Budget Amendment ID: FY2023-S4-649

EDU 649

Higher Education Retirement

Ms. Gobi moved that the proposed new text be amended by inserting at the end thereof, the following sections:-

“SECTION XX. Section 18A of chapter 15 of the General Laws, as so appearing, is hereby amended by adding the following paragraph:-

The board of higher education may establish, administer and operate plans that comply with section 403(b) of the Internal Revenue Code of 1986, as amended. Such plans shall be maintained for the exclusive benefit of plan participants and their beneficiaries. Eligible employees, as determined by each plan, may include employees of the executive office of education, the department of higher education, the department of elementary and secondary education, the department of early education and care, the state universities, the state community colleges and any other department identified by the secretary of education that meets the requirements of an eligible employer under said section 403(b) of the Internal Revenue Code. The sole source of contributions to the plans shall be employees’ elective contributions. Where applicable and appropriate, the commonwealth shall remit such contributions to the plan provider selected by the participant from a list of providers identified by the board of higher education as plan providers. Such plan providers may offer annuity and custodial accounts meeting the requirements of said section 403(b) of the Internal Revenue Code. Investments of plan contributions shall be directed by the participant. The board of higher education may promulgate regulations governing the administration of and participation in the plans.”; and

“SECTION XX. Section 22C of chapter 32 of the General Laws, as so appearing, is hereby amended by striking out, in lines 13 and 14, the words “employer contribution to the optional retirement program under” and inserting in place thereof the following words:- administrative costs of the deferred compensation plan operated by the board of higher education pursuant to section 18A of chapter 15 and the employer contributions and administrative costs of the optional retirement program authorized by”.