HOUSE DOCKET, NO. 4264        FILED ON: 11/6/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3847

The Commonwealth of Massachusetts

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PRESENTED BY:

James M. Murphy and James E. Timilty

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to clarify section 9A1/2 of chapter 32B.

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PETITION OF:

HOUSE DOCKET, NO. 4264        FILED ON: 11/6/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3847

The Commonwealth of Massachusetts

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In the One Hundred and Eighty-Ninth General Court
(2015-2016)

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An Act to clarify section 9A1/2 of chapter 32B.

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. Chapter 32B of the General Laws is hereby amended by striking out section 9A1/2, as appearing in the 2014 Official Edition, and inserting in place thereof the following section:-

Section 9A1/2. Whenever a retired employee or beneficiary receives a healthcare premium contribution from a governmental unit, as defined by Chapter 32B, in a case where a portion of the retiree’s creditable service is attributable to service in 1 or more other governmental units, the first governmental unit shall be reimbursed, in accordance with this paragraph, by the other governmental units for the portion of the premium contributions that corresponds to the percentage of the retiree’s creditable service that is attributable to each governmental unit; provided, however, that no governmental unit shall reimburse the first governmental unit for such premium contribution if the creditable service of said employee in a reimbursing governmental unit is less than or equal ten percent of such employee’s the total creditable service. For the purpose of this section the other governmental units shall be assumed to contribute 50% of the plan/plans in which the retiree and their dependents were enrolled in for the prior fiscal year and any calculation shall be based on that amount.

Each Chapter 32 retirement board shall annually on or by December 1 certify and distribute to the treasurer of each member unit the amount of creditable service for each individual with creditable service from more than one governmental unit who retired after January 1, 2011. Upon certification from their retirement board, of past M.G.L. Chapter 32 employment of any individual who retired on or after January 1, 2011, the treasurer of the first governmental unit may annually, on or before January 15, notify the treasurer of the other governmental units of the amount of reimbursement due for the previous fiscal year and provide a copy of the notice of creditable service from such retirement board.  The treasurer of the other governmental unit shall immediately take all necessary steps to insure prompt payment of this amount. Any governmental unit receiving a bill may pay the bill from its current health benefits appropriation. In default of any such payment, the first governmental unit may maintain an action of contract to recover the same, but there shall be no such reimbursement if the 2 systems involved are the state employees’ retirement system and the teachers’ retirement system.