THOUSANDS OF TEACHERS who have long asked the state for a second chance to opt in to an enhanced retirement benefit program may finally get their opportunity.
The Senate plans to take up a bill Thursday to address the issue after resisting for years, following the House’s approval of a similar policy through a state budget amendment.
Teachers who were working in 2001 but did not enroll in Retirement Plus would gain a window from the effective date of the possible new law through June 30, 2027 to sign up under the Senate bill (S 3109) that was moving Wednesday through the Senate Committee on Ways and Means.
Senate leaders say the opt-in period ensures “ample time for teachers to be made aware, weigh their options, and choose whether to participate.”
Around 6,500 to 8,500 teachers could gain enhanced benefits if they buy into the program.
“Because of a flawed rollout two decades ago, we found that thousands missed checking the box that would allow them to retire early with their colleagues who had checked the box on time,” Senate President Karen Spilka said. “So today, the Senate is doing our part to right that wrong.”
Spilka called the bill a “bipartisan effort,” though no Republicans joined the press conference in the Senate Reading Room. Other Democrats with Spilka included Sens. John Keenan, William Driscoll, Vanna Howard, Lydia Edwards, Will Brownsberger, Michael Rodrigues, Cindy Friedman, Becca Rausch, Nick Collins, Jamie Eldridge, Sal DiDomenico and Jo Comerford.
Newly enrolling teachers must pay into Retirement Plus, providing a make-up contribution commensurate to what they would have paid in 2001 in addition to “actuarial assumed interest,” according to a Senate fact sheet. The proposal directs the Teachers’ Retirement System and the Boston Retirement System to notify eligible employees about the opportunity.
Under the House budget measure, teachers would have 180 days after the budget is signed into law to opt in to Retirement Plus. It’s unclear whether the branches will pursue the policy through budget negotiations or as standalone legislation – the House also unanimously approved the reform last July as a standalone bill (H 4361).
“Our language is a little different, and we wanted to be on record that we support this,” Spilka said when asked why the Senate is pursuing a standalone bill.
Some veteran teachers feel they were cut out of the program more than two decades ago when the state introduced the option, but only had a six-month window to opt in, because they say they received limited or no information from the state. Retirement Plus offers increased benefits for those who complete 30 years of service in exchange for a higher contribution rate.
As educators reach 30 years of service, those who did not opt into Retirement Plus in 2001 would need to work an additional three to five years to reach their maximum pension compared to colleagues who enrolled.
For years, the House has favored allowing teachers who missed the window in 2001 to have another opportunity to buy in. Previously approved House measured died in the Senate three times. The Senate is jumping on board this year.
Brownsberger said the Retirement Plus issue has “become very, very visible” based on constituent messages.
“I don’t think I’ve received more correspondence on any other issue recently, except for protecting people from ICE overreach,” Brownsberger said. “This has been a very front and center issue.”
American Federation of Teachers President Jessica Tang previously said the only associated increase for the state is in the pension system liability.
“It has the potential to support communities as they try to keep up with rising education healthcare costs, increasing student needs, and widespread cuts due to federal funding,” Tang said Wednesday. “Districts could see a significant savings with the retirement of these educators, resulting in fewer layoffs and fewer critical positions being cut, especially if they’re replaced by newer teachers with lower salaries.”
