PERAC Memo #29 - 2003: $300 Benefit for Veterans Selecting Option C (MTRB v. PERAC, CR-02-660)

$300 Benefit for Veterans Selecting Option C (MTRB v. PERAC, CR-02-660)

Summary

This memo reports CRAB's final decision in MTRB v. PERAC (CR-02-660), confirming that the $300 veteran's benefit under G.L. c. 32, §5(2)(b) must be added to a retiree's allowance after applying the Option C factor to the base (non-veteran) allowance, and that upon the member's death, the Option C survivor receives two-thirds of the total allowance, including two-thirds of the $300 veteran benefit—reversing DALA's contrary ruling that the benefit ceases at death. Boards must ensure all affected veteran retirees' benefits under Option C have been recalculated per PERAC Memo #36/2001, and if this has not yet been done, they must immediately complete recalculations and issue any retroactive payments owed.

Full Text

Memorandum # 29/2003

M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: $300 Benefit for Veterans Selecting Option C (MTRB v. PERAC, CR-02-660)

DATE: September 9, 2003

In a Decision that has become final, CRAB has upheld PERAC’s position as outlined in PERAC MEMO #36/2001, ruling that the $300 benefit for veterans authorized by G.L. c. 32, § 5(2)(b) is to be added to the member’s retirement allowance, no matter what option was selected. Thus, if the member selected Option C on retirement, the Option A allowance (without the $300 veteran benefit) would be calculated and multiplied by the Option C factor, and the full $300 veteran benefit would be added to the result.

DALA ruled that upon the death of the member, the veteran benefit would cease.
PERAC objected to this ruling, and CRAB has now ruled that the Option C survivor will receive 2/3 of the member’s total allowance, including 2/3 of the veteran benefit.

Please review PERAC MEMO #36/2001 for a complete discussion of the issues. If your Board has not recalculated the benefits of affected individuals as directed in that memo, the recalculations must be completed immediately and any payments due must be made.
If you need an updated Retroactive Payment Worksheet to accomplish this or have other questions, please contact John Boorack, PERAC Actuarial Unit, (617) 666-4446, ext 935.