Monday, July 03, 2006

Social Security and Unemployment

On June 24, Gov. Romney signed a bill removing a penalty for those collecting Social Security benefits who find themselves unemployed. Massachusetts had been one of just 10 states to reduce unemployment benefits for people collecting Social Security. St.2006, c.123, sections 68 and 69 provide:

SECTION 68. Section 29 of chapter 151A of the General Laws, as so appearing, is hereby amended by striking out, in line 125, the words “the Social Security Act or”.
SECTION 69. Paragraph (6) of subsection (d) of said section 29 of said chapter 151A, as so appearing, is hereby amended by adding the following sentence:— Payments received under the Social Security Act shall not be subject to this paragraph.

The law these sections amend is MGL c.151A, s.29, which previously had provided that "the amount of benefits otherwise payable to such individual shall be reduced by fifty per cent of the amount of such pension, retirement or retired pay, annuity, or other payment, notwithstanding the amount contributed by the individual to such plan."

More information on the new law is available at the Boston Globe. For more on unemployment, see Mass. Law About Unemployment.