group classification

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 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.

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 addresses the need for retirement boards to counsel members who are considering withdrawing their contributions, given that Chapter 176 significantly changes retirement rights and benefits for anyone who later re-enters public service and becomes a member on or after April 2, 2012 (e.g., higher minimum retirement age, new age factors, five-year salary averaging, new contribution rates, loss of §10 termination allowance). Boards should fully inform any member seeking a withdrawal of these consequences, referencing PERAC Memo #36/2011 for details, before processing the withdrawal.

This memo explains Section 14 of Chapter 176 of the Acts of 2011, which requires pro-ration of §32(5) retirement benefits for members who served in multiple job groups, calculating each group's portion separately using the same average pay but group-specific age factors and service years, then summing them. Pro-ration is mandatory for members joining on or after April 2, 2012, but optional for those already active as of that date. Boards must counsel members with multi-group service histories about this option and be prepared to perform the segmented calculations as illustrated in the memo's example.

This memo transmits Chapter 467 of the Acts of 2008, effective April 9, 2009, which creates a local option under G.L. c. 32, §3(2)(g) allowing municipalities to reclassify uniformed EMTs of a municipal or public emergency medical service into Group 4. Acceptance requires local action (city council/manager or mayor approval, or board of selectmen vote) and is not automatic. Boards should notify PERAC and submit certified copies of any local acceptance action if/when their municipality adopts this option.

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.

This memo announces PERAC's publication (as of December 31, 1997) of a comprehensive listing of investment managers, consultants, and custodians retained by each Massachusetts public retirement system, along with associated waiver/PRIT approval dates, now available on PERAC's website. It is informational only, addressed to investment managers, and requires no action from retirement boards other than awareness that their manager/consultant/custodian relationships are publicly listed.

This memo notifies boards of the settlement of the EEOC's lawsuit challenging G.L. c. 32, §90F (mandatory physical exams for members working past age 70), which was found to violate the ADEA; under the settlement, affected members who paid for such exams between August 22, 1987 and March 30, 1993 are entitled to $35 per exam (or more with proof of higher cost). Boards must identify and compile the names and addresses of members who took the required §90F physical exam or who worked past age 70 during that period, and submit these lists to PERAC by May 5, 1997 so PERAC can forward them to the EEOC by May 13, 1997.

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.