Section 1: Definitions

''Accumulated additional deductions'', the sum of the amount of theadditional deductions, if any, and the amount of regular interest thereoncredited to any member's account in the annuity savings fund of anysystem.

''Accumulated buyback deductions'', the sum of the amount of the regulardeductions and the buyback interest thereon that would have beencredited to a member's account in the annuity savings fund of a systemhad buyback interest been credited rather than regular interest.

''Accumulated assumed actuarial deductions'', the sum of the amount ofthe regular deductions and the actuarial assumed interest thereon thatwould have been credited to a member's account in the annuity savingsfund of a system had actuarial assumed interest been credited rather thanregular interest.

''Accumulated regular deductions'', the sum of the amount of the regulardeductions and the amount of regular interest thereon credited to anymember's account in the annuity savings fund of any system

''Accumulated total deductions'', the sum of the amount of theaccumulated regular deductions and the amount of the accumulatedadditional deductions, if any, credited to any member's account in theannuity savings fund of any system.

''Actuarial assumed interest'', interest that would be credited to amember's account in the annuity savings fund of a system or to hisaccount in the special fund for military service credit, as provided insubdivision (6) of section 22, except that for any calendar year beginningafter December 31, 1983, ''actuarial assumed interest'' shall be interestthat would have been so credited using a rate equal to a system's actuarialassumed rate of return on investments, as determined from time to timeby the commission, rather than regular interest.

''Actuarial equivalent'', any benefit of equal value when computed uponthe basis of a mortality table to be selected by the actuary and an interestrate determined by the actuary.

''Actuary'', a member of the American Academy of Actuaries or a memberof the staff of the public employee retirement administration commissionqualified to perform the actuarial duties required by the provisions ofsections one to twenty-eight, inclusive, in connection with any publicretirement system established thereafter or under correspondingprovisions of earlier law.

''Additional deductions'', the amounts withheld from the regularcompensation of any member or deposited and credited to his account inthe annuity savings fund of any system as provided for in paragraph (1)(g) of section twenty-two, other than regular deductions.

''Annual gross earned income'', that income earned by a retired memberunder any provision of this chapter, and referring to compensation earnedfor performing personal services actually performed, including wages,salaries, fees, commissions or gratuities, or similar income, during eachcalendar year.

''Annuity'', payments dependent upon the continuance of life of anymember and derived from his accumulated regular deductions or from hisaccumulated additional deductions, if any, or from both, as the case maybe.

''Annuity reserve'', the present value as of any date of all future paymentsto be made on account of any annuity when such present value iscomputed upon the basis of the table of mortality and the interest rate setforth in the definition of actuarial equivalent appearing in this section.

''Annuity reserve fund'', the fund established under the provisions ofsubdivision (2) of section twenty-two to provide for the payment of allannuities and other benefits payable from the accumulated totaldeductions transferred to such fund from the annuity savings fund of anysystem as retirement allowances of members become effective.

''Annuity savings fund'', the fund established under the provisions ofsubdivision (1) of section twenty-two to provide for the accumulation ofthe regular deductions and additional deductions of the members of anysystem and from which their accumulated total deductions are paid ortransferred upon their withdrawal, death or retirement, as the case maybe.

''Beneficiary'', any person entitled to any present or potential benefit onaccount of membership of a person other than himself, under theprovisions of sections one to twenty-eight, inclusive.

''Board'', the appropriate retirement board established under theprovisions of section twenty having jurisdiction of any contributoryretirement system established under the provisions of sections one totwenty-eight, inclusive, or under corresponding provisions of any speciallaws, or the pension reserves investment management board establishedunder the provisions of section twenty-three, or the metropolitan waterresources authority retirement board.

''Buyback interest'', one-half of actuarial assumed interest.

''Commission'', the public employee retirement administrationcommission established under section forty-nine of chapter seven.

''Commonwealth funding schedule'', the plan established by thecommissioner of administration after reviewing all reports preparedpursuant to section thirty-five H of chapter ten and subdivision (3) ofsection twenty-one of chapter thirty-two, and approved by the generalcourt and the house and senate committees on ways and means pursuantto the provisions of section twenty-two C which establishes the scheduleof payments necessary pursuant to said section twenty-two C to pay thenormal cost of benefits for the commonwealth and amortizes over theforty year period beginning July first, nineteen hundred and eighty-eightany unfunded actuarial liability of the commonwealth, including anyother pension obligations of a system or of the commonwealth relative tofuture pension liabilities which the commonwealth may by general orspecial law assume on behalf of any system other than the stateemployees' or teachers' retirement systems, and further including thecommonwealth's share for the costs of any cost of living adjustmentspursuant to section one hundred and two, and those which are associatedeither with teachers employed by the city of Boston or with cost-of-livingadjustments or other benefits for members of systems other than the stateemployees' retirement system and the teachers' retirement system who arenot teachers employed by the city of Boston. Said schedules shall bepublished by said commissioner and filed with the clerks of the senateand house of representatives, and with the retirement law commission.The said commissioner shall revise such funding schedule after eachactuarial valuation report prepared pursuant to section twenty-one toreflect any increase or decrease in the projected actuarial liability thatmay result from, without limitation, a review of the actuarial, economicand demographic assumptions on which such funding schedule is based;provided, however, that the house and senate committees on ways andmeans shall have reviewed and approved in advance such actuarial,economic, and demographic assumptions and the manner andmethodology used in the development of the actuarial reports andrecommendations, prior to the consideration of said actuarial valuations,reports, and schedules.

''Commonwealth's pension liability'', the financial obligation of thecommonwealth to pay all retirement benefits pursuant to this chapter forthe state employees' retirement system, the teachers' retirement system,for teachers employed by the city of Boston and for the commonwealth'sshare of the administrative cost of the Boston retirement system;provided, however, that ''commonwealth's pension liability'' shall alsoinclude any other pension obligations of a system or of thecommonwealth relative to future pension liabilities which thecommonwealth may assume by general or special law on behalf of anysystem other than the state employees' retirement system, the teachers'retirement system, for teachers employed by the city of Boston and thecommonwealth's financial obligations which are associated with cost-ofliving adjustments or other benefits for members of systems other thanthe state employees' retirement system and the teachers' retirementsystem who are not teachers employed by the city of Boston.

''Commonwealth's Pension Liability Fund'', the fund established under theprovisions of subdivision (8) of section twenty-two for moniesappropriated and set aside to meet all financial obligations for retirementbenefits by the commonwealth, except such obligations as are payablefrom the Annuity Savings Fund and Annuity Reserve Fund of the stateemployees' retirement system, the teachers' retirement system and theBoston retirement system on behalf of teachers who are members of thatsystem.

''Constitutional officers'', the governor, lieutenant governor, members ofthe governor's council, state secretary, state treasurer, state auditor andattorney general.

''Creditable service'', all membership service, prior service and otherservice for which credit is allowable to any member under the provisionsof sections one to twenty-eight inclusive.

''Date the system becomes operative'', or other similar phrase, to the extent that the operation of the system pertains to any governmental unitwhich accepts the provisions of sections one to twenty-eight inclusive, asprovided for in section twenty-eight, or which has acceptedcorresponding provisions of earlier laws, shall mean the date subsequentto the acceptance of such provisions as of which the financial operationsof such system commence and as of which membership therein may firstbecome effective for employees of such governmental unit.

''District'', any water, sewer, light, fire, mosquito control, veterans'services or other improvement district or public unit created within one ormore political subdivisions of the commonwealth for the purpose ofproviding public services or conveniences including the countycooperative extension service of the county of Suffolk.

''Employee'', as applied to persons whose regular compensation, except inthe case of any register of probate, is paid by any political subdivision ofthe commonwealth, except the metropolitan district commission, shallmean any person who is regularly employed in the service of any suchpolitical subdivision, including members of the police and firedepartments, teachers, and employees of any free public library or anypublic museum maintained in any city or town, to the support of whichsaid city or town contributes not less than one half of the cost, employeesof a school lunch program as authorized under the provisions of chapterfive hundred and forty-eight of the acts of nineteen hundred and fortyeight, employees of a mosquito control project authorized under theprovisions of section five A of chapter two hundred and fifty-two,employees of the county cooperative extension service of the county ofSuffolk, members of the judiciary appointed on or after January second,nineteen hundred and seventy-five, and also including officials and publicofficers so paid whether employed, appointed or elected by popular votefor stated terms or otherwise. ''Employee'', as applied to persons whoseregular compensation is paid by the commonwealth or the metropolitandistrict commission, as the case may be, shall mean any person whetheremployed or appointed for a stated term or otherwise, who is engaged induties which require that his time be devoted to the service of either suchgovernmental unit in each year during the ordinary working hours ofregular and permanent employees, and who is regularly and permanentlyemployed in such service, including employees of the general court,members of the judiciary, state officials, constitutional officers, memberof the general court or other persons elected by popular vote, butexcluding members of the judiciary appointed thereto prior to Januarysecond, nineteen hundred and seventy-five, and excluding any personwhose compensation for service rendered to the commonwealth isderived from the subsidiary account 03 of the appropriation of anydepartment, agency, board or commission of the commonwealth;provided, however, that solely for the purpose of determining theapplicability of any adjustments made pursuant to section one hundredand two, subsequent to June thirtieth, nineteen hundred and eighty-six, tothe retirement allowances, pensions or annuities received by any memberof the judiciary appointed thereto prior to January second, nineteenhundred and seventy-five, or by the surviving spouse or other beneficiaryof such member, such member shall be deemed to be an employee.

''Employee'' as applied to persons whose regular compensation is paid bythe United States from funds allocated to the Massachusetts NationalGuard, shall mean any person who is regularly and permanentlyemployed under the control of the military department of thecommonwealth and whose duties in such employment requiresubstantially all normal working hours. ''Employee'', as applied to personswhose regular compensation is paid by the Massachusetts TurnpikeAuthority, shall mean any person, including members of the authority,whether employed for a stated term or otherwise, who is engaged induties which require that his time be devoted to the service of theauthority in each year during the ordinary working hours of regular andpermanent employees, but shall not include any member of the statepolice force assigned to the Massachusetts Department of Transportationunder section twenty-nine of chapter twenty-two C. ''Employee'', asapplied to persons whose regular compensation is paid by theMassachusetts Bay Transportation Authority, shall mean any policeofficer of the police department of said Authority, established by chaptersix hundred and sixty-four of the acts of nineteen hundred and sixtyeight. ''Employee'', as applied to persons whose regular compensation ispaid by the Massachusetts State College Building Authority,Massachusetts School Building Authority, commonwealth healthinsurance connector, the Massachusetts gaming commission,Massachusetts cannabis control commission, the MassachusettsDepartment of Transportation, the Massachusetts Life Sciences Center,except those employees of the center opting to participate in an optionalretirement plan established by the center pursuant to section 17 of chapter23I or by the University of Lowell Building Authority, shall mean anyperson who is engaged in duties which require that his time be devoted tothe service of the authority in each year during the ordinary workinghours of regular and permanent employees. ''Employee'', as applied topersons whose regular compensation is paid by the Boston ArenaAuthority, shall mean any person who is engaged in duties which requirethat his time be devoted to the service of the authority in each year duringthe ordinary working hours of regular and permanent employees.

''Employee'', as applied to persons whose regular compensation is paid bythe Massachusetts Housing finance Agency, shall mean any person,including members of the agency, whether employed for a stated term orotherwise, who is engaged in duties which require that his time bedevoted to the service of the agency in each year during the ordinaryworking hours of regular and permanent employees. ''Employee'' shallalso mean a person who is employed by a city or town as a trafficsupervisor or school crossing guard. ''Employee'', as applied to personswhose regular compensation is paid by the Massachusetts Port Authority,shall mean any person, whether employed for a stated term or otherwise,who is engaged in duties which require that his time be devoted to theservice of the authority in each year during the ordinary working hours ofregular and permanent employees, but shall not include any member ofthe state police force assigned to the Massachusetts Port Authority underthe provisions of chapter two hundred and seventy-four of the acts ofnineteen hundred and fifty-nine. ''Employee'', as applied to persons whoseregular compensation is paid by the Greater Lawrence Sanitary District,shall mean any person, whether employed for a stated term or otherwise,who is engaged in duties which require that his time be devoted to theservice of the district in each year during the ordinary working hours ofregular and permanent employees. ''Employee'' as applied to personswhose regular compensation is paid by the Blue Hills RegionalVocational School System, shall mean any person, whether employed fora stated term or otherwise, who is engaged in duties which require thathis time be devoted to the service of the system in each year during theordinary working hours of regular and permanent employees.

''Employee'', as applied to persons whose regular compensation is paid bythe Minuteman Regional Vocational Technical School District, shall meanany person, whether employed for a stated term or otherwise, who isengaged in duties which require that his time be devoted to the service ofthe district in each year during the ordinary working hours of regular andpermanent employees.

''Employees of the general court'', secretaries to the president of thesenate and the speaker of the house of representatives and their clericalassistants; counsel to the senate and the house of representatives, theirassistants and clerical assistants; clerks of the senate and the house ofrepresentatives, their assistants and clerical assistants; the sergeant atarms and his assistant; door keepers, general court officers and pages; andemployees of the legislative document room.

''Employer'', any person, board, or commission with the power to appointor employ personnel as employees of the commonwealth or any politicalsubdivision subject to this chapter.

''Expense fund'', the fund established under the provisions of subdivision(5) of section twenty-two to provide for the payment of all expenses ofadministration of any system.

''Fiduciary'', any person who exercises any discretionary authority ordiscretionary control respecting management of the funds of anyretirement system or exercises any authority or control respectingmanagement or disposition of its assets.

''Funding system'', any retirement system other than the state employees'retirement system and teachers' retirement system which accepts theprovisions of section twenty-two D and adopts a funding schedule.

''Governmental unit'', the commonwealth or any political subdivisionthereof, except that a teacher who is a member of, or eligible formembership in, the teachers' retirement system shall, for the purpose ofmembership and the requirements in connection therewith, be deemed tobe employed by the same governmental unit.

''Head of his department'', or other similar phrase, when used to denotethe authority having the power to apply for the retirement of any memberor to institute any action against him, shall mean the governor in the caseof any state official, and otherwise shall mean the board, commission,authority, committee of the general court, school committee,commissioner, superintendent or other person, as the case may be, havingexecutive control over the department, commission, institution, board,authority or office in which such member is employed. ''Head of hisdepartment'', or other similar phrase, when used to denote any suchperson to be retired, shall mean a commissioner, superintendent or otherperson having executive control over a department or shall mean anymember of a commission, board, authority or committee having suchcontrol.

''Hospital district'', the district of any hospital established under theprovisions of sections seventy-eight to ninety inclusive, of chapter onehundred and eleven.

''IV–D agency'', the state agency that has the responsibility foradministering or supervising the administration of the provision of childsupport enforcement services pursuant to Title IV, Part D of the SocialSecurity Act and chapter 119A of the General Laws.

''Maximum age'', the age on the last day of the month in which anymember classified in Group 3, as provided for in paragraph (g) ofsubdivision (2) of section 3, attains age 65, or if classified in any of thefollowing occupations or position classifications, for which the personneladministrator has determined, pursuant to section 2 of chapter 415 of theacts of 1987, that age is a bona fide occupational qualification, the lastday of the month that a member in any such occupation or positionclassifications attains age 65: a uniformed member of a paid firedepartment or uniformed member of a police department, or of the policeforce of the Massachusetts Bay Transportation Authority, or a member ofthe uniformed branch of the department of fisheries and wildlife asdetermined by the personnel administrator, or a correctional officer or apermanent crash crewman, crash boatman, fire control man, or assistantfire control man employed at the General Edward Lawrence LoganInternational Airport.

''Member'', any employee included in the state employees' retirementsystem, in the teachers' retirement system or in any county, city, town, theMassachusetts Turnpike Authority, the Massachusetts Housing FinanceAgency, or the Massachusetts Port Authority contributory retirementsystem, the Massachusetts Bay Transportation Authority police retirementsystem, the Blue Hills Regional Vocational school retirement system, theMinuteman Regional Vocational Technical School District Employees'retirement system, and the Greater Lawrence Sanitary DistrictEmployees' retirement system, established under the provisions ofsections one to twenty-eight, inclusive, or under corresponding provisionsof earlier laws, and if the context so requires, any member of anycontributory retirement system established under the provisions of anyspecial law.

''Membership service'', service as an employee in any governmental unitrendered since becoming a member of any system pertaining to suchgovernmental unit for which credit is allowable to such member underthe provisions of sections one to twenty-eight inclusive.

''Normal cost'', that portion of the actuarial present value of the retirementsystem benefits and expenses which is allocated by the funding method tothe twelve-month period following the valuation date of the most recentactuarial valuation report pursuant to section twenty-one in such actuarialvaluation report. In determining the normal cost, the actuary shall utilizethe most recent actuarial valuation report whether prepared pursuant tosection twenty-one or pursuant to section thirty-five H of chapter ten andpursuant to the provisions of section twenty-two C.

''Pension'', payments dependent upon the continuance of life of anymember or beneficiary and derived from contributions made by theappropriate governmental unit.

''Pension fund'', the fund established under the provisions of subdivision(3) of section twenty-two to provide for the payment of all pensionspayable on account of members from contributions made to any systemby any governmental unit to which such system pertains.

''Pension reserve fund'', the fund established under the provisions ofsubdivision (6A) of section twenty-two to provide for the reservation ofmonies for future pension liabilities of a system.

''PRIM board'', the pension reserves investment management boardestablished under the provisions of section twenty-three for the purposeof investing the assets of the state employees' and teachers' retirementsystems and of other participating and purchasing systems.

''PRIT Fund'', the Pension Reserves Investment Trust Fund establishedunder the provisions of subdivision (8) of section twenty-two.

''Political subdivision'', the metropolitan district commission or anycounty, hospital district, city, town, district or housing authority,established under the provisions of section five of chapter one hundredand twenty-one B, the Massachusetts Turnpike Authority, theMassachusetts Parking Authority, the Old Colony Planning Council, theMassachusetts Bay Transportation Authority, the Massachusetts StateCollege Building Authority, the University of Lowell Building Authority,the Massachusetts Housing Finance Agency, the Massachusetts PortAuthority, the Greater Lawrence Sanitary District, the Blue HillsRegional Vocational School system, the Minuteman Regional VocationalTechnical School District, or any other public unit in the commonwealth.

''Prescribed form'', any form prescribed by any board and subject to theapproval of the actuary.

''Prior service'' or ''creditable prior service'', service as an employee in anygovernmental unit rendered prior to the date the system pertaining to suchgovernmental unit became operative and for which credit is allowable toany member under the provisions of sections one to twenty-eightinclusive.

''Public school'', any day school conducted in the commonwealth underthe superintendence of a duly elected school committee and also any dayschool conducted under the provisions of sections one to thirty-seveninclusive of chapter seventy-four.

''Regional medical panel'', the three member independent medical panel,established on a regional basis by the public employee retirementadministration commission after consultation with the department ofpublic health and the Massachusetts Medical Society to conduct medicalexaminations and reviews pursuant to this chapter.

''Regular compensation'', during any period prior to January first,nineteen hundred and forty-six, shall mean the full salary, wages or othercompensation in whatever form, lawfully determined for the individualservice of the employee by the employing authority, from which regulardeductions were made pursuant to the provisions of chapter thirty-twoapplicable from time to time prior to such date; provided, that if theamount of such salary, wages or other compensation has been reduced orincreased during any such period as a general temporary adjustment dueto the cost of living or to other economic conditions, and if the board hasreceived from the appropriate authority a written notice of such fact or ifthe board is satisfied of such fact after an investigation which it shallmake prior to July first, nineteen hundred and forty-six, or which it shallmake thereafter and not later than six months after a system becomesoperative for the employees of any governmental unit, such amount shall,for the purpose of any computations made under the provisions ofsections one to twenty-eight, inclusive, involving the use of an annual oran average annual rate of regular compensation during any such period,but not for the purpose of affecting any regular deductions already made,remain unaffected by such general temporary adjustment. ''Regularcompensation'', during any period subsequent to December thirty-first,nineteen hundred and forty-five through June 30, 2009, shall mean thesalary, wages or other compensation in whatever form, lawfullydetermined for the individual service of the employee by the employingauthority, not including bonus, overtime, severance pay for any and allunused sick leave, early retirement incentives, or any other paymentsmade as a result of giving notice of retirement, but including evaluatedmaintenance as provided for in paragraph (c) of subdivision (1) of sectiontwenty-two, and including any part of such salary, wages or othercompensation derived from federal grants except as provided in clause(xi) of paragraph (a) of subdivision (2) of section three; provided, thatduring any period subsequent to June thirtieth, nineteen hundred andforty-eight, salary, wages or other compensation payable in the form ofcost of living bonuses and cost of living pay adjustments shall beincluded in such term. In the case of a teacher employed in a public dayschool who is a member of the teachers' retirement system, salary payableunder the terms of an annual contract for additional services in such aschool and also compensation for services rendered by said teacher inconnection with a school lunch program or for services in connectionwith a program of instruction of physical education and athletic contestsas authorized by section forty-seven of chapter seventy-one shall beregarded as regular compensation rather than as bonus or overtime andshall be included in the salary on which deductions are to be paid to theannuity savings fund of the teachers' retirement system. In the case ofpolice officers, firefighters and employees of a municipal departmentwho are employed as fire alarm signal operators or signal maintenancerepairmen, money paid for holidays shall be regarded as regularcompensation rather than as overtime and shall be included in the salaryon which deductions are to be paid to the annuity savings fund. Regularcompensation shall also include all premiums paid by any governmentalunit for the purchase of an individual or group annuity contract asauthorized by section eighteen A of chapter fifteen or section thirty-sevenB of chapter seventy-one. Regular compensation shall also meancompensation received by any member having made the electionprovided for in section ninety G1/2 or section ninety G3/4 and servingafter age seventy pursuant to section ninety F, ninety G or ninety H.

''Regular Compensation'', during any period subsequent to June 30, 2009,shall be compensation received exclusively as wages by an employee forservices performed in the course of employment for his employer.Notwithstanding any provision of this chapter to the contrary, afterDecember 31, 1995, regular compensation for any member shall notinclude salary, wages or other compensation in whatever form in anycalendar year in excess of any annual limitation that may be imposedpursuant to federal law on the amount of compensation that may be takeninto account when calculating benefits under plans described in 26 U.S.C.section 401(a), including, but not limited to, the applicable limits for anycalendar year under 26 U.S.C. section 401(a)(17). The limitationsapplicable in a calendar year to members who were members in serviceon or before December 31, 1995 shall be the limit provided in section1.401(a)(17)–1(d)(4) of the United States Treasury Regulations. Thelimitations applicable to a member under the preceding 2 sentences shallbe calculated and applied by the board of the system that pertains to suchmember based upon the applicable provisions of said section 401(a)(17)and the regulations promulgated under that section including said section1.401(a)(17)–1(d)(4), as in effect and applicable to governmental plansfrom time to time.Notwithstanding any provision of this chapter to the contrary, regularcompensation for any person who becomes a member after January 1,2011, shall not include salary, wages or other compensation in whateverform in any calendar year in excess of 64 per cent of the annual limitationthat may be imposed under federal law on the amount of compensationthat may be taken into account when calculating benefits under plansdescribed in 26 U.S.C. 401(a) including, but not limited to, the applicablelimits for any calendar year under 26 U.S.C. 401(a)(17). Faculty,librarians and administrators in public higher education who are eligiblefor the state employees' retirement system shall not be prohibited fromparticipating in the optional retirement program pursuant to section 40 ofchapter 15A.If, as a result of a mistake in applying the limitations of the precedingparagraph, contributions or deductions are made by or on behalf of anymember of a system based on compensation in excess of the limitationsspecified in such preceding paragraph, the board of the system thatpertains to such member shall direct the taking of corrective action withrespect to such excess which is consistent with such rules or proceduresas may be established from time to time by the United States InternalRevenue Service.

''Regular deductions'', the amounts withheld from the regularcompensation of any member, as provided for in paragraphs (b) to (e)inclusive, of subdivision (1) of section twenty-two, or in correspondingprovisions of earlier laws, including any amounts of make-up paymentswithheld from his regular compensation or deposited and credited to hisaccount in the annuity savings fund of any system on account of his lateentry into or reinstatement, transfer or re-establishment of membership,and including any payments so withheld or deposited for the purpose ofestablishing credit for out-of-state service for teachers or for service inany other governmental unit or credit for other service, but in any eventexcluding regular interest thereon.

''Regular interest'', the interest credited to any member's account in theannuity savings fund of any system or to his account in the special fundfor military service credit, as provided for in subdivision (6) of sectiontwenty-two.

''Retirement allowance'', the sum of the amount of the annuity and theamount of the pension provided for in sections one to twenty-eightinclusive.

''Retirement system funding schedule'', the plan established by aretirement board, and approved by the actuary, after reviewing all reportsprepared pursuant to section thirty-five H of chapter ten and subdivision(3) of section twenty-one of chapter thirty-two, which establishes thepayments necessary pursuant to section twenty-two D to pay the normalcost of benefits for the system and amortizes over the forty-year periodbeginning July first, nineteen hundred and eighty-nine, or nineteenhundred and ninety, any unfunded actuarial liability of the system. Saidschedule shall be published by said board and filed with the clerks of thegovernment units participating in the system. The actuary shall requiresaid board to revise such funding schedule after each actuarial valuationreport prepared pursuant to section twenty-one to reflect any increase ordecrease in the projected actuarial liability that may result from a reviewof the actuarial, economic and demographic assumptions on which suchfunding schedule is based.

''Service'', service as an employee in any governmental unit for whichregular compensation is paid.

''Special fund for military service credit'', the fund established under theprovisions of subdivision (4) of section twenty-two to provide for theaccumulation of the special contributions made to any system by anygovernmental unit for the purpose of establishing retirement allowancecredits for any member who is a veteran.

''State official'', any person appointed by the governor to a position in theservice of the commonwealth or metropolitan district commission forwhich such person receives regular compensation, except a member ofthe judiciary.

''State police surgeon'', the physician designated by the colonel of thedepartment of state police to serve as the physician for the department.

''System'', the state employees' retirement system, the teachers' retirementsystem, the Massachusetts Turnpike Authority employees' retirementsystem, the Massachusetts Housing Finance Agency employees'retirement system, the Massachusetts Bay Transportation Authority policeretirement system, the Massachusetts Port Authority employees'retirement system, the Greater Lawrence Sanitary District employees'retirement system, the Blue Hills Regional Vocational School retirementsystem, the Minuteman Regional Vocational Technical School Districtretirement system, or any county, city, or town contributory retirementsystem, as the case may be, established under the provisions of sectionsone to twenty-eight, inclusive, or under corresponding provisions ofearlier laws and subject thereto, in which any member is included, and ifthe context so requires, any contributory retirement system establishedfor the employees of any governmental unit under the provisions of anyspecial law; provided, however, that for the purpose of investing in thePension Reserves Investment Trust Fund established in subdivision (8) ofsection 22, the Massachusetts State College Building Authority shall bedeemed to be a system and the Massachusetts Bay TransportationAuthority Retirement Fund shall be deemed to be a system.

''Teacher'', any person who is employed by one or more schoolcommittees or boards of trustees or by any combination of suchcommittees and boards on a basis of not less than half-time service as ateacher, school psychologist, school psychiatrist, school adjustmentcounsellor or school social worker appointed under section forty-six G ofchapter seventy-one, director of occupational guidance and placementappointed under section thirty-eight A or thirty-eight D of chapterseventy-one, principal, supervisor or superintendent in any public schoolas defined in this section, or as a supervisor or teacher of adult civiceducation, but excluding any person serving as an exchange teacher inany such public school unless he is a member of the teachers' retirementsystem at the time of entry into such service.

''Total deductions'', the sum of the amount of the regular deductions andthe amount of the additional deductions, if any, credited to any member'saccount in the annuity savings fund of any system.

''Veteran'', any person who (a) is a veteran as defined in clause Forty-thirdof section seven of chapter four; or (b) meets all the requirements of saidclause Forty-third except that instead of performing wartime service as sodefined he has been awarded one of the campaign badges enumerated inthe definition of ''Veteran'' in section one of chapter thirty-one; or (c)meets all the requirements of said clause Forty-third except that insteadof performing ninety days' active service, including ten days' wartimeservice, he has performed active service in the armed forces of the UnitedStates at any time between April sixth, nineteen hundred and seventeenand November eleventh, nineteen hundred and eighteen, inclusive.

''Wages'', the base salary or other base compensation of an employee paidto that employee for employment by an employer; provided, however,that ''wages'' shall not include, without limitation, overtime, commissions,bonuses other than cost-of-living bonuses, amounts derived from salaryenhancements or salary augmentation plans which will recur for a limitedor definite term, indirect, in-kind or other payments for such items ashousing, lodging, travel, clothing allowances, annuities, welfare benefits,lump sum buyouts for workers' compensation, job-related expensepayments, automobile usage, insurance premiums, dependent careassistance, 1–time lump sum payments in lieu of or for unused vacationor sick leave or the payment for termination, severance, dismissal or anyamounts paid as premiums for working holidays, except in the case ofpolice officers, firefighters, correctional officers and employees of amunicipal department who are employed as fire alarm signal operators orsignal maintenance repairmen money paid for holidays shall be regardedas regular compensation, amounts paid as early retirement incentives orany other payment made as a result of the employer having knowledge ofthe member's retirement, tuition, payments in kind and all payments otherthan payment received by an individual from his employing unit forservices rendered to such employing unit, regardless of federal taxability;provided further, that notwithstanding the foregoing, in the case of ateacher employed in a public day school who is a member of the teachers'retirement system, salary payable under the terms of an annual contractfor additional services in such school and compensation for servicesrendered by a teacher in connection with a school lunch program or forservices in connection with a program of instruction of physicaleducation and athletic contests as authorized by section 47 of chapter 71shall be regarded as ''regular compensation'' rather than as bonus orovertime and shall be included in the salary on which deductions are tobe paid to the annuity savings fund of the teachers' retirement system.