Fact Sheet & Highlights: An Act Relative to Teacher Retirement Election S.3109

An Act relative to teacher retirement election provides fairness to longtime teachers who missed out initially on the RetirementPlus enhanced savings program by allowing them to buy into the program.

An estimated 6,500 to 8,500 current teachers missed the opportunity to join RetirementPlus when it was rolled out in 2001. This legislation reopens the window on a one-time basis for them to weigh their options and decide whether RetirementPlus is right for them.

By requiring the new participants to pay into the program as if they had joined at the outset, the legislation ensures both fiscal stability and fairness for teachers and retirees who have been participating throughout the past 25 years.

The details of the legislation are below.

Reopening the Window for Longtime Teachers to Join RetirementPlus

Allows Longtime Teachers to Opt Into Savings Plan. Gives current teachers who were already active in 2001—when RetirementPlus was first made available—another chance to join the enhanced pension program. The opt-in window would be open from the effective date of this new law until June 30, 2027, ensuring ample time for teachers to be made aware, weigh their options, and choose whether to participate.

Requires Back-Payments to Join. Stipulates that teachers who choose to join RetirementPlus through this one-time window must pay into the program with a make-up contribution equal to the amount they would have contributed if they had chosen to join prior to July 1, 2001, plus actuarial assumed interest.

Requires Due Notice to Teachers. Calls on the Teachers’ Retirement System and the Boston Retirement System to notify eligible teachers of this new one-time opportunity to join the RetirementPlus alternative superannuation retirement benefit program.