840 CMR 2: Retirement Board Travel

840 CMR 2.00 is the standard rule for travel and travel related expenditures by retirement board members and retirement board staff members. PERAC recognizes that retirement board members and the retirement board staff must perform their fiduciary duties in an efficient, effective, and informed manner. All travel related expenses that are to be paid for by the board shall be related to the purpose of the authorized travel and shall be cost-effective.

2.01 General Provisions

PERAC recognizes the importance of continuing education; the need for informed decision making by retirement board members; and the need for a broader public pension perspective, gained through association with other retirement boards and administrators, both within the Commonwealth of Massachusetts and throughout the nation, whether virtually or in-person.

Except as otherwise provided by PERAC or by supplementary rules of a particular retirement board approved by PERAC pursuant to 840 CMR 14.02 all travel by retirement board members and board staff shall comply with 840 CMR 2.00.

Retirement boards may adopt supplementary regulations to supplement and expand upon the regulations contained in 840 CMR 2.00. Any such board regulations are to be submitted to PERAC for review and approval as required by the provisions of G.L. c. 7, § 50 and c. 32, § 21(4).

2.02 Meaning of Terms

Terms common to these regulations and G.L. c. 268A shall have the meaning ascribed to them by G.L. c. 268A and rulings issued pursuant to that law. 840 CMR 2.00 are in addition to, and, in some respects, more stringent than the provisions of G.L. c. 268A. Unless otherwise defined by the provisions of G.L. c. 32 or regulations promulgated by PERAC or by G.L. c. 268A and rulings issued pursuant to that law, the usual and customary definitions for terms used in 840 CMR 2.00 shall apply.

2.03 Board Authorization of Travel and Travel Related Expenditures

The retirement board shall pay for or make reimbursement to Board Members and the staff of the retirement board for all travel and lodging expenses except as specifically authorized pursuant to 840 CMR 2.13 for expenses related to legitimate speaking engagements.

Travel and related expenses are to be approved by the board in advance of the travel. Requests for travel by board members and the retirement board Executive Director/Administrator shall be placed on a board meeting agenda, discussed in open session, and approved by a majority vote of the members of the board present and voting. The meeting minutes shall reflect the board's action, the extent of the authorization, and supporting information addressing the nature of the travel and its purpose.

A board may authorize the Executive Director/Board Administrator to approve travel for other members of the board's staff. The board should establish policies and procedures for staff travel consistent with 840 CMR 2.00.

A statement describing the presentation, conference, or seminar should be entered into the minutes of the meeting following the travel. Boards shall obtain the most cost-effective means of travel and travel-related expenses.

2.04 Required Documentation for Reimbursement

The board shall develop a form to be used in connection with any requests for reimbursement, requiring that the traveler certify that the expenses were incurred and were necessary and incidental to the approved travel.

All requests for reimbursement shall be completed and properly approved after incurring any travel, transportation or meal or other travel-related expenses and before reimbursement takes place. The retirement boards shall require that requests for reimbursement be submitted within a reasonable time after the expenses are incurred, but in no event longer than 60 days after the expenses were incurred.

Itemized receipts must be submitted for all expenses including transportation, lodging, and other expenses incidental to travel.

Travel-related expenses that are under $10 (such as gratuities) should be fully described and reimbursed based on the traveler's certification that the expenses were necessary and incidental to the approved travel.

The board should use due diligence in reviewing and approving reimbursement requests. Any travel-related expenditures which have not been properly documented or approved or are not in conformity with 840 CMR 2.00 must be rejected or adjusted.

Reimbursement shall only be made to the person who actually made payment for the expense. The reimbursement request form must be signed by the person seeking reimbursement and signed under the penalties of perjury.

2.05 Travel Arrangements

The board should designate a board staff member to be responsible for making all travel arrangements and for assisting board members and board staff in completing reimbursement forms. When making travel arrangements, government rates, business rates, or the most cost-effective rate shall be secured.

REGULATORY AUTHORITY: 840 CMR 2.00: M.G.L. c. 7, § 50; c. 32, § 21.