PERAC Memo #25 - 2018: Allowable Earnings Determination, pursuant to G.L. c. 32, § 91A

M E M O R A N D U M

TO: All Retirement Boards

FROM: Joseph E. Connarton, Executive Director

RE: Allowable Earnings Determination, pursuant to G.L. c. 32, § 91A

DATE: August 31, 2018

As you know, G.L. c. 32, § 91A provides for an adjustment of a disability retiree's allowance if the earnings of the retiree, when added to his or her retirement allowance, exceeds the amount of regular compensation which would have been payable to such retiree if he or she had continued in service in the grade held at time of retirement plus $15,000.

PERAC will be sending, through PROSPER, a task titled 91A Member salary verification, with all your boards' retirees who have reported earnings in an amount that may result in an adjustment to their disability retirement allowance.

You must click on each retiree and enter the 2017 annual pension, annuity and current salary amounts, as well as the dependency and workers compensation offset amount, if applicable. Please remember that the Veterans and COLA amounts should be included in the pension amount. If PERAC has figures on file you will see them, but if no figure is provided or if the amount has changed, you will need to enter the correct amount in the box provided. If you do not enter the requested figures, you will receive a reminder task every 30 days until a response has been received.

Once all the figures are entered, click on the submit button, and PROSPER will do the calculation to determine if the retiree is within their allowable earnings. If, after you hit submit, you learn that the figures are incorrect, you must contact Sandra King to make any changes.

If the retiree has exceeded their allowable earnings PERAC will send the retiree an Excess Earnings letter, and your Board will be notified at the same time through PROSPER. The boards will also need to provide notice to the retiree that they have exceeded their allowable earnings. If a hearing is requested by said member(s), the process should be completed so that refunds would commence with the next pension benefit. All documents needed for hearings are now viewable to the boards through PROSPER.

Your board must reply to the PROSPER task of the action taken with regard to the member having excess earnings. A reminder notice will be sent every 30 days until a response is sent to PERAC.

Thank you for your cooperation regarding this process. If you have questions, please feel free to contact Sandra King at (617) 666-4446 ext. 947, or at SEKing@per.state.ma.us.