Amendment #2 to H4100

An Act Relative to Pension Reform for State Employees.

Mr. Webster of Pembroke moves to amend the bill by adding the following section:

Chapter 32 of the General Laws is hereby amended by striking out section 3, as appearing in the 2008 Official Edition, and inserting in place thereof the following section:-

Section 3.   Any person who is a member in a system  who is over the age of 35 can opt to stay in their current plan or join a private 401k-type investment plan; provided, however, that all contributions made by such employee under the age of 35 shall remain in their current pension plan.  Such employee would be able to contribute all their contributions to their public or private retirement plan.

All persons who join such private pension plan shall have no limits on how much they contribute and these funds shall be removed from the employee’s taxable income.  All dividends and capital gains will also be non-taxable upon retirement.

All employers in these so-called private plans, shall not contribute to such retirement plan when such employee terminates his employment.