PERAC Memo #23 - 2017: MTRS c. 32, section 3(8)(C) Reimbursements

MTRS c. 32, section 3(8)(C) Reimbursements

Summary

This memo addresses concerns raised by retirement boards regarding MTRS requests for Section 3(8)(c) reimbursements for past member service, some of which are retroactive five years or more, as MTRS works through its processing backlog. PERAC reminds boards that these systems have benefited from investment use of the member funds during the interim period, and that such reimbursement requests do not affect the system's current appropriation. No specific action is required beyond continued cooperation with MTRS in fulfilling these reimbursement requests.

Full Text

PERAC MEMO #23/2017 M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: MTRS c. 32, section 3(8)(C) Reimbursements DATE: July 20, 2017 It has been brought to our attention that several boards have received requests from the Massachusetts Teachers' Retirement Board seeking reimbursement for past member service with other systems. Some of these requests from MTRS are retroactive for 5 years or more. The Commission understands the concern and frustration expressed by some administrators but we respectfully remind you that MTRS is working to address its backlog and to fulfill its statutory duty in seeking Section 3(8)(c) reimbursements. We note that the systems now being asked for such payment have had the use of the funds of the members in question to invest for an extended period of time, which ultimately benefits the system. Finally, we wish to remind everyone that these requests do not impact the current appropriation of the system. Thank you for your cooperation in this regard. Cc: Erika M. Glaster