Budget Amendment ID: FY2015-S4-156-R1

Redraft GOV 156

Franklin Regional Retirement System

Messrs. Rosenberg and Downing moved that the proposed new text be amended moved that the bill be amended by inserting after section 122 the following section:-

“SECTION 122A. (a) Notwithstanding any general or special law to the contrary, the accumulated deductions, including interest, computed as the actuarial assumed interest, credited as of July 1, 2014 to the annuity savings accounts of persons actively employed by the Franklin regional council of governments who are active members of the Franklin regional retirement system and otherwise eligible for membership in the state employees retirement system, shall be transferred to the state employees’ retirement system. The public employee retirement administration commission shall certify to the state board of retirement that the amounts transferred under this act are accurate.

(b) Upon completion of the required documentation and acceptance by the state board of retirement under applicable laws and regulations, persons actively employed by the Franklin regional council of governments who are active members of the Franklin regional retirement system shall become members of the state employees’ retirement system as of July 1, 2014 and shall be subject to the rules and regulations of state employees’ retirement system.

The Franklin regional council of governments and the Franklin regional retirement system shall transfer to the state board of retirement all records related to the employment of persons affected by this section related to their membership in the Franklin regional retirement system.

For any transferred employee under this section, determinations related to the membership, retirement benefits including, but not limited to, eligibility for benefits, creditable service amounts, accumulated retirement deductions and interest and group classifications shall be made solely by the state board of retirement.

(c) Under paragraph (c) of subdivision (8) of section 3 of chapter 32 of the General Laws, the Franklin regional retirement system shall reimburse the state employees’ retirement system and any other retirement system governed by said chapter 32 for its pro rata share of the amount of any retirement allowance paid to employees transferred under this section that is attributable to their creditable service while employees of the Franklin regional council of governments and members of the Franklin regional retirement system. This subsection shall have no effect on: (i) any other liability under said chapter 32 that the Franklin regional retirement system may have to the state employees’ retirement system system or any other applicable retirement system; or (ii) any liability related to former employees of the Franklin regional council of governments.

This section shall apply to former employees of the Franklin regional council of governments that are inactive members of the Franklin regional retirement system as of July 1, 2014, that return to active service with the Franklin regional council of governments on or after July 1, 2014 and become members of the state employees’ retirement system; provided, however, that any such former employees shall be subject to the normal transfer procedures under applicable laws and regulations.

The Franklin regional retirement system shall reimburse the state employees’ retirement system and any other retirement system governed by chapter 32 of the General Laws for its pro rata share of the amount of any retirement allowance paid to such employees. The state employees retirement system shall not be responsible under paragraph (c) of subdivision (8) of section 3 of chapter 32 of the General Laws or any other general or special law for the creditable service of former employees of the Franklin regional council of governments who were members of the Franklin regional retirement system and are not actively employed by Franklin regional council of governments and not also members of the Franklin regional retirement system as of July 1, 2014.

(d) The state board of retirement shall not be responsible for any amount of retirement allowance, pension, disability allowance or other benefit under said chapter 32 of the General Laws for any employee, retiree, survivor or beneficiary of the Franklin regional council of governments due or otherwise in effect on or before July 1, 2014 from the Franklin regional retirement system or for any portion of any unfunded liability that may exist for an employee, survivor or beneficiary of the Franklin regional council of governments related to the Franklin regional retirement system. The state board of retirement shall not be responsible for benefits related to any disability retirement application that has been filed or may be pending with the Franklin regional retirement board or with the public employee retirement administration commission as of July 1, 2014 or for benefits related to any disability retirement applications that arise out of injuries that occurred prior to July 1, 2014.

The state board of retirement shall not be responsible for liability for any service accrued prior to July 1, 2014 by retirees of the Franklin regional council of governments that are retirees of the Franklin regional retirement system as of July 1, 2014, that return to active service with the Franklin regional council of governments on or after July 1, 2014 and become members of the state employees’ retirement system with the intention of reinstatement as provided in section 105 of chapter 32 of the General Laws. Any repayment of retirement allowance shall be made to the Franklin regional retirement system, which shall retain liability for service accrued by the reinstated member while a member of the Franklin regional retirement system and shall be subject to the normal transfer procedures under applicable laws and regulations.

Employees of the Franklin regional council of governments shall be eligible for membership in the state employees’ retirement system only if they meet the state board of retirement’s membership requirements. The Franklin regional council of governments shall conform to the state board of retirement’s payroll reporting requirements.”