death benefits

Section 7 governs accidental (work-related) disability retirement under Chapter 32. It applies when a member is permanently unable to perform job duties due to a personal injury or hazard sustained in the performance of their duties. The benefit equals 72% of the member's regular compensation (subject to a 75% total cap), plus an annuity based on accumulated deductions and an additional allowance for dependent children. The section includes strict timelines for filing notice of injury, requires Regional Medical Panel certification, provides for proration when injury occurred in a different governmental unit, and includes provisions for mutual aid situations where members are injured while assisting another jurisdiction.

Section 9 establishes the accidental death benefit — a pension payable to the survivors of a member who dies as the direct result of a work-related injury or hazard sustained while in the performance of duties. The benefit equals 72% of the member's regular compensation and is paid first to a surviving spouse, then to dependent children, and then to totally dependent parents or siblings if no spouse or children are eligible. Additional allowances for dependent children are also payable, subject to COLA adjustments in systems that have accepted the supplemental dependent allowance. Boards must verify the causal connection between the member's death and the workplace injury, and a strict notice requirement applies.

Section 11 governs the return of accumulated total deductions to members who are not entitled to a retirement allowance, and the distribution of those deductions to beneficiaries upon a member's death before retirement. It establishes the 60-day payment timeline, a reduced interest rate (3%) for members who leave with fewer than 120 months of service after January 1, 1984, and procedures for the IV-D child support agency to intercept refunds when a member owes child support arrears. The section also addresses dormant accounts — transferring unclaimed deductions to the Pension Reserve Fund after 10 years — and establishes the rights of claimants to recover such transferred amounts.

Section 12 governs the retirement option elections available to members at the time of retirement. Members may choose from three options: Option (a) — a full life annuity with no survivor benefit; Option (b) — a slightly reduced cash-refund life annuity that guarantees return of accumulated deductions to beneficiaries; and Option (c) — a reduced joint-and-last-survivor allowance that continues two-thirds of the payment to an eligible named beneficiary after the member's death. The section also establishes Option (d), the member-survivor allowance that provides an Option (c)-equivalent benefit to a qualifying spouse or eligible beneficiary if the member dies before retirement. Spousal consent requirements and detailed rules for beneficiary designation and option changes are also included.

Section 12A allows a surviving beneficiary who may be entitled to accidental death benefits under Section 9 to receive interim payments under Option (d) of Section 12 or Section 12B while the accidental death benefit application is being processed. This prevents a surviving spouse or dependent from going without income during the potentially lengthy determination period. Once Section 9 benefits are approved and the first payment is made, the interim Option (d) or Section 12B payments cease and the first Section 9 payment is reduced by the aggregate of interim amounts already paid.

Section 12B provides additional monthly survivor allowances for the children of a deceased member-in-service, payable to a surviving spouse for the benefit of eligible children. For a member with at least two years of creditable service and at least one year of marriage who dies in service leaving a qualifying spouse and minor children, an additional allowance of $120/month for one child plus $90/month for each additional child is payable (subject to COLA adjustments under Section 102). These allowances are paid alongside the member-survivor allowance under Option (d) of Section 12, and continue until each child reaches age 18 (22 if a full-time student) or is otherwise no longer eligible.

Section 12C extends the survivor benefits of Section 12B to the widow and children of a deceased employee who had completed two years of creditable service and had been married for at least one year but who — though eligible — failed or elected not to become a member of the retirement system. To qualify, the surviving family must pay into the annuity savings fund an amount equal to the deductions that would have been withheld during the employee's career, plus accumulated interest. This provision ensures that non-member eligible employees' families are not permanently foreclosed from survivor benefits when the failure to enroll was a matter of election rather than ineligibility.

Section 19 provides broad protections for retirement system funds and member benefits, exempting them from taxation (including state income taxes), bankruptcy proceedings, and attachment by creditors. Assignments of retirement rights are generally prohibited, with narrow exceptions allowing written authorizations to withhold amounts for health insurance premiums, federal and state income taxes, and support orders. The section preserves the right to attach or assign benefits to satisfy court-ordered child support or spousal support obligations under several Massachusetts chapters.

Section 58B allows veterans eligible to retire under section 58 to elect a reduced pension that, upon their death, provides two-thirds of that lesser amount to a surviving spouse or eligible beneficiary (child, parent, sibling) for life, with actuarial equivalency calculations supervised by PERAC.

Section 65C allows retired judges to elect a reduced lifetime retirement allowance so that upon their death, their surviving spouse receives two-thirds of that lesser allowance for life; it also provides surviving spouse benefits when judges die before resigning, and sets rules for when these benefits apply or terminate.

Section 71 provides annuities to the widow, children, and dependent parents of Metropolitan Parks Commission police officers killed or fatally injured in the line of duty, with the total not exceeding the officer's annual compensation at death, and extends these provisions to officers assigned to state police duty.

Section 88 allows accepting towns to pay up to $300/year to the widow (while unmarried) or dependent children under 16 of persons killed while aiding police or performing fire duty at the town's direction, provided no compensation is payable under section 89 for the same death.

Section 89 provides annuities to the widow, children, and dependent relatives of police officers, firefighters, forest wardens, and certain other public employees killed or fatally injured in the line of duty, with amounts generally not exceeding the deceased's annual compensation at death, and requires election between these benefits and any contributory retirement system benefits.

Section 89A extends the line-of-duty death annuity framework of section 89 to all public employees of the commonwealth and its political subdivisions (not just police and fire), upon local acceptance, providing the same annuity structure to surviving spouses, children, and dependent relatives.

Section 89B provides enhanced death benefits for surviving spouses of police officers and firefighters killed in the line of duty: two-thirds of the officer's annual regular compensation (or the 12-month average, whichever is greater), plus child allowances, as an alternative to any other law's benefits; requires local acceptance.

Section 89C provides a $1,500/year annuity to the surviving spouse (while unmarried) of any city or town employee killed in the line of duty whose death occurred before any applicable benefit law was in effect, upon local acceptance.

Section 89D increases the line-of-duty death annuity for widows under section 89C from $1,500 to $2,000/year in accepting cities and towns, and supersedes section 89C in any municipality that accepts it.

Section 89E requires cities, towns, and districts using volunteer emergency service providers to offer one of three accidental death benefits for surviving spouses of call/volunteer firefighters and reserve/auxiliary police officers killed in the line of duty: an annuity of 2/3 to 100% of first-year regular compensation (with COLA), a $500,000 one-time insurance payment, or an insurance-funded annuity; benefits continue to surviving children if no spouse.

Section 95A (requiring local acceptance) requires counties, cities, and towns to grant annuities to the surviving spouse or children of officials or employees who were retired or qualified for retirement under noncontributory law with no survivor election rights, with 15+ years of full-time service, up to half of regular annual compensation or $3,000, with a minimum of $1,500.

Section 95B updates the section 95A annuity cap from $3,000 to $6,000 (or half annual compensation, whichever is less) in accepting counties, cities, and towns, and supersedes section 95A in any municipality that accepts it.

Section 100 provides that when a firefighter, police officer, or corrections officer is killed in specified line-of-duty circumstances, their surviving spouse receives a pension equal to the salary that would have been paid had the deceased continued in service (at the maximum rate for the position); upon the surviving spouse's death, surviving children under 18 (or 22 if full-time students, or disabled) receive 72% of that pension plus $312/year each.

Section 100A establishes a $300,000 one-time killed-in-line-of-duty benefit, administered and paid by the state board of retirement (subject to appropriation), for the family of any deceased public safety employee (firefighters, police officers, corrections officers, EMTs, public prosecutors, and others) killed or fatally injured in the performance of duties; this benefit is in addition to section 100 amounts and is not taxable by the commonwealth.

Section 101 provides a base annual allowance ($6,000, $9,000, or $12,000 depending on system acceptance) to the surviving spouse of a former employee who was retired for disability and had no surviving spouse benefit under their retirement option; retirement systems may adopt the higher supplemental amounts by majority board vote with legislative body approval.

PERAC Memo #22/2026 notifies boards that, following the FY27 budget's 3% COLA (effective July 1, 2026), the supplemental dependent allowance under G.L. c. 32 §§ 7(2)(a)(iii) and 9(2)(d)(ii) increases to $1,193.88 annually per eligible child. Boards that have accepted § 7(2)(a)(iii), § 22D, or § 9(2)(d)(ii) must implement this new annual amount for eligible dependent children beginning July 1, 2026. No further action is required beyond updating payment amounts accordingly; questions should be directed to PERAC actuary John Boorack.

The FY2026 budget enacted a 3% COLA for State and Teachers' Retirement System retirees effective July 1, 2025, triggering a corresponding increase in the supplemental dependent allowance paid under §§ 7(2)(a)(iii) and 9(2)(d)(ii). Retirement systems that have accepted these supplemental allowances must pay $1,159.08 annually per eligible child beginning July 1, 2025. Boards with questions on the calculation should contact PERAC's actuary, John Boorack.

PERAC clarifies that COLAs under G.L. c. 32, § 103(c) must be applied to Section 100 benefits paid to survivors of public safety employees killed in the line of duty. Section 100 benefits are classified as a "pension" under the statute, making them subject to COLA grants by retirement boards. Any board that has not been applying COLAs to Section 100 benefits must correct this error immediately, recalculate any unpaid COLA amounts owed to beneficiaries, and remit payment with corrections-of-errors interest going forward.

This memo supplements Memo #28/2025 on Section 100 benefits and COLAs. It clarifies two key points: first, COLAs are not "benefits" themselves but enhancements to an existing pension, so the Section 100 "alternative benefit" language does not bar COLA eligibility. Second, when calculating back COLA payments owed to Section 100 beneficiaries, boards need only go back to July 1, 1998 — prior to that date, the pre-1997 version of Section 102(a) provided for the greater of a COLA or a Section 100 increase but not both, so COLAs would have been the smaller amount.

This memo notifies retirement boards of the 2024 Cost of Living Adjustment (COLA) available under G.L. c. 32, § 103(c). The Social Security Administration's CPI-W increase was 3.2%, but the maximum COLA a Massachusetts retirement board may grant is capped at 3.0%, effective July 1, 2024. Boards wishing to adopt the COLA must vote to do so in a properly posted public meeting before June 30, 2024, and must report their decision to PERAC through the new PROSPER portal within 30 days.

PERAC requests that all retirement boards submit actuarial data for active members, retirees, survivors, and disability retirees as of December 31, 2023, by March 31, 2024. Data should be submitted through the PROSPER portal in the standard PERAC record format. After submission, boards will receive data analysis reports in PROSPER to review and correct any errors; PERAC notes that boards scheduled for a full actuarial valuation in 2024 will have received a separate data request.

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.

The FY25 state budget, signed July 29, 2024, included a 3% COLA for State and Mass Teachers' Retirement System retirees, which triggers an increase in the supplemental dependent allowance for accidental disability retirees and accidental death survivors. Effective July 1, 2024, retirement systems that have accepted G.L. c. 32, §§ 7(2)(a)(iii) or 9(2)(d)(ii) must pay $1,125.36 per year per eligible child — an increase from the prior year's amount. Boards that have accepted these provisions should update their payment amounts accordingly.

This memo advises retirement boards that the FY24 budget signed by Governor Healey on August 9, 2023 includes a 3% COLA for State and Mass Teachers' Retirement System retirees effective July 1, 2023, which triggers a corresponding increase in the supplemental dependent allowance. Effective July 1, 2023, any retirement system that has accepted the supplemental dependent allowance under G.L. c. 32, §§ 7(2)(a)(iii) or 9(2)(d)(ii) must pay $1,092.60 annually per eligible dependent child. Boards that have accepted the relevant statutory provisions must update their payment amounts immediately to reflect this increase.

This memo provides a critical update to Memo #14 of 2022, informing boards that Section 149 of Chapter 126 of the Acts of 2022 (the FY2023 budget), signed July 28, 2022, protects all retirees who retired prior to July 1, 2022 from any reduction, modification, or recoupment of allowances due to the Vernava decisions. As a result, the instructions in Memo #14 regarding retired members and their beneficiaries are hereby superseded, and no retiree who retired before July 1, 2022 will lose their allowance, lose health insurance, or be required to reimburse the retirement system. All instructions in Memo #14 concerning active and inactive members who have not yet retired remain in full effect.

This memo notifies retirement boards that the FY23 budget signed by Governor Baker on July 28, 2022 included a 5% COLA for eligible State and Mass Teachers' Retirement System retirees, which triggers an increase in the supplemental dependent allowances under G.L. c. 32, §§ 7(2)(a)(iii) and 9(2)(d)(ii). Effective July 1, 2022, retirement systems that have accepted these provisions must pay an annual amount of $1,060.80 per eligible child to qualifying accidental disability retirees and accidental death survivors. Contact PERAC Actuary John Boorack with questions.

Reports the 2021 Social Security COLA of 1.3%, establishing the baseline COLA boards may grant under G.L. c. 32, § 103(c) effective July 1, 2021. Boards may vote to increase the COLA up to 3.0% before June 30, 2021 and must notify PERAC within 30 days of any vote.

Requests boards submit actuarial data for active members, retirees/survivors, and disability retirees as of December 31, 2020, due March 31, 2021 via PERAC's Interchange File Transfer system in the standard PERAC format.

Guidance as COVID Emergency Orders expire June 15, 2021, covering: 91A filing status, annual affidavit notarization rules, board elections resuming, medical panel restart, PERAC office reopening June 1, post-retirement earnings limits reinstated June 15, and return to in-person Open Meeting Law quorum requirements (remote participation rules pending legislative action).

PERAC revised the Member's Application for Distribution of Accumulated Total Deductions and created a new Beneficiary Application to standardize refund procedures across all Massachusetts retirement systems and update payment options to comply with federal tax law. Both forms are available on the PERAC website under Forms.

The FY22 budget (signed July 16, 2021) included a 3% COLA for State and Teachers' Retirement System retirees, triggering a corresponding increase to the supplemental dependent allowances under G.L. c. 32, §§ 7(2)(a)(iii) and 9(2)(d)(ii). The new annual amount per eligible child is $1,010.28 effective July 1, 2021, for systems that have accepted those provisions or § 22D.

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.

Reports the 2020 Social Security COLA of 1.6%, which sets the baseline COLA retirement boards may grant effective July 1, 2020 under G.L. c. 32, § 103(c). Boards may vote to increase the COLA up to 3.0% with proper notice to the legislative body before June 30, 2020, and must notify PERAC of their decision within 30 days.

Requests that retirement boards submit actuarial data for active members, retirees/survivors, and disability retirees as of December 31, 2019, due by March 31, 2020 via PERAC's Interchange File Transfer system in standard PERAC format. Boards will receive data analysis reports to review and correct errors; those scheduled for a 2020 actuarial valuation will have received a separate request.

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.

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.

Sets the supplemental dependent allowance for accidental disability retirees (G.L. c. 32, § 7(2)(a)(iii)) and accidental death survivors (§ 9(2)(d)(ii)) at $980.88 per eligible child annually, retroactive to July 1, 2020. The increase reflects the 3% COLA for State and Mass Teachers' Retirement Systems included in the FY21 budget signed December 11, 2020.

This memo sets the 2018 supplemental dependent allowance at $924.60 per eligible child per year, effective July 1, 2018, for retirement systems that have accepted the provisions of G.L. c. 32, §§ 7(2)(a)(iii), 22D, or 9(2)(d)(ii).

This memo announces that the annual supplemental dependent allowance under G.L. c. 32, § 7(2)(a)(iii) and the additional pension for dependent children under § 9(2)(d)(ii) are both set at $897.72 per eligible child, effective July 1, 2017. The adjustment applies to systems that have accepted those provisions or that accepted § 22D, under which the supplemental dependent allowance is deemed to have been accepted.

This memo clarifies the specific documents boards must include when submitting calculations to PERAC for approval, organized by retirement type: Superannuation/Option D, Accidental Disability, Ordinary Disability, Accidental Death (active member), Accidental Death (retiree), and Section 101. Boards are asked not to include extra materials beyond what is listed, as unnecessary paperwork creates filing problems; additional documents will be requested only if needed after PERAC's initial review.

PERAC Memo #4/2016 announces that the Social Security Administration's CPI-W-based COLA for the year is 0.0%, meaning the base COLA retirement boards may grant under Chapter 32, §103(c), effective July 1, 2016, is also 0.0%. Boards retain discretion under §103(i) to vote at a duly called meeting to grant a higher COLA (up to 3.0%) with proper notice to their legislative body, but regardless of the decision made, each board must notify PERAC within 30 days of its determination.

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 #8/2016 requests that all retirement boards submit actuarial data (active members, retirees/survivors, and disability retirees) as of December 31, 2015, in standard PERAC format, preferably via the Interchange File Transfer website, by March 31, 2016. Boards should review the resulting data analysis reports for errors or warnings and correct any issues to ensure reliable, timely actuarial valuations; boards already scheduled for a 2016 PERAC valuation should follow the separate data request they previously received.

PERAC Memo #10/2016 announces the distribution of updated (as of July 1, 2015) printed retirement guides—covering the Public Employee Retirement Guide, Survivor Benefits Guide, and Disability Retirement Guide—to all 104 retirement boards based on membership size. No action is required of boards beyond distributing/making these guides available to members; additional copies can be obtained free online, purchased at PERAC's office, or ordered by mail through the printer.

PERAC Memo #16/2016 explains Chapter 77 of the Acts of 2016, effective for benefits granted on or after July 1, 2016, which addresses situations where a member has an ex-spouse designated as Option C beneficiary under a QDRO but later remarries and dies from the condition underlying an accidental disability retirement (or, for firefighters, from cancer discovered within 5 years of retirement). The law requires that the Option C benefit be paid to the former spouse, with any remaining difference between the Section 9 accidental death benefit and the Option C benefit paid to the current spouse; if the former spouse predeceases the current spouse, the full Section 9 benefit reverts to the current spouse. Boards must apply this calculation method when processing Section 9 claims involving a DRO-designated Option C beneficiary and a surviving current spouse, ensuring benefits are properly split and administered under these limited circumstances.

PERAC Memo #19/2016 announces the updated annual supplemental dependent allowance of $871.56 per eligible child, effective July 1, 2016, applicable under G.L. c. 32 §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii). Boards that have accepted these provisions must begin paying this increased annual amount to eligible dependent children of accidental disability retirees and accidental death survivors as of that date. No further board action is needed beyond implementing the new payment amount for qualifying beneficiaries.

PERAC Memo #3/2015 reports that the Social Security Administration's announced CPI-W increase is 1.7%, which sets the statutory COLA rate under Chapter 32, §103(c) effective July 1, 2015. Retirement boards may vote at a duly called meeting to grant this base COLA or, with proper notice to their legislative body, elect a higher rate up to 3.0% under §103(i). Each board must notify PERAC of its COLA decision within 30 days of voting.

PERAC Memo #7/2015 requests that all retirement boards submit active member, retiree/survivor, and disability retiree data as of December 31, 2014, in standard PERAC record format by March 31, 2015. Boards should submit this data promptly so PERAC can generate analysis reports identifying errors or discrepancies to correct, supporting accurate and timely actuarial valuations; boards already scheduled for a 2015 PERAC valuation should have received a separate data request.

**PERAC Memo #8/2015 – Remarriage Penalty** This memo revises PERAC's prior guidance (Memo #34/2000) on the elimination of the "remarriage penalty" in light of the Superior Court's 2014 decision in *Boston Retirement Board v. CRAB and Edith Carell*, which held that the repeal of the remarriage penalty (effective July 1, 2000) applies even to beneficiaries whose survivor benefits were terminated due to remarriage *before* that date. Boards must now recognize that eligible surviving spouses who remarried prior to July 1, 2000 may reapply and, if approved, receive benefits prospectively from the date of reapplication (not retroactively to the remarriage date), and boards should reassess any such prior denials or terminations accordingly.

PERAC Memo #16/2015 announces the updated annual supplemental dependent allowance—$846.12 per eligible child effective July 1, 2015—payable under G.L. c. 32 §7(2)(a)(iii) (including systems that accepted §22D) and under §9(2)(d)(ii) for additional pensions for dependent children. Boards that have accepted these provisions must apply this new COLA-adjusted amount to eligible accidental disability retirees and accidental death survivors beginning with that date; no further action is needed for boards that have not accepted these provisions.

PERAC Memorandum #03/2014 notifies retirement boards that the Social Security Administration's announced COLA is 1.5%, which sets the base COLA rate effective July 1, 2014 under Chapter 32, §103(c). Boards may vote at a duly called meeting to increase this rate up to 3.0% under §103(i), provided proper notice is given to the appropriate legislative body; regardless of the decision made, each board must notify PERAC of its COLA determination within 30 days.

This memo requests that all retirement boards submit active member, retiree/survivor, and disability retiree data as of December 31, 2013, in PERAC's standard record format. Boards must submit this data by March 31, 2014; PERAC will then return data analysis reports so boards can review and correct any warnings, errors, or questionable items to support reliable, timely actuarial valuations. Boards scheduled for a 2014 PERAC actuarial valuation should already have received a separate data request.

PERAC Memo #17/2014 informs boards of an IRS Private Letter Ruling (dated August 20, 2013) clarifying the federal (not state) tax treatment of Chapter 32 disability retirement allowances and related survivor/death benefits, covering ordinary and accidental disability pensions, dependent allowances, and benefits under Sections 9, 94/94A/94B, and 100. Boards should apply these tax-status determinations prospectively from August 20, 2013 (the PLR's effective date) and correct the tax reporting/withholding treatment of any affected benefits paid on or after that date accordingly; no retroactive corrections prior to that date are required.

PERAC Memo 21/2014 addresses the impact of the *Larrson v. Stoneham Retirement Board* decision, which held that two beneficiaries cannot concurrently receive a benefit on one member's account. Effective July 1, 2014, this supersedes prior PERAC guidance (Memo 8/1997 and part of Memo 25/2004): where a member who retired for accidental disability with an Option C beneficiary later dies from the related cause, a qualifying Section 9 accidental death beneficiary now supersedes and extinguishes the Option C beneficiary's right to benefits, rather than both receiving concurrent payments. Boards need not disturb existing concurrent benefit arrangements already in pay status before July 1, 2014, but must apply this superseding rule to all new cases arising on or after that date.

PERAC Memo #27/2014 clarifies how the August 2013 IRS Private Letter Ruling applies to benefits paid under legislative special bills (as opposed to standard Ch. 32 provisions). Boards must examine each special bill's language individually: if it explicitly references Sections 7, 9, or 100, it should be taxed accordingly (pension portion non-taxable up to 72%, annuity taxable); if it lacks such reference, boards must assess whether sufficient nexus exists to those sections to qualify for non-taxable treatment, and if not, report the benefit as "taxable amount not determined" (Box 2b of Form 1099-R). Boards taking a different reporting position should consult counsel to support that approach.

PERAC Memo #28/2014 announces the annual COLA-adjusted supplemental dependent allowance for eligible children of accidental disability retirees and accidental death survivors, set at $821.52 per eligible child effective July 1, 2014, under G.L. c. 32 §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii). Boards that have accepted these provisions must update their payment amounts to reflect this new figure; questions should be directed to PERAC actuary Jim Lamenzo.

PERAC Memo #3/2013 reports that the Social Security Administration's announced COLA is 1.7%, which sets the base COLA that Massachusetts retirement systems may grant effective July 1, 2013 under Chapter 32, §103(c). Boards may vote at a duly called meeting to increase this rate up to 3.0% under §103(i), provided proper notice is given to the local legislative body; each board must notify PERAC of its COLA decision (whether to grant one, and at what rate) within 30 days of the vote.

PERAC Memo #10/2013 requests that all retirement boards submit actuarial data for active members, retirees/survivors, and disability retirees as of December 31, 2012, in the standard PERAC record format. Boards must submit this data by March 31, 2013, so PERAC can generate data analysis reports to help identify and correct errors or discrepancies, supporting reliable and timely actuarial valuations; boards scheduled for a 2013 PERAC valuation should have already received a separate, specific data request.

PERAC Memo #21/2013 announces the updated annual COLA amount for the supplemental dependent allowance—$797.64 per eligible child, effective July 1, 2013—applicable to accidental disability retirees and accidental death survivors under G.L. c. 32, §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii). Boards that have accepted these provisions must begin paying the increased amount to eligible dependents as of that date; no further board action beyond implementing the new rate is required.

This memo clarifies that the IRS Form 5300 "participant" count (Line 4e) prepared by Ice Miller only included active and retired members, but per IRS instructions, the definition also requires including non-retiree inactive members with nonforfeitable vested benefits and beneficiaries of deceased employees entitled to benefits. Boards must review their IRS Determination Letter packet and hand-write the corrected total participant count (adding any applicable inactives/beneficiaries) on page 4, box 4e, before returning it to Ice Miller; boards that already submitted their packets should instead email Judith Corrigan or Patrick Charles at PERAC to coordinate the correction.

Memorandum #32 (2013) advises boards on implementing the SJC's *Herrick v. Essex Regional Retirement Board* decision, which held that when a board's legal error in denying benefits is corrected, the member is entitled to interest on the retroactive lump-sum payment to make them actuarially whole. PERAC directs boards to adopt a consistent interest rate (suggesting the § 22(6)(b) regular interest rate or the 3% statutory refund rate) and apply it to all G.L. c. 32 § 20(5)(c)(2) adjustments going forward—covering both underpayments and overpayments (subject to waiver provisions). Boards must also pay interest retroactively to any member/beneficiary who already received a corrective adjustment and now petitions for interest on that underpayment period.

PERAC Memorandum #09/2012 requests that all retirement boards submit active member, retiree/survivor, and disability retiree data as of December 31, 2011, in the standard PERAC record format. Boards must submit this data by March 31, 2012, after which PERAC will provide data analysis reports to help identify and correct errors or warnings, supporting accurate and timely actuarial valuations. Boards scheduled for a 2012 PERAC actuarial valuation should already have received a separate data request.

This memo announces that, per the Social Security Administration's 3.6% COLA determination, the maximum COLA local retirement boards may grant under c. 32, §103(c) effective July 1, 2012 is capped at 3.0%. Boards wishing to adopt a COLA must vote at a properly posted public meeting called for that purpose, provide the legislative body at least 30 days' notice, and complete these steps by June 30, 2012; each board must notify PERAC of its decision (whether to grant or not) within 30 days of that vote.

This memo explains that Chapter 176 simplified PERAC's investment review process: the detailed "Application for Exemption" is eliminated, and PERAC now issues an "acknowledgement of receipt" rather than an exemption/waiver for manager and consultant investments. Boards must submit specific documentation before investing with a manager or retaining a consultant—including procurement and vendor certifications, disclosure forms (placement agent, conflict of interest, compensation), prohibited investment compliance certification, consultant report certification, and individual board member certifications—and obtain PERAC's acknowledgement before proceeding, which PERAC may withhold if not in the system's best interest. Boards should also review this memo alongside related PERAC memos (#22, #15, #7/2012 and #35, #34/2011) for full context on the reform law's investment and disclosure requirements.

This memo announces the updated annual supplemental dependent allowance—$774.36 per eligible child, effective July 1, 2012—payable under G.L. c. 32 §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii). Boards that have accepted these provisions must apply this increased amount when paying benefits to eligible children of accidental disability retirees and accidental death survivors, with no further action needed for boards that have not adopted these sections.

PERAC Memo #44/2012 announces the release of an interactive Excel worksheet (with instructions) designed to help retirement boards calculate whether a member's regular compensation triggers the anti-spiking provisions under Sections 14 and 18 of Chapter 176 of the Acts of 2011. Boards must now attach this worksheet (or an equivalent showing both Section 14 and 18 calculations) to every superannuation, ordinary disability (non-veteran), and member-survivor allowance calculation submitted to PERAC—submissions lacking it will not be processed—and boards with waivers must retain the completed worksheet in members' files, as unsupported assertions of "no spiking" are no longer acceptable.

PERAC Memo #49/2012 continues the Commission's review (begun in Memo #27/2012) of how Chapter 176 of the Acts of 2011 affects existing PERAC investment regulations and guidelines, providing a summary chart of the impact on each provision reviewed. It reiterates that boards must invest through PRIT or an employed investment manager consistent with the amended Chapter 32, §23 restrictions (tobacco, South Africa/Northern Ireland, no direct mortgage/collateral loan investments) and the fiduciary duty standard under §23(3); PERAC notes further guidance on hedge fund investment and indemnification is still forthcoming. No immediate board action is required beyond reviewing the attached summary and ensuring investment practices conform to the revised statutory framework.

This memo notifies boards that the Social Security COLA for the year was 0.0%, which sets the base COLA rate under Section 103(c) effective July 1, 2011. Boards may vote at a duly called meeting to grant a higher COLA (up to 3.0%) under Section 103(i), provided they give proper notice to their legislative body; regardless of the decision, each board must notify PERAC of its COLA determination within 30 days.

This memo requests that all retirement boards submit active member, retiree/survivor, and disability retiree data as of December 31, 2010, in standard PERAC record format by March 31, 2011. Boards should expect data analysis reports afterward to review and correct any errors or warnings, supporting sound data maintenance for reliable actuarial valuations. Boards already scheduled for a 2011 PERAC actuarial valuation should have received a separate, specific data request.

PERAC Memo #16/2011 clarifies that lump-sum payments of a deceased member's annuity account balance to a named beneficiary under G.L. c. 32, §9 (accidental death) or §100 remain taxable, despite confusion arising from a presentation at the MACRS conference. After consulting special tax counsel, PERAC confirmed there is no legal basis to treat these payments as non-taxable under IRC §104(a)(1), since they are determined by reference to the member's prior contributions. Boards should continue to treat these lump-sum annuity payments as taxable and may refer to PERAC Memo #34/1992 for further guidance; no other action is required.

PERAC Memo #23, 2011 announces the annual cost-of-living adjustment to the supplemental dependent allowance under G.L. c. 32, §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii), raising the per-child annual payment to $751.80 effective July 1, 2011. Boards that have accepted these provisions must update payments to eligible children of accidental disability retirees and accidental death survivors accordingly; questions should be directed to PERAC actuary Jim Lamenzo.

This memo explains Section 55 of Chapter 176 of the Acts of 2011, which allows retirees who retired before May 17, 2004, chose Option A or B, and entered a same-sex marriage between May 17, 2004 and May 17, 2005 (or their surviving spouses) to make a one-time, irrevocable change to Option C. Boards must promptly notify all potentially eligible retirees and surviving spouses of this option, since elections must be made by July 1, 2012 (effective February 16, 2012), implement approved changes within 180 days, and arrange for repayment of any resulting overpayments. Boards should also make reasonable efforts to locate eligible surviving spouses through the deceased retiree's estate or next of kin.

PERAC Memorandum #44/2011 transmits a Taxation and Reporting Requirements Workbook and a 1099R overview chart, prepared by PERAC's Tax Counsel, to assist boards in preparing IRS Form 1099R for members and beneficiaries. The memo notes that certain unresolved tax treatment issues flagged in the Workbook will be addressed through a forthcoming Private Letter Ruling request to the IRS, with updates to follow. Use of these materials is optional—boards are not required to adopt them—but they are offered as guidance for boards and their vendors.

This memo notifies boards that, per the required annual COLA report under Ch. 17, §8(c), the Social Security Administration's CPI-W-based COLA is 0.0%, making the statutory Chapter 32, §103(c) COLA effective July 1, 2010 also 0.0%. Boards may elect, after proper notice to their legislative body and a duly called meeting, to grant a COLA up to 3.0% under §103(i), and each board must notify PERAC of its decision within 30 days.

This memo requests that all retirement boards submit active member, retiree/survivor, and disability retiree data as of December 31, 2009, in PERAC's standard record format by March 31, 2010. Boards will receive data analysis reports afterward to review and correct any questionable items, and PERAC recommends sound data maintenance practices to ensure reliable, timely actuarial valuations. Boards scheduled for a 2010 PERAC actuarial valuation should already have received a separate data request.

Memorandum #27, 2010 announces that effective July 1, 2010, the annual supplemental dependent allowance under G.L. c. 32, §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii) increases to $729.84 per eligible child. Boards that have accepted these provisions must apply this updated amount when paying benefits to accidental disability retirees and accidental death survivors with eligible dependent children. No formal acceptance action is required, but boards should update payment amounts accordingly and contact PERAC's actuary with questions.

This memo notifies boards that the Social Security Administration's COLA of 5.8% translates, under the statutory 3.0% cap in Chapter 32, §103(c), to a maximum allowable retiree COLA of 3.0% effective July 1, 2009. Boards should be aware that this figure sets the ceiling for any COLA they choose to grant, and each board must notify PERAC of its decision (whether to grant a COLA, and at what rate) within 30 days of making it.

PERAC Memorandum #3, 2009 requests that all retirement boards submit active member, retiree/survivor, and disability retiree data as of December 31, 2008, in the standard PERAC record format by March 31, 2009. Boards must review the resulting data analysis reports to correct any errors or warnings identified, and PERAC staff are available to assist with this data maintenance process. Boards scheduled for a 2009 actuarial valuation should have already received a separate, specific data request.

This memo announces the annual COLA adjustment to the supplemental dependent allowance under G.L. c. 32 §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii), setting the payment at $708.60 per eligible child effective July 1, 2009. Boards that have accepted these provisions must update their systems to pay this new annual amount to eligible accidental disability retirees and accidental death survivors for each qualifying dependent child, with questions directed to PERAC's actuary Jim Lamenzo.

This memo clarifies COLA eligibility timing when an Accidental Disability retiree dies and their beneficiary begins receiving an Accidental Death benefit under G.L. c. 32, §9 (or §101). Because this is a new benefit rather than a continuation of the deceased member's allowance, the beneficiary must have been receiving the Accidental Death benefit as of June 30 of the prior fiscal year to qualify for a COLA—unlike an Option C beneficiary, who continues the member's existing benefit and is COLA-eligible if the member's benefit was in place by that date. Boards should apply this distinction when processing COLA payments for Accidental Death beneficiaries; no other action is required.

This memo announces that the Social Security COLA for 2007 is 2.3%, which sets the base COLA rate boards may grant under G.L. c. 32, §103(c) effective July 1, 2007; boards may vote to increase this up to 3% under §103(i) with proper notice to their legislative body. Each retirement board must notify PERAC of its COLA decision (whether to grant, and at what rate) within 30 days of that vote.

This memo requests that all retirement boards submit active member, retiree/survivor, and disability retiree data as of December 31, 2007, in the standard PERAC record format. Boards must submit this data by March 31, 2008; PERAC will then provide data analysis reports to help identify and correct errors or warnings, supporting reliable and timely actuarial valuations. Boards already notified separately about a 2008 actuarial valuation should follow that request instead.

This corrected memo reports that the Social Security COLA for 2008 is 2.3%, which sets the base COLA rate boards may grant effective July 1, 2008 under Chapter 32, §103(c); boards may vote to increase this up to 3% under §103(i) with proper notice to their legislative body. Each retirement board must notify PERAC within 30 days of its decision on whether—and at what rate—to grant a COLA.

**PERAC Memorandum #22, 2008 — Summary** This memo reports the SJC's decision in *Pelonzi v. Beverly Retirement Board & CRAB* (May 21, 2008), which definitively holds that the monetary value of an employee's personal use of an employer-supplied vehicle is **not** regular compensation for retirement purposes, since the SJC characterized it as a benefit rather than compensation. This ruling supersedes prior PERAC guidance (Memoranda #3/2001, #25/2001, #41/2001, #38/2002, and #18/2006) that had directed boards to include such value as regular compensation. **Action required:** Retirement boards must return all contributions collected from members and retirees on the monetary value of personal use of employer-supplied vehicles, and must cease treating such value as regular compensation in calculating retirement allowances going forward.

This memo announces the annual cost-of-living adjustment to the supplemental dependent allowance under G.L. c. 32, §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii), setting the new annual amount at $687.96 per eligible child effective July 1, 2008. Boards that have accepted these provisions must update payments accordingly for accidental disability retirees and accidental death survivors with eligible dependent children; no further board action beyond implementing the new rate is required.

This memo notifies boards that, per Ch. 32 §103(c), the maximum COLA retirement boards may grant effective July 1, 2007 is 3.0% (based on the Social Security Administration's 3.3% CPI-W increase, capped at 3.0%). Boards must decide whether to grant a COLA and notify PERAC of that decision within 30 days.

PERAC Memo #8/2007 requests that all retirement boards submit active member, retiree/survivor, and disability retiree data as of December 31, 2006, in the standard PERAC record format by March 31, 2007. PERAC will review submissions and provide data analysis reports so boards can correct any errors or warnings, supporting accurate and timely actuarial valuations. Boards scheduled for a PERAC actuarial valuation in 2007 should have already received a separate data request and need not respond to this general memo for that purpose.

Memorandum #29, 2007 announces the annual cost-of-living adjustment to the supplemental dependent allowance under G.L. c. 32, §§ 7(2)(a)(iii), 22D, and 9(2)(d)(ii), increasing the per-child annual amount to $667.92 effective July 1, 2007. Boards that have accepted these provisions must apply the new rate to eligible children of accidental disability retirees and accidental death survivors going forward; questions should be directed to PERAC's actuary, Jim Lamenzo.

Memorandum #37/2007 explains IRC §402(l), added by the Pension Protection Act of 2006, which allows eligible retired public safety officers (those retired for disability or at normal retirement age) to exclude up to $3,000 annually from gross income for health or long-term care insurance premiums withheld directly from their retirement allowance and paid to the insurer; this exclusion is not available to survivors and must be self-reported by retirees on IRS Form 1040 (not shown on the 1099R). Boards have no mandated administrative role but should be prepared to inform members of the amounts withheld and paid to insurers, and should refer specific tax questions to members' personal tax advisors. The memo also notes PPA §829, which permits non-spouse beneficiaries to make direct trust-to-trust rollovers of inherited benefits, provided the receiving account properly identifies both the deceased member and the beneficiary.

This memo notifies boards that the Social Security COLA was 4.1%, but per the statutory 3.0% cap, the maximum COLA a retirement board may grant effective July 1, 2006 under Chapter 32, §103(c) is 3.0%. Boards must vote on whether to grant a COLA and, per the required action, notify PERAC of their decision within 30 days of making it.

Memorandum #2/2006 explains Chapter 143 of the Acts of 2005, which allows retirees (or their surviving spouses) who selected Option A or Option B between July 1, 2004 and December 27, 2004 a one-time opportunity to switch their retirement option, effective February 10, 2006; those who chose Option C during that period are not eligible. Boards must immediately identify affected retirees and surviving spouses, notify them of this right, and ensure applications are filed by July 1, 2006, with the option change processed within 180 days. Any resulting overpayments must be repaid in full (without interest, and without waiver), with Option B annuity distributions repaid in a lump sum, and new calculations/forms submitted to PERAC for approval.

This memo notifies boards that updated copies of the Massachusetts Public Employee Retirement Guide will be mailed free of charge (distributed by membership-size formula) during the week of April 17, 2006, with additional copies available from Central Reprographics or as a free download from PERAC's website. It also notes that updates to the Disability Retirement and Survivor Benefits guides are still in progress. No action is required of boards beyond noting the distribution and availability of these resources.

This memo announces a new local option (Chs. 55 and 64 of the Acts of 2006, effective July 5, 2006) allowing retirement boards that have already accepted G.L. c. 32, §7(2)(a)(iii) to increase the accidental death benefit for surviving children under §9(2)(d)(ii) to match that same benefit amount (currently $629.64/year, subject to future COLA-type increases). Boards wishing to adopt this increase must vote to accept the option and obtain ratification from both the Chief Executive Officer and Legislative Body (as defined by entity type), then file a certificate of acceptance with PERAC; the increased benefit is prospective only from the filing date, with no retroactive payments.

This memo explains that, effective July 5, 2006, boards that previously accepted the local option to increase the supplemental dependent allowance for children of accidental disability retirees under G.L. c. 32, §7(2)(a)(iii) may now similarly increase the accidental death benefit for surviving children under §9(2)(d)(ii). To implement this increase, a board must affirmatively vote to accept the option and obtain ratification from both its Chief Executive Officer and Legislative Body, with certified copies filed with PERAC; the increase is effective (non-retroactively) only from the date of filing. Boards should also verify their listed acceptance status for the original §7(2)(a)(iii) option on PERAC's website and submit corrected documentation if inaccurate.

This memo informs boards that PERAC's pension governance reform bill (H. 4939) did not achieve final passage before the 2005-2006 legislative session ended, and that PERAC intends to likely refile similar legislation in the 2007-2008 session. It also details the collaborative process with MACRS and legislative leadership, noting concessions PERAC made to the bill, while addressing and rebutting criticism that mischaracterized PERAC's motives as centralizing control over local boards. No immediate action is required of boards, though administrators should be aware that similar reform legislation may be reintroduced in the next session.

This memo establishes July 1, 2004 as the effective date for the new PERAC mortality table and interest rate (Option A, B, and C factors) adopted under Ch. 149 of the Acts of 2004. Boards must recalculate allowances for all retirees (and Option D beneficiaries) with effective dates on or after July 1, 2004 using the new factors and issue retroactive payments for any underpayment, but may not permit these retirees to change their previously selected option; boards should also allow members who deferred retirement between July 1 and December 27, 2004 to retire effective as of their termination date with an option selection made at that time.

This memo announces that the Social Security COLA is 2.7%, which establishes the base COLA rate retirement boards may grant effective July 1, 2005 under Chapter 32, §103(c); boards may vote to increase this up to 3% under §103(i) with proper notice to their legislative body. Boards must notify PERAC of their COLA decision (whether to grant one, and at what rate) within 30 days of their vote.

This memo notifies boards that the per-copy price of PERAC's three retirement guides (Public Employee Retirement Guide, Disability Retirement Guide, and Survivor Benefits Guide) has risen from $1.00 to $1.25, and outlines options for obtaining copies—free download, in-person purchase, or mail order with specified postage/handling costs. No immediate action is required; boards are advised to delay ordering since updated guide editions are forthcoming (main guide by mid-December 2005, others in early 2006), after which boards will again receive free copies per PERAC's standard membership-based distribution formula.

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 the Social Security Administration's CPI-W-based COLA is 2.1%, which sets the statutory COLA rate effective July 1, 2004 under Chapter 32, §103(c). Boards may vote at a duly called meeting to increase this rate up to 3% (per §103(i)) provided proper notice is given to the local legislative body, and each board must notify PERAC of its COLA decision within 30 days.

This memo reminds boards of the G.L. c. 32, §91 post-retirement earnings limitations (960-hour annual cap and salary offset rules) applicable to all superannuation and disability retirees working in public sector positions, including through consultant/independent contractor arrangements or paid details. Boards should note that, per Flanagan v. CRAB, they have authority—and a duty—to recoup over-earnings themselves if hiring public entities fail to enforce §91, and while PERAC will flag disability retirees' public employment found through the §91A process, boards remain responsible for enforcement; boards may also wish to circulate this memo to municipal treasurers, who share compliance responsibility.

This memo advises boards that, following the Goodridge decision's effective date (May 17, 2004), members married to same-sex spouses are entitled to the same G.L. c. 32 retirement benefits and options as any other married member. Boards should require the same standard evidence of marriage as before and maintain records in the usual manner—no additional or special documentation or record-keeping is required, and since option benefits are actuarially equivalent, fiscal impact should be minimal.

This memo reminds governmental units of the post-retirement earnings and hours restrictions under G.L. c. 32, §91, which caps public-sector retiree employment at 960 hours per calendar year and limits combined salary plus pension to no more than the current salary of the position from which they retired; disability retirees are additionally subject to §91A. Boards should note that these limits apply regardless of job title (e.g., "consultant" or "independent contractor"), apply across all public employers, and cannot be circumvented through corporate formation or detail billing arrangements. While treasurers and retirees bear primary compliance responsibility, boards should be prepared to advise employers on proper application of the statute and monitor for potential violations.

This memo notifies boards that the Social Security COLA for 2003 is 1.4%, which sets the base COLA rate boards may grant effective July 1, 2003 under Chapter 32, §103(c); boards may vote to increase this up to 3% under §103(i) with proper notice to their legislative body. Boards must notify PERAC within 30 days of their decision on whether to grant a COLA.

This memo reports CRAB's final decision in MTRB v. PERAC (CR-02-660), confirming that the $300 veteran's benefit under G.L. c. 32, §5(2)(b) must be added to a retiree's allowance after applying the Option C factor to the base (non-veteran) allowance, and that upon the member's death, the Option C survivor receives two-thirds of the total allowance, including two-thirds of the $300 veteran benefit—reversing DALA's contrary ruling that the benefit ceases at death. Boards must ensure all affected veteran retirees' benefits under Option C have been recalculated per PERAC Memo #36/2001, and if this has not yet been done, they must immediately complete recalculations and issue any retroactive payments owed.

This memo announces the revision of nine PERAC general membership and disability forms and the introduction of two new ones (a Beneficiary Change Form for Option B deaths after retirement, and a Pre-Tax Rollover Acknowledgement Form). Boards should begin using the attached paper versions immediately, pending posting of fillable online templates on PERAC's website within two weeks. Notably, members retiring or withdrawing accumulated deductions, along with employers, must now supply additional information to help boards apply G.L. c. 32, §15.

PERAC Memo #3/2002 reports that the Social Security COLA for 2002 is 2.6%, which sets the base COLA rate boards may grant under Chapter 32, §103(c), effective July 1, 2002. Boards may elect to increase this to up to 3% under §103(i) with proper notice to their legislative body, and must notify PERAC of their COLA decision within 30 days of making it.

This memo clarifies that the G.L. c. 32, §5(2)(b) veteran's benefit is an additional amount to be applied on top of other calculations—added after the $3,000 minimum is applied to a member-survivor benefit, added on top of §90C-increased allowances, and added after (not included in) Option C pop-up calculations, with a worksheet provided for the pop-up scenario. It also revises the position taken in Memo #36/2001, following Dargin v. PERAC, to now permit boards to pay recalculated benefits owed to deceased retirees to their estates or beneficiaries. Boards should apply this methodology going forward and process any owed payments to estates/beneficiaries of deceased retirees accordingly.

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 notifies boards that, effective January 1, 2003 through December 31, 2003, the per-copy price of PERAC's three public employee retirement guides (Retirement Guide, Disability Retirement Guide, Survivor Benefits Guide) will increase from $.77 to $1.00, with pricing subject to change afterward. It outlines three ways to obtain guides—free download, in-person purchase at Room P-11, or mail order through Central Reprographics (with listed shipping/handling costs)—but requires no action from boards beyond following the updated ordering procedures if they wish to purchase copies.

**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 reports that the Social Security COLA is 3.5%, meaning retirement systems that have accepted Chapter 17 (Acts of 1997) and adopted a funding schedule may grant a COLA effective July 1, 2001 of up to 3.0% on the first $12,000 of a retirement allowance, per Chapter 32, §103(c). Only boards that have accepted Chapter 17 may act on this; each such board must notify PERAC within 30 days of its decision whether to grant the COLA.

This memo announces Chapter 411 of the Acts of 2000, which permits a "pop-up" pension allowance adjustment for noncontributory retirees who retired under G.L. c. 32, §58B before January 12, 1998 and whose beneficiary predeceased them, effective April 5, 2001 (with no retroactive benefits for the period before that date). Boards should note this is a local option requiring acceptance by both the retirement board and the local legislative body, and any such acceptance must be forwarded to PERAC's Legal Unit; the memo also provides the required formula and worked example for calculating the "popped-up" pension with applicable COLAs brought forward to the effective date.

PERAC Memo #13/2001 reminds retirement boards of their fiduciary obligations regarding investment activities, emphasizing compliance with 840 CMR 17.01–17.04 governing ethics, conflicts of interest, and standards of conduct for fiduciaries, investment managers, and consultants. It highlights that managers/consultants who violate Chapter 32 §23 or these regulations can be held liable for losses and barred from serving any Massachusetts retirement board. Boards should ensure they and their vendors fully understand and adhere to these standards, as PERAC intends to pursue aggressive enforcement going forward.

This memo corrects an error in PERAC Memo #12/2001 regarding the Noncontributory Pop Up Act, clarifying that the pension allowance adjustment applies to noncontributory retirees who retired under G.L. c. 32, § 58B before January 12, 1988 and whose beneficiary predeceased them. All other guidance in the original memo remains correct and should continue to be followed; no further board action is required beyond noting this clarified eligibility criterion.

PERAC #35/2001 announces Fall training classes on processing disability retirement and accidental death applications, to be held in Somerville, Lawrence, Plymouth, Framingham, and Northampton. The training is aimed primarily at board staff handling these applications, though administrators and board members may also attend. Boards should complete and submit the attached registration form promptly (ideally at least a week before a session) to secure seats, as enrollment is limited and first-come, first-served, and should notify PERAC if a registered attendee cannot attend.

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.

PERAC Memo #17/2000 reports that the CPI-W-based COLA for FY2000 is 2.4%, applicable only to systems that have accepted Chapter 17 of the Acts of 1997 and established a funding schedule; boards may elect to increase this to up to 3.0% under Chapter 127, Section 51 of the Acts of 1999. Boards must notify PERAC within 30 days of their decision whether or not to grant a COLA.

PERAC Memo #30/2000 clarifies that survivor pension benefits granted under G.L. c. 32, §100 (for spouses of firefighters, police officers, or corrections officers killed in the line of duty) constitute accidental death benefits and therefore fall under PERAC's review authority per §21(4), notwithstanding language stating the section is "administered by" the local board. Boards must submit all Section 100 benefit approvals to PERAC for review before finalizing them, as they would with other accidental death benefit determinations.

PERAC Memo #34/2000 explains FY2001 budget amendments to G.L. c. 32 that (1) eliminate the "remarriage penalty," so surviving spouses under §§ 9, 12(2)(d), 100, and 101 no longer lose or have reduced benefits upon remarriage, effective July 1, 2000, and (2) increase the §12(2)(d) death benefit to the full Option C allowance the member would have received had they retired on their date of death, applicable to applications filed after February 1, 2000. Boards must reinstate or recalculate any allowances terminated/reduced due to remarriage on or after July 1, 2000, and recalculate any §12(2)(d) applications filed on or after February 1, 2000 to reflect the enhanced Option C benefit; no action is required for benefits terminated or reduced before those dates.

This memo explains new G.L. c. 32, §20(5)(c) provisions (from FY2001 budget legislation) allowing retirement boards, upon a member/beneficiary's request, to waive repayment of certain overpayments or contribution shortfalls, provided the error persisted over a year, was not caused by member-provided misinformation, and the member had no knowledge/reason to suspect the error. Boards may waive remaining balances on active repayment plans or future annuity reductions, but cannot refund amounts already repaid or completed repayments. No action is required unless a board receives such a waiver request, in which case it must investigate and apply these criteria before voting.

This memo clarifies that under G.L. c. 32, § 3(8)(c), a retirement system receiving reimbursement from another governmental unit for pension costs attributable to service in that second unit cannot also seek reimbursement for the COLA portion (under Chapter 17 of the Acts of 1997) attributable to that service. Because each board independently elects to adopt the COLA, the adopting system bears full responsibility for the entire increased COLA cost, regardless of any § 3(8)(c) reimbursement arrangement. Boards need not take specific action but should apply this interpretation when calculating and billing § 3(8)(c) reimbursements.

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 notifies boards that the Social Security Administration's CPI-W determination sets the FY2000 COLA rate at 1.3%, applicable only to systems that have accepted Chapter 17 of the Acts of 1997 and established a funding schedule for COLA costs. Boards eligible to grant this COLA must decide whether to do so and notify PERAC of their decision within 30 days.

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 the method for calculating the Option (c) pop-up allowance when a member has also been granted a Section 90A, 90C, or 90D benefit increase. Boards must first calculate the pop-up allowance based on the member's original allowance (disregarding the 90A/90C/90D increase), then compare that "popped-up" figure—with COLAs applied—to the enhanced 90A/90C/90D benefit (also with COLAs applied), and pay the member whichever amount is greater. Boards should apply this calculation methodology, illustrated by the worked examples in the memo, whenever processing pop-up allowances for retirees who have received these statutory increases.

PERAC Memo #21/1999 addresses a Reviewing Board (DIA) decision reinforcing that retirement boards—not just members—bear ultimate responsibility under G.L. c. 32, §§14(2)(c) and 14A for pursuing Workers' Compensation claims and third-party civil suits when disability applicants fail to do so themselves. Boards are directed to review their internal procedures to ensure they are actively prosecuting such claims and suits on behalf of members who neglect to do so, and to consult board counsel for guidance in implementing this mandatory duty.

PERAC Memo #27/1999 announces an updated version of the Massachusetts Public Employee Retirement Guide, reflecting statutory changes through the 1998 legislative session, and provides a copy along with online access via PERAC's website. Boards should discontinue use of any prior general retirement guide and rely solely on this updated version, distributing copies to members as needed. A revised Guide to Survivor Benefits was also noted as forthcoming.

PERAC Memo #30/1999 announces an updated Guide to Survivor Benefits for Public Employees, revised to reflect legislative changes through the 1998 session, and available both as an enclosed hard copy and on PERAC's website. Boards should discontinue use of any prior versions of the survivor benefits guide and rely solely on this updated edition, distributing copies to members as needed.

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.

This memo announces that PERAC's Retirement Guide, Disability Retirement Guide, and Survivor Benefits Guide are now available on PERAC's website, allowing boards to print copies as needed rather than requesting them from PERAC. Boards are encouraged (though not required) to notify member personnel offices of the guides' availability and to use the website as a resource for keeping members informed of up-to-date retirement information.

This memo addresses Chapter 64 of the Acts of 1998, which requires retirement boards to notify DOR before making initial payments/distributions to members so DOR can check for child support arrears, comply with related liens, income withholding orders, and assignments, and file annual member data reports with DOR by March 1st. Boards should be aware that member information related to child support is strictly confidential (with penalties for disclosure), should consult local child support enforcement units to understand the process, and should comply with DOR-initiated requests on individual cases now—though full notice/payment-restriction procedures need not be implemented until DOR finalizes its administrative processes, at which point PERAC will provide further guidance and training.

PERAC Memo #21/1998 answers frequently asked questions on implementing the COLA statute (Chapter 32, §103, as revised by Chapter 17) for FY99, confirming the applicable COLA rate is 2.1%, clarifying eligibility rules (must have been receiving a benefit as of June 30, 1997, and excludes non-contributory retirees), and explaining the automatic increase applicable to certain supplemental payments. To grant a FY99 COLA, boards must ensure both local acceptance of Chapter 17 and formal board action occur before July 1, 1998—no COLA can be paid without these two steps being completed.

This memo reports an Ethics Commission ruling that retired members serving on their own retirement board may vote on annual COLA determinations (including acceptance of Chapter 17 of the Acts of 1997), even though they personally benefit, since COLAs generally affect all members rather than uniquely benefiting the individual board member. Boards should note that such members remain bound by their fiduciary duties in casting these votes; no other action is required.

PERAC Memo #36/1998 explains Section 288 of Chapter 194 of the Acts of 1998, which extends the Option (C) "pop-up" benefit—restoring a member's allowance to the maximum amount if their designated beneficiary predeceases them—to members who retired before January 12, 1988. This provision is not automatic: it requires local acceptance through a majority vote of the retirement board **and** approval by the applicable legislative body (as defined for the relevant governmental unit), with certified copies of both votes submitted to PERAC. Boards should note that any resulting benefit adjustments may only be applied prospectively from July 1, 1998, and no retroactive payments are permitted for the period between a beneficiary's death and that date.

This memo follows the CRAB decision in Dargan v. PERAC, which requires retroactive payment of the $300 veteran's benefit to all surviving spouses and estates previously denied all or part of that benefit due to the 80% cap under G.L. c. 32, §5(2)(c)—regardless of whether they were in pay status when the earlier Drew decision was issued or which retirement option was selected. Boards must review current and past records to identify eligible beneficiaries/estates where possible, publish a local newspaper notice alerting potential claimants of their right to apply, and upon application, recalculate affected allowances using the appropriate PERAC worksheet (Simplified or Retroactive Payment) for submission to PERAC for review and approval.

PERAC Memo #53 clarifies how boards should calculate the Option (c) "pop-up" allowance under the new local option (Ch. 194, §288 of the Acts of 1998), which extends pop-up eligibility to members who retired before January 12, 1988. Boards must calculate the pop-up as of the beneficiary's original date of death using the standard formula (Cdod × Aorig/Corig), then apply subsequent COLA increases forward to determine the allowance payable prospectively from July 1, 1998. Boards that accept this local option bear the full cost of the pop-up increase themselves, with no adjustment to Section 3(8)(c) reimbursement amounts.

This memo clarifies that regardless of when a retirement board formally accepts Section 288 (the Option (C) Pop-Up provision), the resulting pension allowance adjustment for eligible members—those retired before January 12, 1988 under Option (C) whose beneficiary predeceased them—must be effective as of July 1, 1998, including retroactive payment of any increase owed for months between July 1 and the acceptance date. Boards must not adjust benefits for periods before July 1, 1998, nor delay the start of the adjustment period beyond that date. Boards adopting Section 288 must send PERAC a certified copy of the legislative body's vote and the retirement board's minutes documenting acceptance.

This memo clarifies that the amendment allowing accidental disability retirees to select Option C does not affect the separate accidental death benefit provisions under G.L. c. 32, §9. If an accidental disability retiree dies as a natural and proximate result of the original injury, both an accidental death benefit (payable to the beneficiary determined under §9(2)) and the Option C benefit (payable to the retiree's designated Option C beneficiary) may be due—these are independent entitlements. Boards do not need to take specific action but should apply both provisions correctly when processing death benefits for accidental disability retirees who selected Option C.

This memo clarifies the process for retirement boards designating neutral medical physicians under G.L. c. 32, §20(5)(d), pending PERAC's issuance of final regulations. Boards have discretion on when to appoint a neutral physician during an application review, but must ensure the physician has relevant specialty training/experience, cannot vote or substitute for the medical panel's certification, and must be excluded from serving on the regional medical panel for that same case—requiring boards to list any involved neutral physician's name on medical panel request forms.

Memo #22/1997 explains Chapter 17 of the Acts of 1997, which reforms the COLA process by giving state/teacher COLA decisions to the Legislature and Governor, while local systems must separately accept Section 103 (via board vote and legislative body approval) to grant annual COLAs on the same CPI-based formula, now calculated on a $12,000 base. Boards considering acceptance should note that the decision is irrevocable and requires establishing, with PERAC, a funding schedule to amortize the added liability; PERAC will also send annual COLA reports to accepting systems each April 1 and will issue a cost study to municipalities and boards by 12/31/97. No immediate action is required unless a board chooses to adopt Section 103, in which case it must follow the specified acceptance and funding procedures.

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.

This memo notifies boards that PERAC's Massachusetts Public Employee Retirement Guide is now available on PERAC's website (in both HTML and PDF formats), with a hard copy PDF enclosed, and that the Disability Retirement and Survivor Benefits guides will be posted online within two weeks. No action is required of boards other than awareness that PERAC will notify them of any future content updates, and that printed pamphlet versions of all three guides are planned for later release.

PERAC Memo #43/1997 announces that the Guide to Disability Retirement for Public Employees and the Guide to Survivor Benefits for Public Employees have been added to PERAC's website, available in both html and pdf formats, with hard copies enclosed. No board action is required; boards should note that PERAC will notify them of any future content changes to these guides.

This memo transmits PERAC's statutorily-required 1997 report on the costs and actuarial liabilities associated with COLA benefits under Chapter 17 of the Acts of 1997, which reformed the COLA process (allowing systems to grant increases up to the CPI or 3%, whichever is less). It explains that Chapter 17 requires local systems to accept Section 103 provisions—via retirement board vote plus approval by the local legislative body—before a system's members can receive an annual COLA, and notes that PERAC will provide the CPI report to accepting systems each April 1. No immediate action is required beyond boards reviewing their system's cost data and considering whether to pursue local acceptance of Section 103.

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.