creditable service

Section 1 establishes the definitions for all key terms used throughout Sections 1–28 of Chapter 32, the Massachusetts public employee retirement law. It defines over 60 terms including member classifications, types of deductions, compensation concepts, retirement allowance components, and system-specific vocabulary. Retirement board administrators rely on this section to correctly interpret and apply every other section in the chapter, as terms such as 'regular compensation,' 'creditable service,' and 'accumulated total deductions' appear throughout and carry precise statutory meanings.

Section 3 governs the conditions of membership in a Massachusetts contributory retirement system, covering both member-in-service and member-inactive status, how membership begins and ends, and special membership scenarios. It establishes the four group classifications (Group 1 through Group 4) that determine retirement age thresholds and benefit formulas, and specifies the criteria for assignment to each group. The section also addresses multiple-system membership, part-time and intermittent employment, leaves of absence, dual compensation situations, and the procedures for reinstatement or transfer of membership between systems.

Section 4 defines creditable service under Chapter 32 — the service credit that forms the basis of a member's retirement allowance calculation. It covers how current and prior service is credited, conditions for military service credit, leaves of absence, service with multiple governmental units, purchase of prior service, and service buybacks. The section also includes provisions for credited service during various types of leave, including unpaid leave, FMLA, and military duty, and establishes rules for members who transfer between systems or have gaps in service.

Section 5 governs superannuation (regular age-and-service) retirement under Chapter 32. It sets the eligibility conditions based on age and group classification, defines the benefit formula using a percentage-of-average-salary table multiplied by years of creditable service, and provides separate tables for employees hired before and after April 2, 2012. The section also establishes the alternative superannuation retirement benefit program for teachers (the 11% contribution tier), the 80% maximum benefit cap, special rules for veterans, and limitations imposed by Internal Revenue Code Section 415.

Section 10 governs the retirement rights of members whose public employment ends before they would otherwise reach full superannuation retirement age. It establishes eligibility for superannuation or termination retirement allowances for members who resign, are removed, fail of reappointment, or whose positions are abolished, based on years of creditable service and age. Pre-April 2, 2012 members with 20 or more years of creditable service may retire immediately; those with 10 or more years may defer their allowance to age 55. Post-April 2, 2012 members must have 10 years of service and wait until minimum retirement age. The section also addresses the right to defer receipt of an allowance and return of accumulated total deductions.

Section 14 addresses the interplay between Chapter 32 retirement rights and workers' compensation benefits under Chapter 152. Members receiving workers' compensation for total incapacity retain member-in-service status and accrue creditable service during that period. It also establishes an offset rule: workers' compensation payments for the same injury that gives rise to a disability pension are credited against the pension, so that a member does not receive full benefits from both sources simultaneously.

Section 28A provides that any state police officer appointed under Chapter 22C, Section 10, who has performed at least 20 years of service in the department, may retire at their own request. The retirement allowance is calculated under the same formula established in Section 26(3)(c) — the Group 3 service retirement provision.

Section 28I provides that a Commonwealth employee who is a retirement system member and is selected to serve with an interstate commission that Massachusetts participates in and funds shall continue as a retirement system member while on that assignment. The employee must continue making monthly contributions as if still on the state payroll, and retains all retirement system benefits and privileges during the interstate commission service.

Section 28K governs retirement system membership for Commonwealth or political subdivision employees who take a leave of absence (full-time or part-time) to serve as a representative of an employee organization. Such employees are treated as on unpaid leave, but continue to accrue creditable service as if in active service and must continue making monthly retirement contributions at the rate they would have paid if still working. The employee retains all retirement benefits and privileges except salary during the leave. The provision for crediting service back to January 1, 1975 requires majority board vote and acceptance by the appropriate legislative body, with a certificate of acceptance filed with PERAC.

Section 28M allows Group 4 Department of Correction employees whose major responsibilities include the care and custody of prisoners, and transportation officers within the department, to retire at their own request after 20 years of service. The base retirement allowance equals 50% of the average annual compensation during the final 12 months of creditable service, increased by one-twelfth of 1% for each full month of service beyond 20 years up to the mandatory retirement age. Veterans receive an additional allowance of $15 per year of creditable service, capped at $300.

Section 28N allows correction or jail officers employed by county sheriffs' offices who have performed at least 20 years of service to retire at their own request. The base retirement allowance equals 50% of the average annual compensation during the final 12 months of creditable service, increased by one-twelfth of 1% for each full month of service beyond 20 years up to the mandatory retirement age. Veterans receive an additional allowance of $15 per year of creditable service, capped at $300.

Section 45C provides an enhanced longevity formula for school janitor pensions in cities and towns that have accepted Sections 44 and 45A and also accept this section. For janitors with 20 years of service, the base pension equals one-half of the highest annual compensation in their grade at retirement. For each year of service beyond 20, the pension increases by an additional 1% of that compensation, subject to an overall cap of 65% of highest annual compensation. Acceptance requires a two-thirds city council vote (Plan D/E cities), regular city council vote (other cities), or annual town meeting majority.

Section 46 establishes a legacy non-contributory pension system for officers, instructors, and employees of Massachusetts correctional institutions who began their employment on or before June 7, 1911. Retirement requires a recommendation from the Commissioner of Correction (with additional approvals from sheriff and county commissioners or city officials for jail/house of correction officers) and one of: age 65 with 20 years of prison service and a good record; permanent disability from a duty injury without fault; or 30 years of faithful prison service. The term "officer" expressly includes prison officer, correction officer, and matron.

Section 47 governs the calculation of service credit for retirement eligibility under Section 46. Correctional officers, instructors, and employees may combine service from multiple qualifying institutions — including correctional institutions, the prison camp and hospital, and juvenile training schools — for purposes of meeting the service thresholds. Service credit is forfeited only for dismissals for misconduct that were not later reversed; a restoration to duty or reappointment serves as sufficient evidence of exoneration.

Section 57B allows police and fire department members retiring under sections 56–60 to count service as reserve police officer or call firefighter as creditable service for retirement purposes, subject to local acceptance by the appropriate governing body.

Section 58A credits wartime military service toward retirement eligibility for veterans who were in public employment before entering service and were reinstated or reemployed within two years after discharge, subject to limits on voluntary service beyond four years.

Section 60 makes sections 56–59 effective in any county, city, town, or district that accepted them before January 1, 1946, and bars veterans whose employment first began after June 30, 1939 from coverage, while also requiring eligible veterans to have creditable service at least equal to twice their time not in public employ since their service began.

Section 77C provides that in accepting cities and towns, a laborer who was employed before July 1, 1937 and was later promoted to a supervisory position in the same department does not forfeit any noncontributory pension rights under section 77 by reason of accepting that promotion.

Section 78A bars laborers first employed after June 30, 1937 from coverage under sections 77, 77D, or 78, and clarifies that years of service required under those sections need not be continuous.

Section 85G provides that police and fire department members retiring under sections 80–85F who were appointed as reserve police officers or reserve/call firefighters before July 1, 1937 shall receive credit for the actual service rendered each year in those capacities as part of their continuous service for retirement purposes.

Section 85I (an alternative to section 85G for accepting cities and towns) allows the retiring authority to determine how much service as a reserve police officer or reserve/call firefighter appointed before July 1, 1937 is credited toward continuous service for retirement purposes under sections 80–85F.

Section 105 allows members retired under sections 5 or 10 to be reinstated in a retirement system by repaying all retirement allowances received plus buyback interest; upon reinstatement they resume contributing and earn creditable service, but receive a refund of reinstatement payments (without service credit) if they separate with fewer than 5 years of reinstatement service.

PERAC has set the regular interest rate for 2026 at 0.1% per G.L. c. 32, § 22(6)(b), based on the average rates paid on individual savings accounts at a representative sample of at least 10 financial institutions. This rate applies to accumulated total deductions and accrued interest for refunds and retirements processed during calendar year 2026, and will also be credited on December 31, 2026 for outstanding balances as of December 31, 2025.

PERAC has distributed updated 2026 buyback/make-up repayment worksheets and cumulative interest factor sheets. The worksheets apply to buybacks under numerous specific sections of G.L. c. 32, with separate worksheets for buyback interest and actuarial interest. Sections 4(1)(g½), 4(1)(l), 4(1)(l½), 4(1)(l¾), 4(1)(n), 4(1)(n½), 4(1)(p), 4(1)(r), 4(1)(s), and 4(2)(c) use buyback interest exclusively; sections 3(3), 3(4), 3(4A), 3(5), 3(6)(d), and 3(8)(b) may use either rate as described in Memo #23/2012. These worksheets are not applicable to § 3(6)(c) buybacks.

This memo (Q3 2026) lists PERAC's mandatory training opportunities for retirement board members, reiterating the Chapter 32 requirement that members earn at least 3 credits per year and 18 credits over their term to remain eligible to serve. Boards should ensure members register for live PERAC webinars/events using their correct name and email for automatic credit updates, and submit Training Affidavits (with certificates where applicable) in PROSPER for all other approved trainings, including the various July–October 2026 sessions listed (e.g., Retirement Board Best Practices, Fraud Awareness, Open Meeting Law, Administrator Training, and the Emerging Issues Forum).

PERAC Memo #20/2026 announces the updated Application for Reinstatement to Service form under G.L. c. 32 §105, effective July 1, 2026–June 30, 2027, which allows retirees to return to member-in-service status. Boards must use this revised form, complete the initial section for interested members, and thoroughly counsel them on the requirements (five years of full-time employment, potential large repayment obligations) before members sign and are reinstated. Boards should contact PERAC's actuarial unit if their investment return assumption isn't among the factors listed on the form.

PERAC distributes the 2025 repayment worksheets and cumulative interest factor sheets for calculating buybacks and make-ups under various Chapter 32 provisions. The packet includes three worksheets each for buyback interest and actuarial interest, and two pages of cumulative factors for each rate. Boards should consult PERAC Memo #23/2012 to determine whether buyback interest or actuarial interest applies for specific buyback categories under §§ 3(3), 3(4), 3(4A), 3(5), 3(6)(d), and 3(8)(b).

Section 26 of Chapter 9 of the Acts of 2025 (the FY2026 Budget) amends the definition of 'wages' in G.L. c. 32, § 1 to clarify that accrued sick, personal, or vacation leave constitutes regular compensation when used — except when used as a supplement to Workers' Compensation under Chapter 152. This supersedes Memo #23/2023 and means that accrued leave used to supplement PFML payments is now regular compensation effective July 1, 2025, requiring retirement deductions to be withheld from such supplemental leave payments.

This memo sets the 2024 "regular interest" rate at 0.1% for regular and additional deductions made after January 1, 1984, as required by G.L. c. 32, § 22(6)(b). The rate is derived from the average rates paid on individual savings accounts at a representative sample of at least 10 financial institutions. Boards must apply this rate to accumulated total deductions for refunds, retirements, and year-end crediting on December 31, 2024.

PERAC distributes the updated 2024 worksheets and cumulative interest factor sheets for calculating buyback and make-up repayments under the various provisions of G.L. c. 32, §§ 3 and 4. Boards should use buyback interest for make-ups under § 4 provisions, while certain § 3 make-ups (covering prior service, military service, and similar situations) may use either buyback or actuarial interest depending on circumstances described in Memo #23/2012. The packet includes three repayment worksheets each for buyback and actuarial interest, plus separate cumulative interest factor pages for each method.

This memo provides the 2nd Quarter 2024 mandatory training schedule for retirement board members, who are required by Chapter 32 to earn 18 credits over a board term and at least 3 credits each year. Upcoming opportunities include live webinars on the Open Meeting Law and disability basics, the MACRS Spring Conference (June 1–5 in Hyannis, which can yield up to 9 credits), and several pre-approved on-demand courses. Board members must register under their full name and submit Training Affidavits in PROSPER for any training not automatically tracked by PERAC.

PERAC announces amendments to five regulations effective March 29, 2024. Notable changes include: updated travel rules (840 CMR 2.00) including IRS-rate mileage and prohibition on reimbursing personal accommodations; repeal of the now-obsolete $30,000 salary cap regulation (840 CMR 8.00), service-after-age-70 regulation (840 CMR 11.00), and most of the age-65-to-70 service regulation (840 CMR 12.00); and significant updates to the Miscellaneous regulation (840 CMR 15.00), including replacing notarized affidavits with signed attestations subject to 5% random audit, a new credit card usage subsection requiring PERAC-approved supplemental regulations, and a new non-disability hearing procedure. Boards must review their supplemental regulations and submit amendments to PERAC as needed.

This memo provides the 3rd Quarter 2024 mandatory training schedule for retirement board members, who must earn 18 credits over their term and at least 3 per year. Key offerings include July and August webinars on open meeting law, fiduciary duty, and procurement, plus the PERAC Emerging Issues Forum on September 18 in Westborough (3 credits). PERAC is also launching a new New Administrator Training series, with the first session on August 21 in Northampton, designed for staff with fewer than five years of experience. All non-live-PERAC training requires a Training Affidavit submitted through PROSPER.

PERAC releases an updated Application for Reinstatement to Service form under G.L. c. 32 § 105, effective July 1, 2024 through June 30, 2025. This form is used when a superannuation or termination retiree wishes to return to active public employment; signing it converts the individual from retiree status back to member-in-service status. Because reinstatement may require repayment of large sums and mandates at least five years of subsequent full-time employment, boards are urged to counsel members carefully before they proceed.

The HERO Act (Chapter 178 of the Acts of 2024), signed August 8, 2024, makes substantial changes to veterans' creditable service buybacks under Chapter 32. It replaces the old 180-day window with a new deadline of within one year of vesting (effectively 11 years of creditable service), and creates a one-year grace period — until August 8, 2025 — for active members who missed their original opportunity. Most urgently, boards must send written notice to all active members by November 6, 2024, using the sample notice attached, and must begin providing veterans' buyback information to all new members at enrollment.

This memo provides the 4th Quarter 2024 mandatory training schedule for retirement board members, who must earn 18 credits over their term and at least 3 per year. Key offerings include a PERAC Legislative Update webinar on October 23, the New Administrator Training in Danvers on November 19, and the Fall MACRS Conference in Springfield December 8–11 (potentially up to 9 credits). New on-demand resources include a PERAC webinar on the HERO Act/Veterans' Buyback changes. Board members must submit Training Affidavits in PROSPER for all non-PERAC-live training.

The SJC's September 2024 ruling in Hartnett v. CRAB overturned PERAC's longstanding interpretation of the G.L. c. 32, § 5(2)(a) anti-spiking provision, holding that "2 consecutive years" means consecutive calendar years — not consecutive years of creditable service. As a result, members who had anti-spiking applied based on salary differences between non-consecutive calendar years (e.g., a break in service followed by a return just before retirement) were improperly penalized. Boards must identify affected retirees, recalculate their allowances to remove any improper downward adjustment, and pay the underpayment plus correction-of-errors interest, offsetting any contributions previously refunded.

The FY25 budget (Chapter 140 of the Acts of 2024) expands the return-to-service options for disability retirees under G.L. c. 32, § 8. A disability retiree may now request evaluation for a different, specifically identified position — even with a different employer or in a different retirement system — rather than being limited to the position from which they retired. If found medically able, the member may return to active service, the original disability pension ceases, and upon eventual superannuation retirement both systems will share the pension cost under the existing multi-system rules. The CME and RTS processes remain unchanged; boards should direct all related inquiries to PERAC, which is updating its forms.

This memo provides the 1st Quarter 2025 mandatory training schedule for retirement board members, issued at the close of 2024. Key upcoming sessions include a PERAC "Preparing the Annual Statement" webinar on January 22, a "Recent Cases of Interest" webinar on February 20, a PERAC Cybersecurity webinar on March 19, and the final New Administrator Training in this series on March 26 in Norwood. Board members must earn at least 3 credits per year and 18 credits per term; all non-PERAC-live training requires a Training Affidavit submitted through PROSPER.

This memo transmits the 2023 buyback and make-up repayment worksheets and cumulative interest factor sheets for use in calculating buyback and make-up payments under the various creditable service provisions of G.L. c. 32. Boards should use these updated worksheets for all buyback and make-up calculations in calendar year 2023, noting that some provisions use buyback interest exclusively while others allow either buyback or actuarial interest depending on circumstances described in Memo #23/2012. Three repayment worksheets and corresponding cumulative interest factor sheets are provided for each interest type due to varying investment return assumptions.

This memo sets the "regular interest" rate for calendar year 2023 at 0.1%, as determined by PERAC in consultation with the Commissioner of Banks based on the average rates paid on individual savings accounts at a representative sample of at least ten financial institutions, pursuant to G.L. c. 32, § 22(6)(b). This rate applies to accumulated total deductions and accrued interest for refunds and retirements credited during 2023, and to outstanding balances as of December 31, 2022 credited on that date. No action is required of boards beyond applying this rate in their calculations.

This memo transmits the updated Application for Reinstatement to Service from Superannuation/Termination Retirement under G.L. c. 32, § 105, which is effective July 1, 2023 through June 30, 2024. Boards are instructed to complete the first section of the form and provide it to any interested retirees, who upon signing are converted from retiree to member-in-service status; boards should carefully counsel members about the requirements, including repayment of large amounts and the requirement to work at least five years of full-time employment before the reinstatement fully takes effect. Boards with investment return assumptions not shown on the form should contact PERAC's actuarial unit for custom factors.

This memo addresses a change in Massachusetts Paid Family and Medical Leave (PFML) law — effective November 1, 2023 under Chapter 55 of the Acts of 2023 — which now allows employees on PFML to supplement their benefits with accrued paid leave (sick, vacation, PTO, etc.), up to the employee's Individual Average Weekly Wage. Despite this change, PERAC clarifies that neither PFML benefits nor supplemental accrued leave payments constitute "regular compensation" under Chapter 32, relying on SJC precedent from Vernava I and Vernava II, because the employee is not performing services during leave; therefore, the period of PFML with supplemental pay does not generate creditable service. No board action is required beyond ensuring that retirement benefits are not enhanced based on income received while on PFML leave.

This memo explains the implementation of Section 82 of Chapter 28 of the Acts of 2023, which gives active members who elected to stop retirement contributions at age 70 under the repealed G.L. c. 32, § 90G 3/4 a one-time opportunity to rescind that election and receive creditable service for years worked after age 70. To be eligible, members must have maintained continuous service since their election, be active as of November 29, 2023, and elect to restart contributions and make up all missed contributions plus buyback interest by January 29, 2024 (60 days from PERAC's IRS clearance date). Boards must immediately identify any qualifying active members and provide them with the necessary information and the attached application form.

This memo distributes the 2022 buyback and make-up repayment worksheets and cumulative interest factor sheets for use in calculating service purchases under various provisions of G.L. c. 32. Boards must use the buyback interest or actuarial interest worksheet depending on the specific statutory subsection involved, with three repayment worksheets provided for each rate type along with cumulative interest factor sheets. Questions should be directed to John Boorack at PERAC.

Following the SJC's February 4, 2022 decision in Vernava II (Worcester Regional Retirement Board v. PERAC), this memo provides comprehensive, action-required guidance directing all retirement boards to immediately implement the ruling that supplemental payments of any kind made concurrently with Workers' Compensation benefits do not constitute "regular compensation" under any section of Chapter 32. Boards must identify all active members, inactive members, and retirees who received such supplemental payments, remove previously awarded regular compensation and creditable service for periods of concurrent Section 35 Workers' Compensation receipt, recalculate allowances, and return all deductions taken on those supplemental payments. The memo includes detailed step-by-step instructions for active members, retired members, and their beneficiaries, and notes that PERAC is pursuing legislative relief for affected retirees.

This memo announces the 3rd Quarter 2022 mandatory training schedule for retirement board members, who are required by Chapter 32 to earn at least 3 credits per year of service and 18 credits over each full term. The schedule includes webinars, in-person sessions, and conferences from July through October 2022, highlighted by the return of the in-person Emerging Issues Forum on September 15, 2022 at the College of the Holy Cross in Worcester. Board members must register for live events through PROSPER and submit Training Affidavits for pre-recorded or independently attended sessions.

This memo announces an updated version of the PERAC Application for Reinstatement to Service from Superannuation/Termination Retirement under G.L. c. 32, § 105, effective July 1, 2022 through June 30, 2023. Boards are directed to carefully counsel members interested in reinstatement, as applicants must repay retirement allowances received and work at least five years of full-time employment after reinstatement. Upon signing the form, the member transitions from retiree status back to member-in-service status.

This memo notifies boards that PERAC has filed proposed amendments to 840 CMR 3.00 (IRS Code Compliance Provisions) and 840 CMR 13.00 (Service Purchases and Buybacks) to ensure Chapter 32 plans meet IRS requirements under G.L. c. 32, § 12D. Two public hearings are scheduled via Zoom on December 15 and December 19, 2022, with written comments accepted through December 21, 2022; boards are invited to review the attached proposed amendments and submit comments to PERAC Associate General Counsel Felicia McGinniss.

Announces that Statement of Financial Interests (SFI) submissions are available entirely within PROSPER beginning February 1, 2021, carrying over prior year data. Training webinars offered February 2 and 9 (3 education credits each); SFI due date remains May 1, 2021.

Sets the 2021 "regular interest" rate on member contributions at 0.1% per G.L. c. 32, § 22(6)(b). Applies to accumulated deductions and accrued interest for refunds, retirements, and December 31, 2021 year-end balances.

Distributes 2021 buyback and make-up repayment worksheets and cumulative interest factor sheets for G.L. c. 32, §§ 3 and 4. Three worksheet sets each for buyback interest and actuarial interest (expanded from two sets in 2020); consult PERAC Memo #23/2012 to determine which interest rate applies.

Q2 2021 mandatory board member training schedule (April–June 2021), all-virtual due to COVID. Includes PERAC webinars on SFI submission, legislative update, and liability/dual membership, plus the June MACRS Conference (6 credits). Registration must be done through website links; recorded sessions require a Training Affidavit in PROSPER.

PFML leave under G.L. c. 175M is not creditable service and PFML payments are not regular compensation for Chapter 32 purposes. The Act applies only to municipalities and political subdivisions that adopt it by majority vote; charter school employees are always covered. Boards should treat PFML leave the same as unpaid FMLA leave when computing creditable service.

Q3 2021 mandatory board member training schedule (July–September 2021), all-virtual. Highlights include a PERAC/OIG webinar on fiduciary duty and fraud awareness, a new self-guided cybersecurity training through Wizer (register by July 15), and the Retirement Onramp session for new members. No Emerging Issues Forum in September.

Announces the updated Application for Reinstatement to Service from Superannuation/Termination Retirement under G.L. c. 32, § 105 (effective July 1, 2021 through June 30, 2022). Members considering reinstatement must repay contributions and commit to at least five years of full-time service; boards should carefully counsel members on the requirements before they sign the form.

Q4 2021 mandatory board member training schedule (October–December 2021), all-virtual due to the Delta variant. Includes the October MACRS Conference (6 credits), a PERAC/OIG contract administration webinar, Recent Cases of Interest webinar, and the December Conflict of Interest training. Registration via website links; recorded sessions require a Training Affidavit in PROSPER.

Per consistent CRAB caselaw (Levesque, Goode, Awad), elected officials who did not apply for retirement system membership within 90 days of assuming office under G.L. c. 32, § 3(1)(a)(vi) are ineligible to buy back that prior service. Failure to notify does not excuse non-compliance. Exception: if a board actively prevented timely enrollment, correction is required under § 20(5)(c)(2).

Following a successful phishing attack on a retirement board (Memo #30/2021), PERAC mandates immediate cybersecurity steps: report any intrusion to PERAC immediately; obtain an IT environment assessment; attend a Q1 2022 PERAC cybersecurity awareness program; and develop an Internal Control Plan, which PERAC will provide a sample of. Increased audit scrutiny of IT security and internal controls will begin in 2022.

Announces mandatory retirement board member training opportunities for Q1 2020, including PERAC-offered sessions on the 2018 Fee Report, online trainings, and pre-approved external programs. Board members must complete 18 credits per term with at least 3 per year; failure to meet this requirement bars the member from serving beyond the conclusion of that term.

Distributes the 2020 buyback and make-up repayment worksheets and cumulative interest factor sheets for calculating service credit purchases under multiple G.L. c. 32 provisions (§§ 3 and 4). Two sets of worksheets cover buyback interest and actuarial interest respectively; boards should consult PERAC Memo #23/2012 to determine which rate applies to each transaction type.

Sets the 2020 "regular interest" rate on member contributions at 0.1%, as determined by averaging rates paid on individual savings accounts at a representative sample of financial institutions per G.L. c. 32, § 22(6)(b). This rate applies to accumulated deductions and accrued interest for refunds, retirements, and year-end balances throughout calendar year 2020.

Following the SJC's decision in Plymouth Retirement Board v. CRAB, 483 Mass. 600 (2019), establishes that service credited under G.L. c. 32, § 4(2)(b) for reserve/intermittent police and fire personnel must be paid for, and applies the "Under $5,000 Rule" to such service after July 1, 2009. Supersedes Memo #29/2016 and requires boards to audit active members and retirees to verify payment and remove any post-2009 service that no longer qualifies.

Releases updated PERAC forms across four categories — Beneficiary, Disability, Employer, and General Membership — all revised as of February 2020. New additions include a Beneficiary Selection Form (Option D) and a consolidated Regional Medical Panel Certificate replacing the prior three presumptions certificates; boards should update any links to PERAC forms on their own websites.

Third COVID-19 update consolidating earlier guidance, covering teleconference board meetings, immediate suspension of PERAC medical panel scheduling, extension of 91A filing deadline to July 15, annual statement extension flexibility, pension funding impacts from the economic downturn, and retiree payroll continuity requirements during the March 24–April 7, 2020 shelter-in-place order.

Q2 2020 mandatory board member training memo listing exclusively online education opportunities due to COVID-19 restrictions. Notes that the state of emergency alone will not justify waivers of the 3-credit-per-year requirement; includes pre-approved online trainings from PERAC, PRIM, the Ethics Commission, OIG, and OAG. The June MACRS Conference status remains pending.

Fourth COVID-19 update addressing post-retirement work hour/earnings exclusions during the State of Emergency per Chapter 53 of the Acts of 2020, retirement calculation processing status, a 30-day extension of the Annual Statement deadline to June 1, 2020, medical panel alternatives via records review or teleconference, treatment of FFCRA paid sick leave as regular compensation, and extension of 91A filing deadline to July 15, 2020.

Q3 2020 mandatory board member training memo listing exclusively virtual offerings due to COVID-19, including live webinars on retirement options, post-retirement employment, and the rescheduled Emerging Issues Forum keynote. The annual in-person Emerging Issues Forum was cancelled; the annual administrators' trainings are under evaluation with safety as a priority.

Releases the updated Application for Reinstatement to Service under G.L. c. 32, § 105, effective July 1, 2020 through June 30, 2021. Members reinstating from superannuation or termination retirement must work at least five years of full-time employment and may be required to repay significant amounts; boards should carefully counsel interested members before the member signs and converts from retiree to member-in-service status.

Supplements Memo #20/2020 to clarify that FFCRA Emergency Paid Sick Leave Act leave paid at 2/3 of regular pay (Reasons 4–6) also constitutes full creditable service and requires retirement deductions. The two-week leave period counts as full-time service; if it falls in a member's high-3 or high-5 years, the actual 2/3-rate pay received is used in the retirement allowance calculation.

Q4 2020 mandatory board member training memo listing all-virtual offerings for October through December, including PERAC webinars on accidental disability remands, buyback calculations, and recent cases of interest. Notes that board members experiencing extenuating circumstances in meeting education requirements should consult Memo #15/2019; all sessions available through PROSPER.

Announces that beginning November 16, 2020, PROSPER will support electronic submission of benefit calculations, replacing paper submissions. Training webinars are scheduled for November 10 and 16; board staff with the disability role will automatically receive the new benefit calculation role, and additional staff can be granted access via the Individual Account Request Form.

Q1 2021 mandatory board member training memo (issued December 2020) listing all-virtual offerings for January–March 2021, including PERAC webinars on the legislative update, annual statement and cash books, and an administrator roundtable. Registration process changed — attendees must now register via website links rather than PROSPER; credits are updated by PERAC staff approximately one week after each live event.

Follow-up to Memo #11/2020 (Gomes/Plymouth decision) addressing three board questions: (1) detail pay counts toward the $5,000 annual compensation threshold; (2) the "same department" requirement applies only to firefighters, not police; (3) members ineligible for § 4(2)(b) service are not barred from purchasing prior service on a day-for-day basis under other provisions such as G.L. c. 32, § 3(5), depending on their employment status.

PERAC transmits the 2019 worksheets for calculating buybacks/make-ups and cumulative interest factor sheets. Calculations under G.L. c. 32, §§ 4(1)(g½), 4(1)(l), 4(1)(l½), 4(1)(l¾), 4(1)(n), 4(1)(n½), 4(1)(p), 4(1)(r), 4(1)(s), and 4(2)(c) use buyback interest exclusively. Calculations under §§ 3(3), 3(4), 3(4A), 3(5), 3(6)(c), 3(6)(d), and 3(8)(b) are subject to Chapter 176 of the Acts of 2011 and may use either buyback or actuarial interest (see PERAC Memo #23/2012). Two repayment worksheets exist for each interest type due to differing investment return assumptions.

PERAC has set the regular interest rate for 2019 at 0.1% per G.L. c. 32, §22(6)(b), based on the average rates paid on individual savings accounts at a representative sample of at least 10 financial institutions. This rate applies to accumulated total deductions and accrued interest for refunds and retirements processed during calendar year 2019, and will also be credited on December 31, 2019 for outstanding balances as of December 31, 2018.

This memo distributes the 2018 worksheets for calculating buybacks and make-ups under G.L. c. 32, §§ 3 and 4, along with cumulative interest factor sheets. Boards must use these worksheets for all covered buyback and make-up calculations, and should refer to Memo #23/2012 to determine whether to apply buyback interest or actuarial interest for §§ 3(3), 3(4), 3(4A), 3(5), 3(6)(c), 3(6)(d), and 3(8)(b) transactions.

This memo comprehensively clarifies when retirement boards must pay interest to members/beneficiaries and when members owe interest to boards, superseding portions of Memos #43/1999 and #29/2016. Key rules: boards pay interest at the "correction of errors" rate when an error reduces a benefit (per Herrick); boards do not pay interest on refunds of excess deductions that do not affect the pension amount (per Hollstein); members who were erroneously excluded from membership must now pay the "correction of errors" interest rate on service purchases (reversing prior PERAC guidance, following DALA/CRAB decisions); and members do not pay interest on under-withheld deductions. The memo also addresses Section 4(2)(b) refunds, the Needham Bill waiver provision (§ 20(5)(c)(3)), and includes a detailed scenario chart.

This memo announces an updated PERAC form for reinstatement to service from superannuation or termination retirement under G.L. c. 32, § 105, effective July 1, 2018 through June 30, 2019. Boards must counsel interested members carefully, as reinstatement requires at least five years of full-time employment and potentially large repayments; boards complete the first portion of the form and upon the member's signature the individual reverts from retiree to member-in-service status.

This memo addresses the SJC decision in Retirement Board of Stoneham v. CRAB (December 22, 2016), which held that once a member is admitted to a retirement system, their membership continues as long as they remain employed regardless of subsequent changes in hours or pay. Boards that have erroneously removed members from membership must re-enroll them, deduct missing contributions, and allow payment on an installment plan. The memo also clarifies the interaction with the Under $5,000 Rule added by Chapter 21 of the Acts of 2009.

This memo distributes the 2017 buyback and make-up repayment worksheets and cumulative interest factor sheets for use in calculating creditable service purchases under the various subsections of G.L. c. 32, §§ 3 and 4. The memo notes that two sets of worksheets are provided for both buyback and actuarial interest due to differing investment return assumptions, and directs boards to PERAC Memo #23/2012 for guidance on when each rate applies.

This memo informs retirement boards of PERAC Calculation Policy 15-001, developed internally in 2015 to address requests for G.L. c. 32, § 3(8)(c) reimbursement letters for members who retired many years ago. Due to a recent increase in such requests—some involving retirements over 30 years old—PERAC is distributing the policy to all boards. The policy and its application to specific cases should be directed to PERAC's Actuarial Unit.

This memo reminds retirement board members of the mandatory annual education requirement under Chapter 32, noting that failure to complete required training will render a member ineligible to continue serving. It lists pre-approved conferences and courses (e.g., NCPERS, NCTR, PRIM, GFOA, State Ethics Commission seminars) that qualify for credit, with specified credit values, and clarifies that affidavits are acceptable proof of attendance for approved online courses. Boards should ensure members track and complete required training hours using these pre-approved sources, and should seek pre-approval well in advance for any other conference sessions for which credit is sought.

**PERAC Memo #6/2016** reminds retirement boards that Board members and staff are considered public employees under G.L. c. 268A and must comply with the 2009 Ethics Reform Law's mandatory education and training requirements, including certain private contractors performing designated personal services. Boards must ensure all covered individuals receive the Ethics Commission's Summary of the Conflict of Interest Law annually (within 30 days for new members/staff, with signed acknowledgments retained on file), and complete the online ethics training every two years (within 30 days for new members/staff), retaining completion certificates for six years. Boards should also forward copies of acknowledgments and certificates to the appropriate appointing authority for non-elected members.

PERAC Memo #7/2016 establishes the "regular interest" rate under G.L. c. 32, §22(6)(b) at 0.1% for calendar year 2016, based on average savings account rates from a sample of financial institutions. Boards must apply this 0.1% rate to accumulated total deductions and accrued interest when crediting interest on refunds and retirements processed during 2016, and also apply it to outstanding balances as of December 31, 2015 when crediting interest on December 31, 2016. No further action beyond correct application of this rate is required.

PERAC Memo #9/2016 transmits the updated 2016 buyback/make-up repayment worksheets and cumulative interest factor sheets for calculating service purchases under the various G.L. c. 32 provisions referenced in Memos #13/2005 and #28/2008. It clarifies that buybacks under §§4(1)(g½), 4(1)(l), 4(1)(l½), 4(1)(l¾), 4(1)(n), 4(1)(n½), 4(1)(p), 4(1)(r), 4(1)(s), and 4(2)(c) must use buyback interest only, while those under §§3(3), 3(4), 3(4A), 3(5), 3(6)(c), 3(6)(d), and 3(8)(b) may use either buyback or actuarial interest per Chapter 176 of the Acts of 2011 (see Memo #23/2012). Boards should begin using the new 2016 worksheets—selecting the correct version based on interest type and applicable investment return assumption—for all relevant buyback/make-up calculations going forward.

This memo reminds retirement boards of the mandatory annual education requirement for board members under Chapter 32, noting that members who fail to meet this requirement become ineligible to serve out their terms. It clarifies credit policies (e.g., affidavits accepted for online courses, no repeat credit within 12 months) and lists pre-approved third-party programs—such as NCPERS, NCTR, PRIM, and various ethics/open meeting law trainings—that qualify for education credits. Boards should ensure members are tracking and completing required training and should be aware that credit for non-listed events must be pre-approved by PERAC well in advance.

This memo (PERAC Memo #18/2016) reminds retirement board members of the statutory requirement to complete mandatory annual training under Chapter 32, warning that failure to do so will disqualify a member from continuing to serve for the remainder of their term. It lists upcoming Q3 2016 training opportunities (in-person sessions, webinars, and online courses) along with registration details, and outlines PERAC's pre-approved list of external programs eligible for education credits. Boards should ensure members register for and complete sufficient training sessions to maintain compliance and eligibility for continued board service.

PERAC Memo #20/2016 announces an updated Application for Reinstatement to Service form under G.L. c. 32 §105, effective July 1, 2016 through June 30, 2017, for retirees seeking to return to active membership. Boards must use this revised form, complete the initial portion for interested members, and carefully counsel them on the repayment obligations and five-year full-time employment requirement before they sign and convert from retiree to member-in-service status. Boards should contact PERAC's actuarial unit if a needed investment return assumption factor is not listed on the form.

This memo lists Q4 2016 mandatory training opportunities for retirement board members (MACRS sessions, PERAC-hosted disability process and board responsibilities trainings, OML sessions, and various webinars/online options), and reiterates PERAC's pre-approval process and list of pre-approved third-party programs eligible for education credit. Boards should note that members who fail to meet the annual training mandate become ineligible to continue serving for the remainder of their term, so administrators should ensure members register for and complete qualifying sessions before year-end.

This memo (superseding Memos #22/2013, #33/2013, and #19/2014) updates guidance on crediting/buying back call firefighter service under G.L. c. 32, §4(2)(b), incorporating two new CRAB decisions (Grimes v. Malden and Gomes v. Plymouth) on buyback methodology; it clarifies that reserve/permanent-intermittent police officers and firefighters are treated the same as call firefighters. Boards must apply the revised calculation method going forward—crediting up to 5 years at no cost for uncompensated call service, and requiring payment of contributions (plus buyback interest) at the historical rate for any compensated service—when processing buybacks for members who transition from call to permanent firefighter status.

PERAC Memo #4/2015 notifies boards that the State Ethics Commission's monthly conflict-of-interest law seminars (in-person at their Boston office or via webinar) qualify for three PERAC educational credits when attended by board members. Dates through April 2015 are listed, and registration is required in advance by phone (in-person) or by contacting Carolyn Teehan (webinar). No board action is required beyond optional registration for members seeking to attend and earn credits.

PERAC Memo #5/2015 announces that, per G.L. c. 32, §22(6)(b), the "regular interest" rate for member deductions in calendar year 2015 has been set at 0.1%, based on average savings rates from a sample of financial institutions. Boards must apply this rate to accumulated total deductions and accrued interest when crediting interest for 2015 refunds and retirements, and also credit it on outstanding balances as of December 31, 2014, on December 31, 2015.

PERAC Memo #6/2015 transmits the updated buyback/make-up repayment worksheets and cumulative interest factor sheets for calendar year 2015, to be used for calculations under the various G.L. c. 32 sections referenced in prior memos. Boards should note that buybacks/make-ups under §§4(1)(g½), 4(1)(l)-(s), and 4(2)(c) must use buyback interest exclusively, while those under §§3(3)-3(8)(b) may use either buyback or actuarial interest per Chapter 176 of the Acts of 2011 (see Memo #23/2012 for guidance on rate selection). Boards should replace prior-year worksheets with the enclosed 2015 versions when performing these calculations going forward.

PERAC Memo #10/2015 reminds retirement board members of the mandatory annual Chapter 32 training requirement, noting that failure to meet the mandate renders a member ineligible to continue serving beyond their current term. It lists pre-approved courses and sponsoring organizations (e.g., NCPERS, NCTR, PRIM, GFOA, State Ethics Commission seminars) eligible for education credit, clarifies that affidavits may substitute for attendance proof at approved online courses, and states that credit for conference-embedded sessions (e.g., ethics or open meeting law segments) requires PERAC pre-approval well in advance of the event. Boards should ensure members are aware of and pursuing sufficient approved training to remain compliant and eligible to serve.

PERAC Memo #12/2015 addresses CRAB's amended decision in Zavaglia v. Gloucester/Salem Retirement Boards, which clarifies when inactive members may purchase prior creditable service. While service purchases generally require active membership, CRAB identified specific statutory exceptions—including G.L. c. 32 §§3(4), 3(4A), 4(1)(q), 4(1)(r), and 3(6)(d)—covering teachers on leave, certain veterans' organization service, Peace Corps volunteers, and members reinstated after separation. Although the decision technically binds only the parties involved, PERAC recommends boards follow these guidelines for consistency when evaluating buyback requests from inactive members; no immediate mandatory action is required, but boards should apply this framework going forward.

PERAC Memo #14/2015 reminds retirement boards of the statutory (Chapter 32) mandate that board members complete annual training, warning that non-compliance disqualifies members from continuing to serve beyond their current term. It lists pre-approved training programs and sponsors (e.g., NCPERS, NCTR, IFEBP, PRIM, State Ethics Commission, GFOA) eligible for credit, and notes that online course affidavits are accepted as proof of attendance, but credit is not given for repeating the same online course within 12 months. Action required: Boards should ensure members track and complete required training credits each year and use only pre-approved courses/sponsors (or seek advance approval for other programs) to ensure credits count toward the mandate.

PERAC Memo #17/2015 announces an updated version (effective July 1, 2015–June 30, 2016) of the Application for Reinstatement to Service from Superannuation/Termination Retirement under G.L. c. 32 §105. Boards must use this revised form when counseling members interested in reinstatement—completing the board's portion and ensuring members understand the repayment obligations and five-year full-time employment requirement before signing, which converts them from retiree to member-in-service status. Boards should contact PERAC's actuarial unit if their plan's investment return assumption isn't among the factors listed on the form.

PERAC Memo #21/2015 reminds retirement boards that all board members must complete mandatory annual training under Chapter 32, warning that failure to meet this requirement will disqualify a member from continuing to serve once their current term ends. It lists pre-approved courses and sponsoring organizations (e.g., NCPERS, NCTR, IFEBP, PRIM, GFOA, State Ethics Commission) eligible for credit, notes that affidavits are accepted as proof of attendance for certain online courses, and clarifies that repeat online courses within 12 months do not earn credit. Boards should ensure members are aware of and tracking their training compliance, and should seek PERAC pre-approval well in advance for any non-listed conference sessions seeking credit.

This memo transmits the updated 2014 buyback/make-up calculation worksheets and cumulative interest factor sheets for use with the various buyback and make-up provisions under G.L. c. 32. Boards should use these worksheets going forward for all applicable calculations, applying buyback interest exclusively for the §4(1) provisions listed, while §3 provisions remain subject to the dual buyback/actuarial interest rules under Chapter 176 of the Acts of 2011 (per Memo #23/2012). No further action is required beyond adopting the new worksheets for 2014 calculations.

PERAC Memo #05/2014 clarifies when retirement boards must begin applying a new buyback interest rate (defined as half the actuarial assumed investment return rate) after a system's actuarial valuation changes its investment return assumption. Boards should apply the new rate—based on the valuation report—starting January 1 of the year following the report's issuance, ensuring uniform application across systems. Boards must review their most recent valuation report's issue date and update buyback/make-up interest calculations accordingly for applications received on or after that following January 1.

PERAC Memorandum #08, 2014 sets the "regular interest" rate under G.L. c. 32, §22(6)(b) at 0.1% for calendar year 2014, based on average savings account rates from a sample of financial institutions. Boards must apply this 0.1% rate to accumulated total deductions and accrued interest when crediting interest for refunds and retirements processed during 2014, and also apply it on December 31, 2014 to outstanding balances as of December 31, 2013.

This memo reminds boards that under Chapter 28 of the Acts of 2009, Retirement Board Members and staff (including certain contracted individuals) are considered public employees subject to G.L. c. 268A ethics requirements. Boards must: (1) distribute the Ethics Commission's Summary of the Conflicts of Interest Law annually and within 30 days to new members/employees, retaining signed acknowledgments (with copies to appointing authorities for non-elected members); and (2) ensure all covered individuals complete the online ethics training every two years (within 30 days for new members/employees), retaining completion certificates for 6 years and forwarding copies to appointing authorities. Boards should also note that submitting a copy of the training certificate to PERAC can qualify for 3 credits toward the Board Member Training Requirements under G.L. c. 32, §20(7).

This corrected memo (superseding Memo #13/2014) reminds boards of the mandatory annual training requirement for retirement board members under Chapter 32, noting that failure to meet this requirement bars a member from continuing to serve beyond their current term. It details specific pre-approved training credit opportunities for 2014—including three hours for State Ethics Commission conflict-of-interest seminars and four hours each for NCPERS TEDS and PATS programs—and specifies the documentation (certificates of attendance) members must submit to PERAC to receive credit. Boards should inform members of these opportunities and ensure certificates are forwarded to PERAC to properly document compliance.

This memo provides follow-up guidance to Memos #22/2013 and #33/2013 on implementing the MacAloney decision regarding creditable service buybacks for call/reserve/permanent-intermittent firefighters and police officers under G.L. c. 32, §4(2)(b). It clarifies the specific contribution rates and calculation methods boards must use when a member seeks to buy back service for: (1) time actually served and compensated as a call firefighter, (2) time on an eligibility list/roster without actual service, and (3) combinations of both. Boards should apply these calculation methodologies—using actual pay and contribution rates in effect for compensated service, and the $3,000 assumed annual salary under §85H for list/roster time—when processing any such buyback requests.

This memo reminds boards of the mandatory annual training requirement for retirement board members and lists Q3 2014 approved educational opportunities, including State Ethics Commission seminars (3 credits), sessions on investment fees/legislative process/Chapter 176 (3 credits), and PERAC's Emerging Issues Forum on September 18, 2014 (3 credits). Boards should inform members of these opportunities and ensure members register/attend as needed, since failure to meet the annual training requirement bars a member from continuing to serve on the board beyond their current term.

This memo updates the schedule for State Ethics Commission Public Education Seminars on the Conflict of Interest Law, which qualify for 3 hours of mandatory retirement board member training credit (correcting dates previously issued in Memo 22/2014). New sessions are scheduled for July 24, August 21, and September 25, 2014, at the Commission's Boston office. Boards should notify members interested in attending to enroll promptly by calling 617-371-9500, as seating is limited, and ensure members obtain a Certificate of Attendance to receive training credit.

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.

PERAC Memo #29/2014 summarizes Chapter 165 of the Acts of 2014 (FY2015 budget outside sections), which amended the dual-member provision under G.L. c. 32, §5(2)(e). The revised law excludes overlapping service of less than 60 days, excludes positions paying under $5,000/year, and limits application of dual-member benefit calculations to only the final 5 years of creditable service before retirement (and clarifies it does not apply to §6 ordinary disability benefits). Boards must apply this narrower standard when a member has worked concurrently in two systems, determining at retirement whether the dual-member rules are triggered based on the last 5 years of service, and must return/reallocate contributions accordingly when applicable.

This memo reminds boards of the mandatory annual training requirement for board members under Chapter 32 and lists pre-approved training programs/sponsors eligible for education credit, including specific credit hours for each (e.g., NCPERS, NCTR, PRIM, State Ethics Commission seminars, MACRS October Conference). No board action is strictly required, but administrators should inform board members of these approved opportunities—particularly the State Ethics Commission seminars (October 23 and December 4, 2014, in-person or via webinar) and the MACRS October Conference—to help members satisfy their annual training obligations and avoid disqualification from continued board service.

This memo reminds retirement board members of the mandatory annual continuing education requirement under Chapter 32, noting that failure to complete required training will disqualify a member from serving beyond the end of their current term. It lists pre-approved non-PERAC/non-MACRS courses and organizations (e.g., NCPERS, NCTR, IFEBP, PRIM, State Ethics Commission seminars) eligible for education credits, and specifies that affidavits are acceptable proof of attendance for certain online courses. Boards should ensure their members are aware of and complete the required training, use the pre-approved list to plan qualifying courses, and submit certificates or affidavits of attendance to PERAC to obtain credit.

PERAC Memo #4/2013 transmits updated instructions, worksheets, and a cumulative interest factor sheet for calculating buyback and make-up repayments using buyback interest for calendar year 2013, applicable to the various G.L. c. 32 provisions referenced in Memos #13/2005 and #28/2008. Boards should use these updated tools for all applicable buyback/make-up calculations performed during 2013, and may contact John Boorack with questions.

**PERAC Memo #7/2013** follows up on Memo #4/2013 (buyback/make-up interest calculations and worksheet for 2013) by reminding boards that, per G.L. c. 32, §3(8)(b) as amended by Ch. 176 of the Acts of 2011, some service purchases must instead use actuarial assumed interest rather than buyback interest, depending on specific factors. Boards should read Memo #4/2013 alongside Memo #23/2012 for guidance on applying these rules, and should anticipate a forthcoming March memorandum clarifying the transition, since as of April 2, 2013, all purchases of prior non-membership service must be calculated using actuarial assumed interest. No immediate action is required beyond continued use of current guidance until the March memo is issued.

PERAC Memo #8/2013 announces that retirement board members who complete the Ethics Commission's newly revised online Conflict of Interest Law training will now receive 3 educational credits toward their Chapter 32 training requirement, since the updated program now includes substantive content rather than just multiple-choice questions. Board members must access the training via the Ethics Commission website, generate a completion certificate, and submit it to both their retirement board and PERAC; note that credit is granted only once per two-year term, corresponding to the mandatory frequency of the Ethics Law training itself.

PERAC Memo #9/2013 establishes the "regular interest" rate for member accounts under G.L. c. 32, § 22(6)(b) at 0.1% for calendar year 2013, based on average savings account rates from a sample of financial institutions. Boards must apply this rate to accumulated total deductions and accrued interest when crediting interest for refunds and retirements processed during 2013, and must also credit it on December 31, 2013 to outstanding account balances as of December 31, 2012.

PERAC Memo #14/2013 follows up on Memos #4/2013 and #7/2013 regarding the requirement under G.L. c. 32, §3(8)(b) (as amended by Ch. 176 of the Acts of 2011) that certain buyback repayments be calculated using actuarial assumed interest rather than regular interest. It transmits the revised 2013 repayment worksheet, make-up worksheet, and cumulative interest factor sheet reflecting actuarial assumed interest rates for calculations covering buybacks under G.L. c. 32 §§3(6)(c), 3(6)(d), 3(8)(b), and related make-up provisions. Boards should begin using these updated 2013 forms immediately when calculating applicable buyback and make-up repayment amounts, and may contact John Boorack with questions.

This memo (PERAC Memo #15/2013) reminds retirement boards of the mandatory annual training requirement for board members under Chapter 32 and outlines pre-approved training credit opportunities for the second quarter of 2013, including State Ethics Commission seminars (3 hours credit) and NCPERS TEDS/PATS programs (4 hours credit each). No board action is required beyond ensuring members attend qualifying sessions and submit certificates of attendance/completion to PERAC to receive credit toward their training obligation.

PERAC Memo #18/2013 reminds boards of the Chapter 32 mandatory annual training requirement for board members and outlines pre-approved educational credit opportunities for Q3 2013, including State Ethics Commission seminars (3 credits), NCPERS PATS at Harvard Law School (4 credits), and the NCTR Trustee Workshop (4 credits). No board action is required beyond ensuring members are aware of and can register for these approved sessions, and submitting Certificates of Attendance (for Ethics Commission seminars) to PERAC to obtain credit.

PERAC Memo #19/2013 announces an updated Application for Reinstatement to Service form (G.L. c. 32 §105), effective July 1, 2013 through June 30, 2014, which reinstates retirees to active member-in-service status. Boards must use the revised form, carefully counsel interested members on the repayment obligations and five-year full-time employment requirement before they sign, and contact PERAC's actuarial unit if a needed investment return assumption factor is not listed on the form.

This memo summarizes the CRAB decision in MacAloney v. Worcester Regional Retirement System, which held that G.L. c. 32, §4(2)(b)'s five-year full-time credit provision for call/reserve/permanent-intermittent firefighters and police officers does not preempt local board rules granting additional pro-rated service credit for call service beyond that initial five-year period, and that such service beyond five years, as well as prior non-membership service, remains subject to make-up payment requirements under §§3(2)(c), 3(3), 3(5), and 4(2)(c). Retirement boards must apply §4(2)(b)'s five-year full-time credit rule independently from other creditable service provisions, and should grant pro-rated credit (subject to applicable make-up payments) for any call/intermittent service extending beyond the initial five years, consistent with this now-final and binding CRAB decision.

This memo (PERAC Memo #24/2013) reminds retirement boards of the mandatory annual training requirement for board members and lists approved 4th-quarter 2013 educational opportunities eligible for credit, including AG Open Meeting Law forums, State Ethics Commission seminars, and the MACRS October Conference. No board action is required beyond ensuring members register in advance for these pre-approved sessions and complete their required training credits to remain eligible to continue serving on the board.

**PERAC Memorandum #33/2013** provides follow-up guidance on the CRAB *MacAloney* decision affecting buy-backs under G.L. c. 32, §4(2)(b) for call firefighters and similarly situated reserve/permanent-intermittent police and fire personnel. It clarifies that only members who were not yet retired as of June 21, 2013 must make contributions for such service going forward, and it details the calculation methodology for buy-backs—both for periods of actual compensated service (using contribution rates in effect at the time) and for periods on eligibility lists/rosters without pay (using the $3,000 statutory rate under §85H)—with buy-back interest applied only prospectively from June 21, 2013, not retroactively to the original service period. Boards should apply this methodology when processing affected members' service purchases and ensure contributions are collected consistent with this timeline.

PERAC Memorandum #34 (2013) announces the Commission's adoption of final regulations (840 CMR 3.07 and 3.10), effective November 22, 2013, implementing the federal HEART Act. These regulations require that members who died or became disabled on or after January 1, 2007 while performing qualified military service be treated as if reemployed immediately before death/disability, entitling them (or their beneficiaries) to accelerated vesting, survivor benefits, and creditable service up to the date of death or disability. Boards must proactively search their records (manually or electronically) to identify all members who died or were disabled during military leave, or who were previously denied creditable service or benefits for such leave, and contact those members or their beneficiaries to determine eligibility for additional benefits, including potential recalculation of §12(2)(d) survivor benefits or reinstatement of withdrawn deductions to qualify for disability or superannuation retirement.

PERAC Memo #05/2012 establishes the "regular interest" rate for 2012 at 0.1%, as determined under G.L. c. 32, §22(6)(b) based on average savings account rates from a sample of financial institutions. Boards must apply this 0.1% rate to accumulated total deductions and accrued interest for refunds and retirements processed during 2012, and credit it to outstanding member account balances as of December 31, 2011 on December 31, 2012.

This memo announces preparation requirements for the 2011 Annual Statement, due to PERAC signed and completed by May 1, 2012, and provides materials (CD with Annual Statement, sample, and preparation guide) to assist boards. It also announces training classes—which satisfy board members' new three-hour annual education requirement and cover remote participation, regular compensation, buybacks, and procurement files—and requires boards to submit pre-closing cashbook and trial balance for December 2011 to PERAC before February 28, 2012.

PERAC Memorandum #12/2012 transmits the updated 2012 worksheets, instructions, and cumulative interest factor sheet for calculating member buybacks and make-up payments under the applicable G.L. c. 32 provisions, using buyback interest as referenced in prior Memos #13/2005 and #28/2008. Boards should use these updated tools for all buyback/make-up calculations performed during 2012 and contact PERAC (John Boorack) with any questions; no other action is required.

This follow-up to Memo #30/2011 clarifies that the shift substitution documentation/verification policy applies prospectively only—boards should only inquire about shift substitution and unrepaid shifts for members retiring on or after October 26, 2011, and only for shifts occurring on or after that date (not retroactively to Chapter 21 of the Acts of 2009 or earlier). Boards should verify that employers are tracking shift substitution and repayment from October 26, 2011 forward, and may wish to issue guidance to their employers instructing them to establish record-keeping systems to properly certify creditable service and regular compensation for retirement calculations going forward.

This memo explains the implementation of Chapter 176 of the Acts of 2011, which amends G.L. c. 32, §3(8)(b) to require actuarially assumed interest (rather than buyback interest) on service purchases not completed within specified deadlines, effective April 2, 2012. Boards must apply buyback interest only if members in service/inactive members complete purchases or enter installment agreements (max 5 years) by April 2, 2013, and must apply similar deadline rules (one year from re-entry or April 2, 2013, whichever is later) for reinstated/re-entering members; failure to meet these deadlines or default on an installment agreement requires the board to prospectively switch to full actuarial assumed interest on the outstanding balance. Boards should review pending and future service purchase agreements to ensure compliance with these new interest-rate and deadline requirements.

PERAC Memo #25, 2012 announces that board members who attend the NCPERS Trustee Educational Seminar (TEDS) in New York on May 5-6, 2012 can earn 4 hours of educational credit. Boards should note that attendees must sign in/out with photo ID and submit a copy of their attendance certificate to PERAC to receive credit, and are encouraged to register before April 10, 2012 for the discounted rate. No other action is required of boards.

This memo notifies boards that under Chapter 176 of the Acts of 2011, each retirement board member must complete 18 hours of training per term, effective calendar year 2012, and describes PERAC's process for tracking compliance (forms issued by PERAC, member submissions due January 31, 2013, PERAC status reports by March 1, 2013). It also announces upcoming/completed PERAC training sessions (including an evening session and Ethics Commission credit opportunities) available to help members meet this requirement. Action required: Boards must ensure their members are aware of and complete the mandatory 18-hour training requirement, distribute PERAC's completion forms to members, and facilitate timely submission of those forms to PERAC by the January 31, 2013 deadline, since failure to meet the requirement bars a member from continuing service beyond the current term.

Memo #32/2012 reminds retirement board members that their 2011 Statement of Financial Interests (SFI) filings, required annually under Chapter 176 of the Acts of 2011, are due at PERAC by May 1, 2012. It also details the confidentiality Security Protocols the Commission unanimously adopted on March 26, 2012 governing how SFIs are received, processed, stored, and accessed by PERAC staff and Commissioners. Action required: board members who have not yet filed their SFI must submit it to PERAC by the May 1, 2012 deadline.

This memo reminds boards that under Chapter 176 of 2011, each retirement board member must complete 18 hours of training annually (effective for 2012), with completed statements due to PERAC by January 31, 2013; failure to meet this requirement bars the member from continuing to serve beyond the current term. It also announces PERAC's approval of the NCPERS PATS program (July 30–Aug 1, 2012, Harvard Law School) for 4 hours of training credit, with registration due by May 18, 2012. Action required: Boards should ensure members are aware of and pursuing the 18-hour training requirement, distribute PERAC's completion forms to members when issued, and inform members of the PATS opportunity if interested in registering before the deadline.

This memo provides a quarterly update on the mandatory 18-hour annual training requirement for retirement board members under Chapter 176 of the Acts of 2011 (M.G.L. c. 32, §20, Subdivision 7), effective for 2012. It confirms educational credit awarded for MACRS Conference sessions and various PERAC-hosted programs (ethics, actuarial basics, disability), and clarifies the pre-approval process for outside training events. Boards should ensure members are aware of the requirement, distribute PERAC's forthcoming statement-of-completion forms to members, and confirm that members submit completed forms to PERAC by January 31, 2013, since failure to meet the training requirement will bar a member from continuing to serve beyond their current term.

This memo explains the anti-spiking provisions in Sections 14 and 18 of Chapter 176 of the Acts of 2011, which cap the regular compensation used to calculate retirement allowances for members retiring on or after April 2, 2012. Boards must review every applicable retirement calculation under both sections (as a benefit could violate either or both), and must confirm to PERAC that this anti-spiking review was performed—either through submission for approval or, for boards with waivers, via attestation. PERAC notes it is developing calculation worksheets to assist boards and will notify boards once these are available.

PERAC Memo #39/2012 clarifies the treatment of payments made when employees sell back unused vacation leave (distinct from payments for unused sick, personal, or other event-based leave, which are excluded from this analysis), superseding Memos #25/2000 and #26/2000. It directs boards to apply the two-part regular compensation threshold test—whether payments constitute base/"other base compensation" and whether they represent "services performed"—consistent with Chapter 21 of the Acts of 2009 and 840 CMR 15.03(3), and to only treat such buy-back payments as regular compensation (subject to retirement deductions) if both prongs are satisfied. Boards must review applicable collective bargaining agreements and vacation buy-back provisions to make this individualized determination for each payment arrangement, and are also reminded of their obligation under Chapter 176 of the Acts of 2011 to retain and review CBAs for Chapter 32 compliance.

This memo announces PERAC's updated Application for Reinstatement to Service from Superannuation/Termination Retirement under G.L. c. 32 §105, effective July 1, 2012 through June 30, 2013. Boards should use the revised form when a member seeks reinstatement, carefully counsel members on the requirements (including repayment obligations and the five-year full-time service commitment), complete the initial portion of the form for interested members, and contact PERAC's actuarial unit if a needed investment return assumption factor is not listed on the form.

This memo provides a quarterly update on the mandatory 18-hour training requirement for retirement board members under Ch. 176 of the Acts of 2011, reminding boards that 2012 completion forms are due to PERAC by January 31, 2013 (with PERAC issuing status reports by March 1, 2013), and that failure to meet the requirement bars a member from continuing to serve beyond their current term. Boards must distribute the forthcoming PERAC statement-of-completion forms to their members and should encourage any members who have not yet met the minimum 2012 credit requirement to attend qualifying programs (e.g., MACRS Conference sessions, State Ethics Commission seminars, PERAC Disability Training) before year-end.

This memo reminds retirement board members of the Chapter 176 requirement to complete 18 hours of training per term, and notes that PERAC will send each member a 2012 educational credit summary before December 31, 2012. Boards should ensure any completed but unreported training—specifically the State Ethics Commission's Conflict of Interest Law seminar and the Inspector General's online Bidding Basics course—is submitted to PERAC immediately so credit records are accurate.

This memo reminds boards that Chapter 32 requires all retirement board members to complete mandatory training annually, with roughly 500 members having met the 2012 requirement; failure to meet this requirement disqualifies a member from continuing beyond their current term. It clarifies PERAC's approach to awarding credits—including pre-approval for third-party programs (e.g., ethics or open meeting law sessions embedded in broader conferences)—and details the three-hour credit available for State Ethics Commission Public Education Seminars on the Conflict of Interest Law (distinct from the separate online ethics quiz requirement, which earns no PERAC credit). **Action required:** Boards should ensure members obtain their annual training credits, seek PERAC pre-approval for non-standard training events in advance where possible, and submit Certificates of Attendance from State Ethics Commission seminars to receive credit; the 2013 seminar schedule is provided to facilitate scheduling.

This memo announces that PERAC has set the "regular interest" rate under G.L. c. 32, §22(6)(b) at 0.2% for calendar year 2011, based on average savings account rates from a sample of financial institutions. Boards must apply this 0.2% rate to accumulated total deductions and accrued interest when crediting interest for 2011 refunds and retirements, and also credit it on December 31, 2011 for outstanding balances as of December 31, 2010.

PERAC Memo #05/2011 provides retirement boards with updated instructions, worksheets, and the cumulative interest factor sheet for calculating buyback and make-up repayments using buyback interest for calendar year 2011, applicable under the specified G.L. c. 32 sections. Boards should use these updated worksheets and factor sheet—rather than prior versions—for all buyback/make-up calculations going forward, consistent with guidance in Memos #13/2005 and #28/2008.

This memo announces PERAC's requirements for preparing the Calendar Year 2010 Annual Statement, distributed via CD along with sample statements and preparation guides, and notes updates related to 3% interest on refunds, ERI funds, and Buyback agreement accounting. Boards must complete and return the signed Annual Statement to PERAC by May 1, 2011, and submit their pre-closing cashbook and trial balance for December 2010 prior to February 28, 2011. Boards are also encouraged (though not required) to sign up for the seminar or request the CD presentation for training assistance.

PERAC Memorandum #08, 2011 provides the updated quarterly list (as of 12/31/10) of investment managers previously granted exemptions under 840 CMR 19.01 for international equity, international fixed income, real estate, and alternative investment asset classes, limited to funds/managers still open to new investors. Boards do not need to seek a new exemption when hiring a manager already on this list, but must still submit a Competitive Process Notification Form, Vendor Certification Form, and Disclosure Form, and receive PERAC's acknowledgement before transferring funds; boards may also hire non-listed managers by requesting a separate exemption. No exemption is required for domestic equity or fixed income managers—only the three forms noted above apply.

This memo (PERAC Memo #18, 2011) transmits the updated, PERAC-maintained list of investment managers/funds in international equity, international fixed income, real estate, and alternative investments that have previously received exemptions under 840 CMR 19.01 and remain open to new investors. Boards hiring a manager already on this list do not need to seek a new exemption, but must still submit a Competitive Process Notification Form, Vendor Certification Form, and Disclosure Form and receive PERAC acknowledgement before transferring funds; boards may also still pursue exemptions for managers not on the list, and no exemption is needed at all for domestic equity/fixed income hires. No other action is required beyond noting the quarterly-updated list, available on PERAC's website.

PERAC Memo #22/2011 announces the updated Application for Reinstatement to Service form under G.L. c. 32 §105, effective July 1, 2011–June 30, 2012. Boards should use this revised form when members seek reinstatement from superannuation/termination retirement, carefully counsel members on the significant repayment obligations and five-year full-time employment requirement, complete the initial portion of the form, and contact PERAC's actuarial unit if a needed investment return assumption factor is not listed.

This memo addresses shift substitution practices (common in public safety departments) and clarifies that regular compensation and creditable service under G.L. c. 32 may only be granted for time actually worked—collective bargaining agreements allowing shift swaps without regard to who actually performed the work cannot override these statutory requirements. Boards must ensure that when shift substitution occurs, records accurately reflect which employee actually worked the shift, so that creditable service and regular compensation are credited only to the member who performed the work, not to the member who was nominally scheduled but did not work.

This memo introduces the governance-related provisions of Chapter 176 of the Acts of 2011 (Pension Reform and Benefit Modernization), covering investment oversight changes, board member eligibility/education/disclosure requirements, procurement reform, and enforcement measures, with a separate memo to follow on benefit-structure provisions. Most governance provisions take effect February 16, 2012; boards should note that PERAC will no longer issue individual investment manager exemptions/waivers but will instead require submission of procurement documentation, vendor and board member certifications, and consultant reports for acknowledgement before proceeding with investments or consultant retention. Boards should review the new law closely and prepare to comply with new eligibility rules (e.g., prohibiting service by employees/vendors receiving outside remuneration) as further PERAC guidance and forms are issued.

PERAC Memo #36/2011 summarizes the non-governance provisions of Chapter 176 of the Acts of 2011 (Pension Reform and Benefit Modernization), covering changes to regular compensation definitions, Group 2/4 classification requirements, creditable service buyback deadlines, and an increase in the Group 1 minimum retirement age to 60 for members entering service on or after April 2, 2012. Boards must take action on several fronts: they may adopt local options (effective after February 16, 2012) to raise the minimum monthly allowance under G.L. c. 32, §12 and increase board member stipends, and they must act immediately to implement Section 55's option-change provision for certain same-sex marriage retirees given its tight implementation timeframe. Boards should also review member counseling practices in light of the new age-60 restriction and buyback deadlines taking effect April 2, 2012.

This memo announces the new mandatory training requirement under Chapter 176 of the Acts of 2011 (M.G.L. c. 32, §20(7)), which takes effect in 2012 and requires each retirement board member to complete 18 hours of training over their term, with a minimum of 3 and maximum of 9 hours creditable per year. Boards must distribute PERAC's statement-of-completion forms to members, ensure members submit completed forms documenting 2012 training to PERAC by January 31, 2013, and be aware that failure to meet the requirement bars a member from serving beyond the end of their term. PERAC has scheduled initial 2012 training sessions (covering fiduciary responsibility/annual statement training and ethics) that boards should make available to their members.

This memo transmits PERAC's updated (as of 12/31/09) quarterly list of investment managers previously granted exemptions under 840 CMR 19.01 in international equity, international fixed income, real estate, and alternative investments asset classes. Boards may hire managers from this list without seeking a new exemption, but must still submit a Competitive Process Notification Form, Vendor Certification Form, and Disclosure Form, and receive PERAC acknowledgement before transferring funds; no exemption or listing applies to domestic equity/fixed income managers, and boards may still pursue exemptions for managers not on the list.

PERAC Memorandum #08/2010 transmits updated buyback and make-up repayment worksheets, instructions, and the cumulative interest factor sheet for calendar year 2010, to be used for calculating creditable service buybacks/make-ups under the various G.L. c. 32 provisions referenced in Memos #13/2005 and #28/2008. Boards should use these updated 2010 worksheets/interest factors (rather than prior years' versions) when computing member buyback and make-up payments going forward, and may contact John Boorack with questions.

This memo announces that PERAC has set the "regular interest" rate under G.L. c. 32, §22(6)(b) at 0.3% for calendar year 2010, based on average savings rates from a sample of financial institutions. Boards must apply this 0.3% rate to accumulated total deductions and accrued interest when crediting interest for refunds and retirements processed during 2010, and also apply it to outstanding balances as of December 31, 2009, when crediting interest on December 31, 2010.

This memo clarifies implementation of the "Under $5000 Rule" (G.L. c. 32, §4(1)(o)), which excludes creditable service (but not membership) for employees earning under $5,000 annually as of July 1, 2009. Boards should consider adopting a supplemental regulation under §3(2)(d) to exclude future part-time/low-earning employees and elected officials from membership going forward, but for current members already in service, boards must continue withholding retirement deductions from their compensation even though that service will not count as creditable service, since membership status is unaffected by this statute.

This memo transmits PERAC's quarterly-updated list (as of 3/31/10) of investment managers previously granted exemptions under 840 CMR 19.01 in international equity, international fixed income, real estate, and alternative investment asset classes. Boards may hire managers already on this list without seeking a new exemption, but must still submit a Competitive Process Notification Form, Vendor Certification Form, and Disclosure Form and receive PERAC acknowledgement before transferring funds; boards remain free to pursue exemptions for managers not on the list, and no exemption is needed at all for domestic equity/fixed income hires.

PERAC Memorandum #22, 2010 addresses the DALA decision in Petrucci v. PERAC, which followed the earlier Amoah precedent, holding that a member on partial workers' compensation who continues part-time employment with the same employer where the injury occurred is entitled to full creditable service for that period. Boards must now grant full creditable service in such cases going forward; however, if a member receiving partial workers' compensation is not concurrently employed with the same employer, no creditable service should be granted for that period.

This memo reminds boards that termination allowance approvals under G.L. c. 32, §10(2) must continue to be submitted to PERAC for review and approval, given an uptick in filings due to budgetary constraints. It clarifies that the three-year average compensation calculation (vs. the standard five-year average) applies only if a board's legislative body and chief executive officer have accepted the 1984 local option under Chapter 473. Boards that have accepted this local option but are not shown as such on PERAC's website should submit documentation of that acceptance to PERAC.

PERAC Memorandum #26/2010 announces an updated form (effective July 1, 2010–June 30, 2011) for members applying for reinstatement to service under G.L. c. 32 §105. Boards must complete the initial portion of the form for interested members and provide thorough counseling on repayment obligations and the five-year full-time employment requirement before members sign and convert from retiree to member-in-service status.

This memo transmits PERAC's updated quarterly list (as of 6/30/10) of investment managers previously granted exemptions under 840 CMR 19.01 for international equity, international fixed income, real estate, and alternative investment asset classes. Boards may hire managers from this list without seeking a separate exemption, but must still submit a Competitive Process Notification Form, Vendor Certification Form, and Disclosure Form, and receive PERAC acknowledgement before transferring funds; no exemption is needed for domestic equity/fixed income managers, and boards may still pursue exemptions for managers not on the list.

This memo explains that effective July 1, 2010 (per Chapter 131 of the Acts of 2010), members who voluntarily terminate service with less than 10 years of creditable service and withdraw their contributions will have their refund interest calculated at a flat 3% rate for the entire period, replacing the prior tiered interest treatment for those with less than 5 or 10 years of service. This change applies only at the time of refund disbursement (not to interest credited while funds remain on deposit), does not affect involuntary withdrawals or members with 10+ years of service, and leaves buyback rules unchanged. Boards should use the PERAC spreadsheet/examples provided (pending an updated withdrawal application form) to manually calculate affected refunds, continue processing disbursements via Refunds to Members #5757 with interest transferred from the Pension Reserve Fund to the Annuity Savings Fund, maintain thorough documentation for potential future reemployment situations, and carefully counsel and provide written notice to members applying for refunds about how this provision affects them.

This memo transmits PERAC's quarterly-updated list (as of 9/30/10) of investment managers previously granted exemptions under 840 CMR 19.01 for international equity, international fixed income, real estate, and alternative investment asset classes; only funds still open to new investors are included. Boards do not need to seek a new exemption when hiring a listed manager, but must still submit the Competitive Process Notification Form, Vendor Certification Form, and Disclosure Form under 840 CMR 17.04(8)(a)-(b) and obtain PERAC acknowledgement before transferring funds; boards may also pursue exemptions for managers not on the list. Note that domestic equity/fixed income managers never require exemptions, and this list is separate from PERAC's general Investment Managers, Consultants, and Custodians directory.

This memo announces that PERAC has set the 2009 "regular interest" rate at 0.5%, as required under G.L. c. 32, §22(6)(b), based on average savings account rates from a sample of financial institutions. Boards must apply this 0.5% rate to accumulated total deductions and accrued interest when crediting interest for 2009 refunds and retirements, and again on December 31, 2009 for outstanding balances as of December 31, 2008.

This memo provides the quarterly-updated (as of 12/31/08) PERAC list of pre-approved investment managers/funds in international equity, international fixed income, real estate, and alternative investments that have already been granted an 840 CMR 19.01 exemption and remain open to new investors. Boards do not need to apply for a new exemption when hiring a manager from this list, but must still submit the Competitive Process Notification Form, Vendor Certification Form, and Disclosure Form and receive PERAC acknowledgement before transferring funds; boards may also still pursue exemptions for managers not on the list, and no exemption is needed at all for domestic equity/fixed income hires (only the three forms).

PERAC Memorandum #8/2009 provides retirement boards with updated instructions, worksheets, and the cumulative interest factor sheet for calculating buyback and make-up repayments using buyback interest for calendar year 2009, applicable to the various G.L. c. 32 provisions referenced in prior Memos #13/2005 and #28/2008. Boards should use these updated materials for all applicable buyback/make-up calculations going forward, replacing prior year factors; no further action is required beyond adopting the new worksheets in practice.

This memo transmits PERAC's quarterly updated list (as of 3/31/09) of investment managers previously granted exemptions under 840 CMR 19.01 in the international equity, international fixed income, real estate, and alternative investment asset classes. Boards may hire any manager on this list without seeking a new exemption, but must still submit a Competitive Process Notification Form, Vendor Certification Form, and Disclosure Form to PERAC and receive acknowledgement before transferring funds; no action is required for domestic equity/fixed income hires beyond these three documents, and boards remain free to request exemptions for managers not on the list.

This memo clarifies that under G.L. c. 32, § 4(1)(c), retirement boards may—at their discretion, via board action—grant up to one month of creditable service for a member's unpaid furlough/leave period, regardless of how many separate leave periods occur. It also explains that if such service is granted, the member's pre-furlough regular compensation rate (per § 5(3)(b)) must be used for that period when calculating three-year average compensation, without requiring actual contributions, but only if that period falls within the averaging window. No mandatory board action is required beyond ensuring any discretionary creditable service grants and compensation calculations comply with this guidance.

This memo explains how the American Recovery and Reinvestment Act of 2009 (ARRA) affects retiree withholding: new IRS federal withholding tables took effect April 1, 2009, potentially increasing net allowances since retirement income (unlike earned income) doesn't qualify for the Making Work Pay Credit, creating a risk of under-withholding. It also describes two separate one-time $250 payments—a Social Security/Railroad Retirement payment and a Federal/State Retiree Credit (mutually exclusive)—that may apply to certain retirees. **Action required:** Boards should promptly notify the entity issuing retiree checks to implement the new withholding tables, and proactively inform retirees of the under-withholding risk, encourage them to consult a tax professional, and remind them they may file a new W-4P to adjust withholding if desired.

**PERAC Memorandum #24, 2009 – Summary** This memo transmits Chapter 21 of the Acts of 2009 ("Pension Reform Act"), signed June 16, 2009, and outlines its major provisions, including a new, narrower statutory definition of "regular compensation" (effective July 1, 2009, limiting it largely to base salary and excluding overtime, bonuses, buyouts, and similar payments, with limited grandfathering for collective bargaining agreements through June 30, 2012); elimination of automatic full-year creditable service credit for elected officials serving partial years (for retirements after July 1, 2009); and repeal of the ability to purchase creditable service for uncompensated positions. **Action required:** Boards should review the attached bill text, update payroll/compensation reporting practices to conform to the new regular compensation definition by the applicable effective dates, and await further PERAC guidance on implementation details.

PERAC Memo #25 (2009) announces the annual update to the Application for Reinstatement to Service under G.L. c. 32 §105, effective July 1, 2009 through June 30, 2010. Boards should use the revised form, complete the initial portion for interested members, and carefully counsel applicants on the repayment obligations and five-year full-time service requirement before they sign and convert from retiree to active member-in-service status.

PERAC Memorandum #27 (2009) provides the quarterly-updated list, as of 6/30/09, of investment managers granted exemptions under 840 CMR 19.01 in the asset classes of international equity, international fixed income, real estate, and alternative investments. Boards that have previously received an exemption for a given asset class may hire managers from this list without applying for a new exemption, but they must still submit a Competitive Process Notification Form, Vendor Certification Form, and Disclosure Form, and receive PERAC's acknowledgement before transferring funds; no exemption is required at all for domestic equity/fixed income managers. Boards may also seek exemptions for managers not on the list, and should note this list is distinct from PERAC's general roster of investment managers, consultants, and custodians.

This memo corrects PERAC Memo #25/2009 by providing an updated Application for Reinstatement to Service form (effective July 1, 2009–June 30, 2010) under G.L. c. 32 §105, since the prior version incorrectly used the full actuarial interest rate rather than the buyback rate (half the assumed rate) required by Chapter 302 of the Acts of 2008. Boards should use only this revised form going forward, complete the initial section for members seeking reinstatement, and ensure members are properly counseled on the repayment obligations and five-year full-time employment requirement before they sign and convert from retiree to active member-in-service status.

PERAC Memorandum #39 (2009) provides retirement boards with the updated quarterly list, current as of 9/30/09, of investment managers who have received a PERAC exemption under 840 CMR 19.01 for international equity, international fixed income, real estate, and alternative investment asset classes. Boards hiring a manager already on this list do not need to seek a new exemption, but must still submit a Competitive Process Notification Form, Vendor Certification Form, and Disclosure Form to PERAC and receive acknowledgement before transferring funds; no exemption or listing applies to domestic equity/fixed income managers, and boards remain free to request exemptions for managers not on the list.

PERAC Memorandum #7 (2008) sets the "regular interest" rate under G.L. c. 32, §22(6)(b) at 0.6% for calendar year 2008, based on average savings account rates from a sample of financial institutions. Boards must apply this 0.6% rate to accumulated total deductions and accrued interest when crediting interest for 2008 refunds and retirements, and also apply it on December 31, 2008 to outstanding balances as of December 31, 2007. No further action beyond applying this rate is required.

PERAC Memorandum #10/2008 provides updated worksheets and instructions for calculating buyback and make-up repayments using regular interest for calendar year 2008, applicable to the specific G.L. c. 32 provisions referenced in Memo #13/2005 (§§4(1)(g½), 4(1)(l), 4(1)(l½), 4(1)(n), 4(1)(o), 4(1)(o½), 4(1)(p), and 4(2)(c)). Boards should use these updated worksheets going forward for any applicable buyback/make-up calculations processed in 2008, and may contact John Boorack with questions.

This memo transmits the updated 2008 worksheets, instructions, and cumulative interest factor sheet for calculating member buybacks and make-up payments using buyback interest under the specified G.L. c. 32 provisions. Boards should use these updated calendar-year 2008 tools (replacing prior year versions) for all applicable buyback/make-up calculations, consistent with guidance in PERAC Memo #13/2005, and may contact John Boorack with questions.

This memo clarifies the rules governing former retirement system members who return to public employment, addressing three scenarios: buyback of previously withdrawn funds (at half the actuarial assumed interest rate) with automatic reinstatement to membership under G.L. c. 32, §3(2)(a)(iv), the two-year active service requirement before certain retirement allowances become payable again, and the process under §105 for retired members repaying benefits with interest to re-establish membership upon returning to public service. Boards should use this guidance to correctly calculate buyback amounts, apply the appropriate interest rates, and properly administer the re-establishment of membership and eligibility restrictions for returning former members and retirees; no additional filing or action beyond proper administration of these existing statutory provisions is required.

This memo announces PERAC's updated Application for Reinstatement to Service form under G.L. c. 32 §105, effective July 1, 2008–June 30, 2009, for members seeking to return from superannuation/termination retirement to active service. Boards must use this revised form, complete the initial portion for interested members, and carefully counsel them on the repayment obligations and five-year full-time employment requirement before they sign and convert to member-in-service status.

Memorandum #28/2008 explains that Chapter 302 of the Acts of 2008 (Sections 7–9, effective July 1, 2008) changes the interest rate applied to buybacks/make-ups under various §4(1) provisions and §105 reinstatements from regular/actuarial assumed interest to buyback interest. Boards must use the updated worksheets/forms attached to this memo (replacing those in Memos #10, #11, and #23 of 2008) for all future calculations, and must recalculate any repayments initiated between July 1, 2008 and receipt of this memo—reducing amounts owed (and refunding overpayments already made) where buyback interest yields a lower figure, while allowing members to continue paying under the higher regular-interest calculation if that amount is lower.

PERAC Memo #7/2007 establishes the "regular interest" rate under G.L. c. 32, §22(6)(b) at 0.6% for calendar year 2007, based on the average savings account rates from a sample of financial institutions. Boards must apply this 0.6% rate to accumulated total deductions and accrued interest for refunds and retirements processed during 2007, and credit it to outstanding balances as of December 31, 2006 on December 31, 2007. No further board action is required beyond correctly applying this rate in calculations.

PERAC Memo #10/2007 transmits updated instructions and worksheets for calculating member buybacks and make-up payments using regular interest for calendar year 2007, applicable to service purchases under the specified G.L. c. 32 sections referenced in Memo #13/2005. Boards should use these updated worksheets when computing 2007 buyback/make-up interest calculations and may contact PERAC staff with questions.

PERAC Memo #11/2007 provides retirement boards with updated buyback/make-up repayment worksheets and a cumulative interest factor sheet for calendar year 2007, to be used when calculating service buybacks and make-ups under the specified G.L. c. 32 provisions (as outlined in Memo #13/2005). Boards should use these new 2007 worksheets and interest factors going forward for all applicable buyback/make-up calculations, and may contact John Boorack with questions.

This memo clarifies the implementation of two local-option laws—Chapter 324 of the Acts of 1983 and Chapter 235 of the Acts of 1994—which grant creditable service to police officers and firefighters laid off in 1981-82 (or subsequently reinstated within three years) for their period of unemployment, outlining the different member buy-back cost requirements under each act and their interplay when a municipality accepted Chapter 324 before October 8, 1985. Boards should note that Chapter 235 has been accepted by eleven municipalities (listed on PERAC's website), and boards whose city/town accepted Chapter 324 of 1983 are asked to notify PERAC by letter, since the Commission has no record of which communities adopted that earlier act.

This memo announces PERAC's updated Application for Reinstatement to Service form under G.L. c. 32 §105, effective July 1, 2007–June 30, 2008, for members seeking to return from superannuation/termination retirement to active service. Boards must use this updated form when processing such requests, completing the initial portion before providing it to interested members, and should carefully counsel members on the requirements (repayment obligations and the five-year full-time employment requirement) before they sign and convert to member-in-service status.

PERAC is updating the Supplemental Regulations section of its website to display only current, active board regulations organized under four categories (Membership, Creditable Service, Regular Compensation, and Miscellaneous). Boards must review the enclosed list of their currently posted regulations, mark any that are outdated, duplicative, or invalid, add any approved regulations missing from the list, and submit the corrected/updated list to Susan F. Childs by September 30, 2007.

**PERAC Memorandum #46, 2007** relays an Advisory Opinion from the Supervisor of Public Records (SPR 07/301) addressing whether a member's date of birth and annuity account balance are public records. The Supervisor determined that a member's date of birth may be withheld due to identity theft concerns, and that mandatory annuity contributions and credited interest are public records akin to payroll records, while voluntary additional contributions under G.L. c. 32, §22(1)(g) may be withheld. Boards should review and update their record disclosure policies to ensure consistency with this guidance.

This memo notifies retirement boards that PERAC has set the "regular interest" rate for 2006 at 0.6%, as determined under G.L. c. 32, §22(6)(b) in consultation with the Commissioner of Banks. Boards must apply this rate to accumulated total deductions and accrued interest for refunds and retirements processed during 2006, and credit it to outstanding balances as of December 31, 2005 on December 31, 2006.

This memo transmits updated worksheets and instructions for calculating buyback and make-up payment amounts using regular interest for calendar year 2006, applicable to the specific G.L. c. 32 provisions cited in PERAC Memo #13/2005 (§§4(1)(g½), 4(1)(l), 4(1)(l½), 4(1)(n), 4(1)(o), 4(1)(o½), 4(1)(p), and 4(2)(c)). Boards should use these enclosed worksheets going forward when computing such repayments for members buying back or making up service, contacting PERAC staff with any calculation questions.

PERAC Memorandum #9/2006 provides retirement boards with updated worksheets, instructions, and a cumulative interest factor sheet for calculating buyback and make-up payments using buyback interest for calendar year 2006, applicable under G.L. c. 32, §§ 3(3), 3(4), 3(4A), 3(5), 3(6)(c), 3(6)(d), and 3(8)(b). Boards should use these new tools (referencing PERAC Memo #13/2005) for all applicable buyback/make-up calculations going forward, and may contact John Boorack with any questions.

This memo explains Chapter 157 of the Acts of 2005, which allows Group 1, 2, and 4 accidental disability retirees who are veterans to receive an additional yearly allowance ($15 per year of creditable service, up to $300), with Section 2 permitting retroactive payment to the date of retirement for living retirees. Both sections require local acceptance by the retirement board and legislative body, and veteran status is determined under the G.L. c. 4 §7 cl. 43 definition (per Memo #21/2004). **Action required:** If a board and its legislative body accept Section 1, Section 2, or both, the board must proactively notify all living accidental disability retirees of potential eligibility and send the appropriate application(s) (enclosed with the memo); if neither section is accepted, no applications should be sent. If Section 2 is accepted, retirees have 120 days from acceptance to apply, and the board must pay any resulting benefit within one year of receiving the application.

This memo notifies boards that Chapter 77 of the Acts of 2005 extends the Military Pay Act (Chapter 137 of the Acts of 2003) authorization period from September 11, 2005 to September 11, 2008, allowing counties, cities, and towns that adopt the Act to continue paying employees on military leave the difference between base salary and military pay. Boards should note that in municipalities adopting this provision, this salary differential is regular compensation subject to retirement deductions, with creditable service and deduction details as previously outlined in PERAC Memorandum #39/2001. No new board action is required beyond continuing to apply these rules where the local option has been adopted.

This memo clarifies implementation of Chapter 157 of the Acts of 2005, which grants Section 7 accidental disability retirees an additional veteran's allowance, focusing on timing issues when a retiree dies before or during the application/acceptance process. It explains that the benefit only becomes effective upon local legislative body acceptance, and no allowance is payable if a retiree dies before that acceptance date or before submitting/postmarking an application (for Section 2 benefits). Boards must notify all living accidental disability retirees of potential eligibility once Section 1 (or Sections 1 and 2) is accepted, process applications promptly, and are encouraged to complete verification and voting procedures expeditiously to maximize the number of retirees who qualify before death forecloses eligibility.

PERAC Memo #30/2006 announces an updated version of the Application for Reinstatement to Service form under G.L. c. 32 §105, effective July 1, 2006 through June 30, 2007. Boards must use this revised form when counseling members interested in reinstatement, ensuring they understand the repayment obligations and five-year full-time employment requirement, and must complete the initial portion of the form before providing it to members (whose signature converts them from retiree to member-in-service status).

This memo notifies retirement boards that PERAC has set the "regular interest" rate under G.L. c. 32, §22(6)(b) at 0.6% for calendar year 2005, based on average savings rates from a sample of financial institutions. Boards must apply this 0.6% rate to accumulated total deductions and accrued interest when crediting interest for 2005 refunds and retirements, and also apply it on December 31, 2005 to outstanding balances as of December 31, 2004.

PERAC Memorandum #10/2005 transmits the updated Buy-back and Make-up Repayment Worksheets for calculating 2005 lump-sum repayments, including detailed instructions for computing partial-year and cumulative interest factors on refunded amounts. Boards should use these worksheets (soon available on PERAC's website) to determine the correct repayment amounts for members buying back previously refunded creditable service or making up contributions, applying board-specific terms for any installment arrangements. No other board action is required beyond adopting the updated calculation tool for 2005 transactions.

This memo notifies boards that, effective July 1, 2005, Chapters 279 and 280 of the Acts of 2004 change the interest methodology for buybacks/make-ups under specified sections (e.g., §§3(2)(a)(vii), 3(3)-3(6), 3(8)(b)), requiring use of "buyback interest" (half the actuarial assumed rate) for the entire repayment period, rather than regular interest; other buyback sections (§4(1) and §4(2)(c) categories) remain calculated using regular interest. Boards must apply the new methodology and enclosed worksheets to any buybacks calculated on or after July 1, 2005 (existing schedules already in place are unaffected), and should contact PERAC if their applicable interest rate is not included in the worksheets.

This memo updates boards on the status of PERAC's pending 2001 IRS private letter ruling request, which would allow pre-tax payroll deductions for creditable service buybacks system-wide. Until the ruling is issued, only the Teachers' and Boston Retirement Systems (which received their own prior rulings) may process such buybacks pre-tax; all other boards must continue processing service purchase deductions on a post-tax basis (mandatory contributions and certain rollovers remain pre-tax as before). No action is required beyond continuing current post-tax practice pending further guidance.

PERAC has issued an updated Application for Reinstatement to Service form under G.L. c. 32 §105, effective July 1, 2005 through June 30, 2006, for members seeking to return from superannuation/termination retirement to active service. Boards should carefully counsel interested members on the requirements (including potential large repayments and a minimum five years of full-time employment) before completing the first portion of the form and providing it to the member, whose signature converts their status from retiree to member in service.

**Memorandum 24/2005** clarifies how local retirement boards should handle RetirementPlus contributions when a teacher transfers from the TRS or BRS to a local system. The TRS/BRS will transfer the member's full account but will identify the "excess" contributions (above the normal rate) on the transfer memo; local boards must retain these excess contributions if the member retires with 30+ years of creditable service, refund them (with regular interest) if the member retires with less than 30 years and participation was optional, but may not refund them if RetirementPlus participation was mandatory (members hired after July 1, 2001). Boards should apply this framework when processing transfers-in of RetirementPlus members and can direct questions to PERAC or TRS General Counsel.

**Memorandum 34/2005 Summary:** PERAC is proposing amendments to 840 CMR 15.03 to clarify the definition of "regular compensation" under G.L. c. 32, specifically addressing salary augmentation/enhanced longevity plans that provide temporary, multi-year salary increases (often tied to sick leave buybacks or retirement notice requirements) rather than permanent compensation increases. While the regulation is pending public comment and hearings, boards should carefully scrutinize existing compensation plans against the listed disqualifying factors (e.g., retirement-notice requirements, bonuses, sick leave reductions, or plans creating outsized systemic liabilities), since collective bargaining agreements cannot override G.L. c. 32's definition of regular compensation. Boards are encouraged to share this memo with employers and unions and should reassess any such plans accordingly, though no immediate compliance deadline is imposed beyond the December 13, 2005 comment period.

This memo explains Chapter 157 of the Acts of 2005, which grants Section 7 accidental disability retirees in Groups 1, 2, and 4 an additional annual allowance ($15/year of service, up to $300), subject to local acceptance, with an optional retroactive component (Section 2) requiring a separate majority vote. Boards must vote separately on Section 1 (establishing the benefit) and, if desired, Section 2 (retroactivity)—Section 2 cannot be accepted without Section 1—and both require approval by the applicable legislative body. If Section 2 is accepted, boards must notify all accidental disability retirees to determine veteran eligibility and process applications within the specified timeframes; in all cases, boards must send PERAC written notice of their vote(s) and legislative approval status within 120 days of voting.

This memo addresses PERAC's obligations under Chapter 46, Section 116 to prepare cost reports by December 31, 2004, for retirement systems whose governmental units adopted the 2003 Early Retirement Incentive (ERI) program. Boards that accepted the ERI must submit specific member-level data (demographics, service, compensation, and benefit details) for each ERI retiree, or alternatively notify PERAC if a private actuary will perform the cost analysis. Additionally, boards must revise their funding schedules to reflect the added liability—recommended at 15-year level dollar amortization—and notify PERAC of the chosen methodology and effective fiscal year (expected to typically be FY06).

This memo announces that PERAC has set the 2004 "regular interest" rate at 0.6%, as determined in consultation with the Commissioner of Banks per G.L. c. 32, §22(6)(b). Boards must apply this rate to accumulated total deductions and accrued interest for refunds and retirements processed during 2004, and credit it to outstanding balances as of December 31, 2003 on December 31, 2004. No further action is required beyond correctly implementing this rate in interest calculations.

This memo transmits the 2004 Repayment Worksheets and instructions for calculating buy-back and make-up payments—used to determine the amount a member owes to restore creditable service tied to previously refunded annuity savings fund balances (plus accrued interest). Boards should use these worksheets (available on PERAC's website) for lump-sum repayment calculations in 2004, applying their own board-specific terms for any installment arrangements; no other action is required beyond adopting the updated calculation tool.

This memo notifies boards of a legislative change (effective 90 days after signature) broadening the definition of "veteran" under G.L. c. 32, §§4(1)(h) and 5(2)(b): members of the Army, Navy, Air Force, Marines, or Coast Guard with at least 180 days active duty under honorable conditions now qualify without wartime service (with the 180-day requirement waived for service-connected disability or death in service), and full-time (activated) National Guard members with at least 90 days duty and one day of wartime service also qualify. Boards should apply this expanded definition going forward when evaluating military buyback and veteran's bonus eligibility, continue calculating National Guard service purchases at the existing five-years-to-one-year ratio, and continue requiring DD214 forms to verify service; PERAC will issue a revised Notice of Potential Benefits form shortly.

This memo summarizes FY05 State Budget provisions affecting G.L. c. 32, including: (1) an expanded public records exemption now shielding all public employees' (not just public safety) home addresses/phone numbers, requiring boards to apply the prior public safety protocol universally; (2) new statutory requirements for the Attorney General/District Attorneys and employers to notify PERAC and boards of member indictments, suspensions, and convictions, requiring boards to monitor such cases and act under G.L. c. 32, §15 once notified; and (3) new definitions ("accumulated assumed actuarial deductions" and "actuarial assumed interest") added to §1, the latter of which affects the interest rate applied when reinstating retirees to membership. Boards must update their public records practices, establish monitoring procedures for indictment/conviction notices, and apply the new actuarial assumed interest rate where relevant; no action is needed yet on the "accumulated assumed actuarial deductions" definition pending further legislative action.

PERAC issued a revised Notice of Potential Benefits form under G.L. c. 32, §4(1)(h), reflecting Chapter 116 of the Acts of 2004's updated definition of "veteran" for military service purchase eligibility, effective August 30, 2004. Boards must use this new form and should note that only active members in service may purchase military service credit (no retroactive application to retired or inactive members), while National Guard/reserve service purchases remain on the existing 5-to-1 year basis.

This memo notifies boards that the Legislature overrode Governor Romney's vetoes on several FY05 Budget provisions affecting retirement systems: reinstatement of the spousal retirement benefit under G.L. c. 32, §5(1)(e) for spouses married and in service on or before November 1, 2003; a PERAC-led study on raising the $12,000 COLA base; and changes to the confidentiality status of certain PRIM records. Boards must verify member records to identify spouses eligible for the reinstated spousal retirement benefit and, critically, must recalculate and retroactively pay increased allowances to anyone who retired between November 1, 2003 and the Budget's effective date who would benefit from this provision; no board action is required regarding the COLA study, which PERAC will distribute upon completion.

This memo notifies boards that Governor Romney vetoed Senate Bill 1576, which would have established a local-option annual veterans benefit ($15/year of service, up to $300) for accidental disability retirees, with retroactive effect and board notification requirements. No board action is required at this time; PERAC will issue further guidance only if the Legislature overrides the veto.

This memo announces a PERAC survey to gather information on how individual retirement boards handle purchases of creditable service (military, non-membership, and refunded service), since practices vary and are left to board discretion. Boards are required to complete and return the questionnaire to PERAC by September 30, 2004; results will later be compiled and shared with all boards and posted on PERAC's website.

This memo announces new G.L. c. 32, §105 provisions allowing superannuation/termination retirees to reinstate to service by repaying their retirement allowance plus interest and working at least five years full-time, and it provides the accompanying application form. Boards must complete the initial portion of the form, carefully counsel interested members on the repayment obligations and requirements before they sign (converting them from retiree to active member status), and coordinate with other retirement systems when reinstatement occurs in a different system, including handling payments under §3(8)(c).

This memo notifies boards that Chapters 279 and 280 of the Acts of 2004 change the cost calculation for certain creditable service buybacks (under G.L. c. 32, §§ 3(2)(a)(vii), 3(3), 3(4), 3(4A), 3(5), 3(6)(c), 3(6)(d), and 3(8)(b)), effective July 1, 2005, requiring "buyback interest" (half the actuarial assumed rate) instead of regular interest, and "accumulated buyback deductions" rather than accumulated regular deductions for §§ 3(4), 3(4A), and 3(5) purchases. No immediate board action is required beyond awareness, as PERAC will issue updated forms and further guidance before the effective date; note that a related bill affecting §4 buyback costs was not enacted.

This memo outlines the termination retirement allowances available under G.L. c. 32, §10(1) and §10(2)(a), explaining eligibility criteria (e.g., 20+ years of service with involuntary separation, or 30+ years with resignation before age 55) and how allowances are calculated, including age-factor reductions and Group 2/4 special provisions. It also reiterates PERAC's mandatory review and certification process (per §21(1)(d)) for all termination retirement allowance grants, requiring boards to submit the Employer's Certification and Termination Retirement Transmittal forms (from Memo #33/2002) with each application, which PERAC will act on within 30 days.

This memo notifies boards that PERAC, per G.L. c. 32, §22(6)(b), has set the 2003 "regular interest" rate at 1.0%, based on average savings rates from a sample of financial institutions. Boards must apply this 1.0% rate to accumulated total deductions and accrued interest when crediting interest on 2003 refunds and retirements, and must also credit it to outstanding balances as of December 31, 2002 on December 31, 2003.

PERAC Memorandum #9/2003 transmits the updated Buyback and Repayment Worksheet and instructions for calculating member buybacks and repayments for calendar year 2003, including the annual factor table used to compute accrued interest by year of service. Boards should use this worksheet (also to be posted on PERAC's website) for all 2003 buyback/repayment calculations, contacting John Boorack with any questions; no other action is required beyond adopting the updated figures.

This memo clarifies how furloughs (unpaid leave) affect creditable service and regular compensation under G.L. c. 32, §§ 4(1)(c) and 5(3)(b): boards may, at their discretion, grant up to one month of creditable service per furlough period (regardless of how many separate unpaid leave periods occur), and if such service is granted, the member's pre-furlough regular compensation rate is used for that period in the three-year average calculation—even without actual contributions—but only if that period falls within the averaging window. No mandatory action is required; boards should simply apply this discretionary authority consistently when addressing furlough-related creditable service and compensation determinations.

This memo announces that Chapter 468 of the Acts of 2002 eliminates the prior ten-year creditable service requirement for purchasing military service credit under G.L. c. 32, § 4(1)(h), effective April 1, 2003; any member in service qualifying as a "veteran" may now purchase up to four years of military service credit regardless of tenure, with the definition of "veteran" unchanged. Boards must review new enrollment forms and existing member records to identify veterans—especially those with fewer than ten years of service—and notify all eligible members of this purchase option, giving them 180 days to decide, with certified mail or signed acknowledgment recommended as proof of notice.

This memo notifies boards that Section 175 of Chapter 26 of the Acts of 2003 repealed G.L. c. 32, §5(1)(e) effective July 1, 2003, eliminating the provision allowing members with 10+ years of creditable service married to a c. 32 retiree to retire regardless of age. Boards should no longer process retirements under this spousal provision for applications filed on or after that date. No other board action is required beyond updating internal procedures/guidance to reflect the repeal.

This memo announces that PERAC's Retirement Board Travel Regulations (840 CMR 2.00 et seq.) took effect June 6, 2003, superseding prior Travel Guidelines with two notable stricter provisions: no reimbursement for personal phone calls or for meals of non-board members/staff. Boards with previously approved supplemental travel regulations are automatically deemed compliant; boards without approved supplemental regulations must adopt them—addressing travel routing, rental car use, personal vehicle mileage rates, daily meal reimbursement caps (including high-cost location exceptions), and board credit card authorization—and should also develop Travel Authorization and Reimbursement forms.

This memo (25/2003) provides guidance on the local option Early Retirement Incentive (ERI) Program established under Section 116 of Chapter 46 of the Acts of 2003, outlining acceptance procedures (requiring both Legislative and Executive Authority approval by November 1, 2003), the deadline mechanics for towns, and employee eligibility criteria. Boards are not required to formally accept the Section themselves for it to take effect, but they must be prepared to administer the program once a governmental unit adopts it, may issue supplemental regulations as needed, and should forward the memo to the Legislative and Executive Authorities within their system.

This memo notifies boards of Chapter 137 of the Acts of 2003, which permits counties, cities, and towns (upon local legislative approval) to pay employees on military leave for national guard/reserve service the difference between their base salary and military pay, effective through September 11, 2005. Where a municipality adopts this provision, that salary differential is regular compensation subject to retirement deductions, and boards should refer to Memorandum #39/2001 for guidance on creditable service and contribution treatment. No board action is required unless the local jurisdiction adopts the provision, in which case the board must apply proper retirement deductions to the supplemental pay.

PERAC Memorandum #2/2002 establishes the "regular interest" rate for 2002 at 1.4%, as determined under G.L. c. 32, §22(6)(b) based on average rates from a sample of financial institutions. Boards must apply this 1.4% rate to accumulated total deductions and interest (for deductions made on or after January 1, 1946) when crediting interest for refunds and retirements processed during 2002, and on outstanding balances as of December 31, 2001, credited as of December 31, 2002.

PERAC Memorandum #5/2002 transmits the updated Buyback and Repayment Worksheet and instructions for calculating member buybacks and repayments for calendar year 2002, which will also be posted on the PERAC website. Boards should use this new worksheet for all 2002 buyback/repayment calculations and may contact Jim Lamenzo with questions.

PERAC Memorandum #6/2002 provides a supplemental buyback worksheet, to be used alongside the worksheet issued in Memo #5/2002, specifically for calculating the cost of purchasing prior creditable service for which no contributions were ever made. Boards should use this additional form when processing such buybacks for calendar year 2002; no other action is required, and questions can be directed to Jim Lamenzo at PERAC.

This memo warns that e-mail is not a secure medium and advises retirement boards not to transmit confidential or personally identifiable member/retiree information (e.g., Social Security numbers, birth dates, addresses, bank/credit card data) via e-mail, since PERAC cannot guarantee its security. Boards should specifically avoid sending actuarial valuation data files containing such identifiers by e-mail, pending PERAC's development of a secure transmission method (e.g., VPN); no other action is required beyond adopting safer transmission practices.

This memo announces emergency regulation 840 CMR 15.05, effective under EGTRRA, which authorizes retirement boards to accept direct pre-tax roll-overs from eligible retirement plans (457, 408(a), 401(a)/(c), and 403(b) plans) to fund members' purchases of creditable service; it does not create any new service-purchase eligibility. Boards must advise members to consult a tax professional regarding potential state tax implications and must maintain records tracking the source/destination of such roll-overs for accurate reporting on the 2002 Annual Statement.

This memo explains Chapter 116 of the Acts of 2002, which allows cities, towns, counties, authorities, and districts to locally adopt an Early Retirement Incentive (ERI) Program, and outlines the acceptance process (requiring approval by both Legislative and Executive Authorities by November 1, 2002) as well as employee eligibility criteria. Retirement boards are not required to formally accept the Act themselves, but must be prepared to administer the ERI—including adopting supplemental regulations as needed—once a governmental unit within their system accepts it, and should share this guidance with local officials.

PERAC has developed an Excel spreadsheet to help boards estimate ERI costs by calculating a member's regular retirement benefit versus the maximum enhanced benefit under various age/service credit combinations (for up to 50 members). The tool does not calculate present value or amortization schedules needed for funding purposes. No action is required unless a board wants to use the tool, in which case it should email James Lamenzo to request a copy.

Chapter 46 of the Acts of 2002 aligns Massachusetts retirement law with federal IRC limits on compensation used in calculating retirement allowances (e.g., the $200,000 cap for 2002 under 26 U.S.C. §401(a)(17)), and applies to members joining on or after February 28, 2002 regardless of pay level. Action is required only for boards whose membership includes highly compensated employees exceeding these federal limits—such boards should contact PERAC for assistance adopting and administering the Act's excess benefit provisions; most systems and members will be unaffected.

This memo addresses implementation of the Chapter 116 (2002) local option Early Retirement Incentive (ERI) program and PERAC's need to track acceptances and outcomes for a required legislative report due by December 31, 2003. Boards must promptly notify PERAC (via Lindsay Deaver) when any governmental unit accepts the ERI, including acceptance date, any age/service or participant limitations, and the retirement date; boards must also submit detailed member-level data (name, SSN, DOB, service, compensation, ERI-added age/service, allowance, etc.) for each retiree under the program, preferably in Excel format, as soon as it becomes available.

This memo requests retirement boards complete and return the annual Appropriation Data Questionnaire—covering FY03/FY04 appropriation amounts, Section 3(8)(c) reimbursements, COLA reimbursements, benefit payments, and any 90A/90C/90D acceptances—by October 31, 2002, so PERAC can calculate the FY04 appropriation under G.L. c. 32, §22D or §22(6A)(b). Boards may submit the questionnaire via PERAC's website and are reminded that funding schedules must be resubmitted for approval at least every three years, with boards lacking a recent schedule asked to contact PERAC.

This memo updates boards on Chapter 46 of the Acts of 2002, which brings the Massachusetts Retirement Law into compliance with IRC Sections 401(a)(17) (compensation limits) and 415 (benefit limits), affecting only the highest-paid members and retirees. Boards with any active members or retirees meeting the specified compensation/benefit thresholds must compile detailed member data and contact PERAC actuary Jim Lamenzo, and should consider voting to accept Section 7's provisions establishing separate "make whole" funds for affected members hired before February 28, 2002. Boards with no members meeting these thresholds need take no action, though PERAC notes that failure to comply where applicable could have significant tax and plan consequences.

**Summary:** This memo follows up on Chapter 116 of the Acts of 2002 (the local Early Retirement Incentive program), asking boards whose governmental units accepted the ERI to submit acceptance details (date, limits on age/service credit, participation caps, retirement date) and detailed member-level data for each ERI retiree, since PERAC must complete a cost analysis report for each accepting system by December 31, 2003. **Action required:** Boards must (1) confirm and report which of their governmental units accepted Chapter 116 along with acceptance terms, (2) submit member-specific retirement data (via Excel) for each ERI participant as soon as available, (3) notify PERAC's actuary if a private actuary will independently calculate ERI costs, and (4) be prepared to address the resulting funding schedule adjustments.

This memo announces Chapter 394 of the Acts of 2002 (effective 12/5/2002), which amended G.L. c. 32, §4(1)(o) to allow unpaid town moderators first elected by direct popular vote before 1/1/86 to purchase creditable service, joining selectmen, aldermen, city councilors, and school committee members already eligible under this provision. Eligible members must contribute to the annuity savings fund the amount they would have paid had they earned $2,500/year, plus regular interest to the date of payment. Boards should be prepared to process such purchase-of-service requests from qualifying moderators accordingly.

PERAC Memo #7/2001 announces that the "regular interest" rate under G.L. c. 32, §22(6)(b) for calendar year 2001 has been set at 1.9%, based on average savings account rates from a sample of financial institutions. Boards must apply this rate to accumulated total deductions and interest (for balances dated on or after January 1, 1946) when crediting interest on refunds and retirements processed during 2001, and on outstanding balances as of December 31, 2000, credited December 31, 2001.

PERAC Memo #9/2001 transmits the updated worksheets for calculating member buybacks and repayments for calendar year 2001. Boards should use these enclosed worksheets going forward for processing such calculations and may contact Jim Lamenzo with any questions.

This memo corrects an error in the buyback/repayment worksheet issued with PERAC Memo #9/2001: the factor for line (7) for a May repayment was incorrectly listed as 0.875% and should be 0.79167%. Boards should discard the previous worksheet and use the corrected version attached to this memo when calculating May repayments going forward.

This memo corrects an error in the repayment worksheet issued with PERAC Memo #15/2001, specifically the Factor for Line (7) for a March repayment, which should read 0.475 rather than 0.0475. Boards should discard the earlier worksheet and use the corrected version attached to this memo when calculating buyback and repayment amounts. No other action is required beyond ensuring staff use the updated factor going forward.

This memo informs boards that PERAC voted to seek an IRS ruling allowing elective buy-back payments (for purchasing creditable service) to be treated as pre-tax contributions, similar to mandatory contributions and the recent private rulings obtained by the Teachers' and Boston Retirement Systems. Since those existing IRS rulings apply only to the requesting boards and cannot be relied upon by others, no board may treat elective buy-backs as pre-tax until PERAC obtains its own ruling. No action is required at this time; boards should await further notice from PERAC once the IRS ruling is issued.

PERAC Memo #28/2001 provides guidelines for retirement boards on how to handle back pay awards resulting from Civil Service Commission or court-ordered settlements involving wrongful termination or failure to reinstate an employee. It outlines a five-step process boards must follow: determining the covered period and creditable service, calculating the regular compensation the member would have earned, accounting for any mitigation earnings, requiring repayment of any retirement allowance received during the award period, and collecting retirement contributions on the full regular compensation amount. Boards should apply these steps when evaluating such settlements, though the memo is guidance only and does not endorse the settlements themselves.

PERAC Memo 36/2001 clarifies that the statutory veteran's benefit (up to $300/year) under G.L. c. 32, §§5, 10, 26, 28M and 28N must be paid in full regardless of the retirement option selected, meaning it should not be reduced for retirees who chose Option C (or beneficiaries receiving Option D). Boards must review all veteran retirees/beneficiaries who elected Option C or D, recalculate their allowances retroactive to their retirement/benefit start date, and pay any shortfall owed (without interest) as soon as possible—also notifying municipalities paying non-contributory allowances under §58B. No action is needed for veterans who selected Option A or B.

PERAC Memo #39/2001 explains that under the federal USERRA statute, members called to active military duty must retain member-in-service status regardless of the length of their leave and must receive full creditable service for their period of military service, notwithstanding G.L. c. 32's usual one-year limit on unpaid leaves. Boards must ensure the employer (Commonwealth or political subdivision) makes the corresponding retirement contributions on behalf of these members and must include this information in the annual data submitted to PERAC's Actuary under G.L. c. 32, §22(7) for pension fund appropriation purposes.

This memo notifies boards that EGTRRA expanded permissible rollover destinations for member Annuity Savings Account withdrawals (traditional IRAs, qualified employer plans, annuity contracts, and certain governmental deferred compensation plans) and allows rollover of both taxable and non-taxable portions, effective for distributions paid on or after January 1, 2002. Boards must use the attached revised Application for Withdrawal of Accumulated Total Deductions form and Special Tax Notice for all withdrawals/refunds paid on or after that date; note that rollovers into retirement systems for service purchases and pre-tax buy-back withholding are not yet available pending PERAC regulations and an IRS ruling, respectively.

PERAC Memo #1/2000 announces proposed amendments to 840 CMR (including revisions to the disclosure/privacy rules under 840 CMR 6.00) filed with the Secretary of State, along with a schedule of four public hearings held between January 14–21, 2000 in Springfield, Plymouth, Somerville, and Boston. Boards are encouraged, though not required, to attend or submit written comments on the proposed regulations to PERAC by the February 4, 2000 deadline. No mandatory board action is required beyond optional participation in the comment process.

This memo announces that PERAC has set the "regular interest" rate for calendar year 2000 at 2.1%, as determined under Section 22(6)(b) of Chapter 32 in consultation with the Commissioner of Banks. Boards must apply this 2.1% rate to accumulated total deductions and interest (for balances dating back to January 1, 1946), crediting it for refunds and retirements processed during 2000 and on outstanding balances as of December 31, 1999, to be credited December 31, 2000.

PERAC Memo #7/2000 transmits updated buyback and repayment calculation worksheets for use in calendar year 2000. Boards should use these worksheets going forward when processing member buybacks and repayments, and may contact Jim Waldman with any questions.

PERAC Memo #39/2000 announces a new electronic submission option, available via PERAC's website, for reporting pooled fund investment performance data (previously submitted manually) used in PERAC's Annual Report investment performance assessments. The memo provides step-by-step instructions for completing the online Pooled Fund Form and includes corresponding accounting entries for purchases, income, fees, sales, and stock distributions. Boards are not required to switch to electronic submission, but should use this new tool—following the outlined data-entry and accounting guidance—to streamline timely reporting of pooled fund activity to PERAC.

PERAC Memo #40/2000 directs retirement boards to implement the EEOC v. Commonwealth settlement addressing age discrimination found in the former accidental disability retirement provisions of G.L. c. 32, §7(1) (the maximum age limits and "3/2" rule). Boards must search records to identify all individuals who, since October 16, 1992, began receiving a superannuation allowance, received a refund of contributions, or ceased contributing but retained funds on deposit, compile a list of these "potentially eligible individuals" (with limited allowable exclusions), and submit the list(s) to PERAC by November 4, 2000; boards excluding certain individuals must also prepare and submit a separate "excluded list" with supporting details for EEOC review.

PERAC Memo #5/1999 establishes the "regular interest" rate for 1999 at 2.2%, as determined under Section 22(6)(b) of Chapter 32 based on average savings rates from a sample of financial institutions. Boards must apply this 2.2% rate to accumulated total deductions (post-1/1/1946) for refunds and retirements processed during 1999, and credit it to outstanding balances as of December 31, 1998, on December 31, 1999.

PERAC Memo #8/1999 transmits the updated worksheets for calculating member buybacks and repayments applicable to calendar year 1999. Boards should use these new worksheets for all buyback/repayment calculations going forward, and may contact Jim Waldman with questions.

PERAC Memo #10/1999 transmits the 1998 Annual Statement forms, due back to PERAC by May 1, 1999, and notes that boards must first submit December cashbooks and preclosing trial balances by February 21, 1999 to ensure accounts are current. It details this year's changes—board member term expiration dates, new pooled fund ledger categorizations, separation of realized/unrealized gains on Schedule 5, and formatting requirements—and outlines the required steps for completing interest calculations (Annuity Savings, Military, and Annuity Reserve Funds), zeroing the Expense Fund, and completing investment schedules, including updated appendix items (plan description, accounting policies, and three years of actuarial funding data plus the latest approved funding schedule).

This memo announces Chapter 456 of the Acts of 1998, effective April 15, 1999, which allows a local option COLA for noncontributory pension recipients (requiring local legislative body acceptance of both Chapter 456 and Chapter 17 of 1997), and a separate local option permitting uncompensated library trustees to purchase creditable service by paying into the annuity savings fund as if compensated at $2,500/year plus interest. No immediate action is required of retirement boards themselves, since acceptance of the COLA provision rests with the local legislative body (Town Meeting, City Council, or County Advisory Council); boards should be prepared to implement the COLA for noncontributory retirees—including the FY1999 retroactive adjustment to July 1, 1998—once local acceptance occurs, and should be aware of the library trustee creditable service option if applicable.

This memo clarifies implementation of the library trustee creditable service local-option provision under Chapter 456 of the Acts of 1998: a library trustee purchasing service need not be a member of the system from which the service is being purchased, but must be a member of some retirement system and must be eligible to receive a retirement allowance at the time of purchase. The purchase is made through the trustee's own system, which may then seek reimbursement from the crediting system under G.L. c. 32, §3(8)(c). No board action is required beyond awareness of this clarification, though boards should apply this guidance when processing such purchase-of-service requests from library trustees in municipalities that have accepted the provision.

This memo clarifies that under Chapter 71 of the Acts of 1996, members must apply to buy back military service within 180 days of initial eligibility, but boards have discretion to set the payment terms and timing—including lump sum at application, installments, or lump sum before retirement. Boards wishing to offer such flexible payment options must adopt a formal regulation, approved by PERAC, that applies uniformly to all eligible members.

This memo clarifies the operation of G.L. c. 32, §§ 90A, C and D, which allow municipalities, districts, or MassPort to grant annual retirement allowance increases (up to 50% of current salary) to eligible retirees—accidental disability retirees under §90A, and superannuation/ordinary disability retirees with 25+ years of employment under §90C/§90D, respectively. It explains that acceptance and annual approval rest solely with the local governing body (not the retirement board), and importantly notes a policy change: due to revisions to G.L. c. 32, §102, retirees may now receive both a COLA and a §90A/C/D increase in the same year, reversing the prior rule limiting them to the larger of the two. Boards should administer benefits accordingly, recognizing that increases become a permanent part of the base allowance and that future COLAs will be calculated on the increased amount, with costs borne by the granting entity.

PERAC Memo #1/1998 sets the "regular interest" rate for 1998 at 2.4%, as determined under Section 22(6)(b) of Chapter 32 based on average savings account rates from a sample of financial institutions. Boards must apply this 2.4% rate to accumulated total deductions (post-1946) when crediting interest for 1998 refunds and retirements, and on outstanding member balances as of December 31, 1997, with interest credited as of December 31, 1998. No further action beyond correct rate application is required.

PERAC Memo #3/1998 transmits the annual worksheets and interest factor tables retirement boards use to calculate buyback and repayment amounts (for refunded contributions being restored to service credit) for calendar year 1998. It provides the year-by-year interest factors, calculation instructions, and formulas needed to compute amounts owed as of 12/31/97 and repayment totals through 1998. No board action is required beyond using these updated worksheets/factors when processing member buybacks and repayments during 1998; boards may contact Jim Waldman with questions.

PERAC Memo #4/1998 transmits the 1997 Annual Statement forms and instructs boards to submit December cashbooks and preclosing trial balances by January 21, 1998, and to complete and return the full Annual Statement package—including the new GASB-related appendix, actuarial information, and most recently approved funding schedule—by May 1, 1998. It also details specific formatting and reporting changes for 1997 (e.g., new market value asset line, revised ledger accounts, membership schedule changes, and paper size requirements), and notes that a PERAC auditor will contact each board to provide technical assistance.

PERAC Memo #13/1998 transmits proposed regulations (840 CMR 10.00) establishing standard rules and procedures for disability retirement proceedings, including applications, medical panel examinations, hearings, rehabilitation, and modification of allowances. Boards are encouraged to review the draft regulations and may attend one of three scheduled public hearings (April 2, 6, or 9, 1998) to comment; written comments will also be accepted through April 20, 1998, but no immediate compliance action is required until final regulations are issued.

PERAC Memo #42/1998 requests that all retirement boards complete and return the attached appropriation data questionnaire—covering FY99/FY00 pension appropriations, pension payroll figures, Section 3(8)(c)/7(4)(b) reimbursements, and COLA reimbursement data—so PERAC can calculate each system's required FY00 appropriation under G.L. c. 32, §22D or §22(6A)(b). Boards must submit the completed questionnaire, along with the underlying actuarial report if not previously provided, no later than October 31, 1998. Failure to submit accurate or timely data will result in PERAC using conservative estimated assumptions, potentially causing significant increases in the board's required appropriation.

PERAC Memo #48/1998 revises the accounting instructions for pooled fund investments, introducing new journal entry procedures that allow boards to record investment income and realized/unrealized gains and losses separately, and clarifies the specific PRIT Fund ledger numbers to use (1199 for core fund, 1198 for cash fund, or segment-specific ledgers if individual PRIT segments are held). Boards should update their accounting practices to conform to these new entries and ledger designations going forward, using the enclosed worksheet and examples; PERAC staff are available to assist with fund statements if needed.

PERAC Memo #52/1998 addresses the CRAB-affirmed decision in Templeton v. Plymouth County Retirement Board, which establishes that a member who took a refund upon leaving service and later returned does not regain prior membership rights, even after buying back that prior creditable service. Consequently, when such a member elects to purchase military service credit under Chapter 71 of the Acts of 1996, boards must calculate the buyback cost using the salary earned when the member most recently re-established membership, not the earlier salary from before the refund. Boards should apply this salary standard going forward in all military buyback calculations involving members who previously took refunds.

This memo follows up on the Templeton decision regarding correct salary calculations for military service buybacks, clarifying that boards must collect additional payments from any member who bought back military service at an incorrect rate—even if the buyback is already complete or the member has since retired. Boards should pursue payment from retirees directly or adjust their allowances to recoup the shortfall, as G.L. c. 32, §20(5)(c) requires correction of such errors. Boards currently have no authority to waive these underpayments, as waiver legislation has not yet been enacted.

This memo introduces retirement boards to NCTR's LIFEPLAN, a free online financial planning resource offering tools such as retirement calculators, investment guidance, and general life-planning topics (credit, home buying, estate planning, etc.). PERAC encourages boards to share this resource with members to promote proactive retirement savings and financial planning, and notes it will add a link to LIFEPLAN on its own website. No formal action is required of boards beyond voluntarily promoting the site to members.

This memo transmits CRAB's final decision in McFarland v. State Board of Retirement, which holds that a member who transfers between retirement systems must have military service purchased under Chapter 71 of the Acts of 1996 based on 10% of the salary earned when the member first entered the initial system, not their current system. Boards must apply this standard going forward for eligible transferred members purchasing military service credit. However, boards should note that members who withdrew their accumulated deductions and later returned to service must base their military service buyback on 10% of compensation at re-entry, even if they also repurchase prior service.

PERAC Memo #4/1997 announces that the "regular interest" rate for calendar year 1997, as determined under Section 22(6)(b) of Chapter 32, has been set at 2.5%. Boards must apply this rate to accumulated total deductions and interest made on or after January 1, 1946, crediting it on refunds and retirements processed during 1997 and on outstanding balances as of December 31, 1996, to be credited on December 31, 1997.

PERAC Memo #5/1997 announces that, per Chapter 306 of the Acts of 1996, retirement system Expense Funds will now be funded through investment income rather than direct governmental appropriations, and outlines corresponding accounting changes (discontinuing accounts #5301, #5302, #5306, and #1511 in favor of #5304, #5305, #5307, and new account #5118, with transfers recorded via journal entry debiting #4820 and crediting #3298). Boards must transfer any FY1997 appropriated Expense Fund monies from the governmental unit to the retirement system, spend those funds only for their original purpose, and file a supplemental Expense Fund budget with the local legislative body at least 30 days before any additional funds are drawn from investment income.

PERA Memo #11/1997 provides retirement boards with two worksheets for calculating member buybacks and repayments during Calendar Year 1997. Boards should use these updated worksheets when processing such calculations for the year and contact PERAC's Finance Director with any questions.

PERAC Memo #14/1997 revises prior guidance on the Chapter 71 (1996) 10% military service buy-back for veterans who took a refund and later re-entered membership. The Commission now holds that members who repurchase their prior service may buy back military service based on 10% of their salary at initial entry into the system, rather than 10% of salary at re-entry, and are entitled to a refund of the difference if they were overcharged. Boards must identify affected members who overpaid under the prior rule and issue refunds, while members who have not yet completed repurchase of prior service must finish that buy-back before qualifying for the earlier-salary military service rate.

This memo clarifies year-end accounting procedures for transferring funds from the Investment Income Account to the Expense Fund, specifying that only one closing entry (debit 4820/credit 4896) should be made annually on December 31st, and only after any prior expense fund balance has been fully spent down. Boards must also ensure Expense Fund budgets and any supplementary budgets are approved at least 30 days before funds are spent, with notification given to the governmental unit's legislative body, per Chapter 306, Section 36. Boards should update their accounting practices accordingly and follow the required approval/notification timeline for expense budgets.

This memo addresses the repeal of G.L. c. 32, §16(2) (effective November 7, 1996), which formerly required boards to provide a hearing before a member's removal/discharge became effective and to restore members if the board found the action unjustified. PERAC concludes that since this provision was not a retirement benefit and is no longer part of members' contractual rights, boards are no longer required or permitted to follow §16(2)'s hearing/notice procedures for removals or discharges occurring after the repeal date. Boards should therefore discontinue applying §16(2) procedures going forward.

PERAC Memo #25/1997 provides an updated list of retirement systems that have formally accepted Chapter 71 of the Acts of 1996 (as amended by Chapter 188), which permits eligible veterans to purchase up to four years of creditable service for military time. Boards should review the attached list to confirm their system is correctly recorded as having accepted the legislation, and if a board has accepted it but is not listed, it must contact PERAC immediately to correct the record.

PERAC Memo #31/1997 requests that all retirement boards complete and return the attached appropriation questionnaire by October 31, 1997, providing FY98/FY99 appropriation figures, pension payroll data, reimbursement amounts, and COLA information needed to calculate FY99 appropriations under G.L. c. 32, §22D or §22(6A)(b). Boards must ensure the data is accurate and complete, since PERAC will otherwise use conservative estimates that could result in significantly higher required appropriations. No other action is needed beyond timely, accurate submission of the questionnaire (and the underlying actuarial report, if not already provided).

PERAC Memo #35/1997 transmits an initial draft of proposed revisions to the 840 CMR 1.00 investment regulations, updated to reflect PERAC's thirteen years of oversight experience and intended to improve process efficiency. This is a preliminary, non-exhaustive draft that will be reviewed by the Massachusetts Public Pension Advisory Council before the formal rulemaking process (further comment periods and public hearing) begins. No formal action is required of boards at this time; PERAC is simply requesting that boards review the draft and submit comments or raise unaddressed concerns.

PERAC Memo #36/1997 clarifies that under G.L. c. 32, §8(2)(b), a disability retiree who is reinstated to active service is entitled to have restored the creditable service accrued prior to disability retirement, plus receive creditable service for the period during which he or she received a disability allowance—without having to make up member contributions for that period. The memo notes this guidance is limited to creditable service and does not address civil service seniority rights. Boards should apply this creditable service treatment when processing reinstatements of disability retirees but need not take any further action beyond ensuring compliance with this interpretation.

PERAC Memo #45/1997 transmits draft regulations (840 CMR 10.00) establishing standard, uniform rules and procedures governing ordinary and accidental disability retirement proceedings, medical panel examinations, re-examinations, rehabilitation, and related matters. Boards are not required to take formal action at this stage, but are encouraged to attend one of three MPPAC input sessions (Plymouth, Worcester, or Boston in December 1997/January 1998) to review the draft and provide comments before the regulations are finalized.

This memo notifies boards of a Superior Court decision holding that veterans eligible to purchase military service under chapter 71 of the Acts of 1996 may not be denied that right merely because they receive a federal military pension; the Attorney General's office confirmed it will not appeal this ruling. Boards must therefore stop denying purchases on that basis, must proactively re-contact and allow previously denied members to complete their purchase, and should replace the old Notice/Application form (which required certifying non-receipt of a federal pension) with the enclosed revised version going forward.

PERAC Memo #53/1997 announces that the Commission has finalized draft revisions to 840 CMR (the investment regulations governing fiduciary duty, prohibited holdings, and investment standards for public pension systems) and is filing them with the Secretary of State as part of the formal promulgation process. Two public hearings will be held (February 4 and 6, 1998) with a written comment period open through February 20, 1998. Boards should review the enclosed draft regulations and are encouraged, though not required, to submit comments or attend the hearings to ensure their concerns are considered before final adoption.

840 CMR 13.00 implements the expanded tax-deferred rollover opportunities created by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), allowing public employees to purchase creditable service using assets held in other tax-deferred retirement plans. Retirement boards may accept Eligible Rollover Distributions paid directly to the system (Direct Rollovers) from qualifying plans including IRAs, qualified plans under IRC § 401(a), eligible 457(b) plans, and annuity contracts under IRC § 403(b). The regulation defines key terms including Direct Rollover, Eligible Retirement Plan, and Eligible Rollover Distribution, and clarifies the types of distributions that do not qualify for rollover treatment.