PERAC Memo #32 - 2001: Waiving of underpayments by and overpayments to members
Waiving of underpayments by and overpayments to members
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PERAC Memo #32/2001 amends prior guidance (Memo #36/2000) on waiving underpayments/overpayments under G.L. c. 32, §20(5)(c)(3), clarifying that boards may refund amounts repaid by members (via direct payment or allowance reduction) from the date of demand to the date of waiver—but never for periods before July 1, 1995, and without interest. All other guidance from Memo #36/2000 remains unchanged, and boards retain absolute discretion whether to grant such waivers; no mandatory board action is required beyond applying these clarified refund limits if a waiver is granted.
Full Text
PERAC MEMO #32/2001
M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Waiving of underpayments by and overpayments to members
DATE: June 20, 2001
In PERAC Memo #36/2000, the Commission issued instructions to boards on the implementation of the revised provisions of G.L. c. 32, § 20(5)(c)(3). After revisiting the issue, the Commission has amended the instructions as provided below:
A board may refund any amounts which have already been paid by the member to the board as a result of a demand for repayment from the date of the demand to the date of the board’s waiver. In no event may a board repay amounts for periods before July 1, 1995, the effective date of the act. Boards may not pay any interest on this refund.
Boards may also refund any amounts which were repaid through a reduction in a member’s retirement allowance from the date of the demand to the date of the board’s waiver. In no event may a board repay amounts for periods before July 1, 1995, the effective date of the act. Boards may not pay any interest on this refund.
All other aspects of PERAC Memo #36/2000 remain in effect. Boards have absolute discretion on whether or not to grant waivers under G.L. c. 32, § 20(5)(c)(3).
We trust the foregoing is of assistance. If you have further questions or concerns, please contact this office.