PERAC Memo #25 - 2014: Reinstatement to Service under G.L. c. 32 § 105

Reinstatement to Service under G.L. c. 32 § 105

Summary

PERAC Memo #25/2014 announces an updated Application for Reinstatement to Service form under G.L. c. 32 §105 (effective July 1, 2014–June 30, 2015), which allows retired members to return to active service. Boards must carefully counsel members considering reinstatement—since it may involve substantial repayment obligations and a five-year full-time employment requirement—and must complete the initial portion of the form before providing it to interested members, whose signature converts their status from retiree to member in service. Boards using an investment return assumption not reflected on the form should contact PERAC's actuarial unit for the appropriate factors.

Full Text

PERAC MEMO # 25/2014

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: July 10, 2014

We have updated the PERAC form entitled Application for Reinstatement to Service from Superannuation/Termination Retirement Pursuant to G.L. c. 32 § 105 that allows members to apply for reinstatement under this section. The revised form is effective from July 1, 2014 through June 30, 2015.

Since some members must repay large amounts 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.

We trust the foregoing is of assistance. Any questions should be directed to the actuarial unit. Note that due to spatial limitations on the form, we have only shown factors for the most commonly used investment return assumptions. If your investment return assumption is not shown, please call the actuarial unit so that they can develop the appropriate factors.