commissioner. Any system electing to accept the provisions of this paragraph shall be required to annually appropriate to the Pension Reserve Fund, in addition to such other amount as might be required by this chapter, an amount equal to the employer's normal cost of removing the restriction provided by said section fifty of said chapter three hundred and sixty-seven, plus such amount as is required to amortize over fifteen years the liability created by such removal for such of those employees who entered service on or after January first, nineteen hundred and seventy-nine and prior to January first, nineteen hundred and eighty-eight. For any member of any system accepting the provisions of this paragraph who entered the service of the commonwealth or a political subdivision thereof on or after January first, nineteen hundred and seventy-nine, the treasurer or other disbursing officer in charge of payroll in any governmental unit to which a system pertains, shall withhold on each pay day, in addition to the amounts withheld pursuant to paragraph (b) an additional two per cent of such member's regular compensation over thirty thousand dollars. In any system filing a certificate of acceptance with the commissioner on or before July first, nineteen hundred and eighty-eight, the treasurer or other disbursing officer in charge of payroll in any governmental unit to which a system pertains shall withhold, from the regular compensation of such member subject to the additional amounts provided for by this paragraph, in such installments as the retirement board shall direct, an amount equal to the additional amount which would have been withheld from such member's regular compensation pursuant to this paragraph between January first, nineteen hundred and eighty-eight and the date the certificate of acceptance is filed. In any system filing a certification of acceptance with the commissioner after July first, nineteen hundred and eighty-eight, the additional deduction shall start as of the date of filing said application and no deductions shall be made from any regular compensation received between January first, nineteen hundred and eighty-eight and the date said certification is filed; provided, however, that the liability created by removing the restriction provided by said section fifty for the payroll period from January first, nineteen hundred and eighty-eight and the date said certification is filed shall be added to the amount to be amortized over fifteen years through the annual appropriation as required by this paragraph; and provided, further, that all service in such system after January first, nineteen hundred and eighty-eight shall be credited as non-section fifty restricted service. Notwithstanding any other provision of this chapter, the calculation of the retirement allowance of any member who entered service after January first, nineteen hundred and seventy-nine where such member has both section fifty restricted service and non-section fifty restricted service, shall be calculated based upon the years of creditable service subject to the restriction and the years of non-section fifty service, as the actuary shall determine. In the state employees' retirement system and the state teachers' system, and in any other system accepting the provisions of this paragraph, the allowance payable to any member, or eligible beneficiary thereof, who entered the service of the commonwealth or a political subdivision thereof on or after January first, nineteen hundred and seventy-nine and who retired from said system prior to the date on which such system accepted this paragraph, shall be recalculated as of the date of such acceptance, and as of said date the provisions of said section fifty of said chapter three hundred and sixty-seven shall not apply to such allowance; provided, however, that the provisions of this sentence shall not be deemed to require any additional contributions to be made by any such member or eligible beneficiary thereof. The state employees' and state teachers' retirement systems shall be deemed to have accepted the provisions of this paragraph as of January first, nineteen hundred and eighty-eight.

SECTION 65. Paragraph (c) of subdivision (1) of said section 22 of said chapter 32, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- Any such treasurer or other disbursing officer in charge of payrolls, for the purpose of determining the regular compensation and regular deductions of any member in service who is receiving a non-cash maintenance allowance in the form of full or partial boarding and housing, shall add to the amount of the cash payment for the regular services of such member an amount at a rate which shall be determined by the personnel administrator if such member is a member of the state employee's retirement system or of the teachers' retirement system, by the county personnel board if such member is a member of any county system, and by the retirement board if such member is a member of a city or town system.

SECTION 66. Subdivision (2) of said section 22 of said chapter 32, as so appearing, is hereby amended by striking out paragraph (b) and inserting in place thereof the following paragraph:-

(b) If any member who has been retired for disability is later restored upon recovery to active service before attaining the age sixty-five as provided for in paragraph (b) of subdivision (2) of section eight, an amount equal to the annuity reserve at the date of his restoration with respect to his annuity shall be transferred from the Annuity Reserve Fund of the system to the credit of his account in the Annuity Savings Fund thereof.

SECTION 67. Said subdivision (2) of said section 22 of said chapter 32, as so appearing, is hereby further amended by striking out paragraphs (c) and (d) and inserting in place thereof the following paragraph:-

(c) If the balance remaining in the annuity reserve fund of any system at the close of business on December thirty-first of any year after the transfer of interest thereto as provided for in clause (ii) of paragraph (a) of subdivision (6), is in excess of the total amount of the annuity reserve determined for such system as of such date in accordance with the provisions of paragraph (b) of subdivision (3) of section twenty-one, the amount of such excess shall be transferred as of the next following September thirtieth from the Annuity Reserve Fund to the Pension Reserve or Commonwealth's Pension Liability Fund of such system. If such balance is less than the total amount of such annuity reserve, an amount equal to such deficiency shall, to the extent not included in any deficiency being made up under the provisions of this paragraph, be similarly transferred as of such next following September thirtieth from the Pension Fund to the Annuity Reserve Fund.

SECTION 68. Subdivision (3) of said section 22 of said chapter 32, as so appearing, is hereby amended by striking out paragraphs (a) and (b) and inserting in the place thereof the following two paragraphs:-

(a) The Pension Fund of each system shall be the fund to which shall be credited all amounts appropriated by the governmental unit or transferred from the Pension Reserve Fund or Commonwealth's Pension Liability Fund pursuant to a funding schedule established pursuant to section twenty-two C or twenty-two D for the purpose of providing for the cost of operation of the system exclusive of the expenses of administration, except such amounts as may be appropriated for the special fund for military service credit under the provisions of subdivision (4). Any balance remaining in the investment income account of the system at the close of business on December thirty-first of any year shall be transferred to the Pension Reserve Fund or the Commonwealth's Pension Liability Fund, and any deficit in such account at such time shall be made up by transfer from the pension fund to such account of an amount equal to such deficit as provided for in clause (iii) of paragraph (a) of subdivision (6).

(b) All pensions to members or to beneficiaries and all pensions paid under the provisions of paragraph (c) of subdivision (8) of section three or paragraph (b) of subdivision (4) of section seven shall be paid from the pension fund of the system, and all amounts received under said provisions shall be credited to such fund. Amounts shall be transferred between the Pension Fund or the Commonwealth's Pension Liability Fund, as applicable, and the annuity reserve fund as provided for in paragraph (c) of subdivision (2) and shall be transferred to the Pension Fund or the Commonwealth's Pension Liability Fund, as applicable, from the annuity savings fund as provided for in paragraph (d) of subdivision (6) and from the special fund for military service credit as provided for in paragraph (c) of subdivision (4). Amounts shall also be paid from the Pension Fund or the Commonwealth's Pension Liability Fund, as applicable, of one system and transferred to the special fund for military service credit of a second system as provided for in paragraph (d) of said subdivision (4). The board shall, with the approval of the actuary, make any other transfer between the Pension Fund or the Commonwealth's Pension Liability Fund, as applicable, and any other fund of the system which may be necessary to effectuate the purposes of sections one to twenty-eight, inclusive; provided, however, that no such transfers shall be made from the Commonwealth's Pension Liability Fund except pursuant to schedules submitted in advance by the commissioner of administration to the house and senate committees on ways and means.

SECTION 69. Said subdivision (3) of said section 22 of said chapter 32, as so appearing, is hereby further amended by striking out paragraph (c) and inserting in place thereof the following paragraph:-

(c) Any profit realized on the sale or maturity of any investment of any system, due to the amount received therefor being in excess of its book value on the date of its sale or maturity, shall be credited to the pension fund of the system or recognized over a period of years as prescribed by the commissioner of public employee retirement. Any loss sustained on the sale or maturity of any investment, due to the amount received therefor being less than its book value on the date of its sale or maturity, shall be charged to the pension fund or amortized over a period of years as prescribed by the commissioner of public employee retirement. Any investment which is required to be valued at its market value under the provisions of paragraph (b) of subdivision (1) of section twenty-one, shall be included in the assets of the system on the date of any valuation thereof at its market value on such date as determined in accordance with said provisions. Any excess of such market value over the value at which such investment was included in the assets of the system on the date of the last previous valuation thereof, shall be credited forthwith to the pension fund or recognized over a period of years as prescribed by the commissioner of public employee retirement, and any amount by which such market value is less than the value at which such investment was included in such assets, shall be charged forthwith to such fund or amortized over a period of years as prescribed by the commissioner of public employee retirement. In addition to the valuation of the assets of the system as of December thirty-first of each year as provided for in paragraph (b) of subdivision (3) of section twenty-one, the value of all such investments which are required to be valued at their market value shall be determined by the actuary as of September thirtieth in each year and any such credits or charges resulting from such valuation shall be made to the pension fund as of such date.

In prescribing the period of years for amortization of gains and losses the commissioner of public employee retirement shall act in a manner consistent with the periods prescribed by the government accounting standards board or allowed by the Employee Retirement Income Security Act.

Notwithstanding the foregoing provisions or any other general or special law to the contrary, the commonwealth shall assume the cost to any retirement system participating in the Pension Reserves Investment Trust Fund for the charge to the pension fund of such system for the amortization of any loss sustained on the transfer of such system's assets to the Pension Reserves Investment Trust Fund due to the value of the units in said fund upon such transfer being less than the book value of the system assets transferred to said fund on the date of transfer; provided, however, that the commonwealth shall assume only the cost of such system for a loss in an amount equal to or less than twenty per cent of the book value of the system's total portfolio on said date of transfer; provided, further, that the commonwealth shall assume only the costs for such losses to participating systems transferring their assets to the Pension Reserves Investment Trust Fund on or before July first, nineteen hundred and eighty-six; and provided further, that such assumable losses shall not be included in the determination of required appropriations set forth in subparagraph (iii) of paragraph (d). Such losses incurred by participating systems upon the transfer of their assets to the Pension Reserves Investment Fund shall be amortized over the average time to maturity of the entering system's fixed income securities transferred or ten years, whichever is less.

SECTION 69A. Paragraph (d) of said subdivision (3) of said section 22 of said chapter 32, as so appearing, is hereby amended by striking out, in line 290, the words "clauses (v) and (vi)" and inserting in place thereof the words:- clauses (v) to (vii),.

SECTION 69B. Said paragraph (d) of said subdivision (3) of said section 22 of said chapter 32, as so appearing, is hereby further amended by adding the following clause:-

(vii) The amount, if any, transferred to such pension fund from the pension reserve fund of the system pursuant to subdivision (6A).

SECTION 70. Subdivision (6A) of said section 22 of said chapter 32, as so appearing, is hereby amended by striking out paragraph (a) and inserting in place thereof the following paragraph:-

(a) The Pension Reserve Fund of each system shall be credited all amounts set aside by a system for the purpose of establishing a reserve to meet future pension liabilities, including such amounts as may be set aside pursuant to a funding schedule established in accordance with section twenty-two C or twenty-two D. Such amounts shall include without limitation the annual balance in the investment income account as provided for in clause (iii) of paragraph (a) of subdivision (6) the undistributed accumulated total deductions as provided for in section eleven and all monies recovered for the cost of fringe benefits from federal grants. From time to time, a system may credit to the Pension Reserve Fund other amounts appropriated to it or otherwise made available by the governmental unit. The Pension Reserve Fund for the state employees' and teachers' retirement systems shall be the Commonwealth's Pension Liability Fund.

SECTION 71. Said subdivision (6A) of said section 22 of said chapter 32, as so appearing, is hereby further amended by striking out paragraph (b) and inserting in the place thereof the following paragraph:-

(b) Amounts may be transferred to the Pension Fund for the purpose of meeting present pension liabilities in accordance with a schedule developed by the board of each system and approved by the actuary to amortize unfunded pension liabilities. Such schedule of payments shall be designed to maintain a funding schedule which pays the normal cost of benefits for the system and amortizes any unfunded actuarial liability either as a fixed ratio of payroll or in accordance with the funding schedules provided for in section twenty-two C or twenty-two D, as applicable; provided, however, that any such amounts transferred from the Pension Reserve Funds of the state employees' and state teachers' systems shall be detailed by the commissioner of administration in a written report submitted in advance to the house and senate committees on ways and means. Such schedule shall be adjusted in accordance with any state contributions provided from the PRIT Fund to meet the unfunded pension liability of the system.

SECTION 72. Subdivision (7) of said section 22 of said chapter 32, as so appearing, is hereby amended by striking out the introductory paragraph and inserting in place thereof the following paragraph:-

In order to effectuate the provisions of sections one to twenty-eight, inclusive, and to provide for each system the amounts required for the Commonwealth's Pension Liability Fund, the Pension Fund, the special fund for military service credit and the expense fund described in subdivisions (3), (4), (5), and (8), respectively, of this section, the following provisions are hereby made:.

SECTION 73. Said subdivision (7) of said section 22 of said chapter 32, as so appearing, is hereby further amended by striking out paragraphs (a) and (b) and inserting in place thereof the following two paragraphs:-

(a) Expense Fund of the State Employees' Retirement System and Teachers' Retirement System. - On or before October fifteenth in each year, the state board of retirement and teachers' retirement board, shall certify to the state treasurer and the commissioner of education, respectively, the amounts necessary to be appropriated and paid for the fiscal year commencing on the next following July first, for the expense fund of the state employees' retirement system and the teachers' retirement system. Items of appropriation shall be included in the appropriation for such fiscal year for the department of the state treasurer and the department of education to be allocated to the division of the state board of retirement and the division of the teachers' retirement board, respectively, for the expense funds of such systems.

(b) Pension funds of the state employees' retirement system and the teachers' retirement system. - The state board of retirement and the teachers' retirement board, on or before October fifteenth in each year, shall furnish the actuary with such information as he may require to enable him to determine the amount to be distributed from the Commonwealth's Pension Liability Fund to the pension funds of said systems, for the fiscal year commencing on the next following July first. The actuary shall, on or before December fifteenth immediately preceding such fiscal year, determine such amount and specify in a written notice to said boards the amounts so required. Upon the receipt of such notice, said board shall certify forthwith to the PRIM board the amounts necessary to be distributed and paid for such fiscal year for the Pension Fund and the special fund for military service credit of the respective system. The amounts necessary to be appropriated and paid for such fiscal year by the commonwealth for said Commonwealth's Pension Liability Fund shall be determined in accordance with the funding schedule adopted by the commissioner of administration pursuant to section twenty-two C, and items of appropriation for such amounts shall be included in the appropriations for such fiscal year for the PRIM board or such department as the commissioner of administration shall determine to be allocated to the Commonwealth's Pension Liability Fund.

SECTION 73A. Subdivision (8) of said section 22 of said chapter 32, as so appearing, is hereby amended by striking out paragraphs (a), (b), (c) and (d) and inserting in place thereof the following five paragraphs:-

(8) (i) PRIT Fund (a) There shall be a Pension Reserve Investment Trust Fund administered by the PRIM board established in section twenty-three for the purpose of depositing, investing and dispersing amounts set aside to meet further liabilities of the various systems.

The state employees' and state teachers' retirement systems shall participate in the Pension Reserve Investment Trust Fund as follows: the Commonwealth's Pension Liability Fund, including any amounts in the reserves of the state employees' and teachers' retirement systems as of July first, nineteen hundred and eighty-seven, shall be deposited, in the PRIT Fund to the credit of the commonwealth, to defray its obligation toward the unfunded liabilities of said systems, and toward any other pension obligations which the commonwealth may by special or general law assume.

(b) All amounts which the state may appropriate each year subsequent to January first, nineteen hundred and eighty-four pursuant to section twenty-two B to meet unfunded pension liabilities shall be deposited in the PRIT Fund and credited to the account of the state employees' retirement system, the teachers' retirement system, and other participating systems as follows: the amount determined for each system shall be proportionate to the amount of assets of each system participating in the PRIT Fund as of July first for each fiscal year ending the following June thirtieth, provided that, for the purposes of this paragraph, the amount of the combined assets of the state employees' and the teachers' retirement systems shall be deemed not to exceed eighty per cent of the total amount of the assets in the PRIT Fund as of June thirtieth, nineteen hundred and eighty-seven; provided, that a system electing to participate in the Pension Reserves Investment Trust Fund after January first, nineteen hundred and eighty-eight, shall receive the greater of either the system's share of the state appropriation pursuant to subdivision (8) of section twenty-two of chapter thirty-two, or the amount the system would receive in an annual pension funding grant pursuant to this section. Systems which elected to participate in the pension reserve fund or before January first, nineteen hundred and eighty-eight, and which are eligible to receive an annual pension funding grant from the commonwealth pursuant to the provision of this section, shall receive an amount equal to such system's share of the state appropriation pursuant to subdivision (8) of section twenty-two of chapter thirty-two in addition to the amount such system would receive in an annual pension funding grant pursuant to the provisions of this section. The amounts so determined for each participating system and an amount equal to the regular interest on assets in the PRIT Fund shall be credited to the several retirement systems.

(c) Upon notification by the chief executive officer and legislative body of a governmental unit of a decision to participate, systems shall transfer ownership and control of all the assets of the system to the PRIM board. The PRIM board shall hold such assets in trust for the participating systems. The PRIM board shall credit assets and earnings on such assets to the individual systems. The PRIM board shall calculate regular interest as defined in subdivision (6) to allocate earnings among the various funds of each system. The board of each system shall continue to administer the system in accordance with sections one to twenty-eight, inclusive, including the maintenance of accounts in accordance with the funds provided for in this section. The PRIM board shall transfer monies to the various funds of the participating systems to allow them to carry out their duties under this chapter. The board of each participating system shall notify the PRIM board of the amounts needed for the various funds for the next fiscal year no later than ninety days before the start of the next fiscal year. The PRIM board shall develop a schedule of transfers to be made to said systems during the next fiscal year and notify the systems of that schedule no later than thirty days prior to the start of the next fiscal year. The PRIM board shall transfer such amounts in accordance with said schedule during the course of said fiscal year. From time to time such boards may make supplemental requests of the PRIM board if the initial request is found to be insufficient. Within thirty days of such request, the PRIM board shall approve or deny such request. Any denial of such a request must be accompanied by a written statement of the reasons therefor.

The procedure for determining participation shall occur as follows: on or before January first of each year, the PRIM board shall notify each system in writing of their option to participate in the PRIT Fund. Such notice shall be accompanied by a financial report and a description of the rights and duties of the PRIM board if a system elects to participate. The decision to participate shall be made by the board of each system, subject to the approval of the legislative body and the chief executive officer of each governmental unit. The decision of the board shall be deemed to have been approved unless the legislative body and the chief executive officer act to disapprove such decision by July first of the year in which the decision of such board is made. The board of each system shall notify the PRIM board and the appropriate legislative body and chief executive officer by May first of each year of its decision.

For any system which is receiving an annual pension funding grant from the commonwealth pursuant to the provisions of section twenty-two D in which the annualized time-weighed-rate of return is less than the assumption for investment rate of return approved by the actuary in the most recent actuarial valuation for the system, over any five year cycle, and said time-weighed-rate of return is less than the annualized time-weighed-rate of return for the pension reserve investment trust fund, over any five year cycle, the commissioner shall notify the PRIM board and the appropriate legislative body, chief executive officer, and the board of said system shall be deemed to have voted to participate.

After the decision of a board of a system to participate has been approved, the decision to participate may not be revoked for five years. Such revocation shall become effective six months after the PRIM board receives notification of such decision by such board. For purposes of this section, "legislative body" shall mean a town meeting in a town, the city council in a city, the county advisory board in a county, the district members in a district, and the members of an authority in an authority. For purposes of this section, "chief executive officer" shall mean the board of selectmen in a town, the mayor in a city, except in a city with plan D or plan E form of government it shall mean the city manager, municipality with a council form of government, the town manager and the county commissioners in a county. In a district or in an authority, "chief executive officer" shall mean the members of such district or authority. A system may purchase offerings of the PRIT Fund in accordance with clause (vii) of paragraph (b) of subdivision (2) of section twenty-three without becoming a participating system for purposes of this section.

(d) The amounts in the PRIT Fund shall be invested and managed in accordance with the authority of the PRIM board as created in section twenty-three. Amounts in the PRIT Fund shall be transferred back to each system for withdrawal or payment to members as otherwise provided by sections one to twenty-eight, inclusive.

All other amounts shall be distributed to each system during such calendar years as the actuary shall determine pursuant to subdivision (6A). Such distributions shall be transferred to the pension fund of each system for such year. On March first, nineteen hundred and eighty-four and each subsequent calendar year, the commissioner of public employee retirement shall publish a report of the projected schedule of distribution of amounts from the PRIT Fund, as developed by the actuary, and file such report with each system, with the commissioner of administration, and with the house and senate committees on ways and means.

(e) (1) There shall be a Commonwealth's Pension Liability Fund which shall be within the PRIT Fund, and which shall be administered by the PRIM board established in section twenty-three for the purpose of depositing, investing and dispersing amounts set aside to meet further liabilities of the commonwealth. For the state employees' retirement system and the teachers' retirement system all amounts held by said retirement systems on or after July first, nineteen hundred and eighty-seven, except for the Annuity Savings Fund, the Annuity Reserve Fund and the expense funds, shall be transferred to the Commonwealth's Pension Liability Fund. Any assets of such systems transferred to the PRIT Fund prior to that date shall be credited to the Commonwealth's Pension Liability Fund.

(2) Except for expense funds pursuant to subdivision (5), and the Annuity Savings Fund and Annuity Reserve Fund of the state employees' retirement system and the teachers' retirement system, all appropriations, assets and funds of any such systems shall be deposited in the Commonwealth's Pension Liability Fund, and all distributions and payments by said systems shall be made by withdrawals from the Commonwealth's Pension Liability Fund.

Amounts in the Commonwealth's Pension Liability Fund shall include, but not be limited to, the following:

(i) all amounts held in the PRIT Fund to the credit of the state employees' retirement system and the teachers' retirement system;

(ii) all amounts appropriated by the state to meet its pension liabilities, including the amounts appropriated pursuant to clause (a) of the last paragraph of section twenty-one of chapter one hundred and thirty-eight, the state share of amounts appropriated pursuant to section twenty-two B, and section twenty-two C;

(iii) all monies recovered for the cost of pension fringe benefits from federal grant funds pursuant to section six B of chapter twenty-nine;

(iv) all monies recovered from federal grant funds, pursuant to section five D of chapter forty, for the cost of teachers' pension benefits;

(v) all monies transferred from the state employees' and teachers' retirement systems pursuant to the provisions of paragraph (d) of subdivision (2) and clause (iii) of paragraph (a) of subdivision (6);

(vi) the undistributed accumulated total deductions for the state employees' and teachers' retirement systems as provided for in section eleven; and

(vii) all assets of the state employees' retirement system and the teachers' retirement system except for such systems' expense funds, annuity savings funds, and annuity reserve funds.

All amounts required by the Pension Fund and Special Fund for military credit of the state employees' and teachers' retirement systems shall be provided by distribution from the Commonwealth's Pension Liability Fund; provided however, that any such distributions shall be detailed in a written report by the commissioner of administration and filed in advance with the house and senate committees on ways and means.

Such distributions shall be made pursuant to the provisions of sections one to twenty-eight, inclusive, of this chapter, or pursuant to the operating trust of the PRIM board pursuant to subdivision (2A) of section twenty-three.

(viii) The amounts in the Commonwealth's Pension Liability Fund shall be invested and managed in accordance with the authority of the PRIM board as created in section twenty-three.

SECTION 74. Subdivision (9) of said section 22 of said chapter 32, as so appearing, is hereby amended by striking out the third and fourth paragraphs and inserting in place thereof the following two paragraphs:-

The treasurer of the governmental unit making the appropriation shall be the custodian of all funds deposited pursuant to this subdivision. Such funds may be invested in the same manner as retirement system funds pursuant to subdivision (2) of section twenty-three.

Such funds may be utilized in accordance with the provisions of subdivision (6A), or, subject to the approval of the actuary, in accordance with the provisions of paragraph (c) of subdivision (7), or subdivision (3) of section twenty-two D.

SECTION 75. Said section 22 of said chapter 32 is hereby further amended by adding the following subdivision:-

(10) Each governmental unit to which a system pertains and any free public library the employees of which are eligible for membership in a system, pursuant to the provisions of section four hundred and fourteen (h) (2) of the United States Internal Revenue Code, shall assume and pay the contributions which would be payable by the employees as members under paragraph (b) of subdivision (1). Such contributions, although designated as employee contributions, will be paid by the applicable governmental unit or free public library employing the employee in lieu of contributions by the employee. No employee will have the option of choosing to receive such contributed amounts directly instead of having them paid by the employing governmental unit or free public library to the applicable system. The contributions so assumed shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code. The contributions so assumed shall be treated and identified, without limitation, as member contributions for all purposes of the retirement system, except as specifically provided to the contrary in this subdivision, and for all purposes of chapter sixty-two.

Employee contributions assumed pursuant to this subdivision shall be paid from the same source of funds used for the payment of compensation to an employee. A deduction shall be made from an employee's compensation equal to the amounts of the employee's contributions assumed by the employer. This deduction, however, shall not reduce the employee's compensation for purposes of computing benefits under the retirement system pursuant to this chapter or for purposes of determining any other employee benefits. Assumed contributions shall be transferred to the retirement system of which the employee is a member in accordance with the provisions of paragraph (h) of subdivision (1) and shall be credited to a separate fund within the employee's account in the Annuity Savings Fund of such system in order that the amounts contributed prior to the effective date for the assumption of employee contributions may be distinguished from the amounts contributed on or after the date on which the governmental employer is required by law to assume the employee's contributions.

SECTION 76. Said chapter 32 is hereby further amended by inserting after section 22B the following two sections:-

Section 22C. (1) In each fiscal year, there shall be appropriated to the Commonwealth's Pension Liability Fund the amount necessary to fully fund the system. Such appropriations shall be made pursuant to the most recent three year funding schedule adopted by the commissioner of administration, reviewed by the retirement law commission, and approved by the general court; provided however, that no such funding schedule shall be adopted which would set forth total annual payments in any of its first ten fiscal years which are less in any such year than the total estimated cost of benefits to be paid in such year for such system or for such other assumed liabilities; provided, further, that no such funding schedule shall be adopted which would reduce the value of the pension reserve fund as of January first, nineteen hundred and eighty-eight, increased annually by an amount equal to the actuarial assumption of the rate of investment return approved by the actuary in the most recent three year valuation for the system, in any of said schedule's first ten years; provided, further, that the first year scheduled appropriation for any such funding schedule which shall commence on the fiscal year beginning on July first, nineteen hundred and eighty-eight, shall provide that not less than two hundred ninety-one million one hundred thousand dollars shall be made available for the funding of the normal costs of the state employees' retirement system, the teachers' retirement system, the pension liabilities assumed by the commonwealth which are associated with teachers employed by the city of Boston, and pension liabilities assumed by the commonwealth which are associated with cost of living adjustments or other benefits for members of system other than the state employees' retirement system who are not teachers employed by the city of Boston; provided, further, that not less than two hundred eighty-eight million, two hundred thousand dollars shall be made available to reduce the unfunded liability of said systems, and said liabilities of the commonwealth; provided, further, that the actual first year appropriation made pursuant to any such funding schedule shall be in an amount sufficient to cover the first year normal costs and amortization costs described herein plus the positive difference between the amount necessary to meet the estimated cost of benefits to be paid in said year minus the first year normal costs and amortization costs described herein; provided, further, that for the purposes of calculating future percentage increases in normal cost and amortization cost payment schedules for said systems, the first year base for such calculations shall be the first year normal costs and amortization costs described herein. Said funding schedule shall be established and updated from time to time by said commissioner after reviewing the periodic actuarial valuation reports required by section twenty-one and such other reports as may be prepared pursuant to section thirty-five H of chapter ten; provided, however, that the house and senate committees on ways and means shall have reviewed and approved in advance the actuarial, economic, and demographic assumptions upon which said actuarial valuation reports and such other reports are based, and the manner and methodology used in the development of the actuarial reports and recommendations, prior to the consideration of said actuarial valuation, reports, and schedules by the general court. Said commissioner shall establish said schedule such that the increase in the amortization component of the appropriations required by this section from year to year shall not exceed seven and one-half per cent.

Said funding schedule, and any future updates thereto, shall be designed to reduce the unfunded actuarial liability attributable to the commonwealth's pension liability as of January first, nineteen hundred and eighty-seven to zero as of June thirtieth, two thousand and twenty-eight and to meet the normal cost of all future benefits for which the commonwealth is obligated, and to meet any other component of the commonwealth's pension liability, as defined in section one. Updates of the funding schedule required by changes in the projected unfunded actuarial liability as determined by any periodic actuarial valuation report pursuant to section twenty-one, may reflect the further amortization time periods authorized by said section twenty-one; provided, however, that the house and senate committees on ways and means shall have reviewed and approved in advance the actuarial, economic, and demographic assumptions upon which said actuarial valuation reports and such other reports are based, and the manner and methodology used in the development of the actuarial reports and recommendations, prior to the consideration of said actuarial valuation, reports, and schedules by the general court. The first such funding schedule shall be filed by said commissioner not later than March first, nineteen hundred and eighty-eight and subsequent schedules shall be prepared pursuant to the provisions of this section relating to the establishment of funding schedules and filed triennially on March first. If, within forty-five days of such filing, the house and senate committees on ways and means, respectively, have taken no action to approve or disapprove any such schedule, such schedule shall be deemed to have been approved. If said schedule is not so approved such payments shall be made in accordance with the most recent three year actuarial valuation which was so approved; provided, that such payments shall be an amount which is not less than the then previous year's appropriations.

(2) In addition to the annual appropriation required to meet the commonwealth funding schedule established pursuant to subdivision (1), the governor shall recommend an additional appropriation to the Commonwealth's Pension Liability Fund to further reduce the commonwealth's unfunded pension liability. Such additional appropriation shall be determined to be the amount which when added to the appropriation required pursuant to said subdivision (1) is equal to the sum of all retirement benefits paid by the commonwealth pursuant to this chapter for the state employees' and teachers' retirement systems, reimbursements to local retirement systems for pension obligations which the commonwealth has assumed on behalf of such systems, and the employer normal cost as determined in the most recent actuarial valuation report pursuant to section twenty-one for the state employees' and teachers' retirement systems. If the governor determines that funds are not available to allow recommendation of all of the additional appropriation required by this subdivision, the governor shall file a statement with the clerks of the senate and house of representatives supporting such determination. In such event, the governor shall determine the amount of available funds and shall recommend an additional appropriation as equal as possible to the amount required by this subdivision. Amounts required to fund the commonwealth's pension liability pursuant to this subdivision shall be subject to appropriation and shall not be subject to the provisions of section twenty-five.

(3) In addition to the funding schedule updates filed triennially beginning on March first, nineteen hundred and ninety, the commissioner of administration shall file also an advanced funding schedule which, notwithstanding the provisions of the definition of the commonwealth's funding schedule as appearing in section one, or the provisions of subdivision (1) of section twenty-one or of this section, shall not include in the calculation of the annual appropriations required to meet said schedule the amounts, if any, which have been appropriated to the Commonwealth's Pension Liability Fund pursuant to subdivision (2) as additional appropriations to reduce the unfunded pension liability, nor the amounts, if any, by which the actual investment return on the assets of the state employees' retirement system, the teachers' retirement system, and the Commonwealth's Pension Liability Fund exceed the return which would have been realized under the interest assumption utilized in the actuarial evaluation used to establish the most recently approved commonwealth funding schedule; provided, however, that any such amounts may be included in establishing a funding schedule pursuant to this section in any year in which the required actuarial valuation indicates that there is no remaining unfunded commonwealth pension liability.

(4) In each fiscal year, the governor shall recommend to the general court in addition to the appropriation pursuant to subdivision (1), such additional amount as may be required to meet the advanced funding schedule established pursuant to subdivision (3). Amounts required to fund the commonwealth's pension liability pursuant to this subdivision shall be subject to appropriation and shall not be subject to the provisions of section twenty-five.

Section 22D. (1) Systems other than the state employees' retirement system and the teachers' retirement system, upon notification by the legislative body of a governmental unit of a decision to accept the provisions of this section, shall establish a retirement system funding schedule, subject to the approval of the actuary, which shall provide for an increase in the amortization component of the appropriations required by such schedule from year to year that shall not exceed four and one-half per cent; provided, however, that no such funding schedule shall be adopted which would set forth total annual payments in any of its first six fiscal years which are less in any such year than the total estimated cost of benefits to be paid in such year for such system or for such other assumed liabilities; provided further that no such funding schedule shall be adopted which would reduce the value of the pension reserve fund as of January first, nineteen hundred and eighty-eight, increased annually by an amount equal to the actuarial assumption of the rate of investment return approved by the actuary in the most recent three year valuation for the system in any of said schedules first six years. In each fiscal year the governmental units within such a retirement system shall appropriate to the pension fund and pension reserve fund of such system the amount necessary to fully fund the system pursuant to said schedule. The funding schedule shall be reviewed from time to time by the actuary after reviewing periodic actuarial valuation reports required by section twenty-one and such other reports as may be prepared pursuant to section thirty-five H of chapter ten. Said funding schedule, and any future updates thereto, shall be designed to reduce the unfunded actuarial liability of each system accepting the provisions of this section as of January first, nineteen hundred and eighty-three to zero as of June thirtieth, two thousand and twenty-eight. Updates of the funding schedule required by changes in the projected unfunded actuarial liability as determined by any periodic actuarial valuation report pursuant to section twenty-one, may reflect the further amortization time periods authorized by said section twenty-one but shall not contravene the provisions of this section which relate to the establishment of total annual payments and the reduction in value of the pension reserve fund.

The procedure for determining whether a system has accepted this section shall occur as follows: On or before January first of each year prior to nineteen hundred and ninety-one the commissioner shall notify the legislative body of each governmental unit in writing of its option to accept. For purposes of this section, "legislative body" shall mean a town meeting in a town, the city council in a city, the district members in a district, and the members of an authority in an authority. In a county, for the purposes of this section, "legislative body" shall mean the town meeting of every town which is a member of the county system, the county commissioners on behalf of the county, and the district as provided in subdivision (4) of section twenty-eight, with the vote of each governmental unit the employees of which are members of any such system weighted in the proportion that the aggregate of the annual rates of regular compensation of all members in service of such system who are employees of any such governmental unit at the end of business on the September thirtieth immediately preceding the date on which any such vote is taken bears to the total of all such aggregates for all members in service of such system on such date.

The notice from the commissioner shall be accompanied by a description of the rights and duties of the governmental unit if it elects to accept this section and become a funding system. The decision to become a funding system shall be made by the legislative body of each governmental unit. A majority vote of the city council, town meeting, district or authority members shall enroll a city, town, district or authority retirement system. In counties, the department of revenue after consultation with the Massachusetts Municipal Association, shall review the commissioner's report within sixty days and make a recommendation for the consideration of town meetings of the town and the district meetings of the districts which are within each county retirement system, and of the county commissioners of each such system. A majority of the votes as weighted pursuant to this section shall constitute acceptance for a county retirement system.

Systems may accept this section between January first, nineteen hundred and eighty-eight and December thirty-first, nineteen hundred and ninety. The clerk of the legislative body in a governmental unit within a city, town or district retirement system shall notify the retirement board and the commissioner, of a decision to accept. The clerk of each governmental unit within a county system shall notify the county retirement board and the commissioner of any action by such governmental unit.

A decision to accept this section may not be revoked.

(2) In any system accepting the provisions of this section, the governmental units comprising such system shall identify enterprise operations with independent revenue sources from which pension costs may be recovered through fees, rates or charges. Notwithstanding any provision of law to the contrary, such systems are authorized to recover such pension costs. Any costs so recovered shall be transferred to the pension reserve fund.

(3) In establishing the funding schedule pursuant to subdivision (1), any pension reserve fund or funds appropriated pursuant to section five D of chapter forty as of July first, nineteen hundred and eighty-six, and interest earned thereon, shall not be included as assets of the retirement system. Such funds and earned interest, shall remain to the credit of the system or in the case of funds appropriated pursuant to said section five D by any city, town or district which belongs to a county system, to the credit of such city, town or district, as applicable, to be utilized to defray such unit's annual pension appropriation obligation pursuant to this chapter. Transfer of such pension reserve funds to defray pension appropriations shall be made only upon a schedule approved by the actuary pursuant to the provisions of this section which relate to the establishment of total annual benefit payments, and the reduction in value of the pension reserve fund which shall be designed to reduce the annual growth in such annual pension appropriation over the forty-year funding schedule.

(4) (a) Any city or town or county system for which a funding schedule has been adopted and approved pursuant to paragraphs (a) and (b) shall receive annual pension funding grants from the commonwealth until the sixteenth year after the first year of said schedule, so as to reduce the amount which the city or town or the member units of the county system would otherwise be required to appropriate pursuant to such funding schedule in every fiscal year beginning with the fiscal year ending on June thirtieth, nineteen hundred and ninety.

(b) The total pension funding allocation in any such fiscal year shall be equal to the increase in revenues in the net sum of; five per cent of the increase in revenues over the previous fiscal year in the net sums received under chapter sixty-two as taxes on income, interest thereon and penalties, including payments made on account thereof under chapter sixty-two B, plus five per cent of the increase in revenues over the previous fiscal year in the net sums received under sections thirty to fifty-one, inclusive, of chapter sixty-three, as excises, interest thereon or penalties, including payments made on account thereof under chapter sixty-three B, plus five per cent of the increase in revenues over the previous fiscal year in the net sums received under chapter sixty-four H and sixty-four I, as excises, upon the sale at retail of tangible personal property and upon the storage, use or other consumption of tangible personal property, interest thereon or penalties.

(c) The pension funding grant in any such fiscal year for each city or town or member unit of a county system will equal the total pension funding allocation determined pursuant to paragraph (b), multiplied by a fraction the numerator of which is the total funding contribution for the city or town for such fiscal year pursuant to paragraph (a) multiplied by itself and divided by one hundred two and one-half per cent of the city or town's actual property tax levy for the then previous fiscal year and the denominator of which is the sum of the quotient so derived as the numerator for all cities and towns or member units of county systems; provided, however, that a system electing to participate in the Pension Reserve Investment Trust Fund after January thirtieth, nineteen hundred and eighty-eight, shall receive greater of either the systems share of the state appropriation pursuant to subdivision (8) of section twenty-two, or the amount the system would receive in an annual pension funding grant pursuant to this section. Systems which elected to participate in the pension reserve fund or before January first, nineteen hundred and eighty-eight, and which are receiving an annual pension funding grant from the commonwealth pursuant to the provision of this section, shall receive an amount equal to such system's share of the state appropriation pursuant to said subdivision (8) in addition to the amount such system would receive in an annual pension funding grant pursuant to the provisions of this section. The total amount of the pension funding grant received by a city or town in a fiscal year shall be appropriated to the Pension Reserve Fund of such system.

(d) In each fiscal year the governmental units within each retirement system shall appropriate to the Pension Reserve Fund of the system the difference between the amount set forth for such fiscal year on a funding schedule adopted pursuant to paragraph (a) which pertains to the system and the amount of the pension funding grant appropriated to such Pension Reserve Fund for such fiscal year.

(e) For any system which is receiving an annual pension funding grant from the commonwealth pursuant to the provisions of section twenty-two D in which the annualized time-weighed-rate of return is less than the assumption for investment rate of return approved by the actuary in the most recent actuarial valuation for the system, over any five year cycle, and said time-weighed-rate of return is less than the annualized time-weighed-rate of return for the pension reserve investment trust fund, over any five year cycle, the commissioner shall notify the PRIM board and the appropriate legislative body, chief executive officer, and the board of said system shall for the purposes of paragraph (c) of section twenty-two be deemed to have voted to participate; provided, however, that no system participating in the PRIT Fund pursuant to this subdivision may revoke such participation for five years after the later of the last annual pension funding grant payment.

(7) Any system accepting any annual pension funding grant pursuant to this section shall transmit to each active and retired member, and to any other person actually receiving any benefit pursuant to this chapter, a copy of the annual report required by subdivision (5) of section twenty.

(8) Any system accepting any annual pension funding grant pursuant to this section shall be deemed to have accepted the ten year vesting provision provided for in subdivision (1) of section six.

(9) Any system accepting any annual pension funding grant pursuant to this section shall be deemed to have accepted the supplemental dependent allowance provided for in clause (iii) of paragraph (a) of subdivision (2) of section seven.

(10) Any system accepting any annual pension funding grant pursuant to this section shall be deemed to have accepted the provisions of section ninety G 1/2.

(11) Any system accepting any annual pension funding grant pursuant to this section shall be deemed to have accepted the fitness and wellness provisions of section sixty-one A of chapter thirty-one and section sixty-one B of chapter thirty-one, and of paragraph (e) of subdivision (3) of section five and section five A.

(12) Any system accepting any annual pension funding grant pursuant to this section shall be deemed to have accepted the provisions relative to the application of section fifty of chapter three hundred and sixty-seven of the acts of nineteen hundred and seventy-eight provided for in paragraph (b 1/2) of section twenty-two.

(13) Notwithstanding any other provision of this section or of any other general or special law, any system accepting the provisions of this section shall not be required to appropriate the normal cost of any benefits accepted under subdivision (8), (9), (10), (11) or (12) for any year prior to the fiscal year in which the first annual pension assistance grant is payable to such system.

SECTION 77. Paragraph (b) of subdivision (2) of section 23 of said chapter 32, as so appearing, is hereby amended by striking out, in lines 114 and 115, the words "if authorized pursuant to paragraph (g)," and inserting in place thereof the following:- of said fund.

SECTION 78. Paragraph (c) of said subdivision (2) of said section 23 of said chapter 32, as so appearing, is hereby amended by inserting after the second sentence the following sentence:- The board, subject to rules promulgated by the commissioner, may deposit such securities in a securities depository registered with the Securities and Exchange Commission of the United States.

SECTION 79. Said paragraph (c) of said subdivision (2) of said section 23 of said chapter 32, as so appearing, is hereby further amended by striking out, in line 231, the word "insurance" and inserting in place thereof the words:- public employee retirement.

SECTION 80. Said subdivision (2) of said section 23 of said chapter 32, as so appearing, is hereby amended by striking out paragraph (d) and inserting in place thereof the following paragraph:-

(d) Any person who assists any board or member thereof in the purchase, sale, investment or reinvestment of the funds of any such system, without the written consent of the commissioner of public employee retirement after notice in writing by him to such board or member to desist therefrom as provided for in subdivision (4) shall be punished as provided for in section twenty-four.

SECTION 81. Paragraph (e) of said subdivision (2) of said section 23 of said chapter 32, as so appearing, is hereby amended by striking out, in line 251, the word "March" and inserting in place thereof the word:- May.

SECTION 82. Said subdivision (2) of said section 23 of said chapter 32, as so appearing, is hereby further amended by striking out paragraph (g) and inserting in place thereof the following paragraph:-

(g) Clauses (i) to (vii), inclusive, of paragraph (b) shall not apply to the board of any local retirement system which upon application is determined by the commissioner to have a record of investment management which merits broader investment powers, provided that:-

(i) no funds are to be invested directly in mortgages or in collateral loans;

(ii) subsequent to the date of such determination no new investment of funds shall be made in any bank or financial institution which directly or through its subsidiaries has outstanding loans to the Republic of South Africa or its instrumentalities, and no new investment of funds shall be made in stocks, securities or other obligations of any company doing business in or with the Republic of South Africa;

(iii) subsequent to the date of such determination no new investment of funds shall be made in any bank or financial institution which directly or through any subsidiary has outstanding loans to any individual corporation engaged in the manufacture, distribution or sale of firearms, munitions, including rubber or plastic bullets, tear gas, armored vehicles, or military aircraft for use or development in any activity in Northern Ireland, and no new investment of funds shall be made in the stocks, securities or other obligations of any company so engaged. In making such determination the commissioner shall consider the diversification of the risk of the investments of such board, the return on the investments of such board, the past performance of the investment portfolio of such board and the extent and quality of professional advice received by such board regarding the investment of funds. Any such board shall invest and reinvest consistent with sound investment policy and the requirements of subdivision (3).

SECTION 83. The second paragraph of paragraph (a) of subdivision (2A) of said section 23 of said chapter 32 is hereby further amended by striking out the first sentence and inserting in place thereof the following sentence:- Such board shall consist of nine members as follows: the governor, ex officio, or his designee, the state treasurer, ex officio, or his designee, who shall serve as chairman of the board, a representative of a public safety organization appointed by the governor, a private citizen experienced in the field of investment or financial management appointed by the state treasurer, and a person who is not an employee or official of the commonwealth, appointed by the governor, an employee or retiree who is a member of the state teachers retirement system who shall be elected by the members in or retired from such a system for a term of three years in such a manner as the commissioner shall determine, a representative of a union which represents among its membership nonpublic safety municipal and state employees appointed by the treasurer, an employee or retiree who is a member of the state employees' retirement system who shall be elected by the members in or retired from such system for a term of three years in such a manner as the commissioner shall determine, and the commissioner of public employee retirement ex officio, the appointed members shall serve for four years, provided that the initial appointments shall be for the following terms.

SECTION 84. Said subdivision (2A) of said section 23 of said chapter 32, as so appearing, is hereby further amended by striking out paragraph (c).

SECTION 85. Clause (i) of paragraph (e) of said subdivision (2A) of said section 23 of said chapter 32, as so appearing, is hereby amended by inserting after the figure "(3)", in line 330, the words:- ; provided, however, that the duties and obligations of the PRIM board and of participating or purchasing systems shall be set forth in a declaration of trust adopted by the PRIM board; and provided, further, that any declaration of trust and any amendments thereto adopted by said board shall be subject to the approval of the joint committee on public service; and provided, further, that if said committee takes no final action relative thereto within forty-five days of the date of the filing thereof with the clerk of the house of representatives and the senate, such declarations of trust and such amendments thereto shall be deemed to be approved.

SECTION 86. Said paragraph (e) of said subdivision (2A) of said section 23 of said chapter 32, as so appearing, is hereby further amended by striking out clause (vi) and inserting in place thereof the following clause:-

(vi) adopt an annual budget and supplemental budgets as deemed necessary by the board subject to the approval of the house and senate committees on ways and means; provided, however, that if the said committees has taken no final action to disapprove any such budget, within sixty days of its being filed with said general court it shall be deemed to be approved; and provided, further, that if the general court disapproves any such budget within such sixty days, said board shall operate under the annualized budgetary level most recently approved pending the filing and subsequent approval of any other such annual or supplemental request.

SECTION 87. Said paragraph (e) of said subdivision (2A) of said section 23 of said chapter 32, as so appearing, is hereby further amended by adding the following three clauses:-

(xi) File quarterly, on or before March first, June first, September first, and December first of each year, with the house and senate committee on ways and means and with the joint committee on public service a report detailing brokerage transactions, fees paid to investment consultants and managers, master trustee and custody fees, a detailed investment portfolio analysis describing all holdings in the PRIT Fund, and a budget status report detailing expenses by month; provided, however, that said analysis and said reports shall be made available on the first day of each month upon the request of the chairman of any said committees.

(xii) Assess fees to participating and other purchasing retirement systems for the reasonable and necessary expenses incurred by the board in managing the PRIT Fund, which shall be paid by the board from earnings of the PRIT Fund without appropriation and in conformance with the budgetary levels established pursuant to clause (vi).

(xiii) Acts as treasurer-custodian of the PRIT Fund and shall have the custody of the funds and securities of said fund.

SECTION 89. Paragraph (g) of said subdivision (2A) of said section 23 of said chapter 32, as so appearing, is hereby amended by striking out clause (ii) and inserting in place thereof the following clause:-

(ii) employ professional and clerical staff as necessary.

SECTION 90. Said subdivision (2A) of said section 23 of said chapter 32, as so appearing, is hereby further amended by striking out paragraph (h) and inserting in place thereof the following paragraph:-

(h) Subject to the approval or ratification of the PRIM board, the executive director shall invest and reinvest such funds held by such board to the extent not required for current disbursements, as much as reasonably possible to benefit and expand the economic climate within the commonwealth so long as such is consistent with sound investment policy and the other requirements of this section; provided, however, that no funds are to be invested directly in mortgages or in collateral loans; provided, further, that no funds are to be invested in any bank or financial institution which directly or through its subsidiaries, has outstanding loans to the Republic of South Africa or its instrumentalities, and no assets shall be invested in stocks, securities or other obligation of any company doing business in or with the Republic of South Africa; and provided, further, that no funds are to be invested in any bank or financial institution which directly or through any subsidiary has outstanding loans to any individual corporation engaged in the manufacture, distribution or sale of firearms, munitions, including rubber or plastic bullets, tear gas, armored vehicles, or military aircraft for use or deployment in any activity in Northern Ireland, and no assets shall be invested in the stocks, securities or other obligations of any such company so engaged. The investment and fund management policies adopted by the PRIM board shall not be subject to any rules or regulations promulgated by the commissioner of public employee retirement governing the investment of funds by the retirement boards.

SECTION 91. Said subdivision (2A) of said section 23 of said chapter 32, as so appearing, is hereby further amended by adding the following paragraph:-

(j) The PRIM board shall be subject to the provisions of sections thirty-nine A and sections forty (E) to forty (J), inclusive, of chapter seven.

SECTION 92. Said section 23 of said chapter 32, as so appearing, is hereby further amended by adding the following subdivision:-

(4) Orders to protect the system. - If the commissioner determines after a hearing that the investment or recordkeeping practices of any board are not being conducted with reasonable care, skill, prudence or diligence, he may order such board to take or desist from any action that in his judgment is necessary to preserve the integrity of the system. If the commissioner has reason to believe that the investment and recordkeeping practices of any board are not being conducted with reasonable care, skill, prudence or diligence, he may issue a temporary order which shall remain in effect until an investigation, hearing and determination can be made. Violation of any such order shall be punished as provided for in section twenty-four.

SECTION 93. Subdivision (1) of section 24 of said chapter 32, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- If the commissioner of public employee retirement determines that any governmental unit, any officer or employee thereof, or the state board of retirement, the teachers' retirement board, or any other board subject to the provisions of sections one to twenty-eight, inclusive, or any member or employee of any such board, has violated or neglected to comply with any provisions of such sections, or the rules and regulations established thereunder, he shall give notice thereof to the governor, county commissioners, the mayor, the board of selectmen, the Massachusetts Turnpike Authority, the Massachusetts Bay Transportation Authority, the Massachusetts Housing Finance Agency, the Massachusetts Port Authority, the Blue Hills Regional Vocational School System, the Greater Lawrence Sanitary District, or the Minuteman Regional Vocational Technical School District, as the case may be, and to the board and, thereafter, if such violation or neglect continues, shall forthwith present the facts to the attorney general who shall take appropriate action.

SECTION 94. Section 25 of said chapter 32, as so appearing, is hereby amended by striking out subdivision (4) and inserting in place thereof the following subdivision:-

(4) The payment of all annuities, appropriations, pensions, retirement allowances and refunds of accumulated total deduction and of any other benefits or payments pursuant to the provisions of sections one to twenty-eight, inclusive, are hereby made obligations of the commonwealth in the case of any such payments to or from funds of the state employees' retirement system, the teachers' retirement system, or the Commonwealth's Pension Liability Fund and obligations of the governmental unit in which the system is established in the case of payments from funds of any system established in any county, city or town or in the Massachusetts Turnpike Authority, the Massachusetts Bay Transportation Authority, the Massachusetts Housing Finance Agency, the Massachusetts Port Authority, the Blue Hills Regional Vocational School system, the Greater Lawrence Sanitary District, or the Minuteman Regional Vocational Technical School District.

SECTION 95. Section 25 of said chapter 32, as so appearing, is hereby further amended by adding the following subdivision:-

(6) (a) It is hereby declared that any actual or potential failure to comply with the applicable funding standard or schedule established by sections twenty-one, twenty-two, twenty-two C and twenty-two D of this chapter threaten serious injury to the members' contractual pension rights and benefits and the retirement systems. By expressly authorizing the remedy of mandamus herein, the general court intends to assist all persons or entities with a special responsibility or duty in relation to the retirement systems in securing that compliance. In the event that any governmental unit other than the commonwealth fails to comply with its duty either to provide for in its budget, or to pay, the full amount of its obligation towards the retirement system as specified in this chapter, the failure may be remedied by an action for mandamus.

(b) The division of public employee retirement administration shall have standing to institute a legal proceeding for mandamus as provided for in this section. The attorney general, or the district attorney of the county in which a retirement system is located, in addition to any other powers and duties conferred on that office by law, shall also proceed in the name of the commonwealth, upon request of the division or upon the person's own motion, to institute a legal proceeding for mandamus as provided for in this section. Any mandamus pursuant to this section may compel the addition by such governmental unit other than the commonwealth to its current budget of any omitted amount of its pension obligation and the subsequent payment of any omitted amount of pension obligation with interest at the applicable compound rate, whichever is applicable.

SECTION 96. Subdivision (2) of section 26 of said chapter 32, as so appearing, is hereby amended by striking out paragraphs (b) and (c) and inserting in place thereof the following paragraph:-

(b) Upon retirement under the provisions of this subdivision a member shall receive a retirement allowance to become effective on the date of his retirement. Payments under such allowance shall be made as provided for in sections twelve and thirteen and the normal yearly amount thereof shall be equal to the sum of:-

(i) A yearly amount of annuity equal to the yearly amount of the regular life annuity specified in clause (i) of Option (a) of subdivision (2) of section twelve; and

(ii) A yearly amount of pension equal to seventy-two per cent of the annual rate of his regular compensation on the date such illness or injury was incurred, or equal to seventy-two per cent of the average annual rate of his regular compensation for the twelve month period for which he last received regular compensation immediately preceding the date his retirement allowance becomes effective, whichever is greater; provided, however, that for any employee who was not a member in service on or before January first, nineteen hundred and eighty-eight or who has not been continuously a member in service since such date, the total yearly amount of the sum of such pension and the annuity as determined in accordance with the provisions of subparagraph (i) shall not exceed seventy-five per cent of the annual rate of regular compensation as determined in the subparagraph; and provided, further, that no individual who is a member in service on January first, nineteen hundred and eighty-eight whose allowance is limited by the seventy-five per cent limitation as established in this subparagraph, shall receive an amount of pension that is less than seventy-two per cent of such individual's regular compensation on said January first, nineteen hundred and eighty-eight; and

(iii) A yearly amount of additional pension determined at the rate fixed by the actuary as hereinafter provided, for each surviving unmarried child of such member who is under the age of eighteen or who was over said age and physically or mentally incapacitated from earning on the date of such member's retirement. Such additional pension on account of any child shall be paid only so long as such child survives, remains unmarried and is under the age of eighteen or, if over said age remains physically or mentally incapacitated from earning or, if over said age and under the age of twenty-one, is a full-time student at an accredited educational institution offering full-time courses of study equivalent to or higher than secondary school study. The words "accredited educational institution" shall mean any school, college, or university that is licensed, approved, or accredited, as the case may be, in the state in which it is located. Beginning July first, nineteen hundred and eighty-eight such additional pension shall be fixed at a rate of four hundred and fifty dollars for each eligible child. Beginning July first, nineteen hundred and eighty-nine, such rate shall be increased by an amount equal to the percentage increase in the cost of living determined by the general court for such year pursuant to section one hundred and two.

SECTION 97. Paragraph (a) of subdivision (4) of section 28 of said chapter 32, as so appearing, is hereby amended by striking out the fifth sentence and inserting in place thereof the following sentence:- Any employee who becomes a member of a retirement system by the acceptance by a mosquito control project or district of this paragraph or by the acceptance by the county cooperative extension service of the county of Suffolk of this paragraph shall be credited with prior service in accordance with the provisions of sections one to twenty-eight, inclusive.

SECTION 98. Section twenty-eight F of said chapter thirty-two is hereby repealed.

SECTION 99. Section 58B of said chapter 32, as so appearing, is hereby amended by striking out the first four paragraphs and inserting in place thereof the following five paragraphs:-

A veteran who is entitled to be retired under the provisions of section fifty-eight may, on or before the date of his written application for retirement, elect to receive a lesser yearly amount of pension payable to such veteran during his lifetime, with the provisions that upon his death leaving as a survivor his spouse or other eligible beneficiary, as hereinafter defined, at the time of his retirement two-thirds of the yearly amount of such lesser pension shall be continued during the lifetime of and paid to such spouse or other eligible beneficiary; provided, however, that the surviving spouse or other eligible beneficiary shall receive not less than two-thirds of the pension such veteran is receiving at the time of his death; and provided, further, that if such surviving spouse or other eligible beneficiary dies on or after the date such lesser pension becomes effective and before the death of such veteran, such veteran thereafter shall be paid a full pension and may not choose another option. Such full pension shall be determined by multiplying the amount of the lesser pension at the time of the death of such surviving spouse or other eligible beneficiary by a fraction the numerator of which is the yearly amount of the full pension which such veteran would have received under section fifty-eight at the time his retirement allowance became effective if he had not elected that it be paid in accordance with the terms of the first sentence of this section, and the denominator of which is the yearly amount of the lesser pension which such veteran received at the time his pension first became effective.

The election of this option shall be filed with the retiring authority in writing on a prescribed form on or before the date of the written application for the retirement of such veteran, and if the spouse or other eligible beneficiary dies before the date such retirement becomes effective this option shall not take effect. The yearly amount of such lesser pension shall be determined so that the value, on the date such pension becomes effective, of the prospective payments to such veteran, including those for a full pension made in accordance with the first paragraph of this section, and to such spouse or other eligible beneficiary shall be the actuarial equivalent of the value on such date of the full pension that such veteran would be entitled to under the provisions of section fifty-eight.

The computation of the actuarial equivalent of the pension payable to a veteran and to his spouse or other eligible beneficiary under the provisions of this section shall be subject to the supervision and verification by the actuary appointed by the commissioner of public employee retirement in accordance with the provisions of section twenty-one and the expenses for such service shall be paid by the governmental unit granting the pension.

If a veteran entitled to be retired under the provisions of section fifty-eight dies before making written application for such retirement, or, having exercised the option provided by this section, dies before the effective date of his retirement, his widow shall receive an annual allowance consisting of two-thirds of the actuarial equivalent to which said veteran would have been entitled had his retirement allowance been computed under the provisions of this section as of the date of death of said veteran, and payable from the same source; provided that said spouse and the deceased veteran were living together at the time of his death, or that the retiring authority finds that they had been living apart for justifiable cause other than desertion or moral turpitude on the part of the spouse.

Any allowance provided for under this section shall be in the alternative to any allowance provided for under section twelve. If the deceased veteran was a member of a system established under sections one to twenty-eight, inclusive, the provisions of paragraph (c) of subdivision (2) of section eleven and Option (d) of subdivision (2) of section twelve shall apply unless the appropriate retiring authority, as defined in section fifty-nine, is notified in writing of the election of the pension under this section within ninety days from the date that the board mailed notice regarding the right of such election; provided, that no pension shall be paid under this section if the deceased veteran is survived by a beneficiary appointed under Option (d) of subdivision (2) of section twelve other than his spouse.

SECTION 100. The first paragraph of section 65C of said chapter 32, as so appearing, is hereby amended by striking out the first and second sentences and inserting in place thereof the following three sentences:- A chief justice, justice, associate justice, judge, associate judge, or special justice, hereinafter in this section called judge, who is retired or who resigns and who is entitled to a pension or retirement allowance for life under the provisions of section sixty-five A, sixty-five B or sixty-five D may elect to receive, in lieu thereof, a pension or retirement allowance for life at a lesser annual rate with provision that upon his death, leaving as a survivor a surviving spouse who was his spouse at the time of his retirement or resignation, two-thirds of such pension or retirement allowance for life at a lesser annual rate shall be paid to such surviving spouse; provided, however, that if such surviving spouse dies on or after the date such lesser retirement allowance becomes effective and before the death of such member, such member thereafter shall be paid a full retirement allowance. Such full retirement allowance shall be determined by multiplying the amount of the lesser retirement allowance at the time of the death of such surviving spouse by a fraction the numerator of which is the yearly amount of the full retirement allowance which such member would have received at the time his retirement allowance became effective, and the denominator of which is the yearly amount of the lesser retirement allowance which such member received at the time his retirement allowance first became effective. The yearly amount of such lesser retirement allowance shall be determined so that the value, on the date such allowance becomes effective, of the prospective payments to such member and to such surviving spouse shall be the actuarial equivalent of the value on such date of the full retirement allowance; provided, however, that the yearly amount of such lesser retirement allowance shall be decreased to reflect the costs to the system of providing full retirement allowances in accordance with the first sentence of this paragraph.

SECTION 101. Said section 65C of said chapter 32, as so appearing, is hereby further amended by striking out the third paragraph and inserting in place thereof the following paragraph:-

If a judge forty-five years of age or over but under the age of seventy who would be entitled, upon resigning, to a pension or retirement allowance for life under section sixty-five A or sixty-five D except for not having attained age seventy, or if a judge forty-five years of age or over but under the age of sixty-five, who would be entitled upon resigning to a pension or retirement allowance under said section sixty-five A or sixty-five D, except for not having attained age sixty-five, or if a judge fifty-five years of age or over but under age sixty-five, who would be entitled upon resigning to a pension or retirement allowance for life under section sixty-five B, except for not having attained age sixty-five dies before resigning, the judge's surviving spouse shall receive a pension or retirement allowance for life computed as provided in the second paragraph except that, in making such computation the proportion of the annual rate of salary payable to a judge under section sixty-five A or sixty-five D or the proportion of the average yearly earning for the required years of service payable to a judge under section sixty-five B shall be reduced by one per cent for each year or part thereof by which the date of death precedes the attainment of the age at which the judge would have received, upon resigning, his pension or retirement allowance for life under section sixty-five A, sixty-five B or sixty-five D, respectively.

SECTION 102. Paragraph (b) of section 65D of said chapter 32, as so appearing, is hereby amended by inserting after the first sentence the following two sentences:- There shall be deducted and withheld from the salary of each judge who entered the service of the commonwealth or a political subdivision thereof on or after January first, nineteen hundred and eighty-eight, a sum equal to eight per cent of the first thirty thousand dollars salary of each judge, nine per cent of such salary between thirty thousand dollars and forty-five thousand dollars and ten per cent of such salary in excess of forty-five thousand dollars; provided, however, that any judge who entered the service of the commonwealth or a political subdivision thereof between January first, nineteen hundred and seventy-nine and January first, nineteen hundred and eighty-eight shall be subject to the additional deduction provided for in paragraph (b 1/2) of subdivision (1) of section twenty-two. The provisions of section fifty of chapter three hundred and sixty-seven of the acts of nineteen hundred and seventy-eight shall not apply to any judge making the deduction provided for in the second sentence of this paragraph or the additional deduction provided for in said paragraph (b 1/2).

SECTION 103. Paragraph (c) of said section 65D of said chapter 32, as so appearing, is hereby amended by inserting after the words "per cent", in line 38, the words:- or such other amount as would be applicable pursuant to paragraph (b).

SECTION 104. Paragraph (d) of said section 65D of said chapter 32, as so appearing, is hereby amended by inserting after the words "per cent", in line 56, the words:- or such other amount as would be applicable pursuant to paragraph (b).

SECTION 105. Paragraph (e) of said section 65D of said chapter 32, as so appearing, is hereby amended by inserting after the words "per cent", in line 74, the words:- or such other amount as would be applicable pursuant to paragraph (b).

SECTION 106. Said section 65D of said chapter 32, as so appearing, is hereby further amended by adding the following paragraph:-

(i) Pursuant to the provisions of section four hundred and fourteen (h)(2) of the United States Internal Revenue Code, the governmental unit from which each judge receives his regular compensation shall assume and pay the contributions which would be payable by the judge under paragraph (b). The contributions so assumed shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code. Contributions which are assumed pursuant to this subdivision shall be treated and identified as member contributions for all purposes of the retirement system, except as specifically provided to the contrary in this subdivision.

Contributions assumed pursuant to this subdivision shall be paid from the same source of funds used for the payment of compensation to the judge. A deduction shall be made from the judge's compensation equal to the amount of the judge's contributions assumed by the employer. This deduction, however, shall not reduce the judge's compensation for purposes of computing benefits under the retirement system pursuant to this chapter or for purposes of determining any other employee benefits. Assumed contributions shall be transferred to the Judges Retirement Fund in accordance with the provisions of paragraph (b) and shall be credited to a separate fund within the individual accounts of the respective members for whom such contributions have been made in order that the amounts contributed prior to the effective date for the assumption of such contribution may be distinguished from the amounts contributed on or after the date on which the governmental employer is required by law to assume the contributions.

SECTION 107. Said chapter 32 is hereby further amended by inserting after section 90G the following section:-

Section 90G 1/2. Notwithstanding the provisions of section ninety F or ninety G, or any other general or special law to the contrary, any member continuing in service pursuant to said sections after having attained the age of seventy may elect to continue to have deductions made from his regular compensation. Any member so-electing shall upon retirement receive a superannuation retirement or veteran's pension allowance, as applicable, equal to that to which he would have been entitled had he retired at age seventy; provided, however, that the regular compensation of such member shall include any regular compensation received by such member after having made such election.

The provisions of this section shall take effect for the members of any retirement system by majority vote of the board of such system, subject to the approval of the legislative body. For purposes of this paragraph, "legislative body" shall mean a town meeting in a town, the city council in a city, the county retirement board in a district. Acceptance shall be deemed to have occurred upon the filing of a certification of such votes with the commissioner. For the purposes of this section, the state teachers' and state employees' retirement system shall be deemed to have accepted this section. Any member of a system accepting this section who on the date of such acceptance is continuing in service pursuant to section ninety F or ninety G after having attained the age of seventy, may include any regular compensation received by such member after having attained said age by depositing, upon such conditions as the board shall determine, in the annuity savings fund of said system an amount equal to the amount which would have been withheld from his regular compensation had said acceptance taken effect on the date such member attained said age seventy, and had such member made the election provided for in this section on such date.

SECTION 107A. Section 91A of said chapter 32, as appearing in the 1986 Official Edition, is hereby amended by striking out, in line 19, the words "a federal W-2 form" and inserting in place thereof the words:- all pertinent federal W-2 forms.

SECTION 108. Paragraph (a) of section 102 of said chapter 32, as so appearing, is hereby amended by striking out, in line 1, the word "insurance" and inserting in place thereof the words:- public employee retirement administration.

SECTION 109. Section 10A of chapter 32A of the General Laws, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

Each employee insured for the minimum amounts of group life and group accidental death and dismemberment insurance provided in section six may, subject to such conditions as the commission shall approve, be insured for amounts of group life insurance and group accidental death and dismemberment insurance in addition to the minimum amounts provided for in said section six. An employee may be insured for additional insurance in thousand dollar incremental amounts up to an amount equal to one thousand dollars less than the employee's gross annual salary rounded down to the nearest whole thousand dollars or for an amount equal to one thousand dollars less than two times, three times, four times, five times, six times, seven times, or eight times the employee's gross annual salary rounded down to the nearest whole thousand dollars. The group insurance commission is hereby authorized to implement a system whereby such employee contributions for such insurance are made on a pre-tax basis. Notwithstanding the maximum dollar limits of the aforesaid amounts of group accidental death and dismemberment insurance and subject to such provisions of the group policy as may be provided by the commission, if a death occurs to an employee while in the performance of his duties and if such death occurs as the natural and proximate result of a robbery or attempted robbery a further additional amount of accidental death insurance shall be payable in an amount equal to three times the sum of additional group life and group accidental death and dismemberment insurance applicable to said employee insured under this section. Such additional insurance shall be issued by the carrier or carriers as determined by the commission without regard to a minimum number of eligible employees or to the provisions of chapter one hundred and seventy-five.

SECTION 110. Said section 10A of said chapter 32A, as so appearing, is hereby further amended by striking out, in line 57, the word "optional" and inserting in place thereof the word:- additional.

SECTION 111. Said section 10A of said chapter 32A, as so appearing, is hereby further amended by striking out, in line 70, the words "the above schedule" and inserting in place thereof the words:- this section.

SECTION 112. Section 12 of said chapter 32A, as so appearing, is hereby amended by striking out, in lines 7 and 8, the words "two thousand dollars" and inserting in place thereof the words:- such greater amount.

SECTION 113. Said chapter 32A is hereby further amended by adding the following section:-

Section 17. The commission shall, subject to appropriation, establish a plan of benefits for certain employees which shall, subject to the procedures and conditions established by the commission, reimburse these employees for eligible dental and vision expenses up to but not exceeding two hundred dollars per year. The commission shall collect and manage the moneys transferred to it for the funding of this plan of benefits and may make any legal deposit, investment or reinvestment of these moneys and any income derived therefrom. As used in this section, "employees" shall mean employees who are classified as managers in the management classification and pay plans in accordance with chapter thirty, sections forty-five and forty-six, unclassified managers who have classified positions reporting to them directly or through intermediate managers or supervisors, incumbents of positions in the executive branch assigned to collective bargaining units but designated as confidential, employees and members of the general court, and retirees who had been in the service of the commonwealth. If an employee is not described in the preceding sentence, but the employee's position is subsequently changed, reorganized or reclassified so as to be covered by the previous sentence, the employee holding such position will be considered an "employee" for the purposes of this section as of the date of such change.

SECTION 114. Section 5 of chapter 32B of the General Laws, as appearing in the 1986 Official Edition, is hereby amended by inserting after the word "authority", in line 3, the words:- and shall be not less than two thousand dollars.

SECTION 115. The first paragraph of section 5D of chapter 40 of the General Laws, as so appearing, is hereby amended by adding the following two sentences:-

In any city, town or district which belongs to a city, town or district retirement system, all amounts appropriated pursuant to this section shall be transferred to and credited to the Pension Reserve Fund provided for in section twenty-two of chapter thirty-two. In any city, town or district which belongs to a county retirement system, all amounts appropriated pursuant to this section shall be held by the city, town or district treasurer pursuant to subdivision (9) of section twenty-two of chapter thirty-two.

SECTION 116. Section four A of chapter forty G of the General Laws is hereby repealed.

SECTION 117. Chapter 41 of the General Laws is hereby amended by inserting after section 101 the following section:-

Section 101A. Subsequent to January first, nineteen hundred and eighty-eight, no person who smokes any tobacco product shall be eligible for appointment as a police officer or firefighter in a city or town and no person so appointed after said date shall continue in such office or position if such person thereafter smokes any tobacco products. The personnel administrator shall promulgate regulations for the implementation of this section.

SECTION 118. Paragraph (1) of subdivision (a) of section 2 of chapter 62 of the General Laws, as appearing in the 1986 Official Edition, is hereby amended by adding the following subparagraph:-

(I) Amounts contributed on behalf of the taxpayer pursuant to subdivision (10) of section twenty-two of chapter thirty-two or pursuant to paragraph (i) of section sixty-five D of said chapter thirty-two and not included in the federal gross income; provided, however, that nothing herein shall be deemed to impair the status for tax purposes of any such amount as provided under section nineteen of chapter thirty-two, or subparagraph (4) of paragraph (a) of Part B of section three of chapter sixty-two.

SECTION 119. Section 1 of chapter 62B of the General Laws, as so appearing, is hereby amended by striking out the definition of "Wages" and inserting in place thereof the following definition:-

"Wages", for withholding purposes only, wages as defined in section thirty-four hundred and one (a) of the Internal Revenue Code, periodic payments and nonperiodic distributions as defined in section thirty-four hundred and five of said Code and subject to federal withholding, and contributions paid by the employer on behalf of the employee pursuant to subdivision ten of section twenty-two of chapter thirty-two or pursuant to paragraph (i) of section sixty-five D of chapter thirty-two and not otherwise included as wages above.

SECTION 120. Section 29 of chapter 90 of the General Laws, as so appearing, is hereby amended by inserting after the second sentence the following sentence:- Subsequent to January first, nineteen hundred and eighty-eight, no person who smokes any tobacco product shall be eligible for appointment as an investigator or examiner empowered to perform police duty, and no person so appointed after said date shall continue in such office or position if such person thereafter smokes any tobacco product; the personnel administrator shall promulgate regulations for the implementation of the provisions of this sentence.

SECTION 121. Chapter 111 of the General Laws is hereby amended by adding the following section:-

Section 205. The department shall establish a program to reduce the incidence among the general public of mortality and morbidity from accidents and diseases for which risk factors can be identified. Such risk factors shall include, but not be limited to emotional stress, lack of exercise, poor nutrition and diet, abuse of alcohol and other drugs, smoking, and exposure to toxic substances. Such diseases shall include, but not be limited to, heart disease, lung disease, cancer and stroke. The program shall educate and screen the general public and particular groups of the general public at risk with respect to particular diseases or accidents. The department shall encourage the development of programs for fitness and behavior changes, including dietary change and smoking cessation. The department, with the cooperation of the personnel administrator and the commissioner of public employee retirement, shall develop, implement, coordinate and monitor fitness and behavior change programs, to be known as wellness programs, for public employees. Such programs shall make use of existing resources, facilities and programs whenever possible; and shall provide for access to any such programs, resources and facilities at no cost to such employees.

The department shall promulgate minimum requirements for wellness programs. Such minimum requirements may vary according to the classification of the employees whom a program is to serve. Wellness programs may be phased in over a period of years, but shall be implemented first for police officers and firefighters to whom section sixty-one A of chapter thirty-one applies and next for employees to whom paragraph (e) of subdivision (3) of section five of chapter thirty-two applies. Minimum requirements for wellness programs for employees to whom said section sixty-one A and said paragraph (e) apply shall be designed to enable such employees to meet the respective health and physical fitness standards of said section and said paragraph.

SECTION 122. The third paragraph of section 21 of chapter 138 of the General Laws, as appearing in the 1986 Official Edition, is hereby amended by striking out paragraph (a) and inserting in place thereof the following paragraph:-

(a) Sixteen and seven-tenths per cent shall be credited to the Commonwealth's Pension Liability Fund for the accumulation of assets in advance of the payment of retirement allowances and used solely for the purposes of offsetting the anticipated future cost of funding the contributory retirement systems of the state employees and teachers as defined in section one of chapter thirty-two.

SECTION 123. Chapter 465 of the acts of 1956 is hereby amended by inserting after section 3 the following section:-

Section 3A. Subsequent to January first, nineteen hundred and eighty-eight, no person who smokes any tobacco product shall be eligible for appointment as a permanent crash crewman, crash boatman, fire controlman, or assistant fire controlman at the General Edward Lawrence Logan International Airport, and no person so appointed after said date shall continue in such office or position if such person thereafter smokes any tobacco products. The personnel administrator of the commonwealth shall promulgate regulations for the implementation of this section.

SECTION 124. Chapter five hundred and sixteen of the acts of nineteen hundred and eighty-five is hereby repealed.

SECTION 125. No provision in any section of this act shall in any way impair or otherwise affect the establishment of any eligible list based upon an examination held on or before January first, nineteen hundred and eighty-eight, any appointment or promotion based thereon, or the continued employment of any person so appointed or promoted.

SECTION 126. The commissioner of public health is hereby authorized to make an investigation and study of the incidence of various kinds of cancer among police officers and firefighters, respectively, as compared with the incidence of the same kinds of cancer among the general public. Said commissioner shall report to the general court the results of his investigation and study, and his recommendations, if any, including recommendations relative to the establishment of a cancer presumption, so-called, and including recommendations for standards for the implementation of any such presumption together with drafts of legislation necessary to carry its recommendations into effect, by filing the same, with the clerk of the house of representatives on or before December first, nineteen hundred and ninety-one. Said commission also shall file annual progress reports with the governor and with said clerk on or before the first Wednesday in December in each of the years nineteen hundred and eighty-seven, nineteen hundred and eighty-eight, nineteen hundred and eighty-nine, and nineteen hundred and ninety.

SECTION 127. The commissioner of public health is hereby authorized to make an investigation and study of the incidence of hypertension and heart disease among persons who are obese, as compared with the incidence of said diseases among the general public. Said commissioner shall report to the general court the results of his investigation and study, and his recommendations, if any, including recommendations relative to the exclusion from the provisions of section ninety-four of chapter thirty-two of the General Laws, of those persons deemed to be obese, and including recommendations for standards for the implementation of such exclusion, together with drafts of legislation necessary to carry its recommendations into effect, by filing the same with the clerk of the house of representatives on or before December thirty-first, nineteen hundred and eighty-nine.

SECTION 128. Notwithstanding the provisions of any general or special law to the contrary, each governmental unit and free public library that assumes employee contributions pursuant to subdivision (10) of section twenty-two of chapter thirty-two of the General Laws or pursuant to paragraph (i) of section sixty-five D of said chapter thirty-two shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service rules that pursuant to section four hundred fourteen (h)(2) of the United States Internal Revenue Code these contributions shall not be included as gross income of the employee until such time as they are distributed.

SECTION 129. Notwithstanding the provisions of subdivision (2A) of section twenty-three of chapter thirty-two of the General Laws, the pension reserves investment management board shall operate under the annual budget adopted by said board for the fiscal year nineteen hundred and eighty-eight until such time as said budget or any other annual or supplemental budget request filed by the board is approved in accordance with the provisions of said subdivision.

SECTION 130. The commissioner of the department of revenue is hereby authorized to promulgate rules and regulations detailing the procedures to be followed by retirement systems in implementing the provisions of subdivision (10) of section twenty-two of chapter thirty-two of the General Laws and the provisions of paragraph (i) of section sixty-five D of said chapter thirty-two.

SECTION 131. The secretary of the executive office for administration and finance is hereby authorized to adopt for active employees of the commonwealth, as defined in section one of chapter thirty-two A of the General Laws, a cafeteria plan pursuant to section one hundred and twenty-five of the Internal Revenue Code which may include, but is not limited to, a dependent care assistance program pursuant to section one hundred and twenty-nine of the Internal Revenue Code and coverage under an accident or health plan pursuant to section one hundred and five and one hundred and six of the Internal Revenue Code.

SECTION 132. The chief executive officer of any city or town of the commonwealth is hereby authorized to adopt for active employees a cafeteria plan pursuant to section one hundred and twenty-five of the Internal Revenue Code which may include, but is not limited to, a dependent care assistance program pursuant to section one hundred and twenty-nine of the Internal Revenue Code and coverage under an accident or health plan pursuant to section one hundred and five and one hundred and six of the Internal Revenue Code.

SECTION 133. Notwithstanding any general or special law or regulation to the contrary, the board of each retirement system investing in accordance with the provisions of paragraph (g) of subdivision (2) of section twenty-three of chapter thirty-two of the General Laws and, the state treasurer, acting as the treasurer/custodian of the state employees' retirement system and the teachers' retirement system, and as the chairman of the pension reserves investment management board, are hereby authorized and directed to investigate by means of a survey the extent to which corporations organized under the laws of the United States or the several states and operating in Northern Ireland, in which the assets of said retirement systems or the Pension Reserves Investment Trust Fund are invested, adhere to principals of nondiscrimination in employment and freedom of workplace opportunity. In conducting said survey, said boards and said treasurer may utilize any information presently available relative to similar pension plans. In making said determination, said boards and said treasurer shall consider, without limitation, the following standards for corporate activity:

(1) equal access to employment, promotion, and job-preservation without regard to religious affiliation or other minority status;

(2) the promotion of religious tolerance within the workplace, and the eradication of any manifestations of religious and other illegal discrimination;

(3) adherence to other legal and regulatory guidelines for nondiscrimination and equality of opportunity, existing in Northern Ireland;

(4) adherence to the McBride Principles for Northern Ireland, so-called.

Said treasurer shall set forth the results of said investigation by filing a report with the clerks of the house of representatives and of the senate not later than the first business day in January of each year. Said boards shall set forth the results of said investigation by filing a report with the public employee retirement administration not later than the first business day in January of each year. Said report shall include, but not be limited to, the names and addresses of all United States corporations operating in Northern Ireland in which the assets of said retirement systems or trust fund are invested, and the findings of said boards and said treasurer relative to these corporations' adherence to the standards for corporate activity as set forth. Said boards and said treasurer shall also report their recommendations, if any, consistent with prudent fiduciary practice, based upon the findings of said investigation. Said report shall be available for public inspection in the offices where they are prepared and where they are filed.

Said boards and said treasurer, subject to the approval of the investment committee, established under paragraph (a) of subdivision (1) of section twenty-three of chapter thirty-two of the General Laws, and said pension reserves investment management board, established under paragraph (a) of subdivision (2A) of said section twenty-three, shall, where necessary, appropriate, and consistent with prudent standards for fiduciary practice, initiate and support shareholder petitions or initiatives requiring corporate action in compliance with the standards for nondiscrimination set forth in this act.

SECTION 134. The provisions of this act are severable and if any of its provisions shall be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect or impair any other provisions.

SECTION 135. The provisions of section sixty-nine shall apply to all retirement systems as of January first, nineteen hundred and eighty-four. The provisions of sections twelve, twenty-one, twenty-two, thirty-one, thirty-four, forty-two, forty-three, forty-five, ninety-eight and ninety-nine shall apply only to benefits receivable pursuant to applications for such benefits, allowances, or other payments made on or after the effective date of this act. The provisions of section forty-seven shall only apply to criminal offenses committed on or after the effective date of this act. The provisions of sections one and three shall take effect on January first, nineteen hundred and eighty-eight.