PERAC Memo #21 - 2010: Modification of Disability Retirement Allowances [G.L. c. 32, § 8(3)]
Modification of Disability Retirement Allowances [G.L. c. 32, § 8(3)]
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This memo announces PERAC's implementation of a policy allowing prospective modification (suspension) of disability retirement allowances under G.L. c. 32, §8(3) for retirees whose earnings have fully recouped their allowance for three consecutive years, beginning with 2007-2009 earnings statements. Boards should be aware that PERAC—not the board—will identify affected retirees, notify them and the board, and conduct the hearing/appeal process, but boards must be prepared to continue withholding a portion of allowance for health insurance premiums and to continue treating affected members as disability retirees for c. 32A §10 and c. 41 §100B purposes.
Full Text
MEMORANDUM #21, 2010 M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Modification of Disability Retirement Allowances [G.L. c. 32, § 8(3)] DATE: April 22, 2010 Last year the Commission approved a policy for prospectively modifying the retirement allowances of disability retirees whose earnings have resulted in the recoupment of their full retirement allowance for three consecutive years. This procedure will be implemented with respect to annual statements of earnings filed for 2007, 2008 and 2009. If a disability retiree’s earnings have resulted in the recoupment of his or her entire allowance for those three calendar years or any subsequent three consecutive years, the member and the applicable Retirement Board will be notified. The retiree will be given an opportunity to be heard by the Commission or a designee of the Commission. When the Commission’s determination is final, the member and the applicable Retirement Board will be notified. The member may appeal the Commission’s determination to the Contributory Retirement Appeal Board. If a retiree’s allowance is modified pursuant to this procedure, the modification shall remain in effect until the retiree establishes that he or she no longer has potential earnings. A retiree can establish his or her loss of potential earnings by way of an examination by a regional medical panel or by such other evidence acceptable to the Commission. The applicable Retirement Board may pay over to a health insurance carrier that portion of the allowance that will maintain the disability retiree’s health insurance coverage. A retiree whose allowance is modified pursuant to this process will continue to be considered a disability retiree for purposes of G.L. c. 32A, § 10. A retiree whose allowance is modified pursuant to this section will continue to be considered a disability retiree for purposes of G.L. c. 41, § 100B. If you have questions, please contact this office.