LOCAL COLA BASE

REDRAFT LOC 81

Ms. Walsh, Ms. Jehlen and Ms. Menard and Mssrs. Morrissey, Galluccio, Timility, Hart, Pacheco and Marzilli moved that the bill be amended by deleting Section 15 and inserting in place thereof the following section:

Section 15. (a) Section 103 of said chapter 32 is amended by inserting the following new paragraph:

(j) Notwithstanding the provisions of paragraph (a) to the contrary, any system, by accepting the provisions of this paragraph as hereinafter provided, shall establish a base amount of $16,000 upon which the cost-of-living adjustment shall be calculated. Prior to the accepting the provisions of this paragraph, the board of such system, in consultation with the commission, shall determine the cost associated with the cost of living adjustment that may be paid in accordance with this section. Acceptance of this paragraph shall be by a majority vote of the board of such system, subject to the following approval procedure: in the case of a city the city council in accordance with its charter, in the case of a town, the town meeting, in the case of a district, the district members, and, in the case of an authority, the governing body. In the case of a county or region, acceptance of this paragraph must be approved by the governmental units, the employees of which are members of any such system, as follows: the board of selectmen of every town which is a member of the county or regional system, the county commissioners on behalf of a county, the district members in a district and, in the case of an authority, the governing body, with the vote of each governmental unit weighted in the proportion that the number of employees in such unit bears to the total number of employees in all governmental units of such system as of the succeeding January first. Approval in a county or region shall be by no less than two-thirds of the weighted vote being cast in the affirmative. Acceptance of this paragraph shall be deemed to have occurred upon the filing of the certification of such vote and approval with the commission. A decision to accept the provisions of this paragraph may not be revoked. Notwithstanding the provisions of subdivision (6A) of Section 22 or Section 22D to the contrary, for each system that has accepted the provisions of this paragraph, the board, in consultation with the commission, shall prepare a funding schedule which shall reflect the costs and the actuarial liabilities attributable to the cost of living allowance that may be paid in accordance with the provisions of this paragraph and said schedule shall be designed to reduce the applicable retirement system’s pension liability to zero by such year, that may be subsequent to June 30, 2028, as approved by the commission. The board shall file revised funding schedules triennially with the joint committee on public service until such costs and liabilities are reduced to zero.

(b) Section 22D of said chapter 32, as appearing in the 2006 Official Edition, is amended by inserting in line 29 after the word “approve” the following words: - provided further, however, that in the event that a system has accepted the provisions of paragraph (j) of Section 103, the funding schedule, and any updates thereto, shall be designed to reduce the unfunded actuarial liability of said system to zero as of such year, that may be subsequent to June 30, 2028, as the commission shall approve.

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