PERAC Memo #15 - 2010: Reimbursements pursuant to G.L. c. 32, § 3(8)(c)
Reimbursements pursuant to G.L. c. 32, § 3(8)(c)
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This memo addresses reimbursement calculations under G.L. c. 32, §3(8)(c) for members with prior service in multiple systems, noting that disparate compensation rates across systems can create inequitable reimbursement amounts between boards. PERAC will now review and respond to recalculation requests promptly, with any adjustments effective as of the request date, and will also offer, where amounts are not substantial and both boards agree, to calculate a one-time actuarial equivalent lump sum in lieu of annual reimbursement payments. Boards seeking recalculation or lump-sum settlement should submit requests to PERAC (Actuary James Lamenzo) directly.
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MEMORANDUM #15, 2010 M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Reimbursements pursuant to G.L. c. 32, § 3(8)(c) DATE: March 16, 2010 A number of Boards have asked for recalculation of the reimbursement provided for in G.L. c. 32, § 3(8)(c). Many of these requests are generated because of what the Boards have identified as disparate rates of regular compensation paid to the member in the systems, resulting in what is believed to be inequitable reimbursements between systems. Beginning immediately, PERAC will review and respond to these requests in as timely a manner as possible. If a change in the amounts to be reimbursed is made, it will be effective as of the date that the request for recalculation was received. Also, going forward, if the amount to be paid from one Board to another Board is not substantial, and if the Boards involved agree, PERAC will determine an actuarial equivalent of the reimbursement that can be paid in one sum, obviating the need for annual payments. This method for settling a reimbursement will be available for initial reimbursement calculations and for modified or recalculated reimbursements. If you have questions, please contact PERAC’s Actuary, James Lamenzo.