retirement options

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

Section 6 governs ordinary (non-work-related) disability retirement under Chapter 32. It allows a member who is permanently unable to perform the essential duties of their job to retire for ordinary disability after 15 years of creditable service (or 10 years for veterans or in systems accepting the 10-year option). Benefit amounts are calculated as though the member retired for superannuation at age 55 (or 60 for post-April 2, 2012 Group 1 members), with no less than the superannuation benefit if the member has already reached that age. The section also establishes the Regional Medical Panel process, which requires a three-physician panel to certify incapacity, and sets a 180-day deadline for final board determinations.

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

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

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

Section 12D requires all Massachusetts Chapter 32 retirement systems to pay benefits in compliance with the required minimum distribution rules of Section 401(a)(9) of the Internal Revenue Code and its applicable regulations, as they apply to governmental plans under IRC Section 414(d). This provision, enacted in 2009, ensures that inactive members who are not yet receiving a retirement allowance and are no longer employed must begin taking required minimum distributions by the applicable federal deadline (currently April 1 of the year following the year they reach age 73), keeping the systems in federal tax compliance.

Section 13 governs when and how retirement allowances, annuities, and pensions are paid under Chapter 32. It establishes monthly payment schedules, pro rata rules for partial months, and authorizes direct deposit requirements. It also provides that members entitled to very small allowances (under $360/year) receive a lump-sum refund of accumulated deductions in lieu of ongoing payments, with an optional lump-sum available for allowances under $600/year upon written request.

Section 16 establishes the procedures for involuntary retirement initiated by a department head, including the member's right to a hearing before the retirement board. Members meeting minimum age and service thresholds (generally age 55 with 15 years, or 20 years of service regardless of age) may petition the district court to review adverse board decisions. All other aggrieved members may appeal to the Contributory Retirement Appeal Board, which assigns matters to the Division of Administrative Law Appeals for hearing, with final and binding decisions subject to limited further review.

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

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

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

Section 44B provides school janitors eligible for retirement under Sections 44 or 44A with two pension options at retirement. Option A pays the full pension for life. Option B pays a reduced pension for life with a provision that two-thirds of that lesser amount continues to a surviving spouse (who was the spouse at retirement), with the surviving spouse receiving at least two-thirds of what the janitor was receiving at death. If a janitor who has served 20 or more years dies before retirement, the widow is entitled to two-thirds of the Option B allowance the janitor would have received, conditioned on at least 10 years of marriage, cohabitation at death, and surviving unmarried. Actuarial equivalence computations are supervised by the PERAC actuary at city or town expense. Acceptance requires a two-thirds city council vote (Plan D/E cities), regular city council vote (other cities), or annual town meeting majority vote.

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

Section 58 provides that a veteran with thirty years of aggregate public service may retire at his own request (with retiring authority approval) at 72% of the highest applicable annual compensation for the grade held at retirement.

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

Section 65A establishes pension rights for justices of the Supreme Judicial Court, Appeals Court, and Trial Court appointed before January 2, 1975: retirement under constitutional mandate entitles them to 75% of salary for life; justices with 15+ continuous years of service who retire between ages 65 and 70 also receive 75%; those who don't meet those thresholds receive a prorated pension of 10% of 75% of salary per year of service (up to ten years).

Section 65B provides pension rights for special justices of district courts and juvenile courts, and special judges of probate, upon mandatory retirement at age 70 or resignation at 65 after 10+ years of service, based on their average yearly earnings in the highest three years of service.

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

Section 65D establishes the contributory retirement system for judges appointed on or after January 2, 1975, requiring salary deductions of 7–10% into a judges' retirement fund, providing 75% of salary upon retirement at age 65 after 15 continuous years or mandatory retirement at 70, with a judges' retirement fund to pay benefits and refunds.

Section 65H provides an optional early retirement allowance for judges who have made required contributions, calculated based on salary at retirement multiplied by years of continuous service and a percentage factor that varies with age, capped at 75% of salary, with a minimum of 10 continuous years of judicial service required.

Section 77A gives laborers eligible for retirement under section 77 the option to take either a full pension (Option A) or a reduced lifetime pension with a survivor benefit that pays half the lesser amount to a surviving widow (Option B); also provides a widow's benefit when a qualifying laborer dies before retirement, subject to local acceptance.

Section 85J gives police officers and firefighters eligible for noncontributory retirement under sections 80–85 or 85E the option at retirement of taking a full pension (Option A) or a reduced lifetime pension with a survivor benefit paying two-thirds of the lesser amount to a surviving widow (Option B), subject to local acceptance.

This memo addresses a specific anti-spiking calculation scenario for union members subject to both G.L. c. 32, § 106 (vacation buyback) and collectively bargained salary schedules. Collectively bargained increases are exempt from the anti-spiking rules under § 5(2)(f), but vacation buybacks are not. PERAC provides a step-by-step worked example showing how to separate these components: first calculate allowable regular compensation excluding collectively bargained increases, then add them back. Any previously retired member whose pay spiked due to a vacation buyback should have their compensation reviewed under this guidance. PERAC is offering virtual sessions on request.

PERAC announces the 2026 federal limits that apply to Massachusetts retirement system members under Chapter 46 of the Acts of 2002, which brought state law into compliance with IRC requirements. The 2026 Section 401(a)(17) compensation limit is $360,000, and the Section 415 benefit limit is $290,000 per year for members retiring at age 65 (reduced for those retiring before 62). These limits are indexed annually and affect only the highest-paid employees; most members are unaffected.

Members born on or after January 1, 1951 who are not yet receiving a retirement allowance and are not actively employed by a sponsoring governmental unit must begin taking required minimum distributions (RMDs) by April 1 of the year after they turn 73, per the SECURE 2.0 Act. Boards should promptly send notices to members who turned 73 in calendar year 2025, as their initial distribution deadline is April 1, 2026. A sample notice letter is attached. Boards should urge members to contact the board for counseling given the complexity of rollover rules.

This memo clarifies that the required minimum distribution (RMD) age remains 73 for 2025 notifications, consistent with the SECURE 2.0 Act's rules for members born on or after January 1, 1951. Members who turned 73 during calendar year 2024 must take their first distribution by April 1, 2025, so boards should send notices promptly. A sample notification letter is attached for boards to use.

PERAC has updated the Application for Reinstatement to Service form under G.L. c. 32 § 105, effective July 1, 2025 through June 30, 2026. Section 105 allows a retired member to return to active member-in-service status, but requires repayment of all retirement allowances received and at least five years of full-time employment after reinstatement. Boards should carefully counsel interested members about the financial implications and complete the first portion of the form before providing it to the member for signature.

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.

This memo transmits an updated list of all public employees who have forfeited eligibility to join a Chapter 32 retirement system under G.L. c. 32, § 15 due to misappropriation of funds or conviction of enumerated crimes. Boards are asked to review the attached alphabetical lists and notify PERAC of any discrepancies; if any forfeited member appears active in a board's system, boards must contact Doreen Duane with the last four digits of the member's Social Security number to confirm the individual's identity.

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

This comprehensive memo addresses the regular compensation status of vacation buyback payments following the enactment of G.L. c. 32, § 106 (Chapter 147 of the Acts of 2022) and the SJC's August 2022 decision in O'Leary v. CRAB. Under the new law, existing retirees whose allowances included vacation buyback payments are protected and their allowances will not be reduced; active members who were participating in such programs as of May 1, 2018, and whose retirement systems accepted contributions on those programs, may continue to have qualifying payments treated as regular compensation going forward. Boards are given detailed implementation instructions covering retirees, active members, and the interaction with CRAB's November 2018 partial stay order, which is now superseded.

This memo explains Chapter 269 of the Acts of 2022, signed November 16, 2022, which gives local retirement systems a one-time option to increase the FY2023 COLA to up to 5% on the applicable base amount under G.L. c. 32, § 103, retroactive to July 1, 2022. The approval process differs by municipality type — cities require city council action on the mayor's or city manager's recommendation, towns require select board approval, and regional/county systems require approval by two-thirds of member cities and towns. PERAC Actuary John Boorack provides a formula for estimating the full cost of the enhanced COLA.

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.

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.

PERAC notifies retirement boards that the Social Security Administration has announced a 2.8% Cost of Living Adjustment (COLA) for the prior year, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Under G.L. c. 32, §103(c), any COLA granted by a retirement system effective July 1, 2019 may be up to 2.8%. Per §103(i), a board may elect to increase this to a maximum of 3.0% with proper legislative notice, but the process must be completed prior to June 30, 2019. Each board deciding whether or not to grant a COLA must notify PERAC within 30 days.

PERAC announces an updated Application for Reinstatement to Service from Superannuation/Termination Retirement Pursuant to G.L. c. 32 §105, effective July 1, 2019 through June 30, 2020. Because reinstating members may need to repay large amounts and must work at least five years of full-time employment (though not necessarily five years of creditable service), boards should carefully counsel interested members about requirements and benefits. Boards complete the first portion of the form and provide it to the member; upon signing, the member transitions from retiree status back to member-in-service status.

PERAC announces the 2019 supplemental dependent allowance amount for retirement systems that have accepted the provisions of G.L. c. 32, §7(2)(a)(iii) or §22D. Effective July 1, 2019, the annual allowance for each eligible child is $952.32. The same amount applies to additional pensions for dependent children under G.L. c. 32, §9(2)(d)(ii), also effective July 1, 2019.

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

This memo supersedes Memo #26/2018 and Memo #39/2012 in light of CRAB's November 6, 2018 partial stay in O'Leary v. Lexington Retirement Board. Under the partial stay: retirees who retired on or before November 6, 2018 are unaffected; active members must no longer have contributions withheld on unused vacation pay going forward (but no refunds of prior contributions pending judicial review); and members retiring on or after November 6, 2018 must have vacation buyback payments excluded from their benefit calculation, with any contributions taken on such payments refunded at retirement. PERAC confirms the Order applies to all 104 retirement boards, not just Lexington.

This memo announces the federal compensation and benefit limits applicable to Massachusetts retirement systems for 2017 under Chapter 46 of the Acts of 2002, which brought state law into compliance with IRS requirements. For 2017, the Section 401(a)(17) compensation limit is $270,000 and the Section 415 annual benefit limit is $215,000 for members retiring at age 65. These limits affect only the highest-paid employees and boards should contact PERAC's actuary with questions.

This memo clarifies the respective responsibilities of retirement boards and PERAC in handling Domestic Relations Orders (DROs). Effective July 1, 2017, PERAC will no longer routinely review DROs for compliance with Chapter 32 or calculate the initial allocation between Participant and Alternate Payee—these are board responsibilities. PERAC will still assist with complex or unusual cases upon specific request. Training sessions on DROs will be offered in the first half of 2017.

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

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

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

PERAC Memo 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 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.

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.

This memo announces PERAC's new pension fraud prevention poster campaign, which introduces a dedicated email address (PensionFraud@per.state.ma.us) for reporting suspected pension fraud in addition to the existing toll-free hotline (1-800-445-3266). Boards should display the enclosed posters prominently in their offices, distribute the accompanying brochures and "Referral Report of Potential Fraud" forms as needed, and ensure staff use these forms to report suspected fraud to PERAC's Fraud Unit.

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

This memo 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 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.

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.

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.

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 supplements PERAC Memo #2/2006 and clarifies that under Chapter 143 of the Acts of 2005, retirees (or surviving spouses) who selected Option A or Option B between July 1, 2004 and December 27, 2004 may change their selection to Option B or Option C—including retirees who originally chose Option B, who may re-select Option B. Retirees who selected Option C in that window remain ineligible to change. Boards must submit any resulting recalculations to PERAC for approval along with a new calculation sheet and updated Choice of Retirement Option Form.

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

This memo 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.

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 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 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 notifies boards that the FY05 State Budget authorizes PERAC to establish new actuarial equivalent factors (for Option A, B, and C calculations) based on updated mortality tables and interest rates, within 180 days of the budget's effective date. Boards should continue using existing factors for retirement allowances effective before December 27, 2004; allowances effective on or after that date must use the new factors once PERAC issues them following completion of the actuary's analysis. No immediate action is required beyond awaiting PERAC's forthcoming notification of the new factors.

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.

This memo announces new Option C actuarial equivalent factors, based on the RP-2000 Combined Healthy Table (50% male/50% female) and a 7.0% interest rate, as authorized by the FY2005 State Budget, effective December 27, 2004. Boards should use the enclosed factors to counsel members retiring under Option C going forward, and should note that corresponding Option A and B annuity factors will change too, though those figures are still pending and will be issued separately.

This memo announces new Option A & B actuarial equivalent annuity factors, based on the RP-2000 Combined Healthy Table (50% male/50% female) and 7.0% interest rate, effective December 27, 2004, complementing the Option C factors previously released in Memo #37/2004. Boards should note that while total Option A allowances remain unchanged, the annuity/pension allocation will shift; boards must apply the enclosed A and S factors to calculate retiree annuities from ASF balances going forward.

PERAC is reviewing the methodology behind the Option B annuity factors released on November 30, 2004, after receiving questions about them; any resulting changes are expected to be minimal. Boards should not use the November 30 Option B factors until PERAC issues a final determination, though the Option A factors released at the same time remain unchanged and unaffected.

PERAC Memo 48/2004 releases updated Option A factors and revised Option B factors, effective July 1, 2004, with the Option B figures superseding those issued in Memo #44/2004 (Option A factors are unchanged from that earlier memo). Boards should use the enclosed S (present value) and A (ASF-to-monthly-annuity conversion) factors when calculating retirement allowances under these options going forward; note that total Option A allowances remain unchanged, only the annuity/pension split is affected. No other action is required beyond updating calculations to reflect the new factor tables.

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

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

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 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 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.

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 #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 #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.

PERAC Memo #37/2000 explains that Chapter 159 of the Acts of 2000 permits retirement systems that properly accepted the Increased COLA Act (Ch. 127, §51 of 1999) to extend that same COLA increase to noncontributory retirees, retroactive to July 1, 1999, with costs borne by the municipality/entity rather than the retirement system. Boards in systems that accepted Section 51 must vote to grant this retroactive noncontributory COLA by June 30, 2001 to apply it retroactively; going forward, noncontributory retirees will automatically receive any COLA granted to contributory retirees without further board action.

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

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

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

PERAC Memo #32/1999 announces three new investment guidelines aimed at giving retirement boards greater flexibility: (1) an expedited process for subscribing to follow-on offerings from alternative asset managers already used by the system, (2) allowance for modest modifications to an investment manager's existing mandate, and (3) limited use of interest rate futures/options for duration management (up to 25% of portfolio) and equity index futures/options for short-term liquidity purposes (up to 10% of portfolio). Boards wishing to use these guidelines must submit a supplementary regulation request under 840 CMR 21.01 for PERAC approval and update their investment policy statements accordingly; no action is required for boards not seeking to utilize these options.

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

PERAC Memo #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 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.

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.

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 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.

840 CMR 9.00 requires all retirement board decisions granting retirement applications to be approved by PERAC before being communicated to members or beneficiaries. Disability retirement decisions must be submitted to PERAC for approval within 30 days, while all other retirement decisions require approval within 90 days. The regulation specifies the documentation that must accompany each type of retirement decision—superannuation, disability, accidental death, and veteran's benefits. Boards may use PERAC-approved automated benefit calculation systems, which are deemed pre-approved and do not require individual submission to PERAC for each calculation.

840 CMR 11.00, which governed the rules for continued service after age 70 for public employees, was repealed effective March 29, 2024. The regulation had established the procedures and requirements for retirement boards to follow when members sought to continue employment past age 70. Questions about service after age 70 are now addressed under 840 CMR 12.00 (Service Between Age 65) and applicable provisions of M.G.L. c. 32. Boards should consult current PERAC guidance on this topic.

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.