PERAC Memo #34 - 2004: Reinstatement to Service under G.L. c. 32, § 105
Reinstatement to Service under G.L. c. 32, § 105
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This memo announces new G.L. c. 32, §105 provisions allowing superannuation/termination retirees to reinstate to service by repaying their retirement allowance plus interest and working at least five years full-time, and it provides the accompanying application form. Boards must complete the initial portion of the form, carefully counsel interested members on the repayment obligations and requirements before they sign (converting them from retiree to active member status), and coordinate with other retirement systems when reinstatement occurs in a different system, including handling payments under §3(8)(c).
Full Text
Memorandum # 34/2004
M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Reinstatement to Service under G.L. c. 32, § 105
DATE: September 13, 2004
As boards were notified in PERAC Memorandum # 25/2005, the Legislature recently added G.L. c. 32, § 105 to the retirement law. This section allows members receiving superannuation or termination retirement allowances to reenter the retirement system upon repayment (or repayment agreement) of the amount of superannuation/termination retirement allowance received to the date of reinstatement plus actuarial assumed interest. Enclosed please find a new form entitled Application For Reinstatement To Service From Superannuation/Termination Retirement Pursuant To G.L. c. 32, § 105 which allows members to apply for reinstatement under this section.
Since some members must repay large amounts of money and all members must work at least five years of full time employment (though they need not necessarily earn five years of creditable service), interested individuals should carefully consider whether reinstatement is appropriate in their situations. Boards should carefully counsel interested members to assure that they are aware of the requirements and benefits of this section. Boards should complete the first portion of this form and provide it to such members. Upon signing this form, the members are transformed from retiree status to member in service status.
In situations where a member is being reinstated to a different retirement system that the one
from which he or she retired, coordination between the two systems will be necessary.
Payment(s) must be made to the system from which the member retired while the member
contributes to the new system. Issues concerning payments made under G.L. c. 32, § 3(8)(c) are
also relevant when two or more systems are involved. The Commission’s staff is available to
provide technical assistance to boards in making determinations related to G.L. c. 32, § 105.
We trust the foregoing is of assistance. If you have further questions or concerns, please contact this office.