AN ACT PROVIDING FOR AN EARLY RETIREMENT INCENTIVE PROGRAM FOR CERTAIN EMPLOYEES OF THE SPRINGFIELD WATER AND SEWER COMMISSION.
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. Notwithstanding chapter 32 of the General Laws or any other general or special law to the contrary, the early retirement incentive program established by this act shall apply to a member who is a Group 1 or Group 2 employee, which shall mean an employee of the Springfield water and sewer commission and as defined in section 3 of said chapter 32, who is a member of said city of Springfield retirement system and who (i) shall have been an employee of the Springfield water and sewer commission; (ii) shall have had their position abolished by the Springfield water and sewer commission; (iii) shall be eligible to receive a superannuation retirement allowance in accordance with the provisions of subdivision (1) of section 5 of said chapter 32 or subdivision (1) or subdivision (2) of section 10 of said chapter 32 upon the effective retirement date specified in his written application to said board; and (iv) shall have filed a written application not later than 45 days from the effective date of this act to retire for superannuation as of the date which shall be specified in such application. The specified date for retirement shall not be later than 120 days from the effective date of this act.
Notwithstanding said chapter 32 to the contrary the normal yearly amount of the retirement allowance for an eligible employee of the Springfield water and sewer commission who has paid the full amount of regular deductions on the total amount of regular compensation as determined under paragraph (a) of subdivision (2) of section 5 of said chapter 32, shall be based on the average annual rate of regular compensation as determined under said paragraph (a) and shall be computed according to the table contained in said paragraph (a) based on the age of such member and his number of years and full months of creditable service at the time of his retirement increased by up to 5 years of age or by up to 5 years of creditable service or by a combination of additional years of age and service, the sum of which shall not be greater than 5. The executive director of the Springfield water and sewer commission may limit the amount of additional credit for service or age or a combination of service and age offered and the number of employees from the Springfield water and sewer commission for whom it will approve a retirement calculated under this act. If participation is so limited, the retirement of employees, with greater creditable service shall be approved before approval is given to employees with lesser creditable service.
SECTION 2. For the purpose of this act, words shall have the same meaning as in chapter 32 of the General Laws unless otherwise expressly provided or unless the context clearly requires otherwise. An employee who retires and receives an additional benefit in accordance with this act shall be deemed to be retired for superannuation under the provisions of said chapter 32 and shall be subject to all provisions of said chapter 32.
Notwithstanding section 3 of said chapter 32, the retirement allowance of any employee who retires and receives an additional benefit in accordance with this act shall become effective on the date of his termination of service if his written application therefore is filed within 120 days from the effective date of this act.
The total normal yearly amount of the retirement allowance, as determined in accordance with the provisions of section 5 of said chapter 32, of any employee of the Springfield water and sewer commission who retires and receives an additional benefit under the retirement incentive program in accordance with this act shall not exceed 4/5 of the average annual rate of his regular compensation received during any period of 3 consecutive years of creditable service for which the rate of compensation was the highest or of the average annual rate of his regular compensation received during the periods, whether or not consecutive, constituting his last 3 years of creditable service preceding retirement, whichever is greater. The public employee retirement administration commission shall analyze, study and evaluate the costs and the actuarial liabilities attributable to the retirement incentive program established by this act for the Springfield water and sewer commission. The commission shall file a report in writing of its findings on or before July 1, 2003 and shall send a copy thereof to the commission. The reports shall be filed with the joint committee on public service of the general court on or before July 1, 2003.
SECTION 3. The Springfield retirement board shall prepare a funding schedule which shall reflect the costs and the actuarial liabilities attributable to the additional benefits payable under the retirement incentive program in accordance with this act and such schedule shall be designed to reduce the city of Springfield retirement system's additional pension liability attributable to this act for such costs and liabilities to 0 on or before June 30, 2015. The board in preparing such schedule shall consider the analysis of the commissioner of the public employee retirement administration filed in accordance with this act. The board shall triennially update such schedule until said June 30, 2015. In each of the fiscal years until the actuarial liability determined under this section shall be reduced to 0, there shall be appropriated to the applicable pension reserve fund in each such fiscal year the amount required by the funding schedule and the updates thereto.
SECTION 4. The Springfield water and sewer commission, under section 7 of chapter 40N of the General Laws, shall reimburse the city of Springfield for its share of any amount expended by the city of Springfield or the city of Springfield retirement system under chapter 32 of the General Laws and the retirement incentive program provided in this act for retirement allowance to or on account of said employee of the Springfield water and sewer commission.
SECTION 5. This act shall take effect upon its passage.