Massachusetts House Bill H4901

Massachusetts 2025-2026 Regular Session

• Introduced: 1/8/26
• Refer: 1/8/26

Caption

Enabling employees on unpaid leave to purchase creditable service

Impact

If enacted, HB 4901 will positively affect state laws governing retirement benefits. The amendment would enable members of relevant retirement systems to establish up to two years of unpaid parental leave as creditable service. This could lead to improved financial security for many employees who currently struggle to balance work demands with family responsibilities. Employers may also benefit from enhanced workplace morale and productivity, as workers feel supported in their family roles and more secure about their future retirement benefits.

Summary

House Bill 4901 proposes an amendment to Chapter 32 of Massachusetts General Laws, specifically allowing employees on unpaid parental leave to purchase creditable service time for retirement purposes. This bill is significant as it recognizes periods of unpaid leave due to childbirth or adoption, providing a mechanism for employees to pay into their retirement systems and accrue service credits during times they are not actively working due to family obligations. The intention is to enhance employee benefits and support work-life balance for parents, thereby potentially improving employee retention and satisfaction within the workforce.

Contention

While the bill aims to provide significant advantages to employees, it may also raise concerns among some stakeholders, particularly regarding the financial implications for retirement systems and the state budget. Questions may arise about how these additional credits could affect overall retirement funding and whether it sets a precedent for further expansions of leave-related benefits. Additionally, discussions may emerge around the equity of allowing creditable service for unpaid leave, as not all employees may have the same opportunities for such leaves under varying workplace policies.