PERAC Memo #43 - 2012: Local Option Increase to Benefits Payable to Widows and Widowers of Disabled Public Employees under § 101 (Chapter 139 of the Acts of 2012)
Local Option Increase to Benefits Payable to Widows and Widowers of Disabled Public Employees under § 101 (Chapter 139 of the Acts of 2012)
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PERAC Memo #43/2012 explains that Chapter 139 of the Acts of 2012 (Sections 63-65) created a new local option allowing retirement boards to raise the G.L. c. 32, §101 survivor benefit for widows/widowers of disabled public employees to $12,000 annually, building on the prior $6,000 statutory benefit and the $9,000 supplemental option from 2010. Boards wishing to adopt this increase must vote to accept it, obtain approval from their local legislative body, and file certification of these votes with PERAC before the increase takes effect (this may be done at any time); absent such acceptance, the benefit remains at $6,000 or $9,000 as previously adopted. Note that the State Teachers' and State Employees' Retirement Systems are deemed to have already accepted this option effective July 1, 2012, requiring no further action from those systems.
Full Text
PERAC Memo # 43 / 2012
M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Local Option Increase to Benefits Payable to Widows and Widowers of Disabled Public Employees under § 101 (Chapter 139 of the Acts of 2012)
DATE: August 1, 2012
The recently enacted FY13 State Budget (Chapter 139 of the Acts of 2012) contained
Sections 63, 64 and 65, all addressing the benefits payable to certain surviving spouses of
disabled employees pursuant to G.L. c. 32, § 101. A local option is now available to raise
this benefit to $12,000. (Chapter 32, § 101 now contains the statutory $6,000 benefit as
well as a $9,000 supplemental allowance summarized in PERAC Memo #28 / 2010).
The new $12,000 local option must be adopted by the local board and approved by the
legislative body. Acceptance shall be deemed to have occurred upon the filing of a
certification of such votes with the Commission. Upon acceptance, the allowances of all
individuals receiving an allowance pursuant to G.L. c. 32, § 101 will be increased to
$12,000. This provision can be accepted at any time. If the acceptances do not take
place, the allowance remains payable at either $6,000 per year or $9,000 if the 2010 local
option was properly implemented.
The State Teachers’ and State Employees Retirement Systems shall be deemed to have
accepted the new local option, effective July 1, 2012.
We trust the foregoing will be of some assistance to you.
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