membership

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 2 describes the structure of the Massachusetts contributory retirement systems established under Chapter 32, confirming their continuation as of December 31, 1945, and specifying which governmental units and employee classes belong to each system. It assigns teachers to the Teachers' Retirement System, state employees to the State Employees' Retirement System, and sets rules for county, city, town, district, and authority employees to be included in the corresponding local or regional retirement system. It also addresses special circumstances for employees of named authorities such as MassDOT, MBTA Police, MassPort, and others, and preserves all existing rights, rules, and regulations consistent with Sections 1–28.

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 3A addresses ineligible employees — specifically, persons receiving compensation from the Commonwealth who are not eligible for membership in the state retirement system. Such individuals are directed to the deferred compensation program established under Section 64 of Chapter 29. This brief section ensures that non-eligible Commonwealth employees have access to an alternative retirement savings mechanism in lieu of Chapter 32 membership.

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 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 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 15 establishes forfeiture of retirement benefits for members who misappropriate public funds or are convicted of crimes related to their office. Following a board hearing, a member found to have misappropriated funds forfeits retirement allowances and accumulated deductions up to the amount misappropriated. Final criminal convictions—including for bribery, extortion, or general workplace misconduct—can result in total forfeiture of pension rights, with a possible return of accumulated deductions (without interest) depending on the offense. The section also prohibits retirement allowances based on intentionally concealed or misreported compensation.

Section 17 provides a mechanism for exercising a member's retirement options and rights when the member is incompetent or otherwise unable to act on their own behalf. The spouse (if living together), guardian, or conservator may act in priority order; absent all of these, the board may designate any person it finds to be acting in the member's best interests.

Section 18 requires members and employees to file written statements and certified records when requested by the retirement board, and establishes an escalating enforcement mechanism—including suspension without compensation—for unreasonable delays. It imposes criminal penalties for knowingly making false statements or falsifying system records with intent to defraud, and requires actuarial correction of any benefit errors resulting from such wrongful acts.

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 19A authorizes retired members to make written assignments directing their retirement board to withhold monthly amounts for health insurance premiums, federal income tax payments, and child support orders. When a retiree's pension check is insufficient to cover health insurance deductions, the last employing governmental unit is responsible for billing the retiree directly. Retirement boards may also deduct the retiree's share of Chapter 32B health insurance premiums directly from pension checks.

Section 19B requires the state treasurer to automatically withhold Chapter 32B health insurance premiums from the monthly pension of teachers' retirement system members and eligible surviving spouses, unless the member affirmatively opts out. The governmental unit treasurer must annually file a premium schedule with the retirement board by May 1, and the retirement board certifies eligible members to their respective governmental units. Upon death of a member, the retirement board notifies the treasurer to discontinue coverage, except where a surviving spouse remains eligible for continued coverage.

Section 19C subjects retirement allowances, annuities, and accumulated deductions under Chapter 32 to child support liens and income withholding orders administered by the IV-D agency under Chapter 119A. Upon receiving notice from the IV-D agency, a retirement board must comply with any lien or withholding order and continue compliance until officially notified that the obligation is satisfied. Boards that make payments to the IV-D agency are discharged from further liability, and section 24 proceedings constitute the exclusive remedy for any disputes about board compliance with these obligations.

Section 20 is the comprehensive governance provision establishing the structure, composition, and duties of retirement boards for each type of retirement system under Chapter 32, including state employees, teachers, counties, cities and towns, and various special authorities (MBTA police, MassDOT, Massport, MWRA, and others). It specifies board membership, election procedures, compensation, legal counsel, reporting obligations, continuing education requirements, and general administrative powers such as taking evidence, subpoenaing witnesses, and correcting errors in member records. Board members must complete 18 hours of training per term, and failure to do so bars them from serving beyond the conclusion of that term.

Section 28 governs how various governmental units formally opt into Chapter 32. Towns may accept the chapter by voter referendum at a state election; cities or towns with existing special-act retirement systems may accept by city council/mayoral vote or selectmen's vote. Districts, housing authorities, and special authorities (MassDOT, MBTA police, Massachusetts Housing Finance Agency) each have their own acceptance procedures. When a small town with fewer than 10,000 residents accepts, its employees join the county system rather than creating a new town system. The section also addresses transitional membership rights when new systems are established, including prior service credit and transfers of fund shares from old systems to new ones.

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 39 authorizes private employers and their employees to form voluntary associations for the purpose of providing annuities, pensions, or endowments upon retirement on account of age. Both employees (contributing a percentage of wages) and employers contribute to association funds held by independent trustees. The funds may be used for retirement benefits, death benefits for pre-retirement deaths, withdrawal refunds, and administrative expenses. Such associations are exempt from insurance company regulations, and may cover employees of affiliated corporations in the same or related fields under common management.

Section 41 protects the assets of private pension associations formed under Section 39 from taxation, bankruptcy proceedings, and creditor attachment. Employee rights in association funds and any annuity, pension, or endowment payable under Sections 39 or 40 cannot be assigned. However, an exception allows the attachment or assignment of a pension or annuity to satisfy a child support order under Chapters 208, 209, or 273.

Section 44 authorizes the retirement of public school janitors in cities and towns that have accepted this section. Retirement is available to janitors who are age 60 with 25 years of service and are physically incapacitated, or who have 15 years of service and are physically incapacitated due to a job-related injury. The pension equals one-half of the last year's full-employment compensation, capped at $750 per year, paid from school appropriations. Critically, this section applies only to janitors whose employment began before July 1, 1937; those hired after that date are not eligible.

Section 44A allows cities and towns (by a two-thirds city council vote or annual town meeting vote) to retire school janitors not covered by the contributory retirement system at their own request. Eligibility requires the janitor's employment to have begun before July 1, 1937, and one of three conditions: 35 years of service; age 60 with 25 years of service and incapacitation; or 15 years of service with duty-related incapacitation. The pension equals 72% of the annual compensation at the time of retirement, paid from school appropriations.

Section 44C allows cities and towns (by supermajority city council vote or annual town meeting vote) to retire public school dental assistants at their own request. Eligibility requires employment beginning before July 1, 1937, and one of: 35 years of service; age 60 with 25 years of service and incapacitation; or 15 years of service with duty-related incapacitation. The pension equals 72% of annual compensation at retirement, paid from school or dental assistant appropriations.

Section 45 provides that Section 44 (school janitor retirement) does not apply to the City of Boston, but applies to other cities upon acceptance by the mayor and city council, and to towns upon acceptance at a town meeting, provided that acceptance occurred before January 1, 1946.

Section 45B protects school janitors and custodians employed before July 1, 1937 in cities and towns that have accepted Sections 44 and 45A. If such an employee is later promoted to a supervisory position in the janitorial or custodial service, the promotion does not forfeit their right to a non-contributory pension under Sections 44 and 45A. This section requires separate acceptance by the city or town.

Section 65D1/2 allows a member inactive in a retirement system who is appointed by the governor to a judicial position to elect, within 30 days, to become an active member of that system, provided they repay any retirement allowance received since their original retirement.

Section 77 provides pension eligibility for laborers in cities and towns (except Boston) that accepted the 1912 act: those with 35 years of service, those age 60+ with 25+ years who are incapacitated, or those with 15+ years incapacitated by on-duty injury, receive a pension equal to half their regular compensation; optional paragraphs allow broader definition of "laborers" in accepting cities and towns.

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 85C bars police officers and firefighters whose employment began after June 30, 1937 from coverage under the noncontributory pension provisions of sections 83 through 85B.

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.

Section 106 protects retirement allowances that included annual vacation leave buyout payments on which contributions were made, providing that such allowances shall not be reduced because of those contributions; it also specifies that vacation leave buyout payments qualifying as regular compensation as of May 1, 2018 continue to be treated as such for members who were in service on that date, subject to anti-spiking conditions.

For members who joined a Massachusetts retirement system after January 1, 2011 (Tier 2 members), regular compensation used in benefit calculations is capped at 64% of the federal IRC § 401(a)(17) limit. With the 2026 federal limit set at $360,000, the 2026 Massachusetts cap for post-2011 members is $230,400. Boards must apply this limit when calculating retirement allowances for affected members.

This memo details boards' responsibilities for administering §91A disability retiree earnings compliance via PROSPER, covering non-filers, salary verification tasks, and excess earnings determinations. Boards must: provide hearing notice/opportunity to non-compliant retirees before any termination action; enter 2025 annual pension, annuity, current salary, and offset figures into PROSPER Salary Verification tasks (via individual entry or CSV upload) and submit for calculation; and, for retirees found to have excess earnings, send required notice, respond to the related PROSPER task documenting action taken, and upload board correspondence (not tax documents). Any data entry errors should be reported to Sandra King for correction.

PERAC Memo #17/2026 announces two PROSPER login security enhancements rolling out this summer: a longer required password (minimum 15 characters, changed only annually) and multi-factor authentication (MFA) requiring a phone-delivered code, with re-entry needed only every 60 days on trusted devices/browsers. Board members and staff will be prompted to update their password upon next expiration and to register a phone number for MFA on a staggered basis, with no action needed until prompted; questions should be directed to IT Director Dan Boyle.

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.

This memo announces that the FY2027 state budget (signed July 9, 2026) increased the earnings add-on used to calculate permissible post-retirement earnings under G.L. c. 32, §§ 91 and 91A, from $15,000 to $25,000, effective retroactively for all of calendar year 2026. Boards should apply the new $25,000 add-on when calculating allowable post-retirement earnings for both regular retirees (§91) and disability retirees (§91A), while continuing to apply the existing rule that a retiree must be retired a full calendar year before the higher limit applies. No other action is required, but boards should update any earnings-limit calculations/notices already issued for 2026 to reflect the revised figure.

Following the repeal of the WEP and GPO (Memo #2/2025), the Social Security Administration has released an updated Form SSA-1945 effective March 2025, reflecting the elimination of those provisions. Boards should resume requiring this form for all new employees and should collect signed forms from members who did not file during the prior pause period. The updated form is available at ssa.gov/forms/ssa-1945.pdf and procedural requirements remain the same as before the pause.

This memo announces that PERAC's annual review of medical testing fees under 840 CMR 10:10(3) and 10:15(1)(c) has resulted in no change for 2024. The Commission voted at its December 13, 2023 meeting to continue allowing PERAC staff to approve up to $100.00 per case for non-invasive medical tests ordered by a Regional Medical Panel. Tests exceeding that amount still require advance Commission approval. No action is required from boards beyond being aware of this continuing limit.

This memo clarifies that the required minimum distribution (RMD) age is now 73 for 2024 notifications, reflecting the SECURE 2.0 Act's updated rules for members born on or after January 1, 1951. Members who turned 73 in 2023, or who turned 72 in 2022, must take their first distribution by April 1, 2024, so boards should send notices promptly. A sample notification letter is attached, and boards are encouraged to offer individual counseling given the complexity of rollover options.

This memo publishes the 2024 federal compensation and benefit limits applicable to Massachusetts public retirement systems under Chapter 46 of the Acts of 2002. The IRC § 401(a)(17) compensation limit for 2024 is $345,000, and the IRC § 415 annual benefit limit is $275,000 for a member retiring at age 65 (reduced for retirements before age 62). These limits are indexed annually and affect only the highest-paid employees; most members will not be impacted.

This memo establishes the 2024 regular compensation cap for members who joined a Massachusetts retirement system after January 1, 2011, under Section 23 of Chapter 131 of the Acts of 2010. Because the federal IRC § 401(a)(17) limit for 2024 is $345,000, the cap on regular compensation for these newer members is 64% of that figure, or $220,800. Boards must use $220,800 as the maximum pensionable compensation for any post-2010 member when calculating contributions and retirement allowances this year.

Starting January 30, 2024, retirement boards can submit annual COLA approvals and COLA base changes entirely through PROSPER, replacing the previous paper-based process. Step-by-step instruction manuals are attached. Board staff with the Finance role in PROSPER will automatically have access; boards needing to add new users should complete the Individual Account Request Form and return it to PERAC's PROSPER Help Desk.

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.

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 two regulations — 840 CMR 4.00 (Financial Operations/Standard Method of Accounting) and 840 CMR 25.00 (Field Examinations) — effective March 29, 2024. Key changes to 840 CMR 4.00 include a new definitions section, requirements for daily transaction entry and monthly Trial Balance/General Ledger runs, a chart of cash book submission deadlines, and a new mandate that board staff share monthly cash books and quarterly budget comparisons with all board members. Changes to 840 CMR 25.00 clarify the triennial examination process and how PERAC may incorporate CPA examination work while still conducting its own required examination.

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.

PERAC has issued PROSPER tasks to all boards for disability retirees who failed to file their 2023 Annual Statement of Earned Income (91A form) or who reported earnings that may require a benefit adjustment. Boards must provide written notice and a hearing opportunity to non-compliant retirees; benefits may be terminated after the hearing, subject to CRAB appeal. Boards are also asked to respond to upcoming "Salary Verification" tasks in PROSPER by entering 2023 pension and salary figures so PERAC can calculate whether each retiree is within their allowable earnings limit.

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 introduces a new Audit Process application within PROSPER that allows retirement boards to electronically submit all audit documentation, replacing the previous email and Interchange workflows. When a board is due for an audit, tasks will appear in PROSPER prompting completion of a Pre-Audit Planning Questionnaire followed by a Material List checklist. Board staff with the Finance role in PROSPER will have automatic access; new users must submit an Individual Account Request Form to the PROSPER Help Desk.

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.

Chapter 141 of the Acts of 2024 (Salary Transparency Act), signed July 31, 2024, amends G.L. c. 32, § 5(2)(f) to exempt from the anti-spiking provision salary increases required under the Massachusetts Equal Pay Act (MEPA) and employer-wide "systemic wage adjustments," retroactive to July 1, 2018. Because DALA had previously ruled that MEPA increases were not exempt, some members had their retirement allowances improperly reduced. Boards must now identify affected retirees, recalculate their allowances, and pay a lump-sum correction plus correction-of-errors interest, offsetting any contributions that were previously refunded when anti-spiking was applied.

Chapter 141 of the Acts of 2024 amends G.L. c. 32, § 91(b) to allow retirees returning to public-sector employment to use whichever is greater — the current salary for the position from which they retired, or the salary upon which their retirement allowance was based — when calculating their allowable earnings. The change directly overrides a 2024 CRAB decision in Dixon v. Lynn Ret. Sys. that had forced use of the current position salary only, which sometimes left retirees with no earnings capacity. Retirees who had previously been calculated using the pension-based salary are held harmless and do not need to be recalculated.

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.

Chapter 149 of the Acts of 2024 (effective October 29, 2024) creates a new enhanced accidental disability benefit under G.L. c. 32, § 7 for firefighters, police officers, EMTs, and licensed health care professionals who suffer a catastrophic, life-threatening or life-altering permanent physical injury as the direct result of an intentional violent attack with a dangerous weapon. Qualifying members receive 100% of their regular compensation (reduced to 80% upon reaching mandatory retirement age), rather than the standard 72% pension, with prescribed survivor benefits for spouses and children. Boards must include Findings of Fact with every Violent Act Injury application submitted to PERAC for the required 30-day review.

PERAC encourages retirement board administrators and staff to apply for the free Municipal Cybersecurity Awareness Grant Program offered by the state's Executive Office of Technology Services and Security (EOTSS). Now in its sixth year, the program provides customized cybersecurity training including best-practice modules and simulated phishing attacks to help boards protect member information and system data. Boards should apply through the EOTSS grant portal as soon as possible (applications are reviewed on a rolling basis), and must designate a local coordinator and use organization-domain email addresses — not personal Gmail or Yahoo accounts — to participate.

PERAC asks boards to review and update all disability retiree records in PROSPER — including deaths, nursing home placements, address changes, allowance waivers, and returns to active status — no later than January 17, 2025, so the database is accurate before 91A forms are mailed. New for the 2024 filing year, all disability retirees will be able to file their 91A (Annual Statement of Earned Income) form electronically; PERAC will notify members via postcard in January and boards should include email addresses when updating PROSPER records. Completed 91A forms should be returned to PERAC's new Medford address by April 15, 2025.

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 announces that PERAC's annual review of medical testing fees under 840 CMR 10:10(3) and 10:15(1)(c) has resulted in no change for 2025. The Commission voted at its December 18, 2024 meeting to continue allowing PERAC staff to approve up to $100.00 per case for non-invasive medical tests ordered by a Regional Medical Panel. Tests exceeding that amount still require advance Commission approval. No action is required from boards beyond being aware of this continuing limit.

This memo announces the 2023 regular compensation cap applicable to members who joined a retirement system after January 1, 2011, as established by Section 23 of Chapter 131 of the Acts of 2010. Because the federal IRC § 401(a)(17) limit for 2023 is $330,000 (per Memo #2/2023), the 2023 cap on regular compensation for post-2010 members is $211,200 (64% of $330,000). Boards must ensure that compensation above this threshold is excluded when calculating retirement benefits for affected members.

This memo requests that retirement boards submit actuarial data — active member, retiree/survivor, and disability retiree records as of December 31, 2022 — by March 31, 2023 using the standard PERAC record format through the new PROSPER portal (the Interchange File Transfer website has been deactivated). After submission, boards will receive data analysis reports identifying warnings or errors for correction; boards scheduled for a PERAC actuarial valuation in 2023 will have received a separate data request. PERAC strongly recommends sound data maintenance practices to ensure reliable and timely actuarial valuations.

This memo transmits an updated list of public employees who have forfeited their retirement allowance eligibility under G.L. c. 32, § 15 due to misappropriation of funds, conviction of crimes related to governmental funds, or other enumerated offenses, and are therefore no longer statutorily eligible to join a Chapter 32 retirement system. Boards are required to review the attached list (sorted both alphabetically by name and by board) and notify PERAC of any discrepancies, and boards that have any of the listed forfeited members currently active in their system must contact PERAC to verify identity using the last four digits of the member's Social Security number. This is an annual compliance task requiring boards to cross-reference their active membership against the forfeiture list.

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 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 establishes the 2022 regular compensation cap for members who joined a Massachusetts retirement system after January 1, 2011, pursuant to Section 23 of Chapter 131 of the Acts of 2010. Because the federal § 401(a)(17) compensation limit for 2022 is $305,000, the 2022 cap on regular compensation for post-2010 members is $195,200 (64% of $305,000). Boards must apply this limit when calculating retirement benefits for affected members.

This memo requests that all retirement boards submit actuarial data for active members, retirees/survivors, and disability retirees as of December 31, 2021, by March 31, 2022. Data should be submitted in the standard PERAC record format via the Interchange File Transfer website to PER-edoc-Actuary@per.state.ma.us; after submission, boards will receive data analysis reports to review and correct errors before actuarial valuations are completed.

This memo requests that retirement boards verify 2021 salary information for disability retirees through the PROSPER system to determine whether any retiree exceeded their allowable post-retirement earnings limit under G.L. c. 32, § 91A. Boards must enter each disability retiree's 2021 annual pension and current salary figures into PROSPER, which will calculate whether earnings thresholds have been exceeded. Where excess earnings are found, PERAC will issue an Excess Earnings letter and boards must notify the retiree and suspend the allowance until any overpayment is recovered.

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 advises retirement boards that the COVID-era Open Meeting Law waivers permitting fully virtual meetings were set to expire on July 15, 2022, and instructs boards to prepare to resume in-person meetings with a physical quorum, including the chair, present. Boards that have adopted remote participation policies under 940 CMR 29.10 may still allow some members to participate remotely, but a quorum must be physically present and all votes in such meetings must be taken by roll call. PERAC notes that competing legislative proposals to extend the waiver are pending and commits to notifying boards immediately if the waiver is extended.

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 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.

Sets the 2021 PERAC-approved maximum reimbursement for non-invasive medical testing at $100.00 per case under 840 CMR 10:10(3) and 10:15(1)(c), continuing the prior year's practice. Voted at the November 18, 2020 Commission meeting.

Sets the 2021 IRC Section 401(a)(17) compensation limit at $290,000 and the Section 415 annual benefit limit at $230,000 (at age 65, reduced before age 62) per Chapter 46 of the Acts of 2002. Applies only to the highest-paid members whose compensation or benefit would otherwise exceed the federal caps.

Sets the 2021 cap on regular compensation for members who joined on or after January 1, 2011 at $185,600 — 64% of the $290,000 federal 401(a)(17) limit established in Memo #2/2021. Derives from Section 23 of Chapter 131 of the Acts of 2010.

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.

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.

Implements the SECURE Act change requiring Required Minimum Distributions at age 72 for members born after June 30, 1949. Initial distributions for those who reached 72 in 2020 are due by April 1, 2021; the old age-70½ rule continues for members who reached that age before January 1, 2020.

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.

Transmits the updated list of public employees ineligible to join a Chapter 32 retirement system under G.L. c. 32, § 15 due to misappropriation, criminal conviction, or related offenses. Most recent additions are bolded; boards should check the list against their active members.

PROSPER benefit calculation submission is now mandatory — PERAC will not accept mailed calculations received after March 5, 2021. Since November 2020, over 550 calculations have been submitted via the system. Boards needing help can watch the tutorial at mass.gov/info-details/prosper-benefit-calculations or contact the PROSPER help desk.

Extends the 2020 Annual Statement of Earned Income (91A) filing deadline for disability retirees to May 17, 2021, matching the federal and Massachusetts state income tax filing extensions announced March 17–19, 2021.

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.

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).

Chapter 20 of the Acts of 2021 (signed June 16) extends two COVID emergency measures: (1) fully remote Open Meeting Law participation is permitted through April 1, 2022; (2) virtual notarization for annual affidavits is extended through December 15, 2021. Updates and supersedes portions of Memo #16/2021.

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.

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.

Transmits the Q3 2021 (July 2021) Tobacco Company List, updating the roster of companies prohibited from new investment under Chapter 119 of the Acts of 1997 (15% tobacco revenue threshold). Supersedes all prior lists and is effective upon receipt by retirement boards.

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.

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.

Instructs boards on handling 91A PROSPER tasks for disability retirees who failed to file the 2020 Annual Statement of Earned Income or whose earnings may require a benefit adjustment. Boards must provide written notice and a hearing opportunity; PROSPER will also issue Salary Verification tasks requiring boards to enter 2020 annual pension and current salary figures for excess earnings calculations.

Chapter 29 of the Acts of 2021 (signed July 29) amends G.L. c. 32, § 100 to extend surviving-spouse pension eligibility to police officers killed or fatally injured while at the scene of an emergency in the performance of their duties, aligning police with the existing language for firefighters. The amendment is retroactive to June 3, 2021.

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.

Requests boards submit FY23 appropriation data via the PERAC website questionnaire by October 31, 2021, necessary for PERAC to calculate governmental unit contribution amounts under G.L. c. 32, §§ 22D, 22(6A)(b), or 22F per the board's funding schedule.

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).

H 4007, enacted over the Governor's veto, increases the annual public-sector work hour cap for Chapter 32 retirees (both superannuation and disability) from 960 to 1,200 hours, effective retroactively to July 1, 2021. Does not change earnings limits. A subsequent technical correction (Chapter 76 of 2021) updated the parallel reference in § 91(c).

Alerts retirement boards to a phishing scheme in which a former employee's board email account was hacked and used to fraudulently transfer investment assets. Boards should review IT user access authorizations, remove departed staff immediately, confirm vendor security protocols for wire instructions, and conduct diligent review of bank and investment statements.

Announces the 2021 Pension Fraud Prevention Campaign ("Help Take a Bite Out of Pension Fraud!") and distributes posters, brochures, and Referral Report forms for display. The PERAC fraud hotline is 1-800-445-3266; reports can also be submitted to PensionFraud@per.state.ma.us or at mass.gov/pensionfraud.

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.

Transmits the Q1 2022 (January 2022) Tobacco Company List, updating the roster of companies prohibited from new investment under Chapter 119 of the Acts of 1997 (15% tobacco revenue threshold). Issued in December 2021; supersedes all prior lists and is effective upon receipt by retirement boards.

Requests boards review and update disability retiree records in PROSPER to reflect all 2021 changes (deaths, nursing home placements, allowance waivers, returns to active status, address changes). Updates must be returned to Sandra King by January 14, 2022, to ensure accuracy before PERAC's February mailing of the 2021 § 91A Annual Statements of Earned Income.

Sets the 2022 PERAC-approved maximum reimbursement for non-invasive medical testing at $100.00 per case under 840 CMR 10:10(3) and 10:15(1)(c), continuing the prior year's practice. Voted at the December 8, 2021 Commission meeting.

Releases PERAC's 2018 Comparative Analysis of Investment-Related Expenses, detailing management, custodian, and consultant fees for each public pension system based on 2018 Annual Statements of Financial Condition. The report provides a benchmarking tool for board members, public officials, and taxpayers to assess each system's investment costs against those of peer systems.

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.

Provides guidance and template documents — an Investment Consultant Questionnaire and a Selection Evaluation Scoresheet — for retirement boards conducting investment consultant RFP processes. RFP scoring must be completed before fee proposals are opened to prevent fee submissions from influencing the assessment; finalists are then selected for interviews and scored on a composite basis.

Sets the 2020 IRC Section 401(a)(17) compensation limit at $285,000 and the Section 415 benefit limit at $230,000 per year for retirement at age 65 (reduced for retirement before age 62). These federal limits, required under Chapter 46 of the Acts of 2002, apply only to the highest-paid members and affect the regular compensation used to calculate retirement allowances.

Sets the 2020 cap on regular compensation for members who joined a retirement system after January 1, 2011 at $182,400 — 64% of the $285,000 federal 401(a)(17) limit per PERAC Memo #5/2020. This limit derives from Section 23 of Chapter 131 of the Acts of 2010 and governs what portion of salary may be used when calculating retirement allowances under G.L. c. 32.

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.

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.

Clarifies that IRS Determination Letters issued in August 2014 to all 104 Chapter 32 retirement systems remain valid with no expiration date, per IRS Revenue Procedure 2016-37. Expiration dates included in letters issued before January 4, 2016 are no longer operative; boards may continue to rely on their letters for plan provisions not subsequently amended or affected by a change in law.

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.

Advises that despite the federal SECURE Act raising the Required Minimum Distribution age to 72, the prior rule (age 70½) still applies for 2020 notifications to members who reached age 70½ on or before December 31, 2019. Initial distributions for those who reached 70½ in 2019 must be made by April 1, 2020; a future PERAC memo will address the SECURE Act's prospective changes.

PERAC's first COVID-19 contingency planning memo, addressing remote board meeting participation under Governor Baker's Executive Order, continued medical panel scheduling with possible delays, flexibility for 91A filings, estimated retirement payments for new retirees, and remote operations protocols. Boards are urged to update their websites and phone messages with current office status information.

Announces that effective March 16, 2020, PERAC's Somerville office is closed to the public and all staff are working remotely. Retirement boards are encouraged to adopt estimated payments for new retirees awaiting PERAC approval and to update their websites and member communications with current office status and contact information.

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.

Explains Chapter 53 of the Acts of 2020 suspending G.L. c. 32, § 91 post-retirement work earnings and hours restrictions during the Governor's State of Emergency (beginning March 10, 2020). Hours and earnings during the emergency period are excluded from the CY 2020 limits regardless of whether the work is COVID-related; disability retirees are explicitly excluded from this accommodation.

Addresses COVID-19-related concerns about delayed FY21 municipal appropriation payments, clarifying that retirement boards have authority to adjust interest calculations for payments made on dates different from those in their funding schedules. Any resulting change in unfunded actuarial liability will be accounted for in the next schedule; PERAC encourages boards to work with member units on mutually beneficial administrative solutions.

Alerts retirement boards that PERAC conducted a simulated phishing security test against PROSPER users and announces upcoming mandatory cybersecurity awareness training for all PROSPER users not already receiving such training. Additional login security controls are under development; all users should ensure their devices have the latest security patches and up-to-date antivirus software.

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.

Advises boards that PROSPER tasks will soon be issued for disability retirees who did not comply with the 2019 G.L. c. 32, § 91A filing requirement (annual earnings disclosure). Before terminating benefits, boards must provide written notice and a hearing opportunity; affected members retain the right to appeal any termination to the Contributory Retirement Appeal Board (CRAB).

Requests appropriation data from retirement boards by October 31, 2020, so PERAC can calculate the FY22 appropriation amounts for all governmental units under G.L. c. 32, §§ 22D, 22(6A)(b), or 22F. Boards are directed to submit via the online questionnaire on the PERAC website; hard copies are also accepted.

Initiates the 2019 G.L. c. 32, § 91A allowable earnings process for disability retirees who reported earnings that may trigger a benefit adjustment. Boards will receive PROSPER tasks to verify current salary and pension figures; if excess earnings are confirmed, PERAC issues an excess letter and the retiree's allowance is suspended until the overage is repaid.

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.

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.

Chapter 227 of the Acts of 2020 (FY21 budget) extends the Chapter 53 waiver of G.L. c. 32, § 91 post-retirement work earnings and hours restrictions through calendar year 2021 for the duration of the Governor's State of Emergency. Disability retirees remain excluded; the waiver applies to any public-sector work during the emergency, not just COVID-related employment. PERAC will issue a memo when the State of Emergency ends.

Requests boards to review and update disability retiree records in PROSPER to reflect all 2020 changes — deaths, nursing home placements, allowance waivers, returns to active status, and address changes. Updates must be returned by January 18, 2021 to ensure accuracy before PERAC's February mailing of the 2020 § 91A Annual Statements of Earned Income.

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.

This memo announces the 2018 regular compensation cap for members who joined a Massachusetts retirement system after January 1, 2011. Under Chapter 131 of the Acts of 2010, that cap is 64% of the federal § 401(a)(17) limit; since the 2018 federal limit is $275,000 (per Memo #1/2018), the 2018 state cap is $176,000. Boards must apply this limit when calculating retirement allowances for post-2010 members.

This memo alerts boards that the SJC affirmed CRAB's ruling that sick leave and vacation leave taken in conjunction with Workers' Compensation payments does not constitute regular compensation. Effective immediately, boards must direct all payroll officers to stop taking retirement deductions from supplemental sick leave and vacation leave payments made to members on Workers' Compensation. A more detailed follow-up memo was forthcoming.

This memo announces the 2017 regular compensation cap for members who joined a retirement system after January 1, 2011, under pension reform provisions of Chapter 131 of the Acts of 2010. The cap is set at 64% of the federal IRC § 401(a)(17) limit, resulting in a maximum regular compensation of $172,800 for 2017. Boards must apply this limit when calculating contributions and benefits for post-2011 members.

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

This memo advises that G.L. c. 32, § 90G¾, which had required members approaching age 70 to decide whether to continue making retirement contributions, was repealed effective July 1, 2017 through the FY18 budget. Going forward, no notices need to be sent to members approaching age 70 and contributions will continue on a pre-tax basis. Members who had already made an election under § 90G¾ prior to July 1, 2017 retain their prior election status.

PERAC Memo #2/2016 updates the IRS Chapter 46 (2002) compensation and benefit limits for 2016: the IRC §401(a)(17) compensation cap is $265,000, and the IRC §415 annual benefit limit is $210,000 for a member retiring at age 65 (reduced for earlier retirement ages). These limits, which are indexed annually, primarily affect higher-paid members; boards need only apply the updated figures when calculating benefits for affected members and may contact PERAC Actuary Jim Lamenzo with questions—no further action is required.

PERAC Memo #3/2016 establishes the 2016 cap on regular compensation for members who joined a retirement system after January 1, 2011, as required under Section 23 of Chapter 131 of the Acts of 2010. Since the 2016 IRS 401(a)(17) compensation limit is $265,000, the corresponding 64% limit under G.L. c. 32 is $169,600. Boards should apply this $169,600 cap when calculating regular compensation for affected members in 2016; no further action is required beyond ensuring compliance.

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 #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.

This memo summarizes revisions to the retirement board election regulations (840 CMR 7.00), effective March 11, 2016, which update terminology (e.g., defining "member in service," "member inactive," and "retiree"), clarify voting/eligibility rules (inactive members may vote but not serve; board staff cannot be elected to their own board absent grandfathering), and revise notice requirements—including a 90-day notice deadline with an exception process, mandatory copying of PERAC on election notices, and provisions for future use of electronic notification. Boards should review the attached full regulation text and their election procedures for compliance, particularly regarding notice timing/content and eligibility rules, and must contact PERAC in writing if seeking an exception to the 90-day notice requirement or if planning to use electronic notification methods.

PERAC Memo #13/2016 announces amendments to the disability retirement regulations (840 CMR 10.00), effective March 11, 2016, updating them to reflect legislative changes and clarify recurring issues. Key substantive changes include: expediting applications for members not receiving Workers' Comp/Line of Duty benefits; clarifying that the Employer (not the department head) is a party to applications; restricting who may attend medical panel exams and requiring boards (not members) to submit medical records to the panel; requiring clarification requests to medical panels be routed through PERAC with a mandatory 60-day panel response time; and granting hearing officers discretion to limit attendance in emotional disability (e.g., PTSD) cases. Boards should review and update their internal disability application, medical panel, and hearing procedures to ensure compliance with these revised regulations.

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 reinforces amended 840 CMR 10.13(1)(a), which requires all voting board members—regardless of how they voted—to sign disability retirement transmittals (accidental/ordinary disability and accidental death) sent to PERAC. PERAC granted a grace period, processing applications without full signatures through April 29, 2016, but boards must ensure all voting members sign transmittals for applications submitted on or after May 2, 2016, or the application will be remanded.

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.

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.

PERAC Memo #22/2016 addresses forfeiture of retirement allowances under G.L. c. 32, §15 for members convicted of misappropriation or related offenses, noting the varying effective dates and requirements of the statute's subsections. It transmits a partial list, compiled from DA/AG notifications, of public employees potentially subject to forfeiture. Boards must review the attached list, report any updates, discrepancies, or additions, and submit copies of all relevant investigation/hearing/decision documents since October 2002 to Kim Boisvert by September 30, 2016.

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.

PERAC Memo #28/2016 requests that retirement boards review and update disability retiree records (deaths, nursing home confinement, waivers, returns to active status, address changes) to maintain an accurate database used for enforcing post-retirement earnings limits and issuing the 2016 Annual Statement of Earned Income (91A) mailing. Boards must also complete the "New Member Data" form for any 2016 accidental or ordinary disability retirees and return all updated information to PERAC no later than **January 16, 2017**.

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 #30/2016 addresses the annual review, required under 840 CMR 10:10(3) and 10:15(4), of the maximum amount PERAC will reimburse for non-invasive medical tests suggested by Regional Medical Panels during disability retirement evaluations. At its December 14, 2016 meeting, the Commission voted to maintain the existing cap, authorizing PERAC staff to approve up to $100.00 per case for such testing. No action is required of retirement boards; this is informational, confirming the reimbursement threshold remains unchanged.

PERAC Memo #1/2015 provides the annual IRC compensation and benefit limits under Chapter 46 of the Acts of 2002 for calendar year 2015: a $265,000 compensation cap (Section 401(a)(17)) and a $210,000 benefit cap at age 65 (Section 415), with the benefit limit reduced for retirement before age 62. These limits primarily affect only the highest-paid members, and boards should apply them when calculating retirement allowances for affected members, contacting PERAC's Actuary Jim Lamenzo with questions—no other action is required.

PERAC Memo #2/2015 sets the 2015 cap on regular compensation for members who joined a retirement system after January 1, 2011, at $169,600—64% of the IRS Section 401(a)(17) limit of $265,000 for that year. Boards must apply this figure when calculating regular compensation for affected members and should ensure payroll/compensation reporting for these members does not exceed this cap. No further action beyond application of the limit is required; questions can be directed to PERAC's Actuary, Jim Lamenzo.

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 #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 #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.

This memo announces that, under Chapter 492 of the Acts of 2014, disability retirees may now earn an additional $15,000 per calendar year (from any public or private source) above the standard earnings cap—the difference between the current salary of the position from which they retired and their retirement allowance—effective for calendar year 2015 and reflected on the 2015 Annual Statement of Earned Income filed in 2016. Note that the 960-hour public-sector work limit remains unchanged. Boards should use the attached (interactive, web-based) Earned Income Worksheet to help disability retirees calculate their allowable annual earnings under the new limit.

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.

This memo reminds boards of their obligation under PERAC Regulation 4.03 to submit monthly cash book entries, trial balances, journal entries, and custodian/fund statements to PERAC within four weeks of month's end, in accurate and timely fashion. It cites an incident where one board's inaccurate/late financial data submission caused the 2014 Annual Report to be incomplete, and warns that repeated noncompliance will trigger remedial action by the Commission. Boards should ensure timely, accurate monthly filings and follow proper procedures (referenced in prior memos) when correcting or revising previously submitted Cash Books or Annual Statements.

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 #18/2015 notifies boards that Section 54 of Chapter 46 of the Acts of 2015 amends G.L. c. 32, §23B by extending the maximum permissible contract term (including renewals, extensions, and options) for investment, actuarial, legal, and accounting service contracts from five years to seven years, effective immediately. Boards should review existing contracts: those with terms of five years or fewer may run to completion, but any extension may not push the total term beyond seven years, and boards should apply the new seven-year cap going forward when procuring or renewing covered service contracts.

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.

PERAC Memo #24/2015 announces that PERAC, working with Collaborative Consulting, is surveying retirement boards to gather input for its Technology Improvement Project aimed at reducing costs and enhancing system capabilities. Boards are asked to have Board Members and Administrators complete the brief online survey (link provided) by Friday, November 6, 2015, to help prioritize improvement areas. No other action is required beyond survey completion by the deadline.

PERAC Memo #26/2015 asks retirement boards to review and update PERAC's disability retiree database, reporting any 2015 status changes (death, nursing home confinement, waived allowance, return to active status, or address changes) and noting which retirees are exempt from filing the Annual Statement of Earned Income (91A) under Chapter 176 of the Acts of 2011. Boards must also complete the "New Member Data" form for all new accidental or ordinary disability retirees approved in 2015, or for any members missing from the provided list. All updates and forms are due to PERAC by January 13, 2016, to ensure accuracy before the 2015 91A statements are mailed in February.

This memo provides the annual updated federal limits under Chapter 46 of the Acts of 2002 for 2014: the IRC Section 401(a)(17) compensation limit is $260,000, and the IRC Section 415 benefit limit is $210,000 (for retirement at age 65, reduced for earlier retirement). These limits affect only the system's highest-paid members and require no action by boards beyond applying them when calculating compensation and benefits for affected members; questions should be directed to PERAC's Actuary, Jim Lamenzo.

PERAC Memorandum #02/2014 notifies boards that, for calendar year 2014, the regular compensation limit under Chapter 131 of the Acts of 2010 (applicable to members who joined a retirement system after January 1, 2011) is $166,400—64% of the IRS 401(a)(17) limit of $260,000. Boards must apply this cap when calculating regular compensation for these post-2011 members; no other action is required beyond ensuring payroll/compensation reporting reflects this limit.

This memo announces preparation of the 2013 Annual Statement, due to PERAC signed and completed by May 1, 2014, with pre-closing December 2013 cashbook and trial balance due by March 3, 2014. It notes Annual Statement materials (including Schedule 7 on investment fee disclosure) are available on PERAC's website or by request, and offers optional training classes on completing the Annual Statement/Schedule 7 (which also count toward board members' 3-hour annual education requirement). Boards must ensure timely submission of both the trial balance/cashbook and the completed Annual Statement, and may register for training via Rose Cipriani if desired.

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.

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 memo announces a new PERAC informational CD/resource packet designed to orient newly elected or appointed retirement board members, covering topics such as actuarial valuations, trustee responsibilities, disability retirement processes, and the competitive bid process. Boards are asked to help distribute this CD to new members promptly upon their appointment or election, rather than waiting for PERAC to send it directly, though no other formal action is required.

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.

PERAC Memo #16, 2014 clarifies two anti-spiking exemptions under Section 18 of Chapter 176 of the Acts of 2011: (1) the "150E" exemption applies only to salaries/salary schedules actually collectively bargained for bargaining unit members, not to individual employment contracts, even if labeled as such; and (2) the "bona fide change in position" exemption applies only in the year the position change occurs (requiring an actual change in essential duties, not merely a title change), and does not shield subsequent or prior pay increases from anti-spiking review. Boards must verify that any compensation claimed under the 150E exemption stems from a true collectively bargained agreement, and must apply the bona fide change-in-position exemption narrowly—setting the two-year average equal to the new position's rate only for the transition year—when performing anti-spiking calculations.

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.

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.

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.

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 #24/2014 clarifies that errors discovered in Cash Book filings, PERAC Annual Statements, or other accounting records should generally be corrected in the period in which they are discovered, consistent with GAAP practice, rather than by retroactively altering previously filed/original records—since retroactive changes undermine the integrity and comparability of reported investment and financial results. Boards must not make direct changes to original source documents or prior-period filings on their own initiative; any proposed prior-period adjustment requires prior consultation with, and approval from, PERAC before being made.

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 #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 #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.

PERAC Memo #35/2014 requests that retirement boards review and update PERAC's disability retiree database, reporting any status changes in 2014 (death, nursing home confinement, waivers, return to active status, address changes) and completing the "New Member Data" form for all newly approved accidental or ordinary disability retirees. Boards must also verify which disabled retirees remain subject to the Annual Statement of Earned Income (91A) requirement under Chapter 176 pension reform waivers. All updates and forms are due back to PERAC by January 16, 2015, to ensure accuracy before the 91A mailing in late February.

PERAC Memo #38/2014 addresses the annual review of the cost cap for non-invasive medical tests suggested by Regional Medical Panels under 840 CMR 10:10(3) and 10:15(4). The Commission voted on December 4, 2014 to maintain the existing threshold, authorizing PERAC staff to approve such testing costs up to $100 per case without additional Commission approval. No action is required by retirement boards beyond awareness of this continuing policy.

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 #1/2013 provides the annual IRS Section 401(a)(17) and Section 415 limits for 2013, setting the compensation limit used to calculate retirement allowances at $255,000 and the general annual benefit limit at $205,000 for retirement at age 65 (reduced for earlier retirement ages). These limits, as indexed annually under Chapter 46 of the Acts of 2002, apply only to a system's highest-paid members, so boards need only apply them when calculating benefits for those affected employees, with questions directed to PERAC's Actuary.

PERAC Memo #2/2013 establishes the 2013 regular compensation cap for members who joined a retirement system after January 1, 2011, set at $163,200 (64% of the IRS 401(a)(17) limit of $255,000). Boards must ensure that regular compensation used for retirement calculations for these post-2011 members does not exceed this limit for calendar year 2013.

This memo covers preparation of the 2012 Annual Statement, which boards must complete, sign, and return to PERAC by May 1, 2013, along with submitting pre-closing cashbooks and trial balances for December 2012 by March 1, 2013. It highlights key changes for this filing year—including new general ledger accounts for reinstatements/recoveries and a new Schedule 7 for investment-related fee disclosure—and notes optional "Financial Accounting for Retirement Systems" training sessions (satisfying the annual education requirement) that boards may register for via email.

**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 #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.

This memo reminds retirement boards of the good-faith certification requirements under G.L. c. 32, §23B that apply to all procurements of investment, actuarial, legal, and accounting services—not just investment services. Boards must ensure that (1) each vendor submitting a proposal certifies in writing that it was made without collusion or fraud, and (2) each individual board member similarly certifies in writing regarding the procurement. Boards should use the standardized "Vendor Certification" and "Retirement Board Member Certification" forms available on PERAC's website to satisfy these requirements.

This memo directs retirement boards to distribute the 2012 Statement of Financial Interests (SFI) form and accompanying instructions to all board members, per M.G.L. c. 32, §20C. Boards must ensure each member files the SFI with PERAC by 5:00 PM on May 1, 2013, and that any newly appointed or elected member filing for the first time submits their statement within 30 days of taking office. PERAC also notes updates to the form and instructions based on the prior year's filing experience.

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 #16/2013 requests that all retirement boards assist in compiling data for PERAC's 2012 Annual Report by reviewing and verifying two enclosed documents: a board data sheet (contact/meeting information current as of today, but board member/administrator names as of December 31, 2012) and a list of investment managers, custodian, and consultant retained as of December 31, 2012. Boards must annotate any corrections (including manager name changes, fund liquidations, or terminations with supporting documentation/dates), or mark the documents "correct" if no changes are needed, and return them to Rose Cipriani by May 3, 2013.

PERAC Memo #17/2013 announces proposed amendments to 840 CMR 3.07 and 3.10 (implementing HEART Act requirements for military service-related death/disability benefits and rollover accounting) and to 840 CMR 3.08 (simplifying IRS Section 415 limit calculations). No immediate board action is required, but boards should review the draft regulations and may submit public comments—by July 19, 2013 for the HEART Act changes and August 2, 2013 for the 3.08 amendments—or attend the scheduled public hearings in Somerville and Worcester in July 2013.

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.

This memo announces two optional training sessions (October 16 and 17, 2013, at PERAC's Somerville offices) to help boards complete IRS Determination Letter filing forms for Cycle C, following up on Memo #23/2013. Because Ice Miller will prepopulate each board's forms, boards need only review the prepopulated information and obtain the Chairman's signature—no independent action is required, though boards wishing detailed guidance should register with Rose Cipriani to attend a session.

PERAC Memo #28/2013 announces a third and final training session (October 23, 2013, 2:00–3:30 PM at PERAC's Somerville office) to assist boards with completing their IRS determination letter application packets, which are largely prepopulated by tax counsel Ice Miller and thus require less work than in the prior cycle. Boards should ensure they register for the session if they have questions, and must complete and return all determination letter materials to Ice Miller by the December 2, 2013 deadline.

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 #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 Memorandum #35, 2013 requests that boards review and update their disability retiree database to reflect any 2013 status changes (death, nursing home confinement, waiver, return to active status, address changes), and to complete the "New Member Data" form for all newly approved disability retirees from 2013. Boards must also help follow up with disability retirees who did not respond to the Affidavit Waiver, as non-respondents will be required to file a 2013 Annual Statement of Earned Income (91A). All information is due back to PERAC by January 15, 2014, to ensure accuracy before the 91A mailing in late February.

This memo announces PERAC's annual review of the medical testing fee cap under 840 CMR 10:10(3) & 10:15(4), confirming that at its December 12, 2013 meeting, the Commission voted to continue the existing $100 per-case limit for non-invasive medical tests ordered through the Regional Medical Panel process. No action is required by boards; this is informational, confirming the fee cap remains unchanged.

This memo announces a new statutory requirement (Chapter 176 of the Acts of 2011, amending G.L. c. 32) that retirement board members file a Chapter 268A Compliance Pledge Form acknowledging awareness of and compliance with c. 268A, c. 32, and related regulations. Boards must ensure that any member beginning or renewing a term after February 16, 2012 completes and submits this form to both the board and PERAC before assuming office; current members are not required to file until their next re-election or re-appointment. Boards should inform prospective candidates or appointees of this filing requirement as part of the election/appointment process.

This memo explains the new local option under G.L. c. 32, §20(6), effective February 16, 2012, which replaces the former $3,000 stipend option and allows retirement board members' annual stipend to be set between $3,000 and $4,500 (with ex officio members capped at $4,500 total for active administration services). Boards themselves do not vote on this—the local legislative body (city council, town meeting, county/regional advisory council, district members, or authority governing body) must accept the option, and the specific dollar amount must be stated in that vote. Boards should notify PERAC of acceptance with certified copies of the vote, and may wish to bring the option to their legislative body's attention, but must adopt a new acceptance vote (even if the old $3,000 option was previously accepted) to raise the stipend above $3,000.

This memo notifies boards of the new Chapter 176 eligibility restriction (effective April 2, 2012) barring individuals who receive remuneration from a retirement board or its vendors—other than a retirement allowance or statutory board stipend—from serving as board members. The restriction applies only to individuals first becoming board members on or after that date, not current members. Boards must inform all candidates seeking a board position that they are required to file the attached eligibility certification Form with both the retirement board and PERAC as part of the election process.

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.

This memo announces that PERAC's Placement Agent Policy (originally detailed in Memo #34/2011) is now in effect, requiring investment managers to file a Placement Agent Disclosure Form with both the retirement board and PERAC when responding to RFPs, negotiating contract amendments, or engaging in substantive discussions with a board. Boards must ensure this disclosure form is obtained from managers as part of any ongoing or new contract negotiations, and must incorporate the specified contract terms/remedies (e.g., fee reimbursement) into all new contracts and amendments executed on or after January 1, 2012. Administrators should review any contracts currently being negotiated or amended to confirm compliance with these disclosure and contract-term requirements.

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.

PERAC Memo #10/2012 updates the Chapter 46 (2002) compensation and benefit limits under IRC §401(a)(17) and §415 for 2012: the compensation cap is $250,000 and the general benefit limit is $200,000/year at age 65 (reduced for earlier retirement). This applies only to the highest-paid members and most systems/members will be unaffected; boards should apply these updated limits when calculating affected members' allowances and contact PERAC's Actuary Jim Lamenzo with questions—no other action is required.

PERAC Memo #11/2012 notifies boards that for members who joined a retirement system after January 1, 2011, the 2012 cap on regular compensation under Chapter 131, Section 23 of the Acts of 2010 is $160,000, calculated as 64% of the IRS Section 401(a)(17) limit of $250,000. Boards should apply this $160,000 ceiling when determining regular compensation for affected members' retirement calculations in 2012, and may contact PERAC's Actuary with questions.

PERAC Memo #14/2012 notifies boards that Sections 29–30 of Chapter 176 of the Acts of 2011 create a local option, effective February 16, 2012, allowing the minimum monthly retirement allowance under G.L. c. 32, §12(2)(d) to be raised from $250 to $500. To adopt this increase, both the retirement board and the applicable local legislative body must vote to accept it, and the board must file a certification of acceptance with PERAC; the increased benefit applies only prospectively from the filing date, with no retroactive payments.

This memo alerts boards that Chapter 176 of the Acts of 2011 establishes a new mandatory competitive sealed proposal (RFP) process under G.L. c. 32, §23B for procuring investment, actuarial, legal, and accounting services, effective February 16, 2012, and reminds boards that fiduciary duty under §23(3) still governs all procurement decisions. Boards must immediately review any procurements in progress: any covered procurement not resulting in an executed contract by February 16, 2012 will be voided and must be restarted under the new RFP requirements, including specific RFP content, written evaluation criteria, and a six-year document retention file for each contract.

This memo addresses PERAC's need to update its records on retirement board members in light of Chapter 176 of the Acts of 2011, which imposes new filing and mandatory education requirements for board members. Boards must ensure each member reviews the enclosed pre-filled forms, corrects or completes their personal data, and returns them to PERAC by February 20, 2012; going forward, boards must also submit a Retirement Board Change Form whenever board membership changes.

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 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 transmits the newly required 2011 Statement of Financial Interests form and instructions, issued under new G.L. c. 32, §20C (as added by Chapter 176 of the Acts of 2011), which mandates financial disclosure by retirement board members. Boards must ensure every member serving as of February 16, 2012 files the statement by 5:00 PM on May 1, 2012, and that any member newly appointed/elected on or after that date files within 30 days of taking office; note that "immediate family" is defined narrowly as a spouse and dependent children residing in the household.

This memo requests that retirement boards assist PERAC in compiling data for its 2011 Annual Report by verifying board contact/member information, confirming the list of investment managers, custodian, and consultant as of December 31, 2011, and calculating and reporting their Target Investment Rate of Return. Boards must review, annotate (or mark as correct), and return the data sheet, manager/custodian/consultant list, and target rate of return to PERAC by February 28, 2012.

This memo reinforces the anti-collusion/anti-fraud certification requirements under the new Section 23B procurement statute (Chapter 176 of the Acts of 2011), which apply to procurements of investment, actuarial, legal, and accounting services. Both prospective vendors and retirement board members must certify that proposals are submitted in good faith without collusion or fraud, and board members must file their certification with PERAC. Boards should take action by ensuring these certifications are obtained and filed for every applicable procurement, and by proactively questioning vendors about potential collusion schemes (e.g., bid-suppression arrangements) rather than relying solely on vendor assurances.

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.

This memo provides IRS-vetted guidance on correcting mistaken excess member contributions (from erroneous compensation, service purchase errors, membership errors, etc.) by issuing a lump-sum "corrective distribution" to the member. It details specific Form 1099-R reporting requirements (using Code E in Box 7) depending on whether the erroneous contributions were pre-tax or after-tax, and clarifies that such distributions are exempt from the early withdrawal penalty, FICA/FUTA, and rollover eligibility, though 10% withholding applies unless waived. Boards should adopt this reporting methodology whenever they identify and refund mistaken member contributions, ensuring proper 1099-R coding, and are encouraged to send members an explanatory letter referencing Revenue Procedure 92-93 for the use of Code E.

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.

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 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.

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 announces new Chapter 32, §15(7), effective immediately, which bars members from receiving a retirement allowance based on salary intentionally concealed from or misreported to the relevant reporting entity; where such misconduct is found, the allowance must be calculated on the lower of the amount actually reported to that entity or to the board, with excess deductions refunded without interest. Boards should note that PERAC (the Commission) is responsible for making the formal determination of concealment/misreporting via a hearing process, and boards must contact PERAC whenever a retirement application raises concerns about unreported or misreported compensation so that an investigation can be conducted before the allowance is finalized.

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.

PERAC Memo #36/2012 notifies retirement boards that, following his criminal conviction, the Commission has formally prohibited Timothy McDaid (former Executive Director of the Maynard Retirement Board) from serving in any capacity—as member, employee, consultant, or service provider—with any Massachusetts public retirement system, pursuant to 840 CMR 1.03. Boards should ensure they do not employ or engage McDaid directly or through any affiliated firm, partnership, or entity; any such entity that fails to disclose his involvement will be subject to sanctions under G.L. c. 32, §21A. No further action is required beyond ensuring compliance with this prohibition.

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.

PERAC Memo #42/2012 addresses amendments (Section 58, Chapter 118 of the Acts of 2012) to the same-sex marriage Option C election provisions originally established under Chapter 176 of the Acts of 2011. The change eliminates boards' discretion to require lump-sum repayment of overpayments, instead guaranteeing members the right to a repayment plan of up to 5 years, with the possibility of an even longer term subject to board approval. Boards must notify any members currently repaying overpayments under a shorter plan of their right to extend to 5 years or petition for a longer term; all other provisions of the 2011 law and PERAC Memo #40 remain unchanged.

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 #46/2012 addresses whether retirement boards must complete the full anti-spiking worksheet when it is already evident that a member's regular compensation qualifies for one of the recognized exceptions (e.g., collectively bargained raises). PERAC clarifies that boards need not complete the worksheet in such cases, but must still verify and document that the compensation was reviewed for spiking and identify which exception applies. Boards are required to retain all supporting documentation in the member's file for potential future review by the calculation unit or during an audit.

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.

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 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.

PERAC Memo #53/2012 reminds boards of the G.L. c. 32, §12D requirement that inactive, non-retired members who turn age 70½ must begin receiving a distribution by April 1 of the following year, and provides a sample notification letter for use with affected members. Boards should send these notices—recommended in December with a March 1 response deadline—urge members to seek counseling given the complexity of rollover options, and follow up with non-respondents to ensure timely processing before the April 1 deadline; boards may also wish to proactively notify members at age 69.

PERAC Memo #54/2012 reminds retirement boards that all "investment service providers" (managers, consultants, custodians, trusts, proxy/litigation services, and related vendors) must file annual disclosure forms with both the board and PERAC by January 1 of each year, and as part of any RFP process, per c. 32 §23B and 840 CMR 17.04(7)-(8). Disclosures must cover compensation arrangements (paid or received, directly or indirectly) related to services provided to the board or any other client, as well as any potential conflicts of interest. Boards are asked to forward this notice to their vendors to ensure compliance and confirm required disclosures are filed on time.

PERAC Memo #57/2012 requests that retirement boards review and update PERAC's disability retiree database, reflecting deaths, nursing home confinements, allowance waivers, returns to active status, and address changes that occurred during 2012. Boards must also complete the "New Member Data" form for any new accidental or ordinary disability retirees approved in 2012 and help contact members who have not responded to the Affidavit Waiver (noting that non-respondents must file a 2012 Annual Statement of Earned Income). All information is due to PERAC by **January 15, 2013**, to ensure database accuracy before the 91A mailing in late February.

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.

PERAC Memo #60/2012 addresses the annual review of the medical testing fee under 840 CMR 10:10(3) and 10:15(4), which caps the cost of non-invasive medical tests the Commission will fund without prior approval when suggested by a Regional Medical Panel during disability evaluations. At its December 10, 2012 meeting, the Commission voted to maintain the existing $100.00 per-case limit that PERAC staff may approve for such testing. No action is required by boards, as this is informational; boards should simply be aware that testing costs exceeding $100.00 require advance PERAC approval.

This memo announces PERAC's annual review of the non-invasive medical testing fee cap under 840 CMR 10:10(3) & 10:15(4), confirming the Commission voted on December 13, 2010 to maintain the existing practice of authorizing PERAC staff to approve up to $100.00 per case for non-invasive medical tests ordered by Regional Medical Panels. No action is required by retirement boards; this is informational, noting that any testing costs exceeding $100.00 still require advance Commission approval.

This memo provides the 2011 IRS Section 401(a)(17) compensation cap ($245,000, or $360,000 for members who joined prior to 12/31/95) and Section 415 annual benefit limit ($195,000 at age 65, reduced for earlier retirement)—both unchanged from 2010—under Chapter 46 of the Acts of 2002. These limits affect only the highest-paid members, so no action is required for most boards or members; boards should apply these figures when calculating benefits for affected high earners and contact PERAC's actuary with questions.

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.

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.

**Summary:** This memo requests that all retirement boards assist PERAC in compiling data for its 2010 Annual Report by verifying/updating three items: (1) board contact information and membership as of December 31, 2010; (2) the list of investment managers, custodian, and consultant retained as of December 31, 2010, noting any name changes, terminations, or liquidations; and (3) the board's Target Investment Rate of Return based on current asset allocation. **Action required:** Boards must review, annotate/correct, and return the data sheet, manager/custodian/consultant list, and calculated Target Investment Rate of Return to Rose Cipriani at PERAC by **February 22, 2011**, even if no changes are needed (in which case the materials should simply be marked "correct" and returned).

PERAC Memorandum #12/2011 establishes the 2011 regular compensation cap for members who joined a retirement system after January 1, 2011, calculated as 64% of the IRC 401(a)(17) federal compensation limit ($245,000), resulting in a cap of $156,800. Boards must apply this $156,800 limit when determining regular compensation for retirement purposes for these new members in calendar year 2011, and may direct any questions to PERAC's Actuary, Jim Lamenzo.

This memo summarizes the SJC's decision in Boston Housing Authority v. NCFO (2010), which invalidated automatic "evergreen clause" extensions of collective bargaining agreements beyond the three-year term set by G.L. c. 150E, §7(a), while still permitting bridge agreements negotiated after expiration. PERAC flags that this ruling may impact Section 23 of Chapter 21 of the Acts of 2009 (the regular compensation "grandfathering" provision tied to CBAs in effect on May 1, 2009): members whose CBA coverage on that date relied solely on an evergreen clause—rather than an actual contract term or bridge agreement—may not qualify for continued regular compensation treatment through June 30, 2012. Boards should carefully review affected members' CBA status as of May 1, 2009 when determining regular compensation eligibility, and monitor the pending Picone v. City of Leominster appeal, which addresses this issue directly.

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 Memorandum #20, 2011 transmits the 2009 Retirement Board Professional Services Report, compiled from data reported in boards' Annual Statements, to serve as a reference tool for comparing vendor fees and services. While PERAC takes no position on any listed vendor, boards are reminded of their fiduciary duty to periodically review vendor contracts and conduct open, competitive selection processes; no other specific action is required beyond this ongoing best-practice obligation.

PERAC Memo #21, 2011 announces an update to the "Notice of Potential Benefits Pursuant to G.L. c. 32, § 4(1)(h)" form, revised to remove references to the "Massachusetts" National Guard, consistent with the 2005 statutory amendment allowing members of any state's National Guard (not just Massachusetts) to purchase past veteran's service credit if otherwise eligible. Boards should begin using this updated form going forward to ensure accurate notice of benefits to members with National Guard service.

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 reminds boards of two recurring compliance obligations for board members and staff: (1) mandatory Ethics Commission training under G.L. c. 268A, due biennially by April 2 (within 30 days for new members/staff), and (2) Open Meeting Law materials distribution and certification requirements, requiring each member to sign a Certificate of Receipt within two weeks of election/appointment and biennially by January 14. Boards should ensure all current and incoming members/staff complete both the Ethics training and the Open Meeting Law certification on schedule, using the resources linked from the Ethics Commission and Attorney General websites.

This memo reminds boards of the G.L. c. 32 §91(b)-(c) limits on post-retirement public employment—retirees may not work more than 960 hours per calendar year or earn compensation that, combined with their retirement allowance, exceeds the current salary of the position from which they retired. Boards should note that while employers and retirees bear primary responsibility for monitoring and certifying hours/earnings, courts have held that a retirement board may recoup excess payments if the employer fails to do so; PERAC has provided an Excel worksheet to assist boards, employers, and retirees in tracking compliance.

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 summarizes the Attorney General's regulations (940 CMR 29.10) permitting remote participation at public meetings, and explains how retirement boards may adopt this practice by simple majority vote. No action is required, but if a board chooses to allow remote participation, it must follow specific procedural requirements: a physical quorum (including the Chair or authorized substitute) must be present, remote participation is limited to specified reasons (illness, disability, emergency, military service, or geographic distance), all votes must be by roll call, and detailed documentation of the reason and procedures must be reflected in the minutes.

This memo reminds boards of the G.L. c. 32, §12D requirement that non-retired, non-employed members who reach age 70½ must begin receiving distributions by April 1 of the following year, and provides a sample notification letter boards can send to affected members. Boards should mail notices (recommended in December, with a March 1, 2012 response deadline for 2010 age-70½ attainees) urging members to contact the board for counseling rather than sending full form packets, follow up with non-responders, and may also consider proactively notifying members at age 69 to help ensure timely compliance and optimal rollover options.

**Memorandum #33, 2011 – Regular Compensation** This memo consolidates guidance on determining "regular compensation" for retirement purposes following Chapter 21 of the Acts of 2009, the amended 840 CMR 15.03 regulations, and relevant case law (Pelonzi and O'Brien decisions). It provides retirement boards with consolidated lists of characteristics that make payments includable (e.g., base salary, non-discretionary payments for services) versus excludable (e.g., overtime, bonuses, in-kind payments, severance) from regular compensation calculations. Boards should apply this framework when reviewing compensation determinations for members retiring on or after July 1, 2009, though no new filing or reporting action is required beyond ensuring compliance with existing law when calculating regular compensation.

This memo announces PERAC's new Placement Agent Policy, adopted after public hearing in response to Pension Reform legislation, which requires investment managers to disclose detailed information about any placement agents used in connection with investment by Massachusetts public pension systems (compensation, agreements, qualifications, registrations, and any board/staff connections). Boards must ensure managers provide this disclosure information to both the board and PERAC before/during RFP responses, contract amendments, or substantive discussions with managers, and should expect PERAC to issue standardized forms for compliance before January 1, 2012.

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.

PERAC Memorandum #37, 2011 directs retirement boards to transition from mailing diskettes/CDs to using the Commonwealth's Secure File and E-mail Delivery (SFED) system for transmitting actuarial data (member, retiree, and disability files) to protect personally identifiable information. Boards must submit the name, title, phone number, and email address(es) of staff responsible for these transmissions to John Boorack by December 31, 2011, so PERAC can issue SFED account setup invitations.

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.

Memorandum #39 (2011) provides guidance on implementing Chapter 176's Section 23B contract requirements, directing boards to review all existing vendor contracts for investment, actuarial, legal, and accounting services to ensure compliance by the February 16, 2012 effective date. Boards should confirm that written contracts have defined terms not exceeding five years (including renewals/extensions); contracts already meeting this standard remain valid until expiration, but any contract lacking a term—or exceeding five years—must be amended or rebid through a new procurement process before the deadline to avoid violating the statute. The memo also reminds boards that non-listed services (e.g., software, medical, investigative) remain subject to the general prudent expert fiduciary standard rather than Section 23B's specific procurement process.

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.

This memo reminds boards that under the 2009 Ethics Reform law, all Board Members and staff (and certain contracted personal-service providers) qualify as municipal employees subject to G.L. c. 268A conflict-of-interest requirements. Boards must annually distribute the Ethics Commission's Summary of the Conflict of Interest Law (with signed acknowledgments retained on file and copies sent to appointing authorities), and ensure all covered individuals complete the online ethics training by April 2, 2012 and every two years thereafter, retaining completion certificates for six years; new members/employees must receive the Summary and complete training within 30 days of joining.

PERAC Memorandum #42, 2011 requests that retirement boards update their disability retiree records to ensure PERAC's database accurately reflects post-retirement earnings limits. Boards must review the attached list of disability retirees and report any 2011 status changes (death, nursing home confinement, waiver of allowance, return to active status, or address changes), and complete a "New Member Data" form for any new disability retirees approved in 2011. All updates are due to PERAC by January 17, 2012, to ensure accuracy before the 2011 Annual Statements of Earned Income (91A) are mailed at the end of February.

This memo announces PERAC's annual review of the medical testing fee cap under 840 CMR 10:10(3) and 10:15(4), which governs reimbursement for non-invasive medical tests ordered by Regional Medical Panels during disability evaluations. At its December 12, 2011 meeting, the Commission voted to continue past practice, maintaining the $100.00 per case cap that PERAC staff may approve without further Commission review. No action is required of boards, as this is informational, though boards should be aware that any test costs exceeding $100 require advance Commission approval.

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.

PERAC Memo #01/2010 provides the annual update on IRS Code Section 401(a)(17) compensation limits and Section 415 benefit limits under Chapter 46 of the Acts of 2002, which only affect the highest-paid retirement system members. For 2010, these limits remain unchanged from 2009 ($245,000 compensation limit, or $360,000 for members who joined prior to 12/31/95; $195,000 benefit limit at age 65, reduced for earlier retirement). No board action is required beyond applying these limits where applicable; questions should be directed to PERAC Actuary Jim Lamenzo.

This memo clarifies that when a Board Member uses paid leave to attend Board business and the employer incurs replacement/substitute costs (rather than the Member losing wages), the retirement board may reimburse the employer, capped at the wages the Member would have earned for that shift. Boards should try to schedule meetings around Members' work schedules to minimize such costs, and any employer reimbursement must be fully documented and specifically approved by the Board in advance, with the affected Member abstaining from discussion and voting on the matter.

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.

This memo announces the 2009 Annual Statement preparation cycle, distributed via CD along with a sample statement and preparation guide, and notes a seminar covering changes tied to updates in PERAC's Accounting Manual, with auditors available for one-on-one assistance. Boards must submit their pre-closing cashbook and trial balance for December 2009 by February 28, 2010, and complete, sign, and return the Annual Statement to PERAC by May 1, 2010; boards are also asked to RSVP for the seminar using the enclosed sign-up sheet.

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 requests that retirement boards assist PERAC in compiling data for its 2009 Annual Report by verifying board contact/membership information (as of 12/31/2009), confirming the accuracy of their list of investment managers, custodian, and consultant, and calculating/reporting their Target Investment Rate of Return. Boards must annotate and return the data sheet and manager/custodian/consultant list (marking "correct" if no changes are needed), along with the target rate of return, to PERAC by February 16, 2010.

PERAC Memo #13/2010 reminds retirement boards that all board members and staff, as municipal employees under G.L. c. 268A, must complete the state Ethics Commission's online ethics training by April 2, 2010, and recertify every two years, with new members/employees completing it within 30 days of appointment or hire. Boards must retain completion certificates for six years, forward copies to appointing authorities (for non-elected members), file certificates with the appropriate municipal/district clerk or retain them if the system covers multiple governmental units, and—if the board itself holds the records—designate a senior liaison to the Ethics Commission and notify the Commission of that designation (and any subsequent changes).

This memo addresses reimbursement calculations under G.L. c. 32, §3(8)(c) for members with prior service in multiple systems, noting that disparate compensation rates across systems can create inequitable reimbursement amounts between boards. PERAC will now review and respond to recalculation requests promptly, with any adjustments effective as of the request date, and will also offer, where amounts are not substantial and both boards agree, to calculate a one-time actuarial equivalent lump sum in lieu of annual reimbursement payments. Boards seeking recalculation or lump-sum settlement should submit requests to PERAC (Actuary James Lamenzo) directly.

This memo revises the retroactivity policy for §3(8)(c) reimbursement recalculations announced in Memorandum #15/2010. PERAC now clarifies that if a board requests recalculation within 3 months of receiving the initial §3(8)(c) reimbursement letter, the modified amount will be retroactive to the member's date of retirement; if the request is made more than 3 months after that letter, the modified amount will only be prospective from the date PERAC receives the request. Boards should note this timeline and submit recalculation requests promptly—within 3 months of receiving an initial §3(8)(c) letter—to preserve full retroactive reimbursement for affected members.

Memorandum #17 (2010) reminds boards that Massachusetts public retirees returning to public employment—whether as employees, consultants, or independent contractors—remain subject to the § 91(b)/(c) earnings and hours limitations (960 hours/calendar year and earnings capped at the difference between the retiree's allowance and the current salary of the position from which they retired). It clarifies that monitoring responsibility rests with the employer and retiree, that boards may recoup excess payments if employers fail to do so (per Flanagan v. CRAB), and it introduces a new PERAC Post-Retirement Earnings Worksheet to help boards, employers, and retirees track and enforce compliance. Boards should begin using this worksheet and ensure employers are certifying retirees' hours/earnings to prevent limit violations.

This memo announces that PERAC staff have received new @MassMail.State.MA.US e-mail addresses (in addition to their existing 2005 addresses, which remain valid) and introduces the Secure File and E-mail Delivery (SFED) application for exchanging sensitive information securely. Boards should note that only the older @per.state.ma.us addresses work with SFED, and should continue sending appropriation questionnaires/pooled fund statements to the original addresses; no immediate action is required beyond updating contact references and awaiting forthcoming SFED protocols.

This memo announces PERAC's implementation of a policy allowing prospective modification (suspension) of disability retirement allowances under G.L. c. 32, §8(3) for retirees whose earnings have fully recouped their allowance for three consecutive years, beginning with 2007-2009 earnings statements. Boards should be aware that PERAC—not the board—will identify affected retirees, notify them and the board, and conduct the hearing/appeal process, but boards must be prepared to continue withholding a portion of allowance for health insurance premiums and to continue treating affected members as disability retirees for c. 32A §10 and c. 41 §100B purposes.

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 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 announces IRS-required technical amendments to PERAC regulation 840 CMR 3.08, which governs actuarial assumptions used in applying the IRC Section 415(b) benefit limit; the changes are non-substantive and needed to secure the IRS's favorable determination letter for the Massachusetts Retirement Systems. No board action is required beyond optional review of the draft amendment (posted on PERAC's website) and, if desired, submission of public comments or attendance at the October 20, 2010 hearing.

This memo addresses the federal/state requirement (G.L. c. 32, §12D) that inactive, non-retired members who turn age 70½ must begin receiving a distribution by April 1 of the following year, and provides a sample notification letter boards can use. Boards should send notices (ideally in December, with a March 1 return date) urging affected members to contact the board for counseling on distribution/rollover options—rather than mailing all forms automatically—and should follow up with non-responders; PERAC also suggests boards consider sending an advance notice at age 69 to help members avoid tax penalties.

PERAC Memorandum #40, 2010 asks retirement boards to review and update their disability retiree database to ensure accurate tracking of post-retirement earnings limits, since disability allowances are now terminated (not just suspended) for non-compliance. Boards must update statuses for deaths, nursing home confinements, waived allowances, returns to active status, or address changes, and submit a completed "New Member Data" form for all new 2010 disability retirees, with all information due to PERAC by January 19, 2011, ahead of the 91A Annual Statements mailing.

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 Calendar Year 2008 Annual Statement process, with materials distributed via CD, and offers informal "help-desk" style regional consultations with PERAC auditors instead of formal presentations. Boards must complete and return the signed Annual Statement to PERAC by May 1, 2009, and submit their pre-closing cashbook and trial balance for December 2008 by February 28, 2009 (contacting Frank Valeri if that deadline poses issues); boards are also encouraged to sign up in advance if attending a help-desk session.

Memorandum #9 (2009) requests retirement boards' assistance in verifying data for PERAC's 2008 Annual Report, including board contact/meeting information, board member and administrator names as of December 31, 2008, and the current list of investment managers, custodian, and consultant. Boards must also calculate and report their Target Investment Rate of Return (distinct from the Actuarial Rate), based on current asset allocation and projected asset class returns. All annotated materials and the target rate calculation were due to Rose Cipriani at PERAC by February 16, 2009.

PERAC Memorandum #11, 2009 addresses the annual review of the maximum reimbursement amount for non-invasive medical tests ordered by Regional Medical Panels under 840 CMR 10:10(3) and 10:15(4). The Commission voted on January 27, 2009 to continue its past practice of authorizing PERAC staff to approve such testing costs up to $100.00 per case, with no action required by retirement boards beyond awareness of this continuing threshold.

PERAC Memorandum #12, 2009 announces disability training seminars for retirement board staff in 2009, covering disability basics, Workers' Compensation calculations, and the 91A process, with sessions scheduled for March 19 and May 14 at PERAC (additional sessions in Western Massachusetts to be announced). Boards should submit topics of interest to Kate Hogan (without case-specific details) and, if interested in attending the March 19 session, complete and return the attached registration form; no other action is required.

PERAC Memo #14/2009 clarifies that G.L. c. 32, §20 (and analogous statutes for the State and Teachers' Retirement Boards) requires that all four other board members be present and vote when selecting the fifth (or seventh, for MTRS) member; a vote taken without full participation of the other members is invalid, though the outcome need only reflect a simple majority. Boards must notify PERAC in writing upon selection of the fifth/seventh member, including a record of the vote confirming that all required members were present and voted.

PERAC withdrew the proposed regulation that would have required two Physician's Statements for disability retirement applications, opting instead to revise the single Physician's Statement form itself, with input from its consulting physician, to improve clarity and reporting of medical findings. The revised form separates accidental disability questions (3A) from Heart/Lung/Cancer presumption cases (3B); boards should begin using this updated Treating Physician Statement immediately and must use it for all disability applications initiated on or after June 1, 2009, with completed statements still requiring an original signed hard copy submission.

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.

Memorandum #21 (2009) announces PERAC's new Electronic Content Management System for scanning disability case documents and reminds boards that the Request for Appointment of a Regional Medical Panel process is unchanged, though updated bar-coded PDF fill-in forms (including the new Treating Physician's Statement) are now available via CD or the PERAC website. **Action required:** Boards must use the new bar-coded Treating Physician's Statement for all applications initiated on or after June 1, 2009 (the old version is accepted only until then); avoid stapling, tearing, resizing, or writing on document bar codes; never email unencrypted disability/membership forms containing personal identifying information; and update their disability manuals with the enclosed replacement pages, watching for future updates posted on PERAC's website.

**Memorandum #22, 2009 — Foresta v. CRAB Summary** The SJC ruled in *Foresta v. Contributory Retirement Appeal Board* that an employer may modify an injured employee's job duties and description, and this modified position—rather than the original job at time of injury—may serve as the basis for evaluating eligibility for accidental disability retirement, provided the modified duties are "similar in responsibility and purpose" to the original job and the modification is not merely a temporary or pretextual accommodation. Retirement boards should apply this standard when reviewing ADR applications involving employees who have been placed in accommodated or modified positions, assessing whether the modified role meets the similarity test before determining disability eligibility. No specific board action is mandated beyond incorporating this legal standard into future ADR case reviews.

**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.

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.

This memo announces that PERAC has moved its library of publications and training materials—previously distributed as hard copies to new board members and administrators—to CD format, in order to reduce printing and postage costs. Boards should provide these CDs to newly appointed members/administrators for orientation purposes; no other action is required, and additional copies can be requested from PERAC's Communications Director if needed.

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.

PERAC Memo #34/2009 explains changes to G.L. c. 32, §7(2)(a)(ii) made by Chapter 21 of the Acts of 2009, which alter how regular compensation is determined for accidental disability allowance calculations when a member was serving in a temporary or acting position at the time of injury—such members' pensions are now based on the average annual rate of regular compensation for the prior 12-month period, rather than the compensation rate on the date of injury. Boards must use the attached new form for all accidental disability retirement calculations submitted after the memo's date, and should ensure staff apply the correct compensation basis depending on whether the member held a temporary/acting position at the time of injury.

Memorandum #37 (2009) addresses Chapter 21 of the Acts of 2009, which amended G.L. c. 32, §11(1) to require retirement boards to contact a withdrawing member's employer before releasing accumulated total deductions, to confirm whether the member owes an obligation under an employee benefit plan (e.g., a §125 cafeteria plan). If an obligation is owed, the board must withhold the refund until the employer certifies it has been satisfied—but the board may not divert or release the funds directly to the employer. Boards must update their Application for Withdrawal of Accumulated Total Deductions form (Section B) to include this employer certification, per the revised form attached to the memo.

PERAC Memorandum #41 (2009) transmits an updated CD (dated September 2009) containing fill-in PDF forms for Disability and General Membership applications, replacing the March 2009 CD. The only change is the revised "Application for Withdrawal of Accumulated Total Deductions" form (previously announced in Memo #37); all other forms remain unchanged. Boards should begin using the updated Withdrawal form and retain/distribute the new CD accordingly.

PERAC Memorandum #42/2009 announces proposed regulations implementing Chapter 21 of the Acts of 2009, which narrowed the definition of "regular compensation" for payments received after July 1, 2009, and lists specific exclusions (e.g., overtime, bonuses, severance payments, in-kind payments). Until final promulgation (expected after June 2010), boards should continue treating previously-qualifying compensation as regular compensation unless it falls under one of the enumerated exclusions, while noting that certain grandfathered items covered by collective bargaining agreements or contracts in effect on May 1, 2009 remain includible only through June 30, 2012. No immediate board action is required beyond applying these transitional rules pending final regulations.

This memo addresses PERAC's annual review of the maximum reimbursement amount for non-invasive medical tests ordered by Regional Medical Panels under 840 CMR 10:10(3) and 10:15(4). PERAC's Commission voted on October 27, 2009 to maintain the existing $100 per-case cap that PERAC staff may approve without additional Commission review. No action is required by retirement boards; this is informational only.

This memo notifies boards that under the 2009 Ethics Reform Law, board members and staff are considered public employees subject to mandatory conflict-of-interest education requirements administered by the State Ethics Commission. Boards must distribute the Commission's Summary of the Conflict of Interest Law to all covered individuals by December 28, 2009 (and annually thereafter, or within 30 days for new members/employees), retain signed acknowledgments, and ensure all covered persons complete the online ethics training by April 2, 2010 (and every two years thereafter), retaining completion certificates for six years. Boards should also forward copies of acknowledgments and certificates to the appointing authority for non-elected board members and note that related Open Meeting Law amendments will take effect July 1, 2010, with further guidance to follow.

This memo addresses the new requirement under G.L. c. 32, §12D that inactive, non-retired members who reach age 70½ must begin receiving a distribution by April 1 of the following year, consistent with federal RMD rules, and provides a sample notification letter for this purpose. Boards must notify affected members (with those already over 70½ in 2009 needing distributions by April 1, 2010) and are encouraged to urge members to seek counseling given the complexity of rollover options rather than simply distributing forms. Going forward, boards should send annual notices to members turning 69 to alert them of their upcoming RMD deadline and encourage timely application.

Memorandum #47 (2009) notifies boards that Section 19 of Chapter 166 of the Acts of 2009 further amended G.L. c. 32, §7(2)(a)(ii), retroactive to July 1, 2009, superseding the earlier changes made by Chapter 21. Boards must recalculate and resubmit for PERAC review all accidental disability retirement allowances with effective dates on or after July 1, 2009 that were calculated under the now-repealed formula, using the required form and provided examples for the new 72%/75% calculation methodology.

PERAC Memo #49/2009 asks retirement boards to review and update their disability retiree database to ensure PERAC can accurately enforce statutory post-retirement earnings limits, since non-compliance now results in termination (not just suspension) of a member's allowance. Boards must review the enclosed list to report status changes (death, nursing home confinement, waiver, return to active status, address changes) and complete the "New Member Data" form for all 2009 disability retirees. All updates must be returned to PERAC by January 15, 2010, prior to the mailing of the 2008 Annual Statements of Earned Income (91A).

This memo addresses the annual review required under 840 CMR 10:10(3) and 10:15(4) regarding the maximum cost PERAC will cover for non-invasive medical tests ordered by Regional Medical Panels. PERAC voted to continue its past practice, maintaining the $100 per-case threshold that staff may approve without additional Commission review. No action is required by boards, but administrators should be aware that any testing costs exceeding $100 still require advance Commission approval.

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 memo provides the 2008 IRS-indexed limits under Chapter 46 of the Acts of 2002: the compensation cap is $230,000 ($345,000 for members who joined prior to 12/31/95), and the benefit limit is $185,000/year for retirement at age 65 (reduced for earlier retirement). These limits affect only the highest-paid members and most systems/members will not be impacted; boards should apply these figures when calculating affected members' retirement allowances and contact PERAC's actuary with questions.

This annual memo clarifies that PERAC's investment regulations impose no meaningful restrictions preventing local systems from adopting asset allocations similar to PRIT, including in alternatives, real estate, international/emerging markets, and hedge funds (up to 10%), and encourages boards to propose new strategies via the supplemental regulation process. Boards are reminded of their fiduciary duty to avoid being overly conservative when pursuing target returns, and are required to continue complying with regulations mandating periodic performance/strategy reviews with investment managers and annual determinations of whether managers are satisfactorily fulfilling their mandates. No new regulatory action is imposed beyond reinforcing these existing compliance obligations.

Memorandum #13 (2008) requests that boards assist PERAC in compiling data for its 2007 Annual Report by verifying and correcting three items: board contact/meeting information and board membership as of 12/31/07, the list of investment managers/custodian/consultant retained as of that date (noting name changes, terminations, or liquidations), and the board's Target Investment Rate of Return per its Statement of Investment Objectives. Boards must review, annotate, and return the data sheets and target rate of return to PERAC (Rose Cipriani) by February 15, 2008, even if no changes are needed—in which case they should mark the materials "correct" and return them by the deadline.

This memo is PERAC's annual compliance reminder covering disclosure practices and conflict-of-interest safeguards. It directs boards to incorporate Disclosure Statements into RFP processes, cross-check vendor disclosures against ADV forms and other retirement boards, verify compliance with 840 CMR 1.03 (including the specific prohibition on Clarke Blizzard and affiliated entities), ensure familiarity with Chapter 268A conflict-of-interest requirements, and review all investment contracts for compliance with 840 CMR 16.02(5) documentation standards. Boards should treat this as an action item requiring internal review of procurement, disclosure, and contract practices to confirm ongoing compliance.

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.

PERAC Memorandum #21, 2008 notifies retirement boards that, following an Ethics Commission finding that Lawrence Driscoll (former Middlesex Retirement Board member) violated M.G.L. c. 268A, PERAC has invoked 840 CMR 1.03 to permanently bar him from serving in any capacity—member, employee, consultant, vendor, or decision-maker—with any Massachusetts public pension system. Boards should ensure Driscoll has no involvement with their system or its service providers, and any firm or arrangement connected to him must disclose that association or risk losing PERAC regulatory approval.

**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 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 #29/2008 announces amendments to 840 CMR 10.12 and 10.14 governing retirement board hearings on excess earnings or failure to file annual earned income statements under M.G.L. c. 32, §§91, 91A, or 91B. Key changes require boards to give 30 days' notice of hearings (with the Commission entitled to attend and present evidence but not cross-examine retirees), to allow retirees 15 days to request a hearing upon notice of excess earnings, to schedule any requested hearing within 45 days (with at least 30 days' notice), and to notify the member of the decision within 30 days after the hearing. Boards must update their hearing procedures to conform to these revised notice and timing requirements and ensure the Commission is copied on all related correspondence.

PERAC Memorandum #30, 2008 clarifies the division of financial responsibility for medical documentation in disability retirement cases: under 840 CMR 10.6(1)(b), the applicant is responsible for obtaining and paying for the physician's certificate (though boards may voluntarily offer financial assistance), while under 840 CMR 10.6(1)(g), the board bears fiduciary responsibility—and associated costs—for obtaining authorizations and medical/insurance records needed for the disability review. No new action is required of boards, but administrators should be aware that PERAC is revising the Physician Statement form to streamline the process and reduce costs to applicants.

Memorandum #32/2008 announces PERAC's template approach for requesting IRS Determination Letters on behalf of 103 of the 106 Chapter 32 retirement systems (excluding the State, Teachers', and Boston boards, which are filing separately). Boards wishing to join must complete and return Form 5300, the Local Option Worksheet, Form 2848, and Form 8821, along with a $1,000 check payable to the U.S. Treasury, by December 2, 2008; boards opting out must promptly retain their own tax counsel to file independently. PERAC also offered training sessions (October 14 and at the MACRS conference) to assist boards in completing the required documents.

PERAC Memorandum #33 (2008) announces a proposed amendment to 840 CMR 10.06 that would require disability retirement applicants to submit two Physician's Statements instead of the current one, with public comment accepted through November 21, 2008. Boards should review the draft regulation and may attend one of the scheduled hearings/workshops (Greenfield, Boston, or Taunton) to submit comments or receive assistance completing IRS Form 5300; attendance is optional but comment submission deadlines should be noted.

Memorandum #36 (2008) reminds boards that under 840 CMR 10.11(2), any Clarification Request sent to a medical panel physician must also be copied to PERAC; failure to do so prevents PERAC from tracking the request or issuing the physician invoice needed for payment. Effective December 1, 2008, boards must submit all Clarification Requests directly through PERAC (not solely to the physician), enabling PERAC to monitor 30-day response timelines and help ensure disability determinations are completed within the 180-day statutory deadline under 840 CMR 10.13(1).

This memo summarizes the SJC's decision in Maher v. Retirement Board of Quincy, which upheld pension forfeiture under G.L. c. 32, §15(4) for a member convicted of crimes related to his position, finding that the roughly $576,000 forfeiture was not "grossly disproportional" under the Eighth Amendment's Excessive Fines Clause. Notably, the Court declined to resolve whether the Excessive Fines Clause even applies to pension forfeitures, leaving that question open for future litigation. No specific action is required of boards, but administrators should be aware of this precedent when handling forfeiture proceedings and potential Eighth Amendment challenges.

PERAC Memorandum #39/2008 discusses how the severe 2008 market downturn has caused significant drift in retirement systems' asset allocations—equities have fallen well below target ranges while fixed income has risen above target—and explains the rationale for portfolio rebalancing as a disciplined, unemotional strategy to control risk and potentially enhance long-term returns. The memo encourages boards to review their current asset allocation against long-term targets and consider rebalancing (shifting fixed income proceeds back into equities) but does not mandate any specific action, leaving the decision to each board's discretion based on their own investment policy and circumstances.

PERAC Memorandum #40 (2008) asks retirement boards to review and update their disability retiree records for any 2008 status changes (death, nursing home confinement, waived allowance, return to active status, or address change) and to complete the "New Member Data" form for all new accidental or ordinary disability retirees approved in 2008. Boards must return all updated information to PERAC by January 16, 2009, to ensure database accuracy before the annual 91A Statements of Earned Income are mailed—this is especially important given the law change that now terminates (rather than suspends) allowances for non-compliance.

This memo provides the 2009 annual inflation adjustments to the IRC Section 401(a)(17) compensation limit ($245,000, or $360,000 for members enrolled before 12/31/95) and the Section 415 benefit limit ($195,000 at age 65, reduced for earlier retirement) applicable under Chapter 46 of the Acts of 2002. It affects only the highest-paid members and most systems will be unaffected. No action is required beyond applying these updated limits where relevant; boards with questions should contact PERAC Actuary Jim Lamenzo.

This memo announces the distribution of updated copies of the Massachusetts Public Employee Guide to Disability Retirement to all retirement boards (free, based on membership size) and to every public library in the Commonwealth. Additional copies can be ordered through Central Reprographics or downloaded from PERAC's website. No action is required of boards beyond noting the availability of these updated materials for members and staff.

This memo reports that PERAC exercised its authority under 840 CMR 1.03 to remove two individuals—Harry Gannon (Executive Director, Maynard Retirement Board) and Peter Arlos (member, Berkshire Regional Retirement Board)—after each was found by the State Ethics Commission to have violated M.G.L. c. 268A; both subsequently resigned. It reiterates that the regulation bars anyone with such a finding from serving in any capacity (member, officer, employee, consultant, or decision-maker) for a retirement board. No specific action is required of boards beyond awareness, as PERAC will notify boards of future actions taken under this regulation.

This memo covers several investment governance issues: it reminds boards of the requirement under 840 CMR 16.07 to hold periodic performance/strategy review meetings with investment managers (requesting written confirmation these are scheduled/completed), reiterates the five-year re-certification requirement for investment consultants under Regulation 26.04(3), and encourages boards to critically evaluate underperforming managers (including considering index funds) and to pursue greater diversification across asset classes, noting PRIT's advantages in accessing nontraditional/alternative investments. **Action required:** Boards must confirm in writing that manager review meetings are scheduled or completed, and those that hired consultants in 2002 must complete consultant re-certification (via updated regulatory forms, no new search needed).

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.

This memo provides the 2007 IRC compensation and benefit limits under Chapter 46 of the Acts of 2002, which brought Massachusetts retirement law into compliance with federal limits (IRC §401(a)(17) and §415). For 2007, the compensation limit is $225,000 ($335,000 for members who joined prior to 12/31/95), and the benefit limit is $180,000 annually for retirement at age 65 (reduced for earlier retirement); these figures affect only the highest-paid members. No board action is required beyond applying these updated indexed limits where applicable, and boards should contact PERAC's Actuary with questions.

This memo requests that boards verify data for PERAC's 2006 Annual Report, including board contact/member information (as of 12/31/06), the list of investment managers, custodian, and consultant, and the board's calculated Target Investment Rate of Return. Boards must review the enclosed data sheets, annotate any corrections (including manager name changes, liquidations, or terminations with supporting documentation), and return all materials—along with the Target Rate of Return—to Rose Cipriani at PERAC by February 14, 2007, even if no changes are needed.

PERAC issued a standardized "Retirement Board Change Form" for boards to use when reporting changes in board membership or administrative staff. Boards should complete and fax this form to PERAC (Attn: Joan Arsenault) whenever such changes occur, ensuring PERAC's records remain current.

This memo confirms PERAC's annual review (as required by 840 CMR 10:10(3) & 10:15(4)) of the cost cap for non-invasive medical tests ordered by Regional Medical Panels. The Commission voted on January 24, 2007 to maintain the existing $100 per-case limit that PERAC staff may approve without further Commission authorization. No action is required by boards, but they should be aware that any panel-ordered test exceeding $100 requires advance PERAC approval.

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.

PERAC Memorandum #17, 2007 announces that PERAC will no longer issue letters estimating potential disability allowance offsets for proposed (tentative) workers' compensation lump-sum settlements, effective immediately; it will continue to review and issue offset determinations only for settlements already approved by the Industrial Accidents Board. Boards should notify members and other interested parties of this change and direct offset inquiries to occur only after IAB approval of a settlement.

PERAC removed fill-in PDF functionality from its general membership and disability forms on its website due to privacy/security vulnerabilities identified by the state's IT Division, leaving only printable versions online; fill-in versions will instead be distributed via CD upon request (or via the previously distributed 2004 Publications Library CD). Boards must never e-mail fill-in PDF forms (even blank) to protect member privacy, and should immediately review their own websites to remove or secure any similarly vulnerable fill-in PDF forms.

**Memorandum #20, 2007 – Board Annual Compliance Memorandum** This memo recaps PERAC's compliance focus areas from the past year—ethics training, disclosure statements, and directed brokerage issues—and signals continued emphasis on these areas going forward, including new Ethics Commission seminars available to boards. Boards should proactively review compliance with 840 CMR 1.03 (prohibited dual positions), 840 CMR 16.02 (investment manager contracts and Form ADV Part II submissions), and 840 CMR 16.05 (prohibition on directing brokerage), and confirm/report their compliance status to PERAC as requested in prior memoranda (notably #47/2006).

This memo establishes PERAC's policy for handling videotapes/CDs submitted as evidence in disability retirement medical evaluations, treating them like standard medical records for regional medical panels, Requests for Clarification, and Comprehensive Medical Evaluations/Return to Service reviews. Boards must provide a copy of any videotape/CD to the member (and to all panel physicians if multiple panels are involved) before the medical panel examination, clearly label and identify the recording in the Transmittal of Background Information, and, for Requests for Clarification, allow the member 10 days to submit written comments before forwarding materials to PERAC or the panel; for Comprehensive Medical Evaluations, copies must also be sent to the PERAC Nurse Case Manager.

This memo notifies retirement boards of upcoming Joint Committee on Public Service hearing dates on pending pension-related legislation, including minimum pension bills, the Municipal Partnership Act (local GIC and PRIT Fund provisions), COLA base increase bills, and pension governance reform bills. No board action is required, but boards with interest in attending should confirm hearing dates/agenda with the Committee (617-722-2240) beforehand, as schedules are subject to change.

PERAC Memorandum #23, 2007 provides retirement boards with a CD containing PERAC's Disability and General Membership forms in a fillable PDF format, fulfilling a commitment made in Memorandum #18 of 2007. No specific board action is required beyond updating internal processes to utilize these new fill-in forms going forward.

PERAC's Commissioners voted to bar Clarke T. Blizzard from any involvement with Massachusetts public pension systems, following his guilty plea to conspiracy to commit extortion involving the Ohio Bureau of Workers' Compensation CFO, pursuant to 840 CMR 1.03. Boards should ensure Blizzard has no role—as trustee, employee, consultant, or service provider—with their system or with any affiliated firm; any entity connected to Blizzard that fails to disclose his involvement will be barred from future PERAC regulatory approval. No action is required regarding firms associated with Blizzard provided his involvement is properly disclosed.

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.

This memo summarizes Chapter 68 of the Acts of 2007, which authorizes PERAC to annually evaluate each retirement system's funded ratio and investment performance and mandate transfer of assets to PRIT for systems that are under 65% funded and have underperformed PRIT by 2%+ annually over 10 years, subject to a limited appeal/exemption process. Boards should be aware that PERAC will conduct its initial review using January 2007 data (or the most recent valuation if none is updated by October 1, 2007) and will directly contact any systems identified as potentially subject to mandatory transfer; no immediate action is required beyond awaiting that notification, though boards should understand the appeal process and local approval requirements should their system be flagged.

This memo announces PERAC's regional disability training sessions scheduled for August 16, October 11, and November 15, 2007, designed to help board staff review disability case processing procedures and network with peers from other boards. While staff in targeted regions will receive priority invitations, boards interested in attending should contact Regina Manning to confirm space availability (limited to 20 participants per session), as no other action is required.

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.

PERAC Memo #44 (2007) announces a link on PERAC's website to a superannuation retirement pension calculator developed by the State Board of Retirement, which provides estimated benefit calculations for Group 1, 2, and 4 members seeking superannuation retirement only (it does not cover disability retirement, termination allowances, or specialized calculations such as State Police, judges, or "20/50" corrections retirements). Boards should note that these are estimates only—actual benefits are calculated solely at retirement under M.G.L. c. 32, and no board is bound by the online estimates—and are encouraged to inform their members that this tool is available for general planning purposes.

Memorandum #45 (2007) notifies boards that Chapter 162 of the Acts of 2007 amended the Heart Law (G.L. c. 32, §94), effective November 14, 2007, extending the hypertension/heart disease disability presumption to county correctional facility employees whose duties involve care, supervision, or custody of inmates. Boards should identify members in service on or after that date (including those on qualifying paid/unpaid leave, receiving workers' comp, or using sick leave with contributions) who may now qualify for the presumption, and should request PERAC convene a Heart Law panel for any eligible member pursuing a disability retirement application based on hypertension or heart disease; no panel will be convened for members already retired as of the effective date.

**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 requests that boards review and update PERAC's disability retiree database for 2007, reflecting status changes such as death, nursing home confinement, waived allowances, return to active status, or address changes. Boards must also complete the "New Member Data" form for all new accidental/ordinary disability retirees approved in 2007 and return all updates to PERAC by January 16, 2008, to ensure database accuracy before the annual 91A statements are mailed. Note that failure to report status changes is now more critical since noncompliance results in termination (rather than mere suspension) of a member's allowance.

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 transmits an updated Social Security Administration form (SSA-1945) that must be provided to all new employees hired on/after January 1, 2005 whose positions are not covered by Social Security, replacing the version issued with Memo 45/2004. Boards must ensure employers give the form to new hires before employment begins, obtain the employee's signature, and forward a signed copy to the Retirement Board for retention in the member's file—this is a federal mandate requiring immediate implementation and distribution to all participating governmental units.

This memo provides the updated 2006 IRC limits under Chapter 46 of the Acts of 2002: a compensation cap of $220,000 ($325,000 for members who joined prior to 12/31/95) under Section 401(a)(17), and a general benefit limit of $175,000 per year at age 65 under Section 415, both subject to annual indexing and early-retirement reductions. These limits affect only the highest-paid members, so boards should apply them when calculating compensation and benefits for such members but need not take any broader action; questions can be directed to PERAC's Actuary, Jim Lamenzo.

This memo requests that boards assist PERAC in compiling data for the 2005 Annual Report by reviewing and correcting an attached retirement board data sheet (board contact/meeting info current as of today, board member/administrator names as of 12/31/2005) and manager/custodian/consultant list, and by calculating and submitting their portfolio's Target Investment Rate of Return (distinct from the Actuarial Rate). Boards must return the annotated data sheet, manager list, and target rate of return to Rose Cipriani at PERAC by February 10, 2006, even if no changes are needed.

This memo announces a proposed amendment to 840 CMR 15.03, filed with the Legislature on January 31, 2006, clarifying that ad hoc/temporary payments (such as salary augmentation or enhancement plans) generally do not count as regular compensation for contribution or retirement allowance purposes, though a grandfathering provision preserves current treatment for existing contracts (and their successors) that meet G.L. c. 32 requirements. The regulation is not yet in effect—it is subject to a 45-day legislative review period—so boards should note the pending change but need not take action until it is finalized.

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 addresses several investment governance topics: compliance with mandatory periodic manager review meetings under 840 CMR 16.07, the 5-year re-certification requirement for investment consultants under Regulation 26.04(3), and the importance of portfolio diversification (including consideration of PRIT Fund investment options). Boards should take action by: (1) providing PERAC written confirmation during the year that manager review meetings are scheduled or completed, (2) re-certifying investment consultants hired in 2001 by submitting updated regulatory forms, and (3) reviewing their portfolios' diversification, with PERAC's Investment Unit available to assist with asset allocation questions.

This memo addresses PERAC's annual review, required under 840 CMR 10:10(3) and 10:15(4), of the maximum reimbursement amount for non-invasive medical tests ordered by a Regional Medical Panel during disability evaluations. PERAC has voted to maintain the existing $100-per-case cap, which PERAC staff may approve without further Commission action. Boards need not take any action but should be aware that any test exceeding $100 requires advance Commission approval before the panel can order it.

This memo implements Judge Riley's decision in Shafer v. CRAB, confirming that the personal use value of an employer-supplied motor vehicle may qualify as regular compensation under G.L. c. 32, §1, subject to specific eligibility criteria established by the court. Boards should use the attached revised Worksheet and Questionnaire to evaluate members' documentation against the four criteria; if all four are satisfactorily answered, boards should calculate the personal use value using the Worksheet, and if not, boards must seek additional documentation and hold hearings as needed before making a determination.

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 an additional PERAC training session (Monday, May 15, 2006, 1:30–3:30 PM) covering recent pension law developments—including new regular compensation regulations, the motor vehicle valuation court decision, veterans' disability retirement benefits (Ch. 157 of 2005), and option selection changes for certain retirees (Ch. 143 of 2005). Boards with staff or members interested in attending must complete and fax the attached registration form to PERAC promptly, and may submit questions in advance via email with the specified subject line.

This memo transmits amendments to PERAC's regulation 840 CMR 15.00 governing regular compensation, effective April 7, 2006, with the key change in 15.03(2) addressing treatment of payments from salary augmentation/enhancement plans. Boards should review the attached amended regulation, note additional training sessions being offered (including a newly added May 15, 2006 session in Somerville) to cover the changes, and may submit questions in advance via email for those sessions.

This memo informs boards that PERAC voted to hold a fiduciary-breach inquiry proceeding regarding the Middlesex Retirement Board (MRB) following a letter from the Inspector General, clarifying that no findings, sanctions, or removals have been made against MRB members. A Middlesex Superior Court injunction postponed the original May 16, 2006 hearing date, and PERAC has retained an independent hearing officer and outside counsel for the eventual proceeding; the memo is for informational purposes only and requires no action by other retirement boards.

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.

PERAC Memo #28/2006 reports the SJC's decision in *State Retirement Board v. Francis Woodward*, holding that the 6-year contract statute of limitations does not bar a board from enforcing pension forfeiture under G.L. c. 32, §15(4), since forfeiture upon conviction of certain crimes is mandatory, automatic, and non-discretionary regardless of how much time has passed. Boards that had delayed §15 forfeiture actions pending this ruling should now immediately proceed with the statutory forfeiture process.

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 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 addresses growing concerns over ethical violations in public pension systems nationally and encourages retirement boards to proactively address ethics awareness among board members and staff. PERAC recommends—but does not mandate—that boards attend Ethics Commission seminars (held monthly at their Boston office or via community-hosted sessions) and provides contact information for enrollment, with PERAC's Compliance Officer Dana Mahoney available to help arrange sessions if needed. No formal compliance action is required, but boards are encouraged to take advantage of this training opportunity.

This memo provides guidance on reviewing investment manager, consultant, and vendor disclosure statements, focusing particularly on third-party payment arrangements related to marketing and product development fees. It directs boards to incorporate disclosure statements into the RFP process, have board members review them prior to acceptance, follow up on any questions, compare disclosures against ADV filings and other available information, and coordinate with other boards considering the same providers to verify consistency of disclosed information. PERAC also notes it is revising its own disclosure forms and will issue further guidance once that process is complete.

This memo addresses concerns raised by retirement boards about rising costs and vendor changes in software/IT applications, noting PERAC endorses no specific product or vendor. Boards upgrading with their current vendor need not competitively bid, but those seeking new vendors or better pricing are encouraged to use a competitive RFI/RFP process to evaluate options and pricing. No mandatory action is required, but boards should clearly define their system needs and are encouraged to share experiences with peer boards.

This memo transmits PERAC's draft legislation filed for the 2007–2008 session, including re-filed reform legislation from the Joint Committee on Public Service, a new bill addressing hearing procedures for potential excess earners, and a provision grandfathering administrators who also serve as elected board members. No specific board action is required; the memo is informational, though PERAC invites boards to submit questions or comments on the proposed bills.

This memo reminds retirement boards that directed brokerage (directing or instructing investment managers to route commissions to specific brokers) violates PERAC Regulation 840 CMR 16.05, citing recent industry cases involving improper broker incentives and soft-dollar arrangements. Boards must review their Disclosure Statements and brokerage-related files, and submit to PERAC by January 8, 2007 copies of any letters, e-mails, or other communications directing managers to use particular brokers.

This memo asks retirement boards to help PERAC maintain accurate e-mail distribution lists used to send the Pension News, Newsflashes, and other communications. Boards should submit current e-mail addresses (including home/personal or other office addresses) for all board members and administrators—identified by name and board—to Sarah Kelly at PERAC, and may optionally provide addresses for other interested parties such as town treasurers or personnel officers. No other action is required.

This memo requests that retirement boards review PERAC's attached disability retiree list and update any 2006 status changes (death, nursing home confinement, waived allowance, return to active status, or address change), noting that non-compliance now results in termination rather than suspension of benefits. Boards must also complete the "New Member Data" form for all disability retirements approved in 2006 and return all updates to PERAC by January 12, 2007, ahead of the mailing of 2006 Annual Statements of Earned Income (91A), which will now identify retirees by a PERAC-assigned reference number instead of their Social Security number.

This memo requests that boards verify data for PERAC's 2004 Annual Report, including board contact/member information (as of 12/31/2004), and the list of investment managers, custodians, and consultants (noting any liquidations/terminations via separate letter). Boards must also calculate and report their Target Investment Rate of Return based on current asset allocation, distinct from the Actuarial Rate of Return, and return all annotated materials to Rose Cipriani at PERAC by January 17, 2005.

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 confirms PERAC's annual determination under 840 CMR 10:10(3) and 10:15(4) regarding the cap on non-invasive medical test costs that Regional Medical Panels may order without prior Commission approval. PERAC voted to continue the existing practice of authorizing PERAC staff to approve such testing costs up to $100.00 per case. No action is required by retirement boards; this is provided for informational purposes as required by the regulation.

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.

PERAC Memo #11/2005 updates the annual Internal Revenue Code Section 401(a)(17) compensation cap and Section 415 benefit limit for 2005, as required under Chapter 46 of the Acts of 2002. For 2005, the compensation limit is $210,000 ($315,000 for members who joined before 12/31/95), and the general benefit limit is $170,000/year at age 65 (reduced for early retirement). Boards need only apply these limits when calculating retirement allowances for their highest-paid members; no other action is required, and questions should be directed to PERAC's actuary.

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.

This memo transmits an SEC staff report on conflicts of interest among pension investment consultants (e.g., undisclosed fees from money managers, affiliate relationships, and consultants not viewing themselves as fiduciaries), along with a joint SEC/DOL letter listing questions boards should ask consultants. It notes PERAC's Disclosure Forms already require consultants and investment managers to disclose payments between them, and directs boards to review these conflict-of-interest issues carefully with current or prospective consultants using the provided question list—no other formal action is required.

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.

This memo addresses complaints regarding improper conduct at Medical Panel and Restoration to Service (RTS) examinations, specifically the submission of unauthorized information directly to examining physicians and participation by attorneys or representatives during exams. It clarifies that only members may bring supplemental medical documentation directly to an exam; all other additional information must be routed through the retirement board (for Medical Panels) or PERAC (for RTS exams), and non-member attendees may not participate beyond answering physician questions. Boards should ensure their members, attorneys, and representatives are aware of this protocol, since PERAC may void a physician's findings and bill the offending party if the process is intentionally obstructed or circumvented.

This memo summarizes the federal district court ruling in *Wheeler v. United States*, which held that when a member retires for superannuation and is later granted retroactive accidental disability retirement, the superannuation payments already received remain taxable as originally classified—they are not retroactively reclassified as non-taxable disability payments. Only the subsequent lump-sum retroactive payment and ongoing accidental disability allowance (calculated without reference to age, service, or contributions) qualify as non-taxable workers' compensation-type payments. The memo requires no action from boards but offers to provide a copy of the case for reference, useful for advising members on the tax treatment of retroactive disability awards.

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.

**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.

PERAC Memo #37/2005 requests that boards update their disability retiree records for 2005—reflecting deaths, nursing home confinement, waived allowances, returns to active status, or address changes—and complete the enclosed "New Member Data" form for all disability retirements approved during the year. Boards must return this information to PERAC by January 13, 2006, to ensure accurate data before the 2005 Annual Statements of Earned Income are mailed; the memo also notes that disability allowances are now terminated (not merely suspended) for non-compliance, and that retirees will be assigned a PERAC reference number in place of their Social Security number for security purposes.

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 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 requests boards' assistance in compiling data for the PERAC 2003 Annual Report by verifying board contact/member information, confirming the accuracy of listed investment managers, custodians, and consultants (including noting any liquidated funds or terminated managers via separate letter to the Investment Unit), and calculating/reporting the board's Target Investment Rate of Return. Action required: Boards must review and annotate the attached data sheet and manager list, confirm or correct entries, calculate their Target Investment Rate of Return, and return all materials to Lindsay Deaver at PERAC by February 16, 2004.

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 provides the updated 2004 dollar limits under IRC Sections 401(a)(17) and 415, as incorporated into Massachusetts law by Chapter 46 of the Acts of 2002: a compensation cap of $205,000 ($305,000 for members who joined before 12/31/95) and a general annual benefit limit of $165,000 at age 65 (reduced for early retirement). These limits affect only the highest-paid members, and boards should apply them when calculating compensation and benefits for affected members, contacting PERAC's actuary with questions—no other action is required.

This memo reminds retirement boards of their obligations under 840 CMR 16.07 and 16.05 to regularly review investment manager performance, conduct annual determinations that managers are fulfilling their mandates, and monitor brokerage costs and soft-dollar usage—prompted by a significant investment loss at one Massachusetts system. Boards must confirm compliance for 2003 and going forward for 2004 by submitting either a letter detailing the dates/particulars of reviews and determinations, or copies of board meeting minutes documenting these reviews.

This memo announces that PERAC has mailed the 2003 Annual Statement of Earned Income (91A) forms directly to disability retirees, with instructions, and that completed forms with all tax documents must be returned to PERAC by April 15, 2004 (mail or hand delivery only—no faxes). Boards should only provide duplicate forms in extreme circumstances (e.g., lost or never-received originals), ensuring member information is properly entered, and may direct members to the accompanying Earned Income Worksheet (also on PERAC's website) to help calculate allowable earnings while on disability.

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 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 reverses guidance from PERAC Memo #10/2004, clarifying that buy-back repayments for prior refunded service should be calculated based only on the amount actually withdrawn by the member, plus interest from the withdrawal date to repayment—not on the full Annuity Savings Fund balance at the time of refund (which may have included amounts withheld under the limited interest or 2-year inactive rules). Boards that previously calculated buy-backs using the total Annuity Savings Fund balance must recalculate the correct repayment amount and refund any excess payments collected from affected members.

Memorandum #30/2004 informs boards of a new statutory requirement (supporting implementation of G.L. c. 32, §15) that public employers must notify the Retirement Board when an employee is indicted for misconduct in office/employment and suspended, and must also report the outcome of any resulting charges. Boards are asked to forward the attached employer memorandum to all governmental units within their retirement system so employers are aware of this notification obligation.

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 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 retirement boards of the Ohio grand theft/ethics indictment of pension trustee Thomas Bennett, which implicated several investment/vendor firms (American Express/Northwinds Marketing, Lend Lease Real Estate Investment, Lowe Enterprises, and RREEF America) in providing improper gratuities. Boards with existing relationships with any of these firms must send a letter inquiring about the allegations and whether similar gratuities were provided in connection with their own dealings, submitting a copy to PERAC by September 27, 2004; boards without current relationships must ensure these firms address the allegations if they participate in future competitive procurement processes.

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.

PERAC is offering an additional training seminar on December 2, 2004 due to high demand from its Fall 2004 series, covering recent legal changes, common audit findings, and recordkeeping/audit preparation best practices. Boards interested in attending (beyond the 15 waitlisted administrators already being contacted) should complete and fax the attached registration form to PERAC promptly to secure one of the remaining seats.

Memorandum 45/2004 addresses a new federal requirement (effective January 1, 2005) that new employees in positions not covered by Social Security must be given and sign the SSA-provided form (Form SSA-1945) notifying them of the potential impact of the Windfall Elimination Provision and Government Pension Offset. Boards must ensure this form is distributed by employers prior to the employee's start date, collected in signed form, and retained in the member's file, and should share the form/instructions with all governmental units within their system. Boards may direct questions to PERAC or consult the SSA website for further GPO/WEP details.

This memo announces the Calendar Year 2004 Annual Statement process, which must be completed, signed, and returned to PERAC by May 1, 2005, with PERAC auditors available for technical assistance. Boards should register staff for optional training sessions (in Nahant, Plymouth, Northampton, or at PERAC) on a first-come, first-served basis using the attached registration form, and must also submit their pre-closing cashbook and trial balance for December 2004 to PERAC before February 28, 2005.

This memo requests that boards review PERAC's disability retiree list and update any 2004 status changes (deaths, nursing home confinement, waived allowances, return to active status, address changes), noting that failure to report such changes is now more critical since non-compliance results in termination rather than suspension of benefits. Boards must also complete the New Member Data form for all disability retirees approved in 2004 and return all updates to PERAC by January 21, 2005, so the database is accurate before the Annual Statements of Earned Income are mailed.

This memo requests boards' assistance in compiling data for the PERAC 2002 Annual Report, including verification of board contact/member information, and confirmation of investment managers, custodians, and consultants on record. Boards must review and annotate the enclosed data sheet and manager list (noting any discrepancies, terminations, or liquidations via separate letter), calculate and report their Target Investment Rate of Return, and return all materials to PERAC by February 14, 2003.

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 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 clarifies that the required 9% pension cost recovery on federal grant employee payroll may be treated as an advance payment toward, and used to offset, the system's annual appropriation under its approved actuarial funding schedule, since these employees are already included in the actuarial valuation. Boards using the 9% recovery as an offset must carefully document this practice for audit purposes; boards that failed to collect the 9% but still met their full funding appropriation are not considered to have a funding shortfall, though they were technically non-compliant with federal grant requirements.

This memo clarifies that, despite the general prohibition on collecting retirement contributions from retirees (per Memo #38/2002), boards must collect retirement deductions on retroactive salary/wages paid to a member after retirement when that pay results from a retroactive contract settlement covering the member's active employment period, since such amounts count as regular compensation. Boards are required to recalculate the retirement allowances of any affected retirees to reflect this additional compensation and pay any resulting increased benefits retroactive to the member's retirement date.

This memo updates the 2003 IRS limits under Chapter 46 of the Acts of 2002, which conforms Massachusetts retirement law to federal caps on compensation used in benefit calculations (IRC §401(a)(17)) and on maximum retirement allowances (IRC §415). Both limits remain unchanged from 2002—$200,000 for compensation and $160,000 annually for benefits at age 65 (subject to adjustment for early retirement)—and affect only the highest-paid members. Boards with potentially affected members who have not already consulted PERAC should review Memo #27/2002 for detailed criteria and contact PERAC's actuary, Jim Lamenzo, with questions.

This memo, prompted by HIPAA's implementation, urges retirement boards to review the privacy and security of paper records, computer systems, and member counseling spaces, even though boards are not HIPAA-covered entities. It recommends practical steps such as locking file cabinets, restricting access to board personnel only, securing shared computer systems (potentially via confidentiality agreements or separate systems), and ensuring private spaces for member counseling. While no specific mandatory action is required, boards should proactively assess and improve their privacy/security practices, consulting board counsel and municipal IT staff as needed.

PERAC Memo #20/2003 clarifies that any compensated elected official is eligible for retirement system membership under G.L. c. 32, §3(2)(vi) regardless of compensation amount, and that the part-time employee membership provisions (§3(2)(d)) do not apply to elected officials since they are governed by a distinct statutory provision. Elected officials have 90 days from assuming office to apply for membership, after which they must wait until reelection to join; boards are not statutorily required to notify officials of this deadline, though many choose to do so as a best practice. No mandatory board action is required, but boards should apply this eligibility standard correctly and may wish to continue voluntary notification practices.

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 describes the Municipal Local Option Unfunded Liability Pension Holiday enacted under Section 128 of Chapter 46 of the Acts of 2003, which allows governmental units to reduce their FY2004 and FY2005 unfunded liability pension appropriations below the current funding schedule, subject to specified limitations (e.g., not below normal cost, tied to local aid reductions, no available emergency reserve, and use solely for member/retiree benefit). Boards must forward this memo to their units' Executive and Legislative Authorities, and if a unit accepts the pension holiday (acceptance needed by 12/15/2003), the board must notify the Legislative Authority within 15 days of acceptance with a summary of the existing funding schedule and the estimated impact of the reduced appropriation; PERAC will assist boards with impact estimates and drafting these notices upon request.

This memo updates boards on the repeal of G.L. c. 32, §5(1)(e), the spousal retirement provision, clarifying that any member who applied for this benefit before July 1, 2003 with a retirement date after that date remains eligible to retire under it despite the repeal. Boards should be aware that a pending administrative appeal will address the rights of members who applied after July 1, 2003, with further guidance to follow; no immediate action is required beyond honoring pre-repeal applications as described.

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 requests data needed to calculate each board's FY04 appropriation under G.L. c.32, §22D or §22(6A)(b), with a revised questionnaire format (no benefit payment data, combined compensation figures). Boards must complete and return the questionnaire—preferably via PERAC's website—by October 31, 2003, and should contact PERAC if they have not submitted an updated funding schedule within the past three years, as one is required at least triennially.

This memo provides an update on the status of G.L. c. 32, §5(1)(e) (the spousal retirement provision) following its repeal, noting that a DALA decision allowing post-July 1, 2003 applicants to use this provision is not final because CRAB has taken the case up for review. Boards must continue to prohibit members from using §5(1)(e) unless they applied for retirement before July 1, 2003, consistent with Memorandum #27/2003, and should await further guidance from PERAC once a final decision is reached.

This memo addresses the Legislature's override of a gubernatorial veto extending the deadline for members to retire under G.L. c. 32, §5(1)(e), the spousal retirement provision, which allows a member married to a retiree to retire as if age 55. Because the repeal takes effect November 1, 2003, members have only until October 31, 2003 to retire under this provision. Boards must immediately notify their membership of this deadline, including distributing the memo to department heads for posting in areas frequented by employees.

This memo clarifies the timeline for repeal of G.L. c. 32, §5(1)(e), the spousal retirement provision, which takes effect November 1, 2003 following the Legislature's override of the Governor's veto. PERAC has determined that members who file applications under this provision before November 1, 2003 remain eligible to retire under it, even if their retirement date falls on or after that date, provided the retirement date is no more than four months after filing. Boards should process any qualifying applications filed before the November 1 deadline accordingly and ensure staff are aware of this transition rule when advising members considering spousal retirement.

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.

This memo announces the Calendar Year 2003 Annual Statement process, due to PERAC by May 1, 2004, and offers optional training sessions (in Stoneham, Plymouth, Springfield, and at PERAC) for board administrators, with registration required on a first-come, first-served basis via the attached form. Boards must also submit their pre-closing cashbook and trial balance for December 2003 to PERAC before February 28, 2004, and should contact PERAC directly if that deadline poses difficulties.

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.

This memo requests that retirement boards update PERAC's disability retiree database by reviewing an attached list and reporting any 2003 status changes (death, nursing home confinement, waiver of allowance, return to active status, or address change). Boards must also complete and submit the enclosed New Member Data form for all disability retirees approved in 2003, with all information due to PERAC by January 16, 2004, to ensure accuracy before Annual Statements of Earned Income are mailed.

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 clarifies that under Chapter 268A, retirement board member positions can be designated as "special municipal employees" (or "special county employees" for county systems), which provides greater flexibility under the Ethics Law than the default "municipal employee" classification—but only if the local governing body (city council, board of selectmen, etc.) has expressly made that designation for the retirement board position. Boards should request from their city/town a listing of positions already classified as "special municipal employees"; if the retirement board position is not among them, the board is urged to initiate proceedings—with counsel's assistance—to obtain that designation, and members must also make required disclosures/filings to secure the associated protections.

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 addresses recurring errors in Social Security Numbers on Disability Transmittals submitted to PERAC. Boards should verify that the applicant's correct SSN is used and is consistent across all three pages of the transmittal, and for accidental death benefit applications, must use only the deceased member/retiree's SSN—not the surviving spouse's.

PERAC Memo #11/2002 requests that boards assist in compiling data for the 2001 Annual Report by verifying three items: current board contact/meeting information (with board member/administrator names as of 12/31/2001), the accuracy of the attached manager/custodian/consultant list (noting any name discrepancies, terminations, or liquidations), and the board's calculated Target Investment Rate of Return. Action required: Boards must review, annotate/correct, and return the data sheet and manager list, along with their Target Investment Rate of Return, to Lindsay Deaver at PERAC by March 1, 2002; any terminated managers or liquidated funds must be reported in a separate letter to the Investment Unit.

This memo announces that PERAC conducted its first-ever survey of retirement boards to gather feedback on PERAC's operations, educational efforts, and regulatory guidance, which will inform future initiatives including the July UMass educational seminar. Boards that have not yet completed the survey are asked to submit their responses promptly (contacting Lindsay Deaver if a copy is needed); no other action is required.

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 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.

This memo transmits PERAC's Guidelines for Retirement Board Travel Supplemental Regulations, covering required elements such as travel authorization, documentation, reimbursement procedures, third-party payments, and penalties for violations, in order to ensure fiduciary and ethical compliance in Board Member and staff travel. Boards must draft (or, if previously approved, revise) supplemental travel regulations consistent with these Guidelines and submit them to PERAC for review under G.L. c. 7, §50 and G.L. c. 32, §21(4) within 60 days of the memo's issuance, consulting legal counsel as needed.

This memo reminds retirement boards of their legal obligation to protect the confidentiality of medical records collected during disability retirement processing, noting such records are exempt from public disclosure under G.L. c. 66, §10 and c. 4, §7(c) and may only be released with a signed authorization, court order, or as otherwise required by law. Boards should take concrete safeguarding measures—locking records, destroying excess copies, restricting discussions to secure areas, and considering confidentiality agreements for members and staff—and may consult PERAC Legal staff with questions.

PERAC has issued a new brochure, "Retirees' Rights and Responsibilities," and is distributing copies to all 106 retirement boards proportional to membership size, with additional copies available free online, for purchase at PERAC's office, or by mail order from the printer. Boards should inform their membership of the brochure's availability and distribute the enclosed copies to prospective retirees; no other action is required.

PERAC has revised the Application for Withdrawal of Accumulated Total Deductions, consolidating the previous two "Member and Witness Signature" blocks into a single signature block appearing after the Non-Taxable segment on Page 3, to eliminate member confusion regarding sign-off on payment method and tax distribution choices. Boards should begin using this revised form (dated April 2002), available on PERAC's website under General Membership Forms, and instruct members that pages 1–3 must be completed with signature required on page 3.

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.

PERAC announces an additional Early Retirement Incentive (ERI) implementation seminar on June 18, 2002, at the Plymouth Public Library, intended for board staff and members who missed prior sessions. Boards wishing to attend should notify PERAC as soon as possible using the registration form, indicating the number of attendees; no other action is required.

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 a Superior Court ruling reversing PERAC's prior position on school nurse transfers to MTRS: a local board's §3(8)(c) liability now ends only when accumulated deductions are actually transferred to MTRS, not when the transfer should have occurred. Boards that transferred school nurses who subsequently retired may need to recalculate/adjust the §3(8)(c) amounts owed, and boards should also use this as a prompt to verify that all eligible school nurses have been properly transferred to MTRS per the guidelines in Memorandum #24/1999.

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 announces PERAC's upcoming UMass Educational Institute (July 28–31, 2002), a training program covering pension system management topics, with PERAC staff available for informal consultation throughout. Boards and administrators who wish to attend but have not yet registered are urged to do so immediately, as space is limited and enrollment numbers must be reported to UMass by July 12th.

This memo announces FY2003 statutory amendments to G.L. c. 32, §§ 10(2) and 21(1)(d), effective July 1, 2002, requiring employers to certify under penalty of perjury the basis for a member's termination retirement, and requiring PERAC to review all board grants of such retirements (applying the same standard used for disability retirement reviews, with a 30-day action window). Boards must immediately begin using the two enclosed forms—the employer certification form and the PERAC submission form—for all termination retirement applications with effective dates on or after July 1, 2002, and must submit these applications to PERAC for review before finalizing grants.

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 advises that, per tax counsel's opinion, IRC §415(c) prohibits retirement boards from accepting any post-retirement contributions, since retirees have no compensation to which contributions can be tied—an issue that arose from questions about taxing personal use of employer-supplied vehicles as regular compensation. Boards must immediately stop accepting contributions from retirees and refund (without interest) any post-retirement contributions collected for personal vehicle use, while still crediting the appropriate regular compensation and recalculating retirement allowances accordingly. For active members, boards must work with employers to identify personal vehicle use, value it using the PERAC lease table, and collect any required make-up contributions (which cannot be waived, though interest applies only if paid in installments).

This memo addresses the forfeiture provisions of G.L. c. 32, § 15, which strip members/retirees of retirement allowances or accumulated deductions upon conviction of misappropriation or related offenses, as upheld in MacLean v. State Board of Retirement. Boards must immediately comply with the enclosed Temporary Order to Protect the Systems by reviewing § 15's varying effective dates and requirements, initiating forfeiture proceedings under §§ 15(2) and 16(1) whenever a member or retiree is identified as potentially subject to forfeiture (regardless of retirement status or the source of the information), and consulting legal counsel before acting on retirement or withdrawal applications for anyone facing related charges or convictions.

This memo announces PERAC's revised Presumption Guidelines and Certificates for Heart, Lung, and Cancer Law disability cases, effective November 1, 2002, developed with PERAC's medical consultant to help physicians better understand the rebuttable presumption standard and their evaluation responsibilities. Boards should begin using the updated materials for all relevant disability applications from that date forward and may direct any comments to 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.

This memo announces the requirements for completing the Calendar Year 2002 Annual Statement, which must be signed and submitted to PERAC by May 1, 2003, with a PERAC auditor assigned to assist each board. Boards should also register early (via the attached form) for optional training sessions being offered in January/February at various locations, and must submit their pre-closing cashbook and trial balance for December 2002 to PERAC by February 28, 2003.

This memo requests that boards update PERAC's disability retiree database by reviewing an attached list and reporting any 2002 status changes (death, nursing home confinement, waiver of allowance, or return to active status). Boards must also complete and submit a New Member Data form for each new accidental or ordinary disability retiree approved in 2002, with all information due to PERAC by January 10, 2003, to ensure accuracy before the Annual Statements of Earned Income are mailed.

This memo transmits the Calendar Year 2000 Annual Statement form, which retirement boards must complete, sign, and return to PERAC by May 1, 2001; a PERAC auditor will be assigned to assist each board. Boards should also submit their pre-closing cashbook and trial balance for December 2000 to PERAC before February 28, 2001, and may attend PERAC-sponsored training sessions on completing the statement.

This memo announces PERAC's annual determination under 840 CMR 10:10(3) and 10:15(4) regarding costs for non-invasive medical tests ordered by regional medical panels. For 2001, the Commission maintained the existing fee schedule, capping assumed costs at $200 per panel for both disability retirement and restoration-to-service examinations, with any excess requiring the Executive Director's approval. Boards need not take action but should be aware of this cap when processing panel-related test costs.

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 reminds retirement boards that, per State Ethics Commission Advisory Opinion EC-COI-00-2, board members and staff are municipal employees subject to the conflict of interest law (M.G.L. c. 268A), building on earlier guidance regarding pension fund misconduct and travel-related issues. PERAC encloses Ethics Commission conflict-of-interest guidance materials and has arranged joint PERAC/Ethics Commission training seminars (including evening sessions) in April. Boards are strongly urged to have trustees and staff attend these sessions to ensure compliance with fiduciary and ethics obligations.

This memo announces updates and reorganization of PERAC's website, including the posting of Chapter 32 sections (through amendments as of January 31, 2000), enhanced Retirement Board Profile pages, and new features for job postings, RFPs, and training seminar materials. Boards should review their posted profile information for accuracy and notify PERAC's Web Master of any needed corrections or updates.

PERAC Memo #24 asks retirement boards to review and validate the board contact information (address, phone, fax, meeting schedule as of the current date, and board member/administrator names as of December 31, 2000) that will appear in PERAC's 2000 Annual Report. Boards must submit any corrections to Sarah Kelly via fax or email by April 10, 2001; if no corrections are received, the information as provided will be published as-is.

This memo revises PERAC Memo #3/2001 by clarifying that personal use of tax-exempt vehicles (e.g., police/fire vehicles, unmarked law enforcement vehicles, garbage trucks) can count as regular compensation—valued at $1.50 per one-way commute (up to 249 days) or, for unlimited personal use, the IRS annual lease value based on fair market value, with the member responsible for supporting documentation. Members must pay retirement deductions on this value before it counts as regular compensation, and this policy applies prospectively only (not to those already retired). Boards should obtain from all governmental units in their system a list of members with personal use of employer-supplied vehicles and ensure retirement deductions are collected on the value of that use going forward.

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 #30/2001 transmits the 2000 Annual Report for the Massachusetts Contributory Retirement Systems, covering system organization/administration, disability retiree return-to-service statistics, and investment managers/consultants by board. It notes that despite market declines in 2000, diversified asset allocation helped systems weather volatility. No specific action is required of boards beyond reviewing the report and directing questions on financial data to Robert Dennis or Jim Lamenzo, or other inquiries to Frank Valeri.

PERAC Memo #32/2001 amends prior guidance (Memo #36/2000) on waiving underpayments/overpayments under G.L. c. 32, §20(5)(c)(3), clarifying that boards may refund amounts repaid by members (via direct payment or allowance reduction) from the date of demand to the date of waiver—but never for periods before July 1, 1995, and without interest. All other guidance from Memo #36/2000 remains unchanged, and boards retain absolute discretion whether to grant such waivers; no mandatory board action is required beyond applying these clarified refund limits if a waiver is granted.

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.

This memo clarifies that the value of personal use of employer-owned/leased vehicles must be treated as regular compensation for retirement purposes whenever reported as income on a member's W-2. It further explains IRS rules under §1.274-5T(k) governing when personal use of certain vehicles—particularly clearly marked police/fire vehicles and unmarked law enforcement vehicles—may be exempt from federal taxation and thus not reflected on a W-2, but stresses that tax-exempt status is determined by the employer under federal rules, not by the board or PERAC. Boards should apply these standards when determining regular compensation and should contact PERAC individually regarding personal use of any other non-W-2 employer vehicles not covered by this guidance.

PERAC Memo #43/2001 requests that boards update PERAC's disability retiree database by reviewing an attached list and reporting any 2001 status changes (death, nursing home confinement, waiver of allowance, or return to active status). Boards must also complete and submit the enclosed New Member Data form for all disability retirees (ordinary or accidental) approved in 2001, with all information returned to PERAC by January 9, 2002, to ensure accuracy before the Annual Statements of Earned Income are mailed.

PERAC Memo #44/2001 transmits an educational article on insurance coverage for retirement systems—covering types of policies, appropriate coverage levels, and associated costs—to assist boards in securing adequate protection for system assets. The memo is informational only; boards are not required to take any specific action but should review the material and use it to evaluate their own insurance coverage decisions.

PERAC Memo #46 announces the requirements and support available for completing the Calendar Year 2001 Annual Statement, which must be signed and returned to PERAC by May 1, 2002, with a designated auditor providing technical assistance to each board. Boards should also submit their pre-closing cashbook and trial balance for December 2001 by February 28, 2002. Administrators are invited (though not required) to register early for optional training sessions offered at various locations in January and February using the enclosed registration form.

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.

PERAC Memo #6/2000 announces completion of the Local Option Project, with each board's adopted local options (e.g., board compensation, Option C Pop-Up) now searchable on PERAC's website via Board Profiles and a new "Local Options" tab; a "Y" confirms PERAC has received documented proof of acceptance, while "N" may simply reflect missing documentation rather than non-adoption. Boards should review their listed data for accuracy and completeness and submit proof of acceptance to PERAC's Legal Unit for any options adopted going forward (note: the Chapter 127 COLA provision is not yet reflected in these lists).

PERAC Memo #8/2000 clarifies the use of newly posted templates for disability forms (available on PERAC's website, not to be emailed for confidentiality reasons), explains completion details for medical release forms and the 5-year record request period, and confirms that "Basis of Claimed Disability" information comes from the physician, not the board. It also announces a streamlined Section 8 CME/Restoration-to-Service process: boards should complete and return the "Current Information on Members Retired for Disability" form for selected retirees and flag any circumstances affecting timing, but should **not** submit full disability files or prior re-examination records unless specifically requested by the PERAC case manager.

This memo addresses the final resolution of Cavanaugh v. MTAERS and CRAB, following the Massachusetts Turnpike Authority Employee Retirement Board's withdrawal of its appeal—confirming that Woburn v. Crocker must be applied retroactively to a dual member's original entry date into their first retirement system. Retirement boards must now implement the guidance previously issued in PERAC Memo #33/1999 (which had been placed on hold per Memo #37/1999) and process appropriate member refunds accordingly.

PERAC Memo #12/2000 requires retirement boards to promptly fax to PERAC's Legal Unit any DALA or CRAB decisions involving remanded disability/accidental death cases, Regional Medical Panel composition or adequacy, the Comprehensive Medical Evaluation or Restoration to Service processes, or the §91A Annual Statement process, so PERAC can determine whether to seek further review. Boards must submit these decisions immediately upon receipt and before the 15-day appeal deadline expires, and may also fax any other decisions they believe warrant Commission review.

This memo notifies boards of a federal court's permanent injunction barring enforcement of G.L. c. 32, §7(1) age limitations on accidental disability retirement applications for most public employees, though these age limits remain enforceable for firefighters, municipal police officers, elected officials, their chosen personal staff, policy-making appointees/legal advisors, and state court judges. Boards must immediately stop denying accidental disability applications from covered members solely due to exceeding maximum age or the "three-year prior to two years before maximum age" hazard timing rule, and should anticipate future PERAC guidance requiring them to identify and retroactively process affected individuals once remedies are finalized.

This memo clarifies PERAC's guidance on board member and staff attendance at the 2000 NCPERS annual conference, addressing confusion about the appropriate use of retirement funds for related travel expenses. While boards retain discretion to approve conference attendance and expenditures in advance, they must ensure that any personal or extended travel (e.g., through MACRS travel offers) is not paid for with retirement system funds—such costs must be segregated and borne directly by the individual. Boards should communicate this expectation to attending members and staff before approving conference-related expenses.

PERAC Memo #20/2000 summarizes the SJC's decision in Richard v. Worcester Retirement Board, which held that an employee injured while commuting from home directly to an assigned off-site work location (rather than her regular office) was not "in the performance of her duties" for accidental disability retirement purposes, since such travel was part of her normal routine at the start of the day, consistent with the Namvar precedent. Boards should note the distinction the Court drew between ordinary commuting to a first assignment versus travel between job sites or from a regular office to another site, and should ensure they conduct thorough factual inquiries and issue detailed findings when evaluating similar accidental disability applications involving travel.

This memo addresses the EEOC v. Commonwealth settlement, which requires that the maximum age limits under G.L. c.32, §7(1) for accidental disability retirement no longer be enforced against most members. Boards must promptly notify all active members of this change—either by printing the specified notice on payroll/direct deposit stubs or by mailing it directly—and must retain proof of delivery, as certification of notice may later be required. Further guidance on processing retroactive benefit claims will follow in a future memo.

This memo addresses the requirement that all disability retirement applications—whether filed by the member or involuntarily by the employer—include a complete listing of every physician who has treated or evaluated the applicant, as specified on page 10 of the Member's Application form. Boards must ensure this information is thorough and accurate, and for involuntary applications, should proactively review medical records, Workers' Compensation files, and personnel files to identify all relevant physicians, since incomplete disclosure can result in conflicted medical panel appointments and costly rescheduling delays.

PERAC Memo #24/2000 transmits the 15th annual PERAC report on the Massachusetts Contributory Retirement Systems for calendar year 1999, covering financial, investment, actuarial, and administrative data for each system, along with new disability retiree return-to-service statistics and a roster of investment managers/consultants by board. No specific action is required of boards; the memo is informational, and boards should direct financial/actuarial questions to Robert Dennis or Jim Lamenzo, and other questions to Frank Valeri.

PERAC Memo #26/2000 clarifies Memo #25/2000 regarding treatment of unused vacation/personal day payments made at retirement: such lump-sum payments are not regular compensation per G.L. c. 32, §1 and 840 CMR 15.03(2)(f), though members may instead extend their retirement date to use up the days as regular compensation (without receiving a retirement allowance during that period). Boards must ensure such payments are not used to inflate a member's average three-year salary by substituting them for earlier years' earnings, and should apply these rules only to payments arising from a qualifying annual purchase policy as described in Memo #25/2000.

PERAC Memo #27/2000 announces the Governor's signing of Chapter 123 of the Acts of 2000 (effective September 28, 2000), which removes age limitations in G.L. c. 32 that violated the federal ADEA/OWBPA. Key changes eliminate the maximum age concept for non-public safety employees, remove age restrictions on return of accumulated deductions, Section 10 allowances, and ordinary disability retirement applications. Boards should review these changes and update their administrative practices accordingly, as no member will face age-based denial of these benefits (except public safety employees, who retain maximum age provisions).

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 #2000/33 reports on the success of the DOR/PERAC Child Support Enforcement Initiative, which requires retirement boards to intercept members' retirement allowances and refunds to satisfy delinquent child support obligations under a 1998 amendment to G.L. c. 32. The memo notes that nearly $200,000 was collected statewide in FY2000 through boards' cooperation and commends staff for their efforts. No new action is required—this is an informational update recognizing boards for their ongoing compliance with existing interception procedures.

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 notifies boards that Chapter 159 of the Acts of 2000 amended the Public Records Law to exempt from disclosure the home addresses and telephone numbers of public safety, judicial, and criminal justice personnel, as well as the names and contact information of their family members. Boards must review any records released under public records requests and redact this protected information before disclosure, though the information may still be provided to authorized employee organizations, nonprofit retiree associations, and criminal justice agencies as specified in the Act.

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.

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 #41/2000 announces fall workshops (in Somerville, Plymouth, and Northampton) to train retirement board administrators on implementing the EEOC v. Commonwealth settlement regarding age-discriminatory provisions of G.L. c. 32, §7(1) accidental disability retirement. Boards should register administrators to attend one of these sessions, which will cover identifying and contacting potentially eligible members, processing applications/benefits, health insurance, and EEOC reporting. Boards must also meet the November 4, 2000 deadline for submitting their list of "potentially eligible individuals."

PERAC Memo #45/2000 announces that revised regulations (840 CMR 6.00, 7.00, 9.00, 10.00, 11.00, and 12.00) covering disclosure of information, board elections, approval of board decisions, disability retirement, and service after age 65/70 are now finalized and effective. Boards must immediately begin following these regulations and should distribute copies to each board member; updated forms will follow once completed.

PERAC Memo #46/2000 announces a new educational session for retirement board members and administrators, covering investment consultant portfolio review topics (economic conditions, manager performance, and searches) and actuarial valuation concepts (funding levels, asset valuation, and assumption changes). The class will be offered multiple times in November (Somerville) and December (Northampton, Shrewsbury, Plymouth); boards should complete and submit the Class Registration Form early, as seating is limited and assigned on a first-come, first-served basis.

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 #6/1999 clarifies that pending legislation which would allow boards to waive recoupment of unintentional member underpayments or board overpayments has not yet been enacted, and therefore no waiver authority currently exists. Until such legislation passes, boards must continue to pursue full repayment of all outstanding amounts, working with affected members to arrange prompt repayment.

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).

PERAC Memo #11/1999 announces a series of three-hour Disability Retirement Review sessions in February/March 1999 to educate boards on the Disability Retirement Regulations (840 CMR 10.00), Disability Unit procedures, and newly revised forms. Boards must ensure that staff responsible for counseling and processing disability applications attend their assigned session (with board members welcome but encouraged instead to attend the broader spring Public Pension Administration Seminar), and should respond promptly to confirm attendance or request a schedule change.

This memo reports the Appeals Court decision in DuPont v. Commissioners of Essex County, which confirmed PERAC's prior position (Memo #23/1997) that members terminated before the 1996 repeal of G.L. c. 32, §16(2) are not entitled to pre-termination notice and hearing under that section. Boards should not apply §16(2) or conduct hearings under it for any member terminated either before or after the section's elimination; no further action is required beyond discontinuing any such practice.

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 provides updated contact information (address and phone) for DOR's Retirement Board Payment Intercept Program. Boards must continue to contact this office to check for child support liens before processing any member's request for a return of Annuity Savings Fund contributions, directing questions to Attorney Dolores O'Neill.

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.

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.

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.

This memo clarifies the Teachers' Retirement Board's four-part eligibility test for school nurses seeking membership in the Massachusetts Teachers' Retirement System (contractual employment, at least half-time service, state certification or waiver, and certification as a condition of employment). Boards must identify all members serving as school nurses and have them submit Enrollment Forms to their payroll offices for eligibility review; if approved, accumulated deductions will be transferred to the Teachers' Retirement Board, and ineligible nurses will be notified with appeal rights.

PERAC Memo #25/1999 announces a new series of training classes for retirement board members and administrators, beginning August 24, 1999, covering legal and investment topics (with actuarial, accounting, and disability-related classes to follow in the fall), offered at PERAC's office as well as in Worcester, Plymouth, and Northampton. Boards should have interested members/staff complete the enclosed PERAC Class Registration form to reserve a seat, as enrollment is first-come, first-served and capacity is limited.

PERAC Memo #26/1999 notifies boards that PERAC is preparing to publish local option acceptance data on its website Board Profiles and provides each board with a list of key local option provisions showing PERAC's current records (Y/N) of acceptance. Boards must review, sign, and date the list and return it to PERAC's Legal Unit by August 23, 1999, attaching certified proof (legislative vote or board minutes) for any accepted options not already marked, and must submit proof of any future acceptances as they occur.

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 #28/1999 announces additional legal and investment training classes for board members and administrators, scheduled in Northampton (9/21), Plymouth (9/28), and Worcester (9/30), following the initial August sessions at PERAC. Boards should have interested members and administrators complete and submit the enclosed PERAC Class Registration form promptly, as seats are filled on a first-come, first-served basis.

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.

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.

This memo addresses the Cavanaugh v. MTAERB and CRAB Superior Court ruling, which requires that the correction of contribution rates for dual members (established in Woburn v. Crocker and PERAC Memo #11/1995) be applied retroactively to each member's original enrollment date, rather than only prospectively from February 3, 1995. Boards must review records to identify dual members active before February 3, 1995 who overpaid contributions due to dual membership status—these are the same individuals whose rates were adjusted in 1995—and issue refunds (without interest) for the excess contributions collected between their dual-membership start date and February 3, 1995.

PERAC Memo #36/1999 transmits the 14th Annual Report on the Massachusetts Contributory Retirement Systems for the year ending December 31, 1998, covering financial condition, investment performance, board contact information, membership and disability statistics, and Y2K readiness. The memo is informational only and requires no action by retirement boards, though administrators may direct financial or investment questions to PERAC's Investment Director or Actuary, and other inquiries to Frank Valeri.

PERAC Memo #39/1999 announces new training sessions for retirement board members and administrators, covering valuation overviews, use of e-mail/IT resources, and updates on disability forms/issues. Sessions will be held at multiple locations in November and December 1999, with a follow-up January 2000 class on accounting and annual statement preparation. Boards should complete and submit the attached PERAC Class Registration Form promptly, as seating is limited and assigned on a first-come, first-served basis.

This memo announces two updates boards must incorporate: (1) a revised Page One of the Employer's Statement for disability retirement applications, adding a field to describe the basis of the member's disability—boards should begin using this updated form immediately and replace the corresponding pages in their disability process manual and master copy folder; and (2) a corrected Benefit Rate Chart and revised calculation example (correcting an error affecting case #9) for the Massachusetts Public Employee Retirement Guide, which boards should insert to replace the erroneous materials.

This memo requests final Year 2000 (Y2K) readiness verification from retirement boards, including documentation of both internal system compliance and confirmation from key business partners (municipalities, custodial banks, investment managers, and payroll/service providers). Boards must complete and return the Retirement Board Application Matrix and submit any Y2K Readiness Disclosure letters not previously provided, to Paul Laliberte at PERAC by November 15, 1999.

**PERAC Memo #43/1999** clarifies the methodology for withholding the additional 2% contribution required under G.L. c. 32, §1 on regular compensation paid at an annual rate exceeding $30,000, applicable to members who joined or rejoined the system on or after January 1, 1979. It explains that the 2% is applied per pay period based on the annualized rate of pay (not actual annual earnings), provides formulas and examples for weekly, biweekly, and monthly payrolls, and addresses treatment of non-recurring payments and retroactive salary adjustments. **Action required:** Boards should forward this memo to all payroll staff and vendors responsible for withholding calculations to ensure the 2% surcharge is applied correctly and consistently based on per-period compensation rates.

PERAC Memo #45/1999 requests that retirement boards review and update disability retiree data (deaths, nursing home status, waived allowances, returns to active service) as of December 31, 1999, and submit information on any new accidental or ordinary disability retirees approved during 1999, using the enclosed form. Boards must return all updates to PERAC by January 14, 2000, so that Annual Statements of Earned Income can be mailed timely to disabled retirees, who must return completed statements to PERAC by April 15, 2000, or risk cessation of benefits under G.L. c. 32, §91A.

This memo explains new G.L. c. 32, §103(i), which allows local acceptance (by town meeting, city council, or county advisory council) to permit a retirement board to grant a COLA of up to 3% (on the first $12,000 of allowance), exceeding the standard §103(c) COLA. Boards must ensure local acceptance is completed, hold a properly posted public meeting to elect an increased COLA amount, provide the legislative body 30 days' advance notice before each annual election, and notify PERAC in writing both of the initial local acceptance and each subsequent election (with the COLA percentage granted); note this enhanced COLA does not apply to noncontributory retirees under §103(h).

PERAC Memo #49/1999 announces a series of training classes for board administrators, offered at multiple locations in January and February 2000, covering preparation of the 1999 Annual Statement and investment accounting procedures. Boards should have administrators and staff involved in these tasks register early using the PERAC Class Registration Form, as seating is limited and filled on a first-come, first-served basis (ideally at least one week before the chosen session).

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.

PERAC Memo #11/1998 forwards to boards copies of the 1997 Annual Statement of Earned Income materials—instructions, the statement form, and a Q&A—that were mailed directly to members retired for ordinary or accidental disability. Boards should keep these materials on hand to assist retirees who have questions, and should direct requests for additional or replacement copies to Sandra Jones at PERAC; no other action is required, and the materials are also available on PERAC's website.

PERAC Memo #12/1998 announces a survey of all Massachusetts contributory retirement systems regarding computer hardware, network configuration, and Internet access, intended to help PERAC plan training/conference facilities and better tailor its services to boards' technology needs. Boards using computers must complete and return the survey to Sarah Kelly by March 31, 1998; boards relying solely on manual recordkeeping are exempt from completing the survey but must notify PERAC of any automation plans (or explain why they intend to remain manual).

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.

This memo supplements PERAC's March 6, 1998 guidance on the 1997 Annual Statement of Earned Income, clarifying three points: joint filers must still attach the first two pages of their federal return even if only the spouse has earned income; electronic filers should attach a signed Form 8453 (or 8453-OL), or note its unavailability if not obtainable; and retirees who have requested a tax filing extension must still submit their Annual Statement by April 15, 1998, along with a copy of the extension request. Boards should use this information to assist members with questions but need not take further independent action beyond communicating these clarifications.

PERAC Memo #16/1998 announces revised certificates, forms, and informational packages for the disability retirement application process, restoration-to-service procedures, and a new comprehensive medical evaluation/rehabilitation process for disabled members. Boards do not need to take immediate action but should familiarize themselves with the enclosed sample materials (Regional Medical Panel folder, Restoration to Service folder, and Comprehensive Medical Evaluation physician/member folders), as these updated forms will now be used in disability-related proceedings. PERAC also notes that forms for disability applications filed by retirees, employers, and treating physicians are still under revision, with further updates to follow.

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.

This memo addresses the practice of some retirement boards transmitting data files to PERAC via email attachments. PERAC asks boards to refrain from this practice and instead continue submitting tapes and diskettes via U.S. Mail until PERAC establishes security protocols and internal procedures for handling electronic transmissions. No other action is required; boards should expect electronic transfer to become standard practice once appropriate safeguards are developed.

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 notifies retirement boards that CRAB appeals and related inquiries must now be mailed to a new address (Robert E. Tierney, Administrative Magistrate, 100 Cambridge Street, Room 904, Boston, MA), effective June 15, 1998. Boards must update any member correspondence or notices that reference CRAB appeal rights to reflect this new mailing address.

PERAC Memo #25/1998 revises prior guidance and, citing the Appeals Court decision in Leal v. CRAB, now permits members to file simultaneous applications for Accidental Disability, Ordinary Disability, and Superannuation retirement. Boards should pay benefits under the first approved retirement type until/unless a subsequent application is approved, and must clearly explain to members that offsets (e.g., against Workers' Compensation) upon later approval of a different benefit could result in the member owing a refund to the system.

This memo urges retirement boards to press their local legislators to pass H.5020, which would clarify and formalize the Early Intervention Program before its July 1, 1998 implementation deadline. Without this legislation, boards implementing the program using retirement trust funds could be committing a fiduciary breach, since trust assets cannot be used for active-employee benefits or unrelated activities. Boards are asked to have their members contact legislators urging favorable action, using the talking points provided, given the bill's expected review by the House Ways and Means Committee.

This memo clarifies that accepting Section 103 (COLA statute) does not itself grant a FY99 COLA—boards must separately and formally vote to grant the COLA after acceptance is complete, with that vote occurring on or before June 30 and board minutes forwarded to PERAC. It also relays a State Ethics Commission opinion permitting retired board members to participate in both the Section 103 acceptance vote and the annual COLA determination, despite their financial interest, though this exception applies only to these specific COLA-related votes.

This memo simply provides an updated PERAC staff directory with new telephone extensions following the agency's conversion to a new telecommunications system. No action is required by retirement boards other than updating their records with the new contact information for future reference when reaching PERAC staff.

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.

PERAC Memo #38/1998 summarizes Chapter 252 of the Acts of 1998, which revised M.G.L. c. 32, §5B governing Early Intervention Plans for injured public employees. Under the amended law, retirement boards' sole responsibility is to appoint a non-board-member designee to serve on the employer's Early Intervention Team when one is assembled; boards should cooperate in this appointment but should not devote further resources, funding, or administrative support to the organization or operation of these plans, as that responsibility now rests with the employer.

PERAC Memo #39/1998 announces a series of presentations for retirement board members and executive secretaries on the PERAC Investment Regulations (840 CMR 1.00) and newly revised related forms, scheduled at PERAC's Somerville offices on September 17–18, 1998, with additional sessions planned for Plymouth and Springfield. Each board will be assigned to a specific session (rescheduling accommodations available upon request), and boards should note that investment managers/advisors/consultants should instead attend the separate September 23rd session at One Ashburton Place. No other board action is required beyond attending the assigned session.

This memo (a follow-up to Memo #38/1998) clarifies implementation of Chapter 252's Early Intervention Plan provisions, effective November 5, 1998. Boards should stop expending resources on early intervention plans since none have been approved, and should forward any completed plans to employers for potential use; note that retirement board members (though not staff) are barred from serving as team designees, employers bear all associated costs, and confidential medical information gathered by the team is restricted from employment-related use (though members may use it to support disability applications). The memo also notes that the mandatory neutral medical doctor requirement under G.L. c. 32, §20(5)(d) has been eliminated, though boards may still designate one if desired.

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 #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 #43/1998 transmits the final, revised Disability Regulations (840 CMR 10.00), which took effect following six regional public hearings. Boards must distribute copies to each board member and immediately begin applying these regulations to all aspects of disability applications and restoration-to-service determinations.

PERAC Memo #49/1998 announces that PERAC's Disability Unit will begin conducting G.L. c. 32, §8 evaluations of disability retirees to determine their ability to return to work, using a quarterly Selection List identifying retirees due for review (annually for the first two years, then every three years, or upon request/substantial earnings). Boards should expect quarterly Selection Lists with accompanying instructions and must ensure identified members participate in the scheduled PERAC evaluations; questions can be directed to the Disability Unit.

PERAC Memo #50/1998 transmits the 13th Annual Report on the Massachusetts Contributory Retirement Systems for calendar year 1997, featuring a redesigned format that presents a broader view of fund administration beyond investment performance alone. No specific board action is mandated, but PERAC provides a model press release that boards may optionally use to publicize their system's 1997 investment returns and funded ratio to local media.

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.

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 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 requests that retirement boards review PERAC's existing disability retiree data (attached list) and update it with any status changes—deaths, nursing home residency, waived allowances, or returns to active service—and add newly approved 1997 accidental/ordinary disability retirees with full identifying and benefit information. Boards must return this updated information to PERAC by January 15, 1999, so that Annual Statements of Earned Income (due from members by April 15, 1999) can be mailed on schedule; PERAC will handle the direct mailing to retirees and will notify boards only if a member fails to comply, triggering potential cessation of benefits under G.L. c. 32, §91A.

PERAC Memo #61/1998 clarifies that retirement boards must continue processing accidental disability applications normally, even when an employer's early intervention team (required under Chapter 252 of the Acts of 1998 for members out of work over 30 days due to job-related injury) has not yet acted. Boards' involvement is limited to appointing a member to the early intervention team upon employer request; no action is required to delay or halt disability processing unless the member fails to participate in the team's assessment or rehabilitation plan, which would constitute a waiver of disability retirement rights.

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 introduces a revised, consolidated PERAC Disclosure Statement that merges the former Disclosure Statement and Brokerage Disclosure Statement into a single form with the same questions. Going forward, PERAC will only accept this standardized PERAC-generated form (and its Acknowledgement) — vendor- or third-party-generated versions will not be accepted. Boards must copy the attached forms and distribute them to vendors providing or seeking to provide services, ensuring vendors complete every question (with attachments as needed) and boards complete the corresponding Acknowledgement.

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 #3/1997 transmits an outline detailing the new duties assigned to retirement boards and to PERAC under the pension reform legislation (Ch. 306 of 1996, as amended by Ch. 427 of 1996), covering early intervention programs for injured members, designation of neutral medical examiners under §20(5), and rehabilitation evaluation/re-examination requirements for disability retirees under §8. Boards should review the outline to understand their specific responsibilities and deadlines—including establishing early intervention plans by March 15, 1997, and implementing them by July 1, 1997—and prepare to coordinate with PERAC accordingly. No immediate filing is required beyond familiarization, but boards must begin planning for these expanded compliance obligations.

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.

This memo transmits PERAC's Early Intervention Program guidelines, required under Chapter 306 legislation, and notes the revised implementation timeline (programs operational by July 1, 1997). Boards must develop, in consultation with local officials and union representatives, a general plan addressing employee assistance, safety education, hazard elimination, and accommodation of injured employees, along with a detailed risk management/workplace safety report; this plan with cost projections was due to PERAC by March 15, 1997 for approval before PERAC's required filing with legislative committees on March 19, 1997.

This memo addresses implementation of amended G.L. c. 32, §8, which shifts authority for re-examination determinations of disability retirees to PERAC after consultation with retirement boards, a process still being developed. Until PERAC finalizes its guidelines, boards must continue processing retiree-initiated re-examination requests as before: reviewing medical documentation of a changed condition, determining whether a single physician or three-member panel exam is warranted, and submitting a completed Request for Medical Re-Examination Form (10-18-792)—listing all treating/examining physicians and the retiree's current contact information—to PERAC.

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 reminds boards that all investments—whether separately managed or held in pooled funds (mutual funds, commingled funds, group trusts, limited partnerships, venture capital funds, etc.)—must comply with G.L. c. 32 and 840 CMR. Boards must submit, or ensure pooled fund managers submit, a year-end (12/31/96) report for each pooled fund investment detailing underlying assets, portfolio turnover rate, expense-to-asset ratio, and rate of return (noting gross or net); this data is typically available in the fund's prospectus or annual report, which may be submitted to satisfy the request. No action is needed for PRIT Fund investments, as PRIM reports that data directly to PERAC.

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.

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 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.

PERAC Memo #19/1997 transmits the twelfth Annual Investment Report on the Massachusetts Contributory Retirement Systems for calendar year 1996, detailing investment performance across the state's public pension systems. The memo is informational only, requiring no specific board action, though administrators may direct questions to Robert Shaw of PERAC's Pension Investment Advisory Unit.

PERAC Memo #20/1997 notifies boards that Chapter 17 of the Acts of 1997 has delayed implementation of the Early Intervention Program (originally established by Chapter 306 of the Acts of 1996) to January 1, 1998. It also announces that PERAC will convene a Task Force, in consultation with MACRS, the MMA, and the State and Teachers' Retirement Boards, to study the program and recommend legislative changes by October 1, 1997. No immediate action is required of boards beyond noting the revised implementation date and awaiting further communication on the study.

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.

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.

This memo summarizes the Appeals Court's decision in *City of Lynn v. Labor Relations Commission*, which held that a department head may file an application for involuntary superannuation retirement under G.L. c. 32, §16(1) on behalf of an employee even while that member's accidental disability retirement appeal is pending before CRAB. The Court ruled this authority is a specific statutory mandate not subject to collective bargaining, reversing the Labor Relations Commission's contrary finding. No action is required of boards, though they may wish to share the decision with relevant personnel officers and department heads.

PERAC Memo #28/1997 transmits the newly established Retirement Board Members Report, providing current information on each retirement system's board composition and details, which will be updated and distributed quarterly. Boards should review the enclosed report for accuracy and contact Diane Sampson with any needed corrections or questions.

PERAC Memo #29/1997 reminds boards that a member's contribution rate must be based on the date of actual enrollment in the retirement system, not the date employment began, per the McIntire decision and subsequent DALA/CRAB rulings. Boards are required to verify employer-provided contribution rate data against enrollment dates, correct any errors going forward (collecting make-up contributions without interest for underpayments, refunding overpayments), and treat this verification as an ongoing process for all new hires.

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).

This memo directs boards to include a copy of the member's DD 214 form (or other proof of veteran status) when submitting superannuation retirement calculations for veterans. This documentation is required to verify eligibility for the additional veteran's benefit ($15/year of service, up to $300) and to confirm eligibility to purchase military service credit under Chapter 71 of the Acts of 1996. Boards should submit this proof along with the standard calculation paperwork going forward.

PERAC Memo #34/1997 updates boards on its ongoing review of Section 91A earnings limits for disability retirees, noting that follow-up letters and 1996 Annual Statement of Earnings forms have been sent directly to affected members (those with excess earnings or requiring further information), due back to PERAC by October 20, 1997. No board action is required at this time; PERAC will separately notify boards of any members found to exceed earnings limits and instruct on next steps.

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 #38/1997 establishes Commission-approved guidelines allowing a voluntary disability retirement applicant to be evaluated by a regional medical panel through review of records rather than an in-person exam, provided specific criteria are met (e.g., application on file 15+ days, member resides more than 150 miles from Boston, written waivers from both member and employer, and physician documentation supporting the inability to travel). Boards seeking this option must submit a modified Request for Regional Medical Panel (Form 10-19-792) marked as a records review, along with the Statement of Applicant's Physician (Form 10-2-792) and supporting documentation for each guideline item, and must still forward complete medical records to the panel physicians as they would for an in-person exam.

PERAC Memo #41/1997 informs boards of a DALA decision (Dargan v. PERAC) holding that estates of deceased superannuation retirees who did not receive the additional $300 veterans' allowance are entitled to that amount upon application. PERAC has appealed this ruling to CRAB, so it is not yet final. Boards should take no action and must not process any such posthumous adjustment requests until CRAB issues a decision, which PERAC will communicate.

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.

PERAC Memo #46/1997 transmits the 1997 Annual Brokerage Statement, which each retirement board must complete for the period January 1–December 31, 1997, and submit to Robert Shaw, Director of the Pension Investment Advisory Unit, by May 1, 1998. Boards must disclose whether they maintain any "soft dollar," directed brokerage, cash rebate, commission recapture, or similar arrangements with vendors, and if so, identify the vendors and brokers involved, describe the products/services financed, and attach a listing of related payments and a breakdown of commissions generated. Only one consolidated statement covering the board's entire portfolio is required, not separate forms per vendor, and it must be signed by the Executive Secretary/Administrator and board members.

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.

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.

840 CMR 12.00 governs the rules for public employees who continue working after age 65, setting out which occupations require mandatory retirement at that age and which do not. Certain positions—including uniformed firefighters, uniformed police officers, members of the department of fisheries and wildlife, correctional officers, and certain airport personnel—are subject to mandatory retirement at age 65 unless the personnel administrator determines by regulation that age is not a bona fide occupational qualification. Retirement boards that determine a member is in a mandatory-retirement occupation must notify the member at least 120 days before the required retirement date.

840 CMR 15.00 is an omnibus regulation covering several administrative requirements for retirement boards. Boards must require all members and beneficiaries receiving benefits to file attestations of continued eligibility at least every two years, and must withhold benefits from those who fail to comply. The regulation also governs the purchase of creditable service, both prior membership service and non-membership service, including the order in which multiple purchase types must be completed. Additional sections address regular compensation definitions, benefit calculation factors, and the use of board credit and debit cards. Boards may satisfy the attestation requirement through semi-annual third-party data matching in lieu of individual attestations.