Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. The third paragraph of section 3 of chapter 167B of the General Laws, as appearing in the 1992 Official Edition, is hereby amended by striking out the last sentence and inserting in place thereof the following two sentences:- An electronic branch may be located in a mobile unit under such conditions and limitations as the commissioner, by regulation, shall establish. No electronic branch shall be located upon premises where there occurs legalized gambling, other than a state lottery.
SECTION 2. Said section 3 of said chapter 167B, as so appearing, is hereby further amended by striking out the fifth paragraph.
SECTION 3. The ninth paragraph of said section 3 of said chapter 167B, as so appearing, is hereby amended by inserting after the word "withdrawals,", in line 121, the following words:- to make transfers between accounts, whether deposits or credits,.
SECTION 4. Chapter 168 of the General Laws is hereby amended by striking out section 39, as so appearing, and inserting in place thereof the following section:-
Section 39. Fifteen or more savings banks may form the Savings Banks Employees Retirement Association in this section, and in sections forty and forty-one, called the association for the purpose of providing to eligible employees of participating banks plans that are qualified under section 401 of the federal Internal Revenue Code. The association, in its name and by or through its authorized officers, may (a) make agreements and investments subject to such limitations as from time to time may be prescribed by law or the by-laws of the association, (b) sue and be sued, plead and be impleaded, (c) enforce liens and other obligations and foreclose mortgages held by the association on or with respect to real or personal property situated in the commonwealth or in any state or territory of the United States, (d) adopt an official seal and alter the same at pleasure, and (e) do such other acts and things as may be necessary to carry out the powers conferred upon it by law and its by-laws.
All savings banks established under the laws of the commonwealth, all federal savings banks with their main offices located in the commonwealth which have converted from a state chartered savings bank, the Massachusetts Bankers Association and any bank which is a voting member thereof, the Savings Banks Employees Retirement Association, the Mutual Savings Central Fund, Inc., and such other Massachusetts savings bank organizations as may from time to time be provided for in the by-laws of the association, and such of the respective employees of each of the foregoing as may be provided by such by-laws, shall be eligible for membership in the association. For the purposes of this section and sections thirty-nine, forty and forty-one, reference to "bank" or "banks" shall, unless the context otherwise requires, mean any or all of the organizations named or referred to in this paragraph, and a reference to "trustees" of a bank shall, unless the context otherwise requires, shall mean the governing body of any such organization.
Eligible employees may contribute a portion of their salaries or wages, to be deducted by the employing banks and paid to the association.
A participating bank may contribute to the funds of the association to the extent determined by its trustees, but its contributions for current services, as defined in the by-laws, on account of any employee shall not exceed fifteen percent of his compensation.
A participating bank may also contribute for service, as defined in the by-laws, amounts necessary to provide eligible employees with an annuity or pension to begin at age sixty-five or later, such annuity or pension not to exceed sixty percent of the highest average salary for any three successive years within the five years preceding retirement.
If the commissioner finds that the continuation of contributions by a participating savings bank may affect its safety and soundness, including reducing its risk-based capital ratio below any prescribed regulatory level, said commissioner may order the savings bank to (a) freeze its benefits and cease further funding for future benefit accruals under any plans qualified under section 401 of the federal Internal Revenue Code; (b) revise its benefits for future service under any such plans so that contributions on account of any employee will be limited to an appropriate percentage of compensation; or (c) terminate its participation in any such plans.
In the event that any employee who has been continuously in the employ of such a bank for ten years or more becomes incapacitated for further service by reason of physical or mental disability before age sixty-five, the employing bank may pay him a pension in an amount not to exceed two percent of his average salary for the three years preceding the date of retirement for each year, not exceeding thirty years of continuous service with any and all banks as defined in the second paragraph of this section. Any pension paid on account of disability may be discontinued at any time by trustees of the employing bank, and shall be discontinued when any such pensioner substantially recovers his earning capacity or attains age sixty-five or the date the employee elects to have his pension or annuity commence.
The funds contributed by participating banks and member employees shall be held or used by the trustees of the association for the purchase of annuities or payment of pensions to eligible employees upon their retirement from service, for the payments to beneficiaries or representatives of any member employee of the participating bank dying before reaching the age of retirement, and for the payment to any such employee retiring from service before becoming entitled to a pension or annuity. Expenses necessary for the administration of the association shall be paid by participating banks on a proportionate basis as provided in the by-laws.
In any calendar year, the association or a bank, by vote of its board of trustees, may directly supplement the retirement benefits being paid to the former employees or their beneficiaries on account of bank service; provided, however, that no supplement of a retirement benefit shall exceed the retirement benefit multiplied by the increase in the cost of living since the retirement began. The increase in the cost of living is the percentage by which the national monthly consumer price index for all urban consumers issued by the bureau of labor statistics of the United States Department of Labor for the last November before the year in which payment is made is greater than the beginning index figure. The beginning index figure is the average of such monthly consumer price index figures for the year in which a retirement benefit was first paid to or with respect to a former employee. No bank may become obligated to pay in future years any supplement authorized by this paragraph.
The association shall be the exclusive provider of such plans to all savings banks established under the laws of the commonwealth. No such savings bank may establish or provide any such plans to its employees independent of the association; provided, however, that nothing contained herein shall be construed as requiring any such savings bank to provide such plans to its employees.