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December 22, 2024 Clouds | 10°F
The 193rd General Court of the Commonwealth of Massachusetts

AN ACT RELATIVE TO REGULAR COMPENSATION FOR CERTAIN RETIREES AND ACTIVE RETIREMENT SYSTEM MEMBERS

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

Chapter 32 of the General Laws is hereby amended by adding the following section:-

Section 106.  (a) Notwithstanding any general or special law to the contrary, a retirement allowance, as defined in section 1, to a member inactive, as defined in section 3, that included in its calculation the annual amounts paid in lieu of vacation leave upon which contributions or deductions were made to the applicable retirement system shall not be reduced, modified or changed because of the inclusion of such contributions or deductions.

(b)  Notwithstanding any general or special law to the contrary, any amount paid annually in lieu of vacation leave to a member in service as of  May 1, 2018 pursuant to any applicable collective bargaining agreement, individual contract for employment, written benefits or personnel policy or municipal plan or ordinance in effect on May 1, 2018 and for which the applicable retirement system was accepting regular contributions or deductions as of May 1, 2018 shall be considered regular compensation as defined in said section 1. Any such annual payment in lieu of vacation leave subsequent to May 1, 2018 shall continue to qualify as regular compensation only for members who were in service as of May 1, 2018, as long as the payment in lieu of vacation leave is permitted under an applicable collective bargaining agreement, individual contract for employment, written benefits or personnel policy or municipal plan or ordinance; provided, however, that such an annual payment in lieu of vacation leave shall be to a member who consistently participates in a program that is available to all similarly situated employees and shall not have been made: (i) only in the final 3 years of employment for a member who joined the retirement system prior to April 2, 2012; (ii) only in the final 5 years of employment for a member who joined the retirement system on or after April 2, 2012; or (iii) as a result of providing retirement notice.

(c)  Notwithstanding any general or special law to the contrary, a retirement system subject to the requirements of subsections (a) and (b) shall regard as regular compensation any payment in lieu of vacation leave made subsequent to May 1, 2018 to a member who was in service as of May 1, 2018 and the systems shall take appropriate measures to effectuate this section.

(d)  Subsections (b) and (c) shall apply only to members who: (i) were in service as of May 1, 2018; and (ii) began receiving payment in lieu of vacation leave prior to May 1, 2018.

Approved, August 4, 2022.