Bill Summary and Fact Sheet for An Act to Define Member Contributions for Retirement Systems

Bill Sponsors: Senator Steven Tolman, Second Suffolk and Middlesex, and Representative Robert Spellane, 13^th Worcester

Bill Number: SB1964

Bill Co-Sponsors:

General Law Affected:
Section 22 of Chapter 32

Current Law:
Currently public employees pay a 9% contribution to the pensions system on the first $30,000 of their salary and an 11% contribution on all salary over $30,000. This 2% surcharge has been in effect since 1987.

Proposed Law:
This legislation would raise the 9% threshold from $30,000 to $45,000 and index this figure to inflation.

Rationale:
When this threshold was established few public employees earned over $30,000. This legislation would maintain the intent of the law as it was passed in 1987 by raising the salary level to $45,000 and increasing the salary level annually to account for inflation.

AN ACT TO DEFINE MEMBER CONTRIBUTIONS FOR RETIREMENT SYSTEMS

Section Twenty-Two of Chapter Thirty-Two of the General Laws, as appearing in the 2002 Official Edition, is amended in subsection (1) (b1/2) by:

SECTION 1. By striking in the fifth sentence of such sub-section in line 95 the words: thirty-thousand dollars and replacing it with the words forty-five thousand dollars.

SECTION 2. By adding after the fifth sentence of said sub-section the following sentence: Said amount shall increase in each subsequent year by a sum equal to the increase in the U.S. consumer price index.