administration

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

Section 3 governs the conditions of membership in a Massachusetts contributory retirement system, covering both member-in-service and member-inactive status, how membership begins and ends, and special membership scenarios. It establishes the four group classifications (Group 1 through Group 4) that determine retirement age thresholds and benefit formulas, and specifies the criteria for assignment to each group. The section also addresses multiple-system membership, part-time and intermittent employment, leaves of absence, dual compensation situations, and the procedures for reinstatement or transfer of membership between systems.

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

Section 4 defines creditable service under Chapter 32 — the service credit that forms the basis of a member's retirement allowance calculation. It covers how current and prior service is credited, conditions for military service credit, leaves of absence, service with multiple governmental units, purchase of prior service, and service buybacks. The section also includes provisions for credited service during various types of leave, including unpaid leave, FMLA, and military duty, and establishes rules for members who transfer between systems or have gaps in service.

Section 5A permits any city, town, district, or other governmental unit to accept its provisions and establish a wellness program for public safety and other employees referenced in Section 94. It sets minimum program requirements established by the Department of Public Health, requires the Commonwealth and its agencies to establish such programs automatically, and provides for reimbursement of up to half the cost (capped at $100 per employee) to municipalities that accept the section and fund wellness programs. Acceptance by a city, town, or district triggers the health and fitness standards framework in Section 5(3)(e).

Section 5B requires every employer of Chapter 32 members to establish an early intervention plan designed to reduce disability retirements through coordinated employee assistance, workplace safety, and medical and vocational rehabilitation. When a member has been absent from work for 30 or more days due to a work-related injury and return to work is not imminent, the employer must assemble an early intervention team to assess the member's condition and design a rehabilitation plan. Members who fail to participate in an assessment or rehabilitation program without good cause forfeit their rights to ordinary or accidental disability benefits under Sections 6, 7, or 26.

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 8 establishes the ongoing evaluation and reexamination process for members retired on disability under Sections 6 or 7. The Public Employee Retirement Administration Commission (PERAC) must conduct evaluations at defined intervals — annually for the first two years, then every three years — to assess whether a disability retiree may be able to return to work or would benefit from rehabilitation. If a retiree is found able to return to their former or similar position, their disability retirement is revoked and they are restored to active membership. The section also governs modification or suspension of a pension allowance based on the retiree's earnings or earning capacity, with appeal rights to the Contributory Retirement Appeals Board.

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 14 addresses the interplay between Chapter 32 retirement rights and workers' compensation benefits under Chapter 152. Members receiving workers' compensation for total incapacity retain member-in-service status and accrue creditable service during that period. It also establishes an offset rule: workers' compensation payments for the same injury that gives rise to a disability pension are credited against the pension, so that a member does not receive full benefits from both sources simultaneously.

Section 14A requires that any recovery of lost wages from a third party (not the employer) for the same injury underlying a disability pension under sections 6, 7, or 9 be offset against the pension. It obligates the retirement board to prosecute third-party claims on behalf of a member or beneficiary who fails to do so, and authorizes suspension of pension payments if the member or beneficiary refuses to cooperate.

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

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

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

Section 19 provides broad protections for retirement system funds and member benefits, exempting them from taxation (including state income taxes), bankruptcy proceedings, and attachment by creditors. Assignments of retirement rights are generally prohibited, with narrow exceptions allowing written authorizations to withhold amounts for health insurance premiums, federal and state income taxes, and support orders. The section preserves the right to attach or assign benefits to satisfy court-ordered child support or spousal support obligations under several Massachusetts chapters.

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

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

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

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

Section 20A, available to any city, town, or other entity that accepts it by vote, provides indemnification to retirement board members for legal expenses and damages arising from civil actions related to official duties. Indemnification follows the same standards as those for public employees under Chapter 258, but is explicitly denied where the board member's conduct constituted a breach of fiduciary duty, willful dishonesty, or intentional violation of law.

Section 20B provides indemnification for members, employees, and investment committee members of the state retirement board, teachers' retirement board, and pension reserves investment management board in civil actions arising from official duties. Indemnification for both defense expenses and damages follows the Chapter 258 public employee standard, but is explicitly excluded where the conduct involved a breach of fiduciary duty, willful dishonesty, or intentional violation of law.

Section 20C requires every retirement board member to file annual statements of financial interest with the Public Employee Retirement Administration Commission (PERAC), disclosing business associations, investments, debts, gifts, honoraria, and other financial relationships — particularly any involving persons with a direct interest in matters before the board. Filing is required within 30 days of joining a board, annually by May 1, and by May 1 of the year after leaving the board. Failure to file or correct a deficient statement within 30 days of written notice results in removal from the board, and the removed member is barred from future service on any retirement board under Chapter 32.

Section 21 establishes the Public Employee Retirement Administration Commission (PERAC) as the primary supervisory authority over all Massachusetts public retirement systems, with powers to prescribe accounting methods, conduct field examinations every three years, review and remand disability and termination retirement decisions within 30 days, assess expenses against covered systems, and maintain a comprehensive public employee retirement and disability data system. The section also governs actuarial valuation requirements — conducted biennially under the entry age normal method — experience investigations every six years, and requires PERAC to develop rehabilitation programs for disabled employees in cooperation with other state agencies.

Section 21A authorizes PERAC to maintain a consolidated list of vendors debarred or suspended from contracting with any retirement board under Chapter 32. Debarment may be imposed for criminal convictions related to public contracting, antitrust violations, Chapter 268A ethics violations, or substantial evidence of fraud, performance failures, or undisclosed compensation. Suspensions are temporary, capped at 12 months unless related criminal proceedings are pending, and require advance written notice except in emergencies. Full debarment proceedings require a hearing opportunity and a written decision with findings; affiliates of a debarred or suspended vendor may be included in the exclusion.

Section 22 is the primary financing and fund structure provision for Massachusetts public retirement systems, establishing seven distinct funds within each system: the Annuity Savings Fund (member contributions), Annuity Reserve Fund (retirement annuities), Pension Fund (employer pension payments), Special Fund for Military Service Credit, Expense Fund (administration), Pension Reserve Fund (unfunded liability reserves), and the Commonwealth's Pension Liability Fund. Member contribution rates vary from 5% to 12% of regular compensation depending on entry date and employee group, with employees entering on or after July 1, 1996 contributing 9%. The section also governs the Pension Reserves Investment Trust (PRIT) Fund administered by the PRIM board, under-performing system transfer requirements, employer pickup of employee contributions, and detailed appropriation procedures for all system types.

Section 22A was repealed in 1983 by St. 1983, c. 661, § 16A. No substantive content remains.

Section 22B requires the Governor to recommend an annual appropriation to the PRIT Fund to reduce the unfunded pension liability of participating retirement systems. The recommended amount must be at least 1.3% of total appropriations for state employee salaries in the subsidiary accounts "01" and "02" for that fiscal year.

Section 22C establishes the commonwealth's mandatory funding schedule for transferring amounts to the Commonwealth's Pension Liability Fund to eliminate the state's unfunded pension liability by June 30, 2040. The Commissioner of Administration must file and update a triennial funding schedule reviewed and approved by the House and Senate Ways and Means Committees, with annual increases in the amortization component capped at 7.5%. For fiscal years 2024–2026, specific dollar amounts are fixed by statute: $4,104,583,378; $4,499,854,757; and $4,933,190,770. The section also requires an additional Governor's recommendation for an amount equal to the full normal cost and benefits paid, and authorizes an advanced funding schedule for surplus investment returns.

Section 22D allows local and county retirement systems (other than state and teachers') to voluntarily adopt a formal funding schedule designed to eliminate their unfunded actuarial liability by June 30, 2030. Systems accepting this section may receive annual pension funding grants from the Commonwealth, calculated as a share of revenue growth in state income, corporate, and sales taxes. Acceptance also triggers mandatory adoption of several benefit provisions — including 10-year vesting, supplemental dependent allowances, survivor benefits, and fitness/wellness programs — and requires annual reports to members. Acceptance is irrevocable.

Section 22E requires the PERAC actuary to conduct a review and financial impact analysis of proposed statutory changes to the commonwealth's pension liability — including early retirement incentives, COLA adjustments, membership expansions, or other amendments to Chapter 32 — when requested by any joint standing committee or a ways and means committee. The actuary must report within 90 days of the request, consulting with other relevant state agencies.

Section 22F allows local and county retirement systems to revise their existing Section 22D funding schedules based on an actuarial valuation conducted as of January 1, 2009 or later, extending the unfunded liability amortization period to no later than June 30, 2040. Annual amortization increases under a revised schedule may not exceed 4%, no year's payment may be less than the prior year's payment until fully funded, and if a year's payment would exceed the prior year by more than 8%, PERAC approval is required. Systems may also use a revised schedule to increase the COLA base amount in $1,000 increments.

Section 23 governs investment and custodial management of retirement system funds. It establishes the Pension Reserves Investment Management (PRIM) Board as a nine-member unpaid board chaired by the State Treasurer, with full fiduciary authority over the PRIT Fund. The section codifies the prudent investor standard for all fiduciaries, bars investments in tobacco companies deriving more than 15% of revenues from tobacco sales, requires investment managers and consultants to be selected through PERAC-acknowledged processes, addresses investment restrictions tied to South Africa and Northern Ireland, and sets minority investment manager goals of not less than 20%. Local system funds are held by the respective governmental treasurer-custodian and must be invested through an investment manager.

Section 23A was repealed in 1996 by St. 1996, c. 315, § 13. No substantive content remains.

Section 23B establishes a mandatory competitive sealed proposals process that every retirement board must follow when procuring investment, actuarial, legal, and accounting services. Key requirements include public notice posted for at least two weeks, written evaluation criteria, confidentiality of proposals until evaluations are complete, and mandatory contractual fiduciary and disclosure terms for investment service providers. Investment service contracts may not exceed seven years (including renewals). Board members must certify under penalty of perjury that procurements are free from collusion, and persons who cause contracts to be awarded in violation of the section forfeit up to $2,000 per violation plus double damages.

Section 24 provides PERAC with the primary enforcement mechanism for violations of Chapter 32. When PERAC determines that any governmental unit, officer, employee, or retirement board has violated or neglected Chapter 32 requirements, it must notify the appropriate executive authority and, if violations continue, refer the matter to the Attorney General. The Superior Court has equity jurisdiction to compel compliance and restrain violations. Willful refusal or neglect to comply with Chapter 32 or its regulations is punishable by a fine of up to $1,000 or up to one year imprisonment, or both.

Section 25 provides several fundamental protections for retirement system members. It guarantees minimum retirement allowances for members who had rights under pre-1946 law, ensures that members with rights under prior non-contributory pension laws receive at least those amounts, and preserves the rights of veterans who entered government service before July 1, 1939 to choose between Chapter 32 and veterans' pension benefits at retirement. The section declares that retirement system membership constitutes a contractual relationship that cannot be diminished by subsequent legislative amendments for members who have paid required contributions. It also expressly authorizes mandamus actions — by PERAC, the Attorney General, or district attorneys — to compel governmental units that fail to appropriate or pay required pension obligations.

Section 27 is a transitional provision governing the disposition of retirement system fund balances as of January 1, 1946, when the current Chapter 32 structure took effect. It directs how assets from prior annuity savings funds, annuity reserve funds, pension funds, military service credit funds, and expense funds were to be transferred and credited into the corresponding new funds established under Section 22. Any surplus in the annuity savings fund was transferred to the annuity reserve fund, and any deficiency in the annuity reserve fund was addressed through transfers from the pension fund.

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

Section 28B was repealed in 1991 by St. 1991, c. 412, § 35. No current operative text exists.

Section 28C was repealed in 1948 by St. 1948, c. 589, § 1. No current operative text exists.

Section 28D was repealed in 1952 by St. 1952, c. 634, § 1. No current operative text exists.

Section 28E was repealed in 1952 by St. 1952, c. 634, § 2. No current operative text exists.

Section 28F was repealed in 1987 by St. 1987, c. 697, § 98. No current operative text exists.

Section 28G was repealed in 1950 by St. 1950, c. 813, § 2. No current operative text exists.

Section 28H was repealed in 1952 by St. 1952, c. 634, § 3. No current operative text exists.

Section 28I provides that a Commonwealth employee who is a retirement system member and is selected to serve with an interstate commission that Massachusetts participates in and funds shall continue as a retirement system member while on that assignment. The employee must continue making monthly contributions as if still on the state payroll, and retains all retirement system benefits and privileges during the interstate commission service.

Section 28J was repealed in 1952 by St. 1952, c. 634, § 4. No current operative text exists.

Section 28K governs retirement system membership for Commonwealth or political subdivision employees who take a leave of absence (full-time or part-time) to serve as a representative of an employee organization. Such employees are treated as on unpaid leave, but continue to accrue creditable service as if in active service and must continue making monthly retirement contributions at the rate they would have paid if still working. The employee retains all retirement benefits and privileges except salary during the leave. The provision for crediting service back to January 1, 1975 requires majority board vote and acceptance by the appropriate legislative body, with a certificate of acceptance filed with PERAC.

Section 28L was repealed in 1991 by St. 1991, c. 412, § 35A. No current operative text exists.

Sections 29 through 32 were repealed in 1945 by St. 1945, c. 658, § 1. No current operative text exists for these sections.

Section 33 was repealed in 1936 by St. 1936, c. 400, § 4. No current operative text exists.

Sections 34 through 38A were repealed in 1945 by St. 1945, c. 658, § 1. No current operative text exists for these sections.

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

Section 40 sets governance requirements for private pension associations formed under Section 39. By-laws must be approved by PERAC and must specify how the association is conducted and how funds are invested and disbursed. An association is formally established when its by-laws are approved by both the employer and a two-thirds vote of employees and by PERAC. The association must file an annual report with PERAC by March 1 covering membership and financial transactions from the prior year. PERAC may audit the association's books, and failure to comply with reporting requirements is punishable by a fine of up to $500.

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

Section 42 addresses legacy teacher pension funds in cities and towns (excluding Boston) that accepted Chapter 498 of the Acts of 1908. In those jurisdictions, the pension fund for retiring public school teachers is funded by revenues assigned by the city council or by direct town appropriation. The city or town treasurer holds the fund and makes monthly payments to retirees in amounts certified by the school committee.

Section 43 provides a legacy non-contributory retirement mechanism for teachers in cities and towns that accepted the 1908 pension act (Section 42). The city or town retirement board, on recommendation of the school committee, may retire a teacher who is age 60 or older, or who is incapacitated for useful service, after 25 years of faithful service. The annual pension is capped at one-half of final compensation and in no case may exceed $1,200.

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

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

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

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

Section 45A provides an enhanced pension formula for school janitors retired under Section 44 in cities and towns that separately accept this section. Rather than the basic one-half of last year's compensation capped at $750 under Section 44, the pension under Section 45A equals one-half of the highest salary received by the janitor while holding the grade held at retirement.

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

Section 45C provides an enhanced longevity formula for school janitor pensions in cities and towns that have accepted Sections 44 and 45A and also accept this section. For janitors with 20 years of service, the base pension equals one-half of the highest annual compensation in their grade at retirement. For each year of service beyond 20, the pension increases by an additional 1% of that compensation, subject to an overall cap of 65% of highest annual compensation. Acceptance requires a two-thirds city council vote (Plan D/E cities), regular city council vote (other cities), or annual town meeting majority.

Section 47 governs the calculation of service credit for retirement eligibility under Section 46. Correctional officers, instructors, and employees may combine service from multiple qualifying institutions — including correctional institutions, the prison camp and hospital, and juvenile training schools — for purposes of meeting the service thresholds. Service credit is forfeited only for dismissals for misconduct that were not later reversed; a restoration to duty or reappointment serves as sufficient evidence of exoneration.

Section 48 sets the pension amount for correctional officers, instructors, and employees retired under Section 46 at one-half of the salary at retirement. For employees receiving non-cash compensation (full or partial boarding or housing), the Commissioner of Correction may add up to $7 per week in the case of full boarding and housing, or a fair proportion of that amount in the case of partial housing and boarding, to the cash salary for purposes of computing the pension base. State correctional institution pensions are paid by the Commonwealth; jail and house of correction officer pensions are paid by the county.

Sections 49 through 51 were repealed in 1954 by St. 1954, c. 627, § 9. No current operative text exists for these sections.

Section 54 specifies that sections 52 and 53 (veterans of Indian wars retirement provisions) become effective in any city by city council vote or in any town by town meeting vote accepting them or corresponding prior law provisions.

Section 55 provides that city council actions regarding acceptance of sections 52 and 53, or the retirement of any veteran under them, are subject to the mayor's veto and override as provided in the city charter.

Section 57A applies certain provisions of the contributory retirement system (regarding reexamination, reemployment, and reinstatement) to veterans retiring under sections 56 or 57 on or after January 1, 1946, with the retiring authority acting in place of the retirement board.

Section 59 defines "retiring authority" as used in sections 56–60 for veterans: the state board of retirement for the commonwealth, the appropriate retirement board for counties, cities, towns, districts, and regional school districts, and the selectmen, prudential committee, or relevant authority for towns and districts without a retirement board.

Section 59A requires that when a veteran's pension is based partly on service in a different governmental unit than the one paying the pension, the paying unit must be reimbursed annually by the other unit for the proportionate share of the pension, with enforcement through contract action if payment is not made.

Section 60 makes sections 56–59 effective in any county, city, town, or district that accepted them before January 1, 1946, and bars veterans whose employment first began after June 30, 1939 from coverage, while also requiring eligible veterans to have creditable service at least equal to twice their time not in public employ since their service began.

Section 60A was repealed in 1954 by chapter 627, section 15.

Sections 61 through 65 were repealed in 1937 by chapter 409, section 2.

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

Section 65E allows retired SJC justices to be placed on a retired list and remain eligible for temporary judicial service in two-year renewable terms, while retaining their full pension benefits, but prohibits them from practicing law or holding incompatible office during such eligibility.

Section 65F mirrors section 65E for Appeals Court justices: retired Appeals Court justices may be placed on a retired list, remain eligible for temporary judicial service in renewable two-year terms, retain full pension benefits, and are prohibited from practicing law or holding incompatible office while eligible.

Section 65G establishes the same retired-list and temporary service framework as sections 65E and 65F for Trial Court justices, allowing them to perform judicial duties in two-year renewable terms while retaining full pension benefits and being prohibited from practicing law.

Section 67 provides that pensions granted under section 66 and related expenses shall be paid by the commonwealth and the counties in the same proportion as the pensioner's salary was paid at the time of retirement.

Section 68 was repealed in 1991 by chapter 412, section 35B.

Sections 68A through 68C were repealed in 1945 by chapter 658, section 1.

Section 69 was repealed in 1991 by chapter 412, section 35B.

Section 70 was repealed in 1939 by chapter 441, section 4.

Section 72 directs that pensions and annuities under sections 69–71 be paid from the Metropolitan Parks Maintenance Fund via specific (not general) appropriations, while pensions for officers assigned to state police duty are paid from ordinary state revenues.

Section 73 was repealed in 1931 by chapter 426, section 148.

Section 76 sets the pension for probation officers retired under section 75 at half their compensation at retirement, paid by the county where they served (or apportioned among counties by the superior court if they served in more than one), with an additional requirement of 15 years of full-time devoted service for those retired at age 70.

Section 76A updates probation officer pension amounts: half of regular annual compensation at retirement, with an additional 1% per year beyond 20 years of service for those retiring after age 65 with 20+ consecutive years, capped at 65% of compensation, paid by the county where they served or apportioned among counties.

Section 79 provides that pensions payable by cities or towns to former employees of a fire or water district that accepted the 1914 act shall be transferred to and paid by the district.

Section 85F requires that no police officer or firefighter may be retired for disability under sections 80–85F or 85H without first being examined by a three-physician medical panel, with a majority certifying permanent incapacity and (for accidental disability) that it could result from the claimed accident or hazard.

Section 86 was repealed in 1950 by chapter 395.

Section 87 was repealed in 1930 by chapter 182, section 5.

Section 87A was repealed in 1928 by chapter 402, section 4.

Section 90B allows any retiree or their beneficiary to voluntarily waive all or part of a pension or retirement allowance for a specified period (or until further notice), binding themselves and their heirs.

Section 90E provides that if a retiree's classification has been abolished since their retirement, cities, towns, districts, or the Massachusetts Port Authority accepting sections 90A, 90C, or 90D may increase that retiree's allowance to match increases given to retirees who were in the same grade at the time of retirement.

Sections 90F through 90G1/2 were repealed in 2000 by chapter 123, section 25.

Section 90G3/4 was repealed in 2017 by chapter 47, section 28.

Sections 90H and 90I were repealed in 2000 by chapter 123, section 28.

Section 90J allows retirement systems that accept this section (by board majority vote with legislative body approval) to pay from the expense fund the annual physical and mental examination costs for members serving beyond age 70.

Section 91 generally prohibits retirees receiving pensions from also being paid for public service, with specific exceptions (jury duty, elected office, emergency service, medical panels, etc.); paragraph (b) allows retirees to work up to 1,200 hours/year as long as combined earnings and pension don't exceed the current salary for the retired position plus $15,000.

Section 91A requires disability retirees to file annual earnings statements with PERAC under perjury penalties; if combined earnings and retirement allowance exceed what would be payable had the member remained in service plus $15,000, the excess must be refunded, and failure to file can result in termination of the retirement allowance until compliance.

Section 91B establishes a wage reporting system through which PERAC annually shares retiree data with the Department of Revenue, which then cross-checks earnings reports filed under section 91A to identify non-compliant disability retirees, with findings reported back to the relevant retirement board for action.

Section 91C grants PERAC access to criminal record offender information and requires it to compare that data against the list of disability retirees at least annually; if the comparison suggests action should be taken under sections 6 or 7, PERAC must notify the appropriate retirement board.

Section 92A (which contains section 93 text) provides that persons who were employed by agencies abolished by the 1919 reorganization act and transferred to new departments retain all pension rights as if their service had been continuous.

Section 93 protects the pension rights of employees who were transferred from abolished agencies to new departments under the 1919 reorganization act, treating their service as continuous for all pension purposes.

Section 95 allows cities and towns to grant annuities to officials or employees who have at least 15 years of full-time service but are not entitled to any other pension or retirement allowance, providing up to half their regular annual compensation or $2,000 (whichever is less), with a minimum of $1,200 if the grant would otherwise be less.

Section 97 specifies the required approval processes for granting or increasing annuities and retirement allowances under sections 95 and 96: a two-thirds vote of city council plus mayoral approval in cities, a two-thirds vote at annual town meeting in towns upon selectmen's recommendation, and majority prudential committee or county commissioner vote in districts and counties.

Section 98 authorizes the state treasurer to make advance retirement allowance payments (not to exceed the amount actually due) to eligible state employees who have applied for retirement, while the application is being processed, subject to rules and regulations established by the treasurer.

Section 99 extends to cities, towns, and counties (upon local acceptance) the authority to make advance retirement allowance payments to eligible employees who have applied for retirement while applications are being processed, with rules established by the local treasurer.

Section 102 establishes the cost-of-living adjustment (COLA) mechanism for the state employees' and teachers' retirement systems: the actuary files an annual report, the legislature determines COLA percentages, increases are applied to up to $13,000 of each member's allowance and funded from investment income, and the adjusted amount becomes the new base for future COLAs.

Section 104 establishes two supplemental funds to pay benefits that federal tax law limits would otherwise prevent: (a) a Section 401(a)(17) Excess Fund to pay the difference between the retirement allowance that would have been paid absent the federal compensation cap and what is actually payable; and (b) a Section 415 Excess Benefit Fund to pay the difference between what would be paid without federal benefit limits and what is actually payable under those limits.

PERAC has set the regular interest rate for 2026 at 0.1% per G.L. c. 32, § 22(6)(b), based on the average rates paid on individual savings accounts at a representative sample of at least 10 financial institutions. This rate applies to accumulated total deductions and accrued interest for refunds and retirements processed during calendar year 2026, and will also be credited on December 31, 2026 for outstanding balances as of December 31, 2025.

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 has announced the 2026 COLA rate of 2.8%, based on the Social Security Administration's CPI-W increase for the prior year. Pursuant to G.L. c. 32, § 103(c), retirement boards may vote to grant a COLA effective July 1, 2026. Under § 103(i), a board may vote to increase the COLA up to 3.0% with proper notice to the legislative body, but this must occur before June 30, 2026. Every board must notify PERAC through PROSPER within 30 days of their decision, whether or not they grant a COLA.

At its December 17, 2025 meeting, the Commission voted to continue the existing practice of allowing PERAC staff to approve non-invasive medical test reimbursements up to $100.00 per disability case, per 840 CMR 10:10(3) and 10:15(1)(c). Any tests ordered by a Regional Medical Panel that exceed this amount still require advance Commission approval before being ordered. This annual notice confirms no change to the $100 threshold for 2026.

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.

PERAC is alerting boards to a fraud attempt where a bad actor used stolen personal information (name, date of birth, last four of SSN) to create a self-service portal account for a retiree and then requested a direct deposit change. The attempt was thwarted when the board independently contacted the retiree to confirm the request, which the retiree denied. Boards should review their security procedures, including: requiring matching email/phone on file to create portal accounts, fully hiding bank account numbers on deposit notices, reviewing IT quarantine procedures, and periodically auditing new portal account creation.

PERAC has distributed updated 2026 buyback/make-up repayment worksheets and cumulative interest factor sheets. The worksheets apply to buybacks under numerous specific sections of G.L. c. 32, with separate worksheets for buyback interest and actuarial interest. Sections 4(1)(g½), 4(1)(l), 4(1)(l½), 4(1)(l¾), 4(1)(n), 4(1)(n½), 4(1)(p), 4(1)(r), 4(1)(s), and 4(2)(c) use buyback interest exclusively; sections 3(3), 3(4), 3(4A), 3(5), 3(6)(d), and 3(8)(b) may use either rate as described in Memo #23/2012. These worksheets are not applicable to § 3(6)(c) buybacks.

PERAC is requesting boards submit actuarial data for active members, retirees/survivors, and disability retirees as of December 31, 2025, by March 31, 2026 via the PROSPER portal in standard PERAC record format. Boards scheduled for a 2026 actuarial valuation by PERAC should already have received a separate request. After submission, boards will receive data analysis reports through PROSPER identifying errors and questionable items requiring review or correction.

Pre-employment physicals are a required prerequisite to granting accidental disability retirement under any of the three statutory presumptions (G.L. c. 32, §§ 94, 94A, 94B). While HIPAA prevents boards from requiring employers to submit these records at the time of hire, PERAC strongly encourages boards to provide an optional HIPAA waiver to all new and current members that would allow the board to obtain a copy for future use. This waiver should be developed with board counsel and can be distributed as part of onboarding materials. If no physical can be found, members should be encouraged to supply any physicals taken after entering service.

PERAC's Q2 2026 training memo lists educational opportunities from April through June 2026 for retirement board members, including PERAC webinars on Recent Cases of Interest (April 30) and History of Call Fire and PIPOs (May 12), the NCPERS Annual Conference in Las Vegas (May 17–20), and the MACRS Spring Conference in Springfield, MA (May 31–June 3) offering up to 9 credits. Board members must register via PROSPER and submit Training Affidavits for non-PERAC sessions. Note: the MACRS Spring Conference location has changed to Springfield this year.

PERAC has filed proposed amendments to 840 CMR 6.00 (Standard Rules for Disclosure of Information) to align the regulations with the Public Records Law and Fair Information Practices Act. Key changes include: deleting 840 CMR 6.05 (Notice to PERAC); amending 840 CMR 6.08 to require written member consent before a retirement file may be provided to that member's employer; and renaming 840 CMR 6.13 to direct boards seeking public records guidance to contact the Public Records Division directly rather than requesting a formal advisory opinion. A remote hearing is scheduled for May 21, 2026 at 10 a.m.; written comments accepted through May 22, 2026 at 5 p.m.

This memo sets the 2025 'regular interest' rate at 0.1% for regular and additional deductions made after January 1, 1984, as required by G.L. c. 32, § 22(6)(b). The rate is derived from the average rates paid on individual savings accounts at a representative sample of at least 10 financial institutions. Boards must apply this rate to accumulated total deductions for refunds, retirements, and year-end crediting on December 31, 2025.

The Social Security Fairness Act, signed January 5, 2025, repeals the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) with a retroactive effective date of January 1, 2024, directly affecting thousands of Massachusetts public employees who receive Chapter 32 benefits. Boards should direct member inquiries to the Social Security Administration and communicate the change broadly. PERAC advises boards to pause on requiring completion of Form SSA-1945 until the SSA releases further guidance on implementing the repeal.

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.

This memo provides the 2025 IRS compensation and benefit limits applicable to Massachusetts retirement systems under Chapter 46 of the Acts of 2002. The general IRC Section 401(a)(17) compensation limit for 2025 is $350,000, and the IRC Section 415 benefit limit for a member retiring at age 65 is $280,000 per year (reduced for retirement before age 62). These limits are indexed annually and generally affect only the highest-paid employees.

This memo establishes the 2025 cap on 'regular compensation' for members who joined a retirement system after January 1, 2011. Under Section 23 of Chapter 131 of the Acts of 2010, regular compensation for post-2011 members may not exceed 64% of the federal 401(a)(17) limit, which for 2025 results in a $224,000 cap. Boards must apply this limit when calculating contributions and retirement benefits for affected members.

PERAC notifies boards that the Social Security Administration's 2025 COLA, based on the CPI-W, is 2.5%, which sets the maximum COLA that retirement systems may grant under G.L. c. 32, § 103(c) effective July 1, 2025. Boards may vote to increase this rate up to 3.0% pursuant to § 103(i), with proper notice to the legislative body, but must complete this process before June 30, 2025. Each board must notify PERAC of its COLA decision within 30 days.

PERAC introduces a new dedicated PROSPER panel for retirement boards to electronically upload investment manager statements, starting with January 2025 cash books. This replaces the prior practice of submitting statements through various ad-hoc methods, centralizing documentation and streamlining cash book reporting. Boards only need to submit statements for non-PRIM investments; PERAC receives PRIM statements directly. Staff with the Finance role in PROSPER will have automatic access, and a user manual is attached.

PERAC requests that all boards submit actuarial data as of December 31, 2024 — covering active members, retirees/survivors, and disability retirees — via the PROSPER portal by March 31, 2025, using the standard PERAC record format. After submission, boards will receive data analysis reports through PROSPER identifying errors, warnings, and questionable items for review and correction. Boards scheduled for a 2025 PERAC actuarial valuation should have already received a separate data request.

PERAC distributes an updated April 2025 Tobacco Company List under Chapter 119 of the Acts of 1997, which prohibits retirement systems from making new investments in companies deriving more than 15% of revenue from tobacco sales. This list supersedes all prior versions and is effective upon receipt; boards must forward it to their investment advisors. PERAC will assess portfolios for compliance during audits, and any non-compliant investments must be divested in a prudent manner after consulting PERAC.

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

PERAC alerts boards to a recent attempted fraudulent capital call scam targeting a retirement board, in which an email impersonated an investment consultant employee to solicit a fund transfer; the attempt was caught due to staff vigilance. Additionally, an investment manager reported two fraudulent capital call attempts impersonating one of its own employees. Boards should verify all financial requests and correspondent identities, review Memo 30/2021 best practices, and report any cyber intrusion or attempted fraud to PERAC.

The Massachusetts Legislature extended the Open Meeting Law waivers to June 30, 2027, through Chapter 2 of the Acts of 2025. Retirement boards may continue to hold public meetings without a physical quorum or a physically present chair, provided the same remote participation and public access conditions in place since March 2020 are met. If a meeting is held in a physically accessible public location without alternative access, a physical quorum is required.

This memo provides the training schedule, options, and requirements for retirement board members to fulfill the Chapter 32 mandatory training obligation for the second quarter of 2025 (18 total credits per term, minimum 3 per year). The memo lists scheduled live webinars, pre-approved online training resources, the June 2025 MACRS conference (Hyannis), the Conflict of Interest training, and guidance on submitting Training Affidavits in PROSPER. No board action is required beyond ensuring members register for and complete qualifying training.

PERAC updates the forms for disability retirement applications to implement Chapter 149 of the Acts of 2024, which created an enhanced accidental disability benefit for firefighters, EMTs, licensed health care professionals, and certain police officers who suffer catastrophic, life-threatening, or life-altering bodily injuries as a direct result of an intentional violent attack with a dangerous weapon. Updated forms include the Member's Application for Disability Retirement, Physician's Statement, Employer's Statement, and a new Regional Medical Panel Certificate specifically for Violent Act Injury applications. Boards must discontinue use of prior versions of these forms immediately.

PERAC distributes an updated July 2025 Tobacco Company List, replacing the April 2025 version. The same statutory prohibition under Chapter 119 of the Acts of 1997 applies: retirement systems may not make new investments in companies deriving more than 15% of revenue from tobacco. Boards must forward the updated list to their investment advisors and confirm it supersedes any prior version they may be using.

PERAC clarifies that its Calculation Unit reviews benefit calculations only for reasonableness — not as a full audit — and will update its approval letters to make this distinction explicit. Boards should not rely on a benefit calculation approval as a guarantee against future audit findings. The Calculation Unit will selectively undertake deeper reviews of complex calculations and can accept flagged cases on a limited basis; boards may contact the Director of Audits or PERAC's actuary with questions.

PERAC reports that a retirement board suffered a ransomware attack by an unauthorized third party who encrypted network files; fortunately, no funds were lost and no data was misused. The board's preparedness — including offsite backups, a disaster recovery plan, cyber insurance, and immediate engagement of legal counsel, law enforcement, IT providers, and PERAC — enabled a swift and organized response. PERAC urges all boards to ensure data backups, review business continuity plans, assess cyber insurance coverage, and maintain accessible emergency contact information.

PERAC releases updated Member Refund and Beneficiary Refund forms, along with a revised IRS Special Tax Notice, reflecting recent federal tax changes under the SECURE and SECURE 2.0 Acts, particularly regarding pre-tax and post-tax contribution treatment for rollovers and direct payments. All boards must use these updated forms in place of prior versions, available on the PERAC website. The IRS Special Tax Notice must be individually provided to each member or beneficiary applying for a refund; electronic delivery is permitted if Treasury Regulation requirements are satisfied.

This memo provides the training schedule and resources for the third quarter of 2025 to help board members meet the Chapter 32 mandatory training requirements. Highlights include the September 17, 2025 Emerging Issues Forum in Westborough, New Administrator Training on August 20, 2025 in Northampton, and a range of webinars from PERAC, AGO, OIG Academy, NCTR, and other organizations. Board members should register through PROSPER and submit Training Affidavits for pre-recorded or externally provided training.

Section 26 of Chapter 9 of the Acts of 2025 (the FY2026 Budget) amends the definition of 'wages' in G.L. c. 32, § 1 to clarify that accrued sick, personal, or vacation leave constitutes regular compensation when used — except when used as a supplement to Workers' Compensation under Chapter 152. This supersedes Memo #23/2023 and means that accrued leave used to supplement PFML payments is now regular compensation effective July 1, 2025, requiring retirement deductions to be withheld from such supplemental leave payments.

PERAC alerts boards to a direct-deposit fraud scheme in which a fraudster impersonated a retirement board employee and tricked a colleague into changing the employee's direct deposit information to a fraudulent account, resulting in an intercepted paycheck. The memo describes the specific methods used — email impersonation and use of Green Dot Bank — and urges boards to strengthen verbal confirmation procedures for direct deposit changes and to apply extra scrutiny to any request involving Green Dot Bank. Boards should review their identity verification policies, especially comparing procedures for retirees versus staff.

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.

PERAC has issued an updated Tobacco Company List dated October 2025, which replaces all previously distributed lists and is effective upon receipt. Under Chapter 119 of the Acts of 1997, retirement systems are prohibited from making new investments in stocks, securities, or other obligations of any company that derives more than 15% of its revenue from tobacco products. Boards must forward the list to their investment advisors and note that the list is strictly for Massachusetts public fund clients only. PERAC will review portfolios for compliance during audits and any non-compliant holdings must be divested in a prudent manner after consulting with PERAC.

PERAC's 4th Quarter 2025 training memo reminds retirement board members of their statutory obligation under Chapter 32 to complete 18 credits over their term and at least 3 credits per year. The memo lists live webinars, on-demand online courses, and conferences scheduled from October through December 2025, including the MACRS Fall Conference in Springfield (December 7–10) offering up to 9 credits. Board members must use PROSPER to register and submit Training Affidavits for non-PERAC-sponsored sessions; the next New Administrator Training is November 5, 2025 in Danvers.

PERAC is requesting boards complete the FY27 appropriation questionnaire through PROSPER to allow PERAC to calculate the amounts that governmental units must appropriate under G.L. c. 32 §§ 22D, 22(6A)(b), or 22F. Boards will receive the completed FY27 appropriation letter back through PROSPER once reviewed; PERAC will no longer distribute the letter to other interested parties — the board is responsible for forwarding it. Five-year projections are no longer included in the memo but remain in the system's funding schedule.

PERAC's annual pension fraud awareness campaign is underway with the theme "See Something Fishy?" Boards are asked to display the enclosed posters and brochures prominently in their offices. The PERAC fraud hotline is 1-800-445-3266 and the email is pensionfraud@mass.gov; digital materials for social media use will be emailed separately. County and regional systems will receive additional materials to distribute to associated governmental units.

PERAC has issued updated lists of public employees ineligible to join a Chapter 32 retirement system due to forfeiture under G.L. c. 32, § 15 — typically resulting from misappropriation of funds or conviction of certain crimes. Boards must review the attached alphabetical and board-sorted lists against their active membership. Any match must be reported to PERAC's Doreen Duane with the member's full name and last four digits of SSN for confirmation before any action is taken.

Free cybersecurity awareness training is again available in 2026 for retirement board administrators and staff through EOTSS's Cybersecurity Awareness Program. Boards must designate a local coordinator, and participants must have an email tied to the board's domain (not Gmail or Yahoo). Two informational webinars are scheduled: November 18 at 10 a.m. and December 15 at 2 p.m. Applications are reviewed on a rolling basis until licenses are exhausted — boards should apply promptly.

Chapter 73 of the Acts of 2025, effective November 25, 2025, made two significant changes to the Violent Act Injury disability benefit: it revised the definition of "Violent Act Injury" in G.L. c. 32, § 1 (removing the alternative "life altering" standard and narrowing weapon language), and it extended eligibility to Massachusetts State Police officers via new G.L. c. 32, § 26(2½). The new provisions apply to any member not yet approved for disability as of November 25, 2025. PERAC is updating affected disability forms and will issue a new memo superseding Memo #15/2025 once complete.

PERAC is proposing a new subsection to 840 CMR 28.00 (Electronic Signatures) that would waive the witness signature requirement for forms submitted electronically, provided a security procedure as defined in 840 CMR 28.02 is in place. This directly affects forms such as the Beneficiary Selection Form for Refund of Accumulated Deductions. A public hearing is scheduled for January 7, 2026 at 10 a.m. via remote access; written comments are accepted through January 9, 2026 at 5 p.m.

Boards must review and update their disability retiree records in PROSPER for 2025, including address changes, deaths, nursing home placements, waived allowances, returns to active status, and Power of Attorney updates. All changes must be returned to PERAC's Sandra King by January 16, 2026, to ensure accuracy before the mailing of 2025 Annual Statements of Earned Income (91A forms). PERAC will mail 91A forms by end of February 2026; electronic filing is strongly encouraged and available to all disability retirees.

PERAC's Q1 2026 training memo outlines live webinars, on-demand training, and conferences available January through March 2026 for retirement board members to meet their Chapter 32 educational credit requirements (18 over a term, minimum 3 per year). The next New Administrator Training is March 3, 2026 in Norwood, MA. Board members must use PROSPER to register and submit Training Affidavits for non-PERAC sessions; Conflict of Interest training certificates are now required every two years through the State Ethics Commission online portal.

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

This memo sets the 2024 "regular interest" rate at 0.1% for regular and additional deductions made after January 1, 1984, as required by G.L. c. 32, § 22(6)(b). The rate is derived from the average rates paid on individual savings accounts at a representative sample of at least 10 financial institutions. Boards must apply this rate to accumulated total deductions for refunds, retirements, and year-end crediting on December 31, 2024.

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

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

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

This memo notifies retirement boards of the 2024 Cost of Living Adjustment (COLA) available under G.L. c. 32, § 103(c). The Social Security Administration's CPI-W increase was 3.2%, but the maximum COLA a Massachusetts retirement board may grant is capped at 3.0%, effective July 1, 2024. Boards wishing to adopt the COLA must vote to do so in a properly posted public meeting before June 30, 2024, and must report their decision to PERAC through the new PROSPER portal within 30 days.

PERAC distributes the updated 2024 worksheets and cumulative interest factor sheets for calculating buyback and make-up repayments under the various provisions of G.L. c. 32, §§ 3 and 4. Boards should use buyback interest for make-ups under § 4 provisions, while certain § 3 make-ups (covering prior service, military service, and similar situations) may use either buyback or actuarial interest depending on circumstances described in Memo #23/2012. The packet includes three repayment worksheets each for buyback and actuarial interest, plus separate cumulative interest factor pages for each method.

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

PERAC requests that all retirement boards submit actuarial data for active members, retirees, survivors, and disability retirees as of December 31, 2023, by March 31, 2024. Data should be submitted through the PROSPER portal in the standard PERAC record format. After submission, boards will receive data analysis reports in PROSPER to review and correct any errors; PERAC notes that boards scheduled for a full actuarial valuation in 2024 will have received a separate data request.

PERAC distributes the updated April 2024 Tobacco Company List, which supersedes all prior versions and is effective upon receipt. Under Chapter 119 of the Acts of 1997, retirement systems are prohibited from making new investments in any company that derives more than 15% of its revenue from tobacco product sales. Boards must forward the list to their investment advisors and, if any portfolio holdings are found to be non-compliant, must consult with PERAC before divesting in a prudent manner. The list covers more than 100 companies across roughly 30 countries.

This memo provides the 2nd Quarter 2024 mandatory training schedule for retirement board members, who are required by Chapter 32 to earn 18 credits over a board term and at least 3 credits each year. Upcoming opportunities include live webinars on the Open Meeting Law and disability basics, the MACRS Spring Conference (June 1–5 in Hyannis, which can yield up to 9 credits), and several pre-approved on-demand courses. Board members must register under their full name and submit Training Affidavits in PROSPER for any training not automatically tracked by PERAC.

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

PERAC announces amendments to five regulations effective March 29, 2024. Notable changes include: updated travel rules (840 CMR 2.00) including IRS-rate mileage and prohibition on reimbursing personal accommodations; repeal of the now-obsolete $30,000 salary cap regulation (840 CMR 8.00), service-after-age-70 regulation (840 CMR 11.00), and most of the age-65-to-70 service regulation (840 CMR 12.00); and significant updates to the Miscellaneous regulation (840 CMR 15.00), including replacing notarized affidavits with signed attestations subject to 5% random audit, a new credit card usage subsection requiring PERAC-approved supplemental regulations, and a new non-disability hearing procedure. Boards must review their supplemental regulations and submit amendments to PERAC as needed.

PERAC distributes the updated July 2024 Tobacco Company List, which supersedes all prior versions and is effective upon receipt. Under Chapter 119 of the Acts of 1997, Massachusetts retirement systems are prohibited from making new investments in any company that derives more than 15% of its revenue from tobacco product sales. Boards must share the list with their investment advisors and, if any holdings are found non-compliant, must consult with PERAC before divesting. This mid-year update replaces the April 2024 list issued with Memo #10.

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

This memo provides the 3rd Quarter 2024 mandatory training schedule for retirement board members, who must earn 18 credits over their term and at least 3 per year. Key offerings include July and August webinars on open meeting law, fiduciary duty, and procurement, plus the PERAC Emerging Issues Forum on September 18 in Westborough (3 credits). PERAC is also launching a new New Administrator Training series, with the first session on August 21 in Northampton, designed for staff with fewer than five years of experience. All non-live-PERAC training requires a Training Affidavit submitted through PROSPER.

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

PERAC releases an updated Application for Reinstatement to Service form under G.L. c. 32 § 105, effective July 1, 2024 through June 30, 2025. This form is used when a superannuation or termination retiree wishes to return to active public employment; signing it converts the individual from retiree status back to member-in-service status. Because reinstatement may require repayment of large sums and mandates at least five years of subsequent full-time employment, boards are urged to counsel members carefully before they proceed.

The FY25 state budget, signed July 29, 2024, included a 3% COLA for State and Mass Teachers' Retirement System retirees, which triggers an increase in the supplemental dependent allowance for accidental disability retirees and accidental death survivors. Effective July 1, 2024, retirement systems that have accepted G.L. c. 32, §§ 7(2)(a)(iii) or 9(2)(d)(ii) must pay $1,125.36 per year per eligible child — an increase from the prior year's amount. Boards that have accepted these provisions should update their payment amounts accordingly.

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

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

The HERO Act (Chapter 178 of the Acts of 2024), signed August 8, 2024, makes substantial changes to veterans' creditable service buybacks under Chapter 32. It replaces the old 180-day window with a new deadline of within one year of vesting (effectively 11 years of creditable service), and creates a one-year grace period — until August 8, 2025 — for active members who missed their original opportunity. Most urgently, boards must send written notice to all active members by November 6, 2024, using the sample notice attached, and must begin providing veterans' buyback information to all new members at enrollment.

PERAC distributes the updated October 2024 Tobacco Company List, which supersedes all prior versions and is effective upon receipt. Under Chapter 119 of the Acts of 1997, Massachusetts retirement systems are prohibited from making new investments in any company deriving more than 15% of its revenue from tobacco product sales. Boards must share the list with their investment advisors and consult with PERAC before divesting any non-compliant holdings. This replaces the July 2024 list issued with Memo #14.

This memo provides the 4th Quarter 2024 mandatory training schedule for retirement board members, who must earn 18 credits over their term and at least 3 per year. Key offerings include a PERAC Legislative Update webinar on October 23, the New Administrator Training in Danvers on November 19, and the Fall MACRS Conference in Springfield December 8–11 (potentially up to 9 credits). New on-demand resources include a PERAC webinar on the HERO Act/Veterans' Buyback changes. Board members must submit Training Affidavits in PROSPER for all non-PERAC-live training.

The SJC's September 2024 ruling in Hartnett v. CRAB overturned PERAC's longstanding interpretation of the G.L. c. 32, § 5(2)(a) anti-spiking provision, holding that "2 consecutive years" means consecutive calendar years — not consecutive years of creditable service. As a result, members who had anti-spiking applied based on salary differences between non-consecutive calendar years (e.g., a break in service followed by a return just before retirement) were improperly penalized. Boards must identify affected retirees, recalculate their allowances to remove any improper downward adjustment, and pay the underpayment plus correction-of-errors interest, offsetting any contributions previously refunded.

The FY25 budget (Chapter 140 of the Acts of 2024) expands the return-to-service options for disability retirees under G.L. c. 32, § 8. A disability retiree may now request evaluation for a different, specifically identified position — even with a different employer or in a different retirement system — rather than being limited to the position from which they retired. If found medically able, the member may return to active service, the original disability pension ceases, and upon eventual superannuation retirement both systems will share the pension cost under the existing multi-system rules. The CME and RTS processes remain unchanged; boards should direct all related inquiries to PERAC, which is updating its forms.

PERAC is transitioning the FY26 appropriation questionnaire and letter process entirely to PROSPER, replacing the prior paper/email workflow. Boards should complete and submit the questionnaire, which was sent via PROSPER, as soon as possible so PERAC can calculate and return the FY26 appropriation amounts under G.L. c. 32, §§ 22D, 22(6A)(b), or 22F. Two process changes to note: the 5-year projection page will no longer be included in the appropriation memorandum, and starting this year PERAC will only send the appropriation letter to the board — boards are responsible for forwarding copies to the appropriate governmental bodies.

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

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

PERAC distributes the updated January 2025 Tobacco Company List, which supersedes all prior versions and is effective upon receipt. Under Chapter 119 of the Acts of 1997, Massachusetts retirement systems are prohibited from making new investments in any company deriving more than 15% of its revenue from tobacco product sales. Boards must forward the list to their investment advisors and consult with PERAC before divesting any non-compliant holdings in a prudent manner. This update replaces the October 2024 list issued with Memo #24.

This memo provides the 1st Quarter 2025 mandatory training schedule for retirement board members, issued at the close of 2024. Key upcoming sessions include a PERAC "Preparing the Annual Statement" webinar on January 22, a "Recent Cases of Interest" webinar on February 20, a PERAC Cybersecurity webinar on March 19, and the final New Administrator Training in this series on March 26 in Norwood. Board members must earn at least 3 credits per year and 18 credits per term; all non-PERAC-live training requires a Training Affidavit submitted through PROSPER.

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

This memo notifies all retirement boards and public employers that the pandemic-era waiver of post-retirement earnings limitations for superannuation retirees expired on December 31, 2022, and the standard G.L. c. 32, §§ 91(b) and (c) restrictions are fully back in effect for 2023 and beyond. Post-retirement public employment is capped at 1,200 hours per calendar year, and combined earnings and retirement allowance cannot exceed the current salary for the retiree's former position plus $15,000. Boards are urged to share this memo with all employer units in their systems and to rigorously scrutinize hours and earnings paid to public sector retirees.

This memo announces the 2023 federal compensation and benefit limits that apply to Massachusetts public retirement systems under Chapter 46 of the Acts of 2002, which brought G.L. c. 32 into compliance with IRC requirements. The general compensation limit under IRC § 401(a)(17) for 2023 is $330,000, and the annual benefit limit under IRC § 415 is $265,000 for members retiring at age 65 (reduced for earlier retirement). These limits affect only the highest-paid employees and no board action is required beyond awareness that they are in effect.

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

This memo provides the annual COLA notice required under Chapter 17, Section 8(c) of the Acts of 1997, advising retirement boards that the Social Security Administration announced an 8.7% CPI-W increase, which triggers the maximum statutory COLA of 3.0% available under G.L. c. 32, § 103(c) effective July 1, 2023 (FY24). Boards wishing to grant the COLA must vote to do so in a properly posted public meeting before June 30, 2023, and must notify PERAC of their decision within 30 days; notification to the legislative body is not required when the SSA COLA exceeds 3.0%.

This memo announces that retirement boards will soon be able to submit Cash Books and Annual Statements entirely through PROSPER, including board approval of the Annual Statement within the system, with the new module expected to be available in March 2023. Boards are instructed not to submit 2022 Annual Statements until after the module launches and they have attended or viewed the training webinar scheduled for February 16, 2023. Staff who currently hold the disability role in PROSPER will automatically receive the new Finance role; additional staff needing access should submit the Individual Account Request Form to PERAC.

This memo transmits the 2023 buyback and make-up repayment worksheets and cumulative interest factor sheets for use in calculating buyback and make-up payments under the various creditable service provisions of G.L. c. 32. Boards should use these updated worksheets for all buyback and make-up calculations in calendar year 2023, noting that some provisions use buyback interest exclusively while others allow either buyback or actuarial interest depending on circumstances described in Memo #23/2012. Three repayment worksheets and corresponding cumulative interest factor sheets are provided for each interest type due to varying investment return assumptions.

This memo sets the "regular interest" rate for calendar year 2023 at 0.1%, as determined by PERAC in consultation with the Commissioner of Banks based on the average rates paid on individual savings accounts at a representative sample of at least ten financial institutions, pursuant to G.L. c. 32, § 22(6)(b). This rate applies to accumulated total deductions and accrued interest for refunds and retirements credited during 2023, and to outstanding balances as of December 31, 2022 credited on that date. No action is required of boards beyond applying this rate in their calculations.

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

This memo transmits the April 2023 Tobacco Company List, which supersedes all prior versions and takes effect upon receipt, prohibiting retirement systems from making any new investments in companies deriving more than 15% of their revenue from tobacco products as required by Chapter 119 of the Acts of 1997. Boards must forward the list to their investment advisors (noting it is for Massachusetts public fund clients only), and PERAC will assess compliance during audits; any portfolio found out of compliance must be divested in a prudent manner after consulting with PERAC. The 15% rule is applied to pooled funds based on the overall pool, not individual holdings.

This memo lists available training opportunities for retirement board members to fulfill the mandatory Chapter 32 educational credit requirements for Q2 2023 (April–June), which require 18 credits over a board term and at least 3 credits per year of service. Highlighted events include PERAC webinars, AGO Open Meeting Law sessions, MCPPO courses, the NCPERS TEDS/NAF/ACE Conference, a Veterans' Benefits webinar on May 25, and the annual MACRS Conference (June 4–7 in Hyannis, worth up to six credits). Board members can also complete pre-approved on-demand training through the AGO, IGO, NCTR, and the State Ethics Commission's new Conflict of Interest online system.

This memo advises retirement boards that Chapter 2 of the Acts of 2023, signed March 29, 2023, extends the Open Meeting Law waivers — originally enacted during the COVID-19 state of emergency — through March 31, 2025. Boards may continue to hold meetings without a physical quorum or a physically present chair, provided remote participation is utilized and the public has adequate alternative means of access; if a meeting is held in a publicly accessible physical location without alternative remote access, a physical quorum is required. No board vote is needed to continue using remote meeting options under the extended waiver.

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

This memo instructs retirement boards to complete the 2022 Salary Verification task in PROSPER for disability retirees, entering each retiree's 2022 annual pension, annuity, and current salary (including all incentives and COLA) so that PERAC can determine whether earnings when combined with the retirement allowance exceed the G.L. c. 32, § 91A limit of the retiree's former position salary plus $15,000. If a retiree's allowable earnings have been exceeded, PERAC will issue an Excess Earnings letter and the board must notify the retiree in writing and provide an opportunity for a hearing before commencing any recovery of excess amounts. Boards must report their action through the PROSPER task system.

This memo transmits the July 2023 Tobacco Company List, which supersedes all prior versions and takes effect upon receipt, prohibiting retirement systems from making any new investments in companies deriving more than 15% of their revenue from tobacco products under Chapter 119 of the Acts of 1997. Boards must forward the list to their investment advisors (for Massachusetts public fund use only), and PERAC will assess portfolio compliance during audits; non-compliant portfolios must be divested in a prudent manner after consulting with PERAC. This is the second tobacco list issued in 2023, following the April 2023 list in Memo #9/2023.

This memo alerts retirement boards to 91A tasks appearing in PROSPER for disability retirees who have failed to file the 2022 Annual Statement of Earned Income or whose reported earnings may require an allowance adjustment under G.L. c. 32, § 91A. Boards must provide written notice and an opportunity for a hearing to non-compliant members; PROSPER will continue sending task alerts every 30 days until a response is entered, and the board must document its action through PROSPER. The memo also previews upcoming Salary Verification tasks in PROSPER and outlines the process for entering 2022 pension and salary data to determine whether disability retirees have exceeded their allowable earnings.

This memo lists available training opportunities for retirement board members for Q3 2023 (July–September) to fulfill Chapter 32's mandatory educational credit requirements of 18 credits per term and at least 3 per year. Highlighted events include a July 13 Fiduciary Duty webinar co-hosted with the Inspector General's Office, a New Administrator Training in Northampton on August 23, and the Emerging Issues Forum in Worcester on September 21 (registration opens July 10); the memo also previews Q4 conferences including the MACRS Fall Conference in Springfield (October 1–4). Board members may also earn credits through on-demand training available through the AGO, NCTR, PERAC, and the State Ethics Commission's online Conflict of Interest system.

This memo transmits the updated Application for Reinstatement to Service from Superannuation/Termination Retirement under G.L. c. 32, § 105, which is effective July 1, 2023 through June 30, 2024. Boards are instructed to complete the first section of the form and provide it to any interested retirees, who upon signing are converted from retiree to member-in-service status; boards should carefully counsel members about the requirements, including repayment of large amounts and the requirement to work at least five years of full-time employment before the reinstatement fully takes effect. Boards with investment return assumptions not shown on the form should contact PERAC's actuarial unit for custom factors.

This memo advises retirement boards that the FY24 budget signed by Governor Healey on August 9, 2023 includes a 3% COLA for State and Mass Teachers' Retirement System retirees effective July 1, 2023, which triggers a corresponding increase in the supplemental dependent allowance. Effective July 1, 2023, any retirement system that has accepted the supplemental dependent allowance under G.L. c. 32, §§ 7(2)(a)(iii) or 9(2)(d)(ii) must pay $1,092.60 annually per eligible dependent child. Boards that have accepted the relevant statutory provisions must update their payment amounts immediately to reflect this increase.

This memo transmits the October 2023 Tobacco Company List, which supersedes all prior versions and takes effect upon receipt, prohibiting retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco products under Chapter 119 of the Acts of 1997. Boards must forward the updated list to investment advisors (for Massachusetts public fund clients only) and PERAC will verify compliance during audits; non-compliant portfolios must be divested prudently after consulting PERAC. This is the third tobacco list issued in 2023, following the April 2023 (Memo #9) and July 2023 (Memo #14) lists.

This memo lists available training opportunities for retirement board members for Q4 2023 (October–December) to fulfill the Chapter 32 mandatory educational credit requirements. Key events include the MACRS Fall Conference in Springfield (October 1–4, up to nine credits), a New Administrator Training in Danvers on November 14, a Recent Cases of Interest PERAC webinar on December 14, and multiple OIG Academy and AGO Open Meeting Law sessions throughout the quarter. The memo also notes that the Inspector General's MCPPO program has been renamed OIG Academy, and reminds boards that credits for live PERAC webinars are automatically recorded while other trainings require a Training Affidavit in PROSPER.

This memo transmits the updated text of PERAC's travel and expense regulations at 840 CMR 2.00, showing tracked changes to the existing rules governing retirement board member and staff travel, lodging, meals, and reimbursements. Notable revisions include clarified language on board authorization procedures for travel, updated provisions for mandatory resort fees (now potentially reimbursable if they include internet/Wi-Fi), updated credit card usage rules under the newly numbered § 2.11, and refined conflict-of-interest restrictions on third-party reimbursements. Boards whose supplementary travel regulations were approved by PERAC before June 6, 2003 remain valid, and boards may adopt updated supplementary regulations consistent with the revised CMR by submitting them to PERAC for approval.

This memo requests that retirement boards submit the annual appropriation data questionnaire by October 31, 2023, which PERAC uses to calculate FY25 appropriation amounts to be assessed against governmental units under G.L. c. 32, §§ 22D, 22(6A)(b), or 22F. Boards are strongly encouraged to submit through the PERAC website rather than by mail; the previously included five-year projection page has been discontinued, and boards needing to make pension reserve fund transfers should petition PERAC's actuary for approval under § 22(6A)(b). Timely submission is critical to ensure accurate FY25 funding schedule calculations.

This memo addresses a change in Massachusetts Paid Family and Medical Leave (PFML) law — effective November 1, 2023 under Chapter 55 of the Acts of 2023 — which now allows employees on PFML to supplement their benefits with accrued paid leave (sick, vacation, PTO, etc.), up to the employee's Individual Average Weekly Wage. Despite this change, PERAC clarifies that neither PFML benefits nor supplemental accrued leave payments constitute "regular compensation" under Chapter 32, relying on SJC precedent from Vernava I and Vernava II, because the employee is not performing services during leave; therefore, the period of PFML with supplemental pay does not generate creditable service. No board action is required beyond ensuring that retirement benefits are not enhanced based on income received while on PFML leave.

This memo establishes PERAC's policy on the use of Outsourced Chief Investment Officers (OCIOs) by retirement boards, describing two permissible models: a "Proprietary OCIO" (which invests in the OCIO's own funds without asset limits) and a "Full OCIO" (which acts as a discretionary investment manager, limited to 10% of board assets). Boards selecting either type of OCIO must follow the same Section 23B procurement process as for any investment manager, and the OCIO must meet nine specific requirements, including fiduciary acknowledgment, flat-fee compensation, full disclosure submissions, and a board-approved process for reviewing manager selections. This memo supersedes Memorandum 18 of 2014 with respect to discretionary manager selections.

This memo informs retirement board administrators and staff of a free cybersecurity training opportunity through the state's Municipal Cybersecurity Awareness Grant Program, offered by the Executive Office of Technology Services and Security (EOTSS), with optional informational webinars on November 8 and 15 and December 6 and 13, 2023. Applications are accepted until January 10, 2024 or until capacity is reached; participants must have a retirement board domain email address and designate a local coordinator. PERAC encourages participation based on positive feedback from boards that completed the program previously, including the Middlesex County Retirement Board.

This memo launches PERAC's 2023 pension fraud prevention campaign, themed "Pension Fraud is a Crime. Be a Superhero!", and encloses posters, brochures, and Referral Report of Potential Fraud forms for boards to display and distribute. Boards are asked to post the materials prominently, share the fraud reporting hotline (1-800-445-3266) and email (PensionFraud@mass.gov), and refer suspected fraud to PERAC's Fraud Unit; county and regional systems will receive additional materials for their constituent governmental units under separate cover. This is part of PERAC's ongoing statutory obligation to maintain a confidential fraud reporting hotline, which has operated since 1998.

This memo explains the implementation of Section 82 of Chapter 28 of the Acts of 2023, which gives active members who elected to stop retirement contributions at age 70 under the repealed G.L. c. 32, § 90G 3/4 a one-time opportunity to rescind that election and receive creditable service for years worked after age 70. To be eligible, members must have maintained continuous service since their election, be active as of November 29, 2023, and elect to restart contributions and make up all missed contributions plus buyback interest by January 29, 2024 (60 days from PERAC's IRS clearance date). Boards must immediately identify any qualifying active members and provide them with the necessary information and the attached application form.

This memo requests that retirement boards review and update their disability retiree records in PROSPER by January 15, 2024 to reflect all changes that occurred in 2023, including deaths, nursing home placements, allowance waivers, returns to active status, and address changes. Boards can now update addresses directly in PROSPER via the Member Update function; status changes and discrepancies should be annotated on the exported member list and emailed to Sandra King, and boards with no changes must still send a confirmation email. Accurate data must be submitted by the deadline to ensure PERAC's disability retiree database is correct before the February mailing of the 2023 Annual Statements of Earned Income (91A forms).

This memo transmits the January 2024 Tobacco Company List, which supersedes all prior versions and takes effect upon receipt, prohibiting retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco products under Chapter 119 of the Acts of 1997. Boards must forward the list to investment advisors (for Massachusetts public fund clients only), and PERAC will assess portfolio compliance during audits; boards found out of compliance must divest prudently after consulting PERAC. This is the fourth and final tobacco list issued in the 2023 memo series, replacing the October 2023 list from Memo #19/2023.

This memo lists available training opportunities for retirement board members for Q1 2024 (January–March) to satisfy the Chapter 32 mandatory educational credit requirements, including a January 18 Contract Administration webinar co-hosted by PERAC and OIG, AGO Open Meeting Law sessions, a February 15 Annual Statement webinar, NASRA's Winter Meeting in Washington D.C. (February 24–26), and a New Administrator Training in Norwood on March 21. Pre-approved on-demand training is also available through the AGO, IGO, National Institute on Retirement Security, and PERAC's website; the Conflict of Interest online training through the State Ethics Commission remains available for three credits once every two years. Board members should register through PROSPER for PERAC-hosted events.

This memo alerts all retirement boards to an attempted cyberattack in which a fraudster impersonated a board administrator to obtain funds from the board's custodian. Boards are directed to implement secondary confirmation measures — including phone verification — for all financial and investment transactions, and to treat any messages expressing urgency or requesting wire changes with heightened scrutiny. PERAC urges boards to share the memo with their investment providers and immediately review transaction protocols.

This memo announces the 2022 federal compensation and benefit limits applicable to Massachusetts public retirement systems under Chapter 46 of the Acts of 2002. The general compensation limit under IRC § 401(a)(17) is $305,000 for 2022, while the § 415 benefit limit is $245,000 per year for members retiring at age 65 (reduced for retirement before age 62). These limits affect only the highest-paid employees and are indexed annually.

This memo notifies retirement boards that the 2022 COLA under G.L. c. 32, § 103(c) is capped at 3.0%, despite the Social Security Administration announcing a 5.9% CPI-W adjustment. Boards wishing to adopt the COLA must vote in a properly posted public meeting with 30 days' notice to the legislative body, both steps completed before June 30, 2022 for a July 1 effective date. All boards must notify PERAC of their decision within 30 days.

This memo establishes the "regular interest" rate for calendar year 2022 at 0.1%, as determined by PERAC in consultation with the Commissioner of Banks pursuant to G.L. c. 32, § 22(6)(b). This rate applies to accumulated total deductions and accrued interest for regular and additional deductions made after January 1, 1984, and must be credited for all refunds, retirements, and outstanding year-end balances in 2022.

This memo outlines mandatory training opportunities for retirement board members in the first quarter of 2022, reminding boards that Chapter 32 requires 18 credits over a board member's term and at least 3 credits per year. Scheduled sessions include webinars on Open Meeting Law, Conflict of Interest, procurement, and new offerings on cybersecurity and internal control plan development in collaboration with the State Comptroller and State Police. Board members must register through PERAC's website and submit Training Affidavits in PROSPER for any non-live sessions.

This memo distributes the 2022 buyback and make-up repayment worksheets and cumulative interest factor sheets for use in calculating service purchases under various provisions of G.L. c. 32. Boards must use the buyback interest or actuarial interest worksheet depending on the specific statutory subsection involved, with three repayment worksheets provided for each rate type along with cumulative interest factor sheets. Questions should be directed to John Boorack at PERAC.

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

This memo notifies retirement boards that the Open Meeting Law waivers have been extended to July 15, 2022 under Chapter 22 of the Acts of 2022, allowing boards to continue holding meetings without a physical quorum or the chair physically present provided remote participation is used and the public has adequate alternative access. Where a meeting is held in a publicly accessible physical location, alternative public access is encouraged but not required. Boards meeting in person without alternative access must have a physical quorum present.

This memo transmits the quarterly Tobacco Company List dated July 2022, which replaces all previously issued lists and takes effect immediately upon receipt. Retirement boards are prohibited under Chapter 119 of the Acts of 1997 from making new investments in companies deriving more than 15% of revenue from tobacco products, and boards must forward this list to their investment advisors. PERAC will assess each board's portfolio for compliance as part of its audit process, and any non-compliant board must divest in a prudent manner after consulting PERAC.

This memo outlines mandatory training opportunities for retirement board members in the second quarter of 2022, including webinars on Open Meeting Law, Conflict of Interest, procurement fraud, and public sector ethics, as well as the return of the in-person MACRS Spring Conference in Hyannis (June 12–15) offering up to six educational credits. Board members must register through links on the PERAC website and submit Training Affidavits in PROSPER for recorded sessions, with a certificate required for any non-PERAC training.

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

This memo transmits the quarterly Tobacco Company List dated July 2022, which supersedes all prior lists and takes effect immediately upon receipt by retirement boards. Under Chapter 119 of the Acts of 1997, boards are prohibited from making new investments in companies deriving more than 15% of revenue from tobacco products, and must forward this list to their investment advisors for use only with Massachusetts public fund clients. PERAC will review each board's portfolio for compliance during audits and requires non-compliant boards to divest in a prudent manner after consulting PERAC.

Chapter 80 of the Acts of 2022, signed June 7, 2022, waives the post-retirement earnings and hours restrictions of G.L. c. 32, § 91(b) and (c) for superannuation retirees working in the public sector for calendar year 2022, effective retroactively to January 1, 2022. The waiver will remain in place through December 31, 2022 or up to 90 days after the end of the declared Public Health Emergency, whichever comes first, and does not apply to disability retirees. Compliance with post-retirement restrictions remains the statutory responsibility of the employee and the employer.

This memo announces the 3rd Quarter 2022 mandatory training schedule for retirement board members, who are required by Chapter 32 to earn at least 3 credits per year of service and 18 credits over each full term. The schedule includes webinars, in-person sessions, and conferences from July through October 2022, highlighted by the return of the in-person Emerging Issues Forum on September 15, 2022 at the College of the Holy Cross in Worcester. Board members must register for live events through PROSPER and submit Training Affidavits for pre-recorded or independently attended sessions.

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

This memo updates Memo #18 of 2022 to inform retirement boards that the Legislature and Governor extended the Open Meeting Law virtual meeting waivers through March 31, 2023, via Section 4 of Chapter 107 of the Acts of 2022. Until that date, retirement boards may continue to hold meetings without a physical quorum or the chair physically present, provided remote participation and adequate alternative means of public access are utilized. Boards that choose to meet in a publicly accessible location without alternative means of access must have a physical quorum present.

This memo announces an updated version of the PERAC Application for Reinstatement to Service from Superannuation/Termination Retirement under G.L. c. 32, § 105, effective July 1, 2022 through June 30, 2023. Boards are directed to carefully counsel members interested in reinstatement, as applicants must repay retirement allowances received and work at least five years of full-time employment after reinstatement. Upon signing the form, the member transitions from retiree status back to member-in-service status.

This memo provides a critical update to Memo #14 of 2022, informing boards that Section 149 of Chapter 126 of the Acts of 2022 (the FY2023 budget), signed July 28, 2022, protects all retirees who retired prior to July 1, 2022 from any reduction, modification, or recoupment of allowances due to the Vernava decisions. As a result, the instructions in Memo #14 regarding retired members and their beneficiaries are hereby superseded, and no retiree who retired before July 1, 2022 will lose their allowance, lose health insurance, or be required to reimburse the retirement system. All instructions in Memo #14 concerning active and inactive members who have not yet retired remain in full effect.

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 outlines mandatory training opportunities for retirement board members in the fourth quarter of 2022, including the Fall MACRS Conference in Springfield (October 2–5, up to nine credits), the NCTR 100th Conference in Tucson, and an in-person Administrator Training on November 15 in Danvers. Boards must register through PERAC's website or PROSPER, and board members attending the MACRS and Administrator Training sessions will earn educational credits automatically.

This memo distributes the updated October 2022 Tobacco Company List, which replaces all previous lists and is effective immediately upon receipt. Under Chapter 119 of the Acts of 1997, retirement systems are prohibited from making new investments in companies deriving more than 15% of their revenue from tobacco products; boards must forward the list to their investment advisors and consult with PERAC before divesting any non-compliant holdings identified in PERAC's audit process.

This memo requests that retirement boards submit appropriation data by October 31, 2022, needed for PERAC to calculate FY24 appropriation amounts for all governmental units under G.L. c. 32, §§ 22D, 22(6A)(b), or 22F. Boards should submit the questionnaire through the PERAC website rather than by hard copy, and PERAC notes it will no longer include the five-year projection page in appropriation memos — future payment projections are available in each system's current funding schedule.

This memo makes retirement board administrators and staff aware of a free state-sponsored cybersecurity training program — the Municipal Cybersecurity Awareness Grant Program offered by the Executive Office of Technology Services and Security (EOTSS). The program includes assessment, quarterly training modules, and simulated phishing campaigns over a full year or shorter periods; participants must have a retirement board domain email address, and boards must designate a local coordinator. Applications close when spaces are filled or December 31, 2022, whichever comes first.

This memo explains PERAC's newly published regulations (840 CMR 28.00) authorizing electronic signatures on retirement forms, which took effect September 30, 2022. Boards are not required to allow electronic signatures and may limit them to specific forms or prohibit them entirely; however, boards that choose to permit them must vote to do so, promulgate their own regulations specifying which forms are covered and detailing security procedures, and submit those regulations to PERAC for approval before use. Members and beneficiaries always retain the right to use a wet signature.

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.

This memo notifies boards that PERAC has filed proposed amendments to 840 CMR 3.00 (IRS Code Compliance Provisions) and 840 CMR 13.00 (Service Purchases and Buybacks) to ensure Chapter 32 plans meet IRS requirements under G.L. c. 32, § 12D. Two public hearings are scheduled via Zoom on December 15 and December 19, 2022, with written comments accepted through December 21, 2022; boards are invited to review the attached proposed amendments and submit comments to PERAC Associate General Counsel Felicia McGinniss.

This memo notifies boards that the Commission voted at its December 7, 2022 meeting to continue allowing PERAC staff to approve up to $100.00 per case for non-invasive medical testing associated with the Regional Medical Panel process under 840 CMR 10:10(3) and 10:15(1)(c). Medical panels rarely order tests directly since member providers typically supply test results; any test cost exceeding the $100.00 annual limit requires advance Commission approval.

This memo distributes the updated January 2023 Tobacco Company List, which replaces all previous lists and is effective immediately upon receipt. Under Chapter 119 of the Acts of 1997, retirement systems are prohibited from making new investments in companies deriving more than 15% of their revenue from tobacco products; boards must forward the list to their investment advisors and consult with PERAC before divesting any non-compliant holdings identified in PERAC's audit process.

This memo outlines mandatory training opportunities for retirement board members in the first quarter of 2023, including webinars on Open Meeting Law, Contract Administration, Conflict of Interest, and Fraud Awareness, as well as an in-person administrator training on March 28 in Norwood for new board staff. Board members earn three credits per session and must submit Training Affidavits in PROSPER for non-live sessions, while certificates of completion are required for any non-PERAC-sponsored training.

This memo requests that retirement boards review and update their disability retiree records in PROSPER by January 27, 2023, reflecting any address changes, deaths, nursing home placements, allowance waivers, or returns to active status that occurred during 2022. Boards can update most information directly in PROSPER; for Power of Attorney address changes, boards must contact Sandra King. Boards with no changes must email Ms. King confirming no updates, as the data must be accurate before PERAC mails the 2022 Annual Statements of Earned Income (91A) in February.

This memo transmits the second quarterly Tobacco Company List for 2021 (dated April 2021), issued pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that the list supersedes all previously distributed versions effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after consulting with PERAC.

This memo transmits the fourth quarterly Tobacco Company List for 2021 (dated October 2021), issued pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the updated list to their investment advisors, noting that it supersedes all prior versions and is restricted to use with Massachusetts public fund clients only. PERAC will assess board portfolios for compliance during audits, and any non-compliant board must divest in a prudent manner after first consulting with PERAC.

This memo distributes the January 2022 Tobacco Company List, which replaces all prior lists and takes effect upon receipt. Under Chapter 119 of the Acts of 1997, Massachusetts retirement systems are prohibited from making any new investments in stocks, securities, or other obligations of companies deriving more than 15% of their revenue from tobacco product sales; PERAC will assess board portfolios for compliance during its audit process and requires boards that are out of compliance to consult with PERAC before divesting.

This memo directs all retirement boards to review and update their disability retiree records in the PROSPER system for calendar year 2021, covering status changes such as deaths, nursing home placements, allowance waivers, returns to active service, and address changes. Boards must submit all corrections or confirm no changes to PERAC's Ms. King by January 14, 2022, so the database is accurate before PERAC mails 2021 Annual Statements of Earned Income (Form 91A) in February.

This memo notifies retirement boards of the Commission's annual determination regarding the non-invasive medical testing fee cap under 840 CMR 10:10(3) and 10:15(1)(c). At its December 8, 2021 meeting, the Commission voted to continue the existing practice of authorizing PERAC staff to approve reimbursements of up to $100.00 per case for non-invasive medical tests ordered by a Regional Medical Panel, consistent with prior years.

This memo transmits the first quarterly Tobacco Company List for 2020 (dated January 2020), issued pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that it supersedes all prior versions, effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after first consulting with PERAC.

This memo transmits the second quarterly Tobacco Company List for 2020 (dated April 2020), issued pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that it supersedes all prior versions, effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after first consulting with PERAC.

This memo transmits the third quarterly Tobacco Company List for 2020 (dated July 2020), issued pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that it supersedes all prior versions, effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after first consulting with PERAC.

This memo transmits the fourth quarterly Tobacco Company List for 2020 (dated October 2020), issued pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that it supersedes all prior versions, effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after first consulting with PERAC.

This memo explains that the FY2021 budget (Chapter 227 of the Acts of 2020, Section 68), signed December 11, 2020, extends the waiver of G.L. c. 32, § 91 post-retirement earnings and hours restrictions for superannuation public retirees working in the public sector through calendar year 2021 (or the end of the Governor's State of Emergency, whichever comes first). The waiver applies regardless of whether employment is COVID-19 related and does not apply to disability retirees; PERAC will issue a memo when the State of Emergency ends.

This memo requests that retirement boards review and update their disability retiree records in PROSPER by January 18, 2021, reflecting any address changes, deaths, nursing home placements, allowance waivers, or returns to active status that occurred during 2020. Boards can now update addresses directly in PROSPER; deceased member records require entering the date of death and uploading documentation; Power of Attorney address changes must go through Sandra King. Boards with no changes must notify Ms. King by email.

This memo outlines mandatory training opportunities for retirement board members in the first quarter of 2021, all offered virtually due to COVID-19 social distancing guidelines. Scheduled sessions include webinars on Open Meeting Law, Conflict of Interest, a Legislative Update, the Annual Statement and Cash Books, and an Administrator Roundtable; board members must register through PERAC's website links (not PROSPER) and submit Training Affidavits in PROSPER for any recorded sessions or non-PERAC trainings.

This memo transmits the Tobacco Company List dated January 2021 (issued December 30, 2020), pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that it supersedes all prior versions, effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after first consulting with PERAC.

PERAC advises that the Commission has voted to continue the practice of allowing PERAC staff to approve up to $100.00 per case for non-invasive medical testing associated with the medical panel process for 2019. Per 840 CMR 10:10(3) and 10:15(4), medical panels may suggest non-invasive tests they deem necessary, with PERAC assuming the cost up to the annually-determined limit. Any test exceeding this amount requires advance Commission approval.

PERAC announces Q1 2019 mandatory training opportunities for retirement board members. Chapter 32 requires 18 credits over a board member's term and at least 3 credits per year; failure to meet either standard results in ineligibility to serve beyond that term. Q1 events include "Chapter 32 in a Nutshell" sessions in Somerville, Hingham, Billerica, and Springfield; "PROSPER Update" sessions in Somerville, Danvers, and via webinar; and Conflict of Interest seminars at the State Ethics Commission. Online training options from the Ethics Commission, Inspector General, NCTR, CFA Institute, and the National Crime Prevention Council are also available for 3 credits each.

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 requests that retirement boards submit actuarial data for active members, retirees/survivors, and disability retirees as of December 31, 2018, by March 31, 2019, in the standard PERAC record format. Data should be submitted via the Interchange File Transfer website to PER-edoc-Actuary@per.state.ma.us. Boards scheduled for a 2019 PERAC actuarial valuation will have received a separate request. After submission, boards will receive data analysis reports to assist in reviewing and correcting any errors identified.

PERAC has set the regular interest rate for 2019 at 0.1% per G.L. c. 32, §22(6)(b), based on the average rates paid on individual savings accounts at a representative sample of at least 10 financial institutions. This rate applies to accumulated total deductions and accrued interest for refunds and retirements processed during calendar year 2019, and will also be credited on December 31, 2019 for outstanding balances as of December 31, 2018.

PERAC introduces four new general ledger accounts required for reporting 2019 activity: Account #5120 (Benefits — employer share of insurance/Medicare match for staff); Account #4701 (Carried Interest — investment general partner incentive fees); Account #4702 (Equalization Expense/true-ups — charges applied to later-joining partnership investors); and Account #4703 (Miscellaneous Investment Expenses — non-management-fee investment costs such as legal and audit). The three investment accounts close to #4820 Investment Income Control Account; Account #5120 closes to #3298 Expense Fund.

PERAC issues expanded administrative reminders covering asset management and a wide variety of retirement board activities. Key topics include: Section 23B contract expiration (April 2019 marks the seven-year term limit for many existing service provider relationships, requiring new searches); cash book submission requirements (complete packages including Trial Balances and Adjusting Journal Entries due within four weeks of month-end); monthly financial reporting to the board; vendor selection and RFP compliance under Section 23B; child support enforcement obligations before releasing accumulated deductions; management fee disclosure and accounting on Schedule 7; board meeting minutes requirements under the Open Meeting Law; executive session minutes handling; and the correct interest rate to use for refunds involving members who transferred from another system.

PERAC and the Department of Industrial Accidents (DIA) conduct an annual data match of the PERAC disability retiree database against the DIA database. Retirement boards will now receive their members' results from this match through PROSPER under Members/DIA. The report will be generated annually; boards without matches will not receive a report. Boards should follow up with their employer's Workers' Compensation Agent for any matched members whose workers' compensation status is unknown, to ensure that offsets required by G.L. c. 32, §14 are implemented promptly.

This file contains PERAC Memo #15/2020 (dated March 13, 2020) on Coronavirus contingency planning, which appears to have been stored in the 2019 source folder in error. The memo advises all retirement boards on PERAC's continuity planning amid the COVID-19 pandemic, covering Open Meeting Law remote participation (enabled by the Baker Administration's executive order), medical panel scheduling, 91A filing deadlines for disabled retirees, and recommendations for boards to prepare for potential office shutdowns. Boards were encouraged to post status updates on their websites and communicate with PERAC by email.

PERAC announces Q2 2019 mandatory training opportunities for retirement board members. Q2 events include PERAC webinars on Non-Investment Related Procurement (May 21), Post-Retirement Earnings (June 20), and Chapter 32 in a Nutshell (June 27); a State Ethics Commission Conflict of Interest seminar (May 30); the MACRS June Conference in Hyannis (June 1–5, up to 9 credits); and Attorney General Open Meeting Law trainings in Peabody, Avon, and Amherst. The 2019 PROSPER Update webinar from March 26 is now available for online viewing. Online training from the Ethics Commission, Inspector General, Attorney General, NCTR, and the National Crime Prevention Council remains available year-round.

PERAC provides an updated list of public employees who are no longer statutorily eligible to join a Chapter 32 retirement system, pursuant to G.L. c. 32, §15. Under that section, members charged with misappropriation of funds, convicted of offenses related to governmental funds, or convicted of certain enumerated crimes may lose their right to a retirement allowance and/or accumulated total deductions. Newly added individuals appear in bold on the attached list. Boards with any of the forfeited members still active in their system should contact Kim Boisvert at 617-666-4446, ext. 906 with the last four digits of the member's Social Security number for verification.

PERAC announces that Chapter 439 of the Acts of 2018, enacted January 10, 2019, amended G.L. c. 32, §20(7) to allow retirement board members to petition PERAC for a waiver of annual training credit requirements due to extenuating circumstances, provided they complete the required 18 total credits during their term. The Commission's Application for a Waiver of Education Restrictions form is enclosed and available on the PERAC website at the Compliance & Investments Forms page.

PERAC establishes a dedicated email address for monthly Cash Book submissions: percashbooks@per.state.ma.us. Boards that have already submitted 2019 Cash Books should not resubmit, but all remaining 2019 Cash Books should go to this address. PERAC reiterates that complete monthly Cash Book packages — including Year-to-Date Trial Balance, Monthly Cash Receipts, Monthly Cash Disbursements, Monthly Adjusting Journal Entries, and Monthly General Ledger — are due within four weeks of month-end. Timely submission is required for PERAC to perform monthly accounting/investment analysis and calculate each system's annual rate of return. All other communication with investment analysts Sarita Yee and Veronica Colon should continue via their individual email addresses.

This memo transmits the second quarterly Tobacco Company List for 2019 (dated July 2019), issued pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that it supersedes all prior versions, effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after first consulting with PERAC.

PERAC announces a revised audit approach approved by the Commission on April 10, 2019, targeting high-risk areas and avoiding duplication with private audits. Following national trends, PERAC will tailor audits based on each system's risk level and will increasingly accept private audit work in lieu of segments of the PERAC audit — a practice authorized by law and regulation but previously underutilized. Risk factors include staff stability, prior audit findings, asset management practices, ongoing compliance, and timely filing of accounting information. Retirement boards are encouraged to retain private auditors for annual reviews. PERAC anticipates the revised approach will produce more frequent, targeted evaluations with less burden on boards.

PERAC announces Q3 2019 mandatory training opportunities for retirement board members. In-person and live events include an OIG "Know Your Responsibilities" session in Springfield (July 16), an AGO Open Meeting Law webinar (July 18), State Ethics Commission Conflict of Interest seminars (July 25, September 26), the PERAC Administrator's Training in Danvers (August 15), a PERAC webinar on Audit Process Revisions (August 28), the 15th Annual PERAC Emerging Issues Forum at Holy Cross College (September 12), and an in-person Audit session at PERAC offices (September 25). On-demand webinars from the Ethics Commission, Inspector General, Attorney General, NCTR, National Crime Prevention Council, and CFA Institute remain available for 3 credits each with PROSPER affidavit submission.

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.

This memo transmits the third quarterly Tobacco Company List for 2019 (dated October 2019), issued pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that it supersedes all prior versions, effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after first consulting with PERAC.

PERAC announces Q4 2019 mandatory training opportunities for retirement board members. Events include the MACRS October Conference in Springfield (September 29–October 2, up to 9 credits); AGO Open Meeting Law in-person sessions in East Longmeadow, Hanover, and Southborough; Administrator's Training sessions in Northampton (October 31) and Westborough (November 20); PERAC webinars on Cases of Interest (November 25) and Chapter 32 in a Nutshell (December 12); a Conflict of Interest seminar at the State Ethics Commission (December 5); and an in-person Cases of Interest session at PERAC offices (December 23). On-demand webinars previously recorded on Audit Process Revisions and the Annual Statement are also available on PERAC's website.

PERAC requests that retirement boards submit appropriation data by October 31, 2019, necessary to furnish governmental units with the amounts to be appropriated for FY21 under their funding schedules per G.L. c. 32, §22D, §22(6A)(b), or §22F. The questionnaire is available on the PERAC website and should be submitted electronically through the PERAC website; hard copy submissions are also accepted. Boards should contact John Boorack at 617-666-4446, ext. 935 with questions.

PERAC distributes new fraud prevention materials as part of its statutory obligation to maintain a toll-free hotline (1-800-445-3266) for reporting suspected fraudulent public pension claims. The 2019 campaign slogan is "Blow the Whistle on Pension Fraud." Each board receives three copies each of the poster, a brochure describing the PERAC Fraud Prevention Unit, and "Referral Report of Potential Fraud" forms. County and regional retirement systems will separately receive materials to distribute to local governmental units. Suspected pension fraud may also be reported by email at PensionFraud@per.state.ma.us or via the online form at mass.gov/forms/online-fraud-referral-form.

This memo requests that retirement boards review and update their disability retiree records in PROSPER by January 20, 2020, reflecting any address changes, deaths, nursing home placements, allowance waivers, or returns to active status that occurred during 2019. Updated data files should be returned to PERAC by email to SEKing@per.state.ma.us, fax, or mail, and boards must include the date of death and upload a death certificate or obituary in PROSPER when a member is deceased. The data must be accurate before PERAC mails the 2019 Annual Statements of Earned Income (91A) in February.

This memo publishes the 2018 federal compensation and benefit limits applicable to Massachusetts public retirement systems under Chapter 46 of the Acts of 2002. For 2018, the general compensation limit under IRC § 401(a)(17) is $275,000 and the general benefit limit under IRC § 415 is $220,000 per year for retirement at age 65 (reduced for earlier retirement). These limits are indexed annually and affect only the highest-paid employees.

This memo notifies retirement boards that the 2018 COLA under G.L. c. 32, § 103(c) is set at 2.0%, matching the Social Security Administration's CPI-W adjustment. Boards may elect to increase the COLA up to 3.0% by vote with proper legislative body notice before June 30, 2018. All boards must notify PERAC of their COLA decision within 30 days.

This memo transmits the first quarterly Tobacco Company List for 2018 (dated January 2018), issued pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that it supersedes all prior versions, effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after first consulting with PERAC.

This memo outlines mandatory Q1 2018 training opportunities for retirement board members, reminding boards that Chapter 32 requires annual training and that failure to comply bars members from continued service. Scheduled sessions include Open Meeting Law and Conflict of Interest webinars, in-person Annual Statement and PERAC Memos sessions at multiple locations, and a range of approved online courses. Board members must register through PROSPER and submit Training Affidavits or certificates of completion to receive credit.

This memo notifies retirement board members that the NCPERS 2018 State and Federal Legislation webcast is available for three educational credits. Board members can access the recording at ncpers.org and must submit a PROSPER affidavit to receive credit.

This memo notifies boards that the Commission voted on November 8, 2017 to maintain the $100 per case cap for non-invasive medical testing associated with Regional Medical Panel examinations, consistent with prior years. Medical panels rarely order tests directly; most testing occurs during the member's evaluation and treatment phase and is reviewed by the panel.

This memo requests that all boards submit active member, retiree/survivor, and disability retiree data as of December 31, 2017 via the PERAC Interchange File Transfer system by March 31, 2018. After submission, boards will receive data analysis reports to review for errors; boards scheduled for a 2018 actuarial valuation should have already received a separate data request.

This memo covers several investment compliance reminders for retirement boards: contract relationships governed by § 23B must be re-bid before April 2019 (seven years from Chapter 176 of the Acts of 2011); boards must formally acknowledge SEC vendor disclosures at a board meeting with minutes reflecting the review; and accounting procedures for investment fees, carried interest, and ancillary expenses have been updated for 2018. Boards investing assets independently must submit annual reviews of investment objectives and asset allocation, including systems committed to PRIT or an OCIO strategy; RFP processes must not restrict entry to Massachusetts-only providers.

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

This memo reminds boards that all board members and staff must comply with the 2009 Ethics Reform Law (Chapter 28 of the Acts of 2009), which requires annual distribution of the Conflict of Interest Law Summary and completion of the Ethics Commission's online training program every two years. Acknowledgements and completion certificates must be retained in board files for six years, and new members/employees must complete training within 30 days; completion of the online training also qualifies for three educational credits under the board member training requirement of G.L. c. 32, § 20(7).

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 transmits the second quarterly Tobacco Company List for 2018 (dated April 2018), issued pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that it supersedes all prior versions, effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after first consulting with PERAC.

This memo outlines Q2 2018 mandatory training opportunities for retirement board members, covering sessions on Recent Cases of Interest and Open Meeting Law at locations including Middlesex Retirement Board, Reading Library, Leominster Public Library, PERAC offices, Springfield, Fairhaven, and Sudbury. Board members must register through PROSPER for PERAC-hosted sessions and must submit affidavits or certificates through PROSPER to receive credit.

This memo supersedes Memo #12/2018 and implements the SJC's Vernava decision (478 Mass. 832), which held that sick and vacation leave supplemental to Workers' Compensation is not "regular compensation" for determining the effective date of accidental disability retirement under G.L. c. 32, § 7. PERAC recommends payroll departments create a separate pay code for such supplemental payments and continue withholding deductions; if the member ultimately retires under § 7, those deductions must be refunded without interest. For already-retired members, recalculation is triggered only by a self-identification request from the retiree, and boards are cautioned that recalculation may be detrimental (not beneficial) in some cases.

This memo follows Memo #17/2018 on the Vernava SJC decision and reminds boards that PERAC memoranda are legally binding unless "manifestly unreasonable," citing Boston Retirement Board v. CRAB (2010) and Grimes v. Malden Retirement Board (2016). Boards that disagree with a PERAC directive may appeal but must comply in the meantime; PERAC will use its regulatory and statutory authority to enforce board compliance with the Vernava implementation approach developed with the Attorney General's Office.

This memo transmits the third quarterly Tobacco Company List for 2018 (dated July 2018), issued pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that it supersedes all prior versions, effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after first consulting with PERAC.

This memo announces that the § 91A phase of PROSPER is now live, and boards will receive PROSPER tasks for any disability retirees who have not met the 2017 § 91A filing requirements. Before terminating a member's retirement allowance for failure to file, boards must provide written notice and an opportunity to be heard; boards must then record termination or no-action decisions in PROSPER, and the system will continue sending 30-day alerts until a response is entered.

This memo outlines Q3 2018 mandatory training sessions including How to be an Effective Board Member (Inspector General, Clark University), Conflict of Interest (Ethics Commission), a PERAC Administrators Meeting in Northampton, the Emerging Issues Forum at Holy Cross, a Vernava implementation session, and actuarial topics. Board members register through PROSPER for PERAC sessions and must submit affidavits or certificates to receive credit.

This memo alerts boards that investment side letter agreements increasingly contain provisions conflicting with Massachusetts Public Records Law (G.L. c. 4, § 7; c. 66). Boards are advised to include language in all side letters for limited partnerships, group trusts, and similar vehicles explicitly acknowledging that Public Records Law requirements supersede confidentiality provisions in the agreement. A sample side letter clause is provided.

This memo announces an updated PERAC form for reinstatement to service from superannuation or termination retirement under G.L. c. 32, § 105, effective July 1, 2018 through June 30, 2019. Boards must counsel interested members carefully, as reinstatement requires at least five years of full-time employment and potentially large repayments; boards complete the first portion of the form and upon the member's signature the individual reverts from retiree to member-in-service status.

This memo directs boards to complete 2017 § 91A salary verification tasks in PROSPER for all disability retirees whose earnings may require an allowance adjustment. Boards must enter each retiree's 2017 annual pension, annuity, and current salary; if PROSPER calculates excess earnings, PERAC sends the retiree an Excess Earnings letter and boards must notify the retiree and respond to the PROSPER task. Reminder tasks are sent every 30 days until the board responds.

This memo informs boards of the CRAB decision in O'Leary v. Lexington Retirement Board (CR-15-30), which rejected PERAC Memo #39/2012 and held that vacation buyback payments can never constitute regular compensation. Because both PERAC and the member have appealed to Superior Court, the CRAB decision is not final, and boards must continue evaluating vacation buyback plans under Memo #39 during the pendency of those appeals; no current allowances based on such payments should be recalculated in the interim. Payments for unused sick time remain excluded from regular compensation under Fair v. Middlesex County Retirement Board (2016).

This memo alerts boards to an active scam in which a fraudster impersonates a member to redirect their retirement allowance to a prepaid debit card account by submitting a direct deposit change with a routing number pointing to Green Dot Bank. PERAC is aware of one successful interception and two attempted ones, and urges boards to verify any direct deposit change requests directly with the member before processing.

This memo outlines Q4 2018 mandatory training sessions including the MACRS conference in Springfield, Open Meeting Law, Conflict of Interest, Administrators Meetings, and PERAC-hosted sessions on actuarial topics and "Chapter 32 in a Nutshell." Registration is through PROSPER for PERAC sessions and directly with organizations for AGO/Ethics Commission sessions; affidavits or certificates must be submitted through PROSPER to receive credit.

This memo transmits the fourth quarterly Tobacco Company List for 2018 (dated October 2018), issued pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that it supersedes all prior versions, effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after first consulting with PERAC.

This memo requests boards to submit FY2020 appropriation data by October 31, 2018, needed for PERAC to calculate governmental unit appropriation amounts under G.L. c. 32, §§ 22D, 22(6A)(b), or 22F. The questionnaire is available on the PERAC website; electronic submission is strongly preferred.

This memo reminds all § 23B investment service providers that "compensation, in whatever form" must be disclosed annually and in RFP responses, including non-cash arrangements such as directed brokerage, conference sponsorships, charitable or political contributions made at investor request, and economic interests in general partnerships. PERAC flags recent filings showing law firm economic interests contingent on fund-raising success as examples of arrangements that must be fully disclosed.

This memo provides procurement guidance as boards approach the April 2019 contract re-bid deadline under § 23B. Key reminders: RFPs must not exclude qualified vendors through minimum Massachusetts client counts, asset thresholds, or other bid-tailoring requirements that limit competition; award points for such criteria rather than using them as pass/fail gates. Boards are also strongly advised to conduct in-person interviews with finalists, as case law (Unisys) shows that interviews are a critical shield against breach-of-fiduciary-duty claims when investments later fail.

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 transmits the Tobacco Company List dated January 2019 (issued December 14, 2018), pursuant to Chapter 119 of the Acts of 1997, which prohibits Massachusetts retirement systems from making new investments in companies deriving more than 15% of their revenue from tobacco product sales. Boards are directed to forward the list to their investment advisors and are reminded that it supersedes all prior versions, effective upon receipt. PERAC will review board portfolios for compliance during audits, and any non-compliant board must divest holdings in a prudent manner after first consulting with PERAC.

This memo requests that boards review and update their disability retiree records in PROSPER to reflect all 2018 status changes — deaths, nursing home placements, allowance waivers, returns to active status, and address changes — and return updated data to PERAC by January 25, 2019. Accurate records are required before PERAC mails 2018 Annual Statements of Earned Income (§ 91A) in February; death entries must include a date of death and uploaded obituary or death certificate.

This memo summarizes the major changes to Massachusetts public records law under Chapter 121 of the Acts of 2016, effective January 1, 2017, and advises retirement boards of their new obligations. Key requirements include designating a Records Access Officer (RAO), posting the RAO's contact information publicly, responding to records requests within 10 business days, and maintaining electronic copies of commonly requested records. PERAC notes it has sought an advisory opinion from the Secretary of State to clarify whether local, county, and regional retirement boards are classified as "agencies" or "municipalities" under the new law, and advises boards to comply with provisions applicable to all public entities in the interim.

This memo alerts retirement boards to two recent decisions—from CRAB and DALA—confirming that PERAC memoranda are legally binding on all retirement boards. The CRAB decision in Grimes v. Malden Ret. Bd. (2016) held that boards must follow PERAC directives issued under the Commission's statutory authority, and that a board's only recourse for disagreement is to appeal to CRAB under G.L. c. 32, § 16(4); boards may not simply ignore the directives. Boards should review their compliance with outstanding PERAC memoranda accordingly.

This memo notifies retirement boards that the Social Security Administration's 2017 Cost of Living Adjustment (COLA) is 0.3%, which is the maximum COLA boards may grant effective July 1, 2017 under G.L. c. 32, § 103(c). Boards may vote to grant a higher rate up to 3.0% with proper notice to the legislative body. Each board that makes a COLA decision must notify PERAC within 30 days.

This memo lists 1st quarter 2017 mandatory training opportunities for retirement board members to fulfill their annual education requirement under Chapter 32. PERAC-sponsored sessions cover the Annual Statement and the Grimes case at locations in Somerville, Taunton, Springfield, Middlesex, Danvers, and Worcester. Pre-approved credits are also available through State Ethics Commission seminars, Open Meeting Law webinars, and national organizations including NCPERS, NCTR, and the CFA Institute.

This memo requests that retirement boards submit actuarial data for active members, retirees/survivors, and disability retirees as of December 31, 2016 by March 31, 2017, using the standard PERAC record format via the Interchange File Transfer website. Boards will receive data analysis reports after submission to help identify and correct errors prior to actuarial valuations. Boards scheduled for a 2017 valuation by PERAC should have already received a separate data request.

This memo addresses the SJC decision in Retirement Board of Stoneham v. CRAB (December 22, 2016), which held that once a member is admitted to a retirement system, their membership continues as long as they remain employed regardless of subsequent changes in hours or pay. Boards that have erroneously removed members from membership must re-enroll them, deduct missing contributions, and allow payment on an installment plan. The memo also clarifies the interaction with the Under $5,000 Rule added by Chapter 21 of the Acts of 2009.

This memo 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 interim memo advises boards to continue using the prior year's annuity savings account interest rate of 0.1% while PERAC awaits confirmation of the 2017 rate from the newly appointed Banking Commissioner. A separate memo will be issued once the official 2017 rate is determined.

This memo encourages retirement board administrators to attend PERAC's Annual Statement training sessions in early 2017, and covers several asset management reminders: the approaching April 2019 deadline for existing investment service contracts under Section 23B, the requirement to formally acknowledge annual vendor disclosures at board meetings with minutes reflecting the review, and the obligation to annually review and submit investment objectives and asset allocation plans whether invested directly, through PRIT, or via an OCIO strategy.

This memo announces training sessions for the first component of PROSPER, PERAC's new web-based communication system, focused on the Compliance Unit's application. Sessions for administrators and board members are scheduled at multiple locations including PERAC's Somerville office, Middlesex County Retirement Board, Springfield Retirement Board, and Plymouth County Retirement Board in March 2017. Board members who complete the training will receive three educational credits.

This memo warns retirement boards about an unsolicited investment event at Gillette Stadium sponsored by STS/LStar that some board members received invitations to attend. PERAC advises that retirement system assets cannot be directly invested in real estate, and that STS does not appear to be SEC-registered as required under PERAC's Placement Agent Policy. The memo also clarifies that MACRS did not sponsor or endorse the event.

This memo transmits the April 2017 Tobacco Company List, which replaces all prior versions and is effective immediately upon receipt. Under Chapter 119 of the Acts of 1997, retirement systems are prohibited from making new investments in companies that derive more than 15% of their revenue from tobacco products. Boards must forward the list to their investment advisors and PERAC will verify compliance through its audit process.

This memo lists 2nd quarter 2017 mandatory training opportunities for retirement board members, including sessions on Grimes and Other Cases of Interest, Domestic Relations Orders, Actuarial Assumptions, and the MACRS Annual Spring Conference in Hyannis (June 4–7, eligible for up to nine credits). Boards may also earn credits through the State Ethics Commission, Attorney General Open Meeting Law trainings, and approved online offerings from NCPC and the CFA Institute.

This memo transmits the July 2017 updated Tobacco Company List, which replaces all prior versions and is effective immediately upon receipt. Under Chapter 119 of the Acts of 1997, retirement systems may not make new investments in companies deriving more than 15% of their revenue from tobacco. Boards must forward the list to their investment advisors; PERAC will verify compliance during audits.

This memo announces that the PROSPER web-based communication system is fully operational with over 90% of board members and administrators registered, and provides key operational changes taking effect. Beginning June 19, 2017, the Disability Portal launches and disability applications must be submitted through PROSPER. Paper submissions for vendor procurements, annual eligibility pledge forms, and board member training registrations will no longer be accepted; all must be processed through PROSPER.

Following PERAC's January 2017 inquiry, the Supervisor of Public Records issued SPR Bulletin 01-17 classifying local, county, and regional retirement boards as 'municipalities' rather than state agencies under the updated Public Records Law (Chapter 121 of the Acts of 2016). As a result, effective July 1, 2017, boards' websites must identify the Records Access Officer (RAO) and the RAO's contact information, provide public records request guidelines, and post commonly requested documents to the extent feasible. The memo also notes that personal email addresses of public employees and their families are exempt from public disclosure.

This memo lists 3rd quarter 2017 mandatory training opportunities for retirement board members, including sessions on Actuarial Assumptions (August 24), the Thirteenth Annual Emerging Issues Forum at Holy Cross in Worcester (September 14), and Domestic Relations Orders (September 28). Online credits remain available through the State Ethics Commission conflict of interest training, Attorney General Open Meeting Law webinars, CFA Institute webcasts, and NCTR financial economics courses available on PERAC's website.

Effective September 5, 2017, all approved disabilities and death benefits submitted for PERAC's Legal Unit review under G.L. c. 32, §§ 21(1)(d) and 21(4) must be submitted exclusively via PROSPER through the 'Disability Transmittal' tab; paper and e-doc submissions will no longer be accepted after that date. Boards must ensure that all staff who need access to the Disability Portal are registered as PROSPER users.

This memo responds to board inquiries about providing board counsel access to PROSPER, advising that this is currently not possible because PROSPER is coded only for retirement board employees and staff, not outside vendors. Until an alternative solution is developed, boards should have counsel review files before the Executive Director inputs information into PROSPER, and may use a HIPAA-compliant drop box for sharing medical records with counsel.

This memo announces an updated version of the PERAC Reinstatement to Service Application form under G.L. c. 32, § 105, effective July 1, 2017 through June 30, 2018. Boards should note that members electing reinstatement must repay all amounts owed and work at least five years of full-time employment; boards should counsel interested members carefully before processing the form, which transforms the member from retiree status back to member-in-service status upon signing.

This memo reminds retirement boards of their fiduciary obligations when selecting the board's Fifth Member and hiring board employees. Both processes must involve an open, competitive process with public posting, documented review, and interviews—regardless of whether an incumbent is seeking reappointment. Boards may not delegate the Fifth Member selection to selectmen, mayor, or city manager except as a last resort under the statutory tiebreaking process.

This memo reminds boards that investment service providers must file annual vendor disclosures with both the retirement board and PERAC under Section 23B of Chapter 32. Where a vendor has a relationship with a third party solicitor under SEC Rule 206(4)-3(b), the solicitor must also make disclosures directly to the board. Copies of all such disclosures must be submitted to PERAC via PROSPER as part of the Acknowledgement Process before any Acknowledgement Letter is issued.

This memo lists 4th quarter 2017 mandatory training opportunities for retirement board members, including MACRS fall conference sessions in Springfield (Legal Panel, RFPs/Veterans Buy Back/5th Member Selection), Board Administrator training sessions in Hyannis and Danvers, and PERAC-sponsored sessions on Investment Fees (November 16 and December 28). New Bedford retirement board members may attend three free sessions on Roberts Rules, Open Meeting Law, and Conflict of Interest Law sponsored by the City Solicitor's Office.

This memo requests that retirement boards complete and return the appropriation data questionnaire by October 31, 2017 so that PERAC can calculate FY19 appropriation amounts for all governmental units under G.L. c. 32, §§ 22D, 22(6A)(b), or 22F. Boards are encouraged to submit the questionnaire online via the PERAC website; questions should be directed to PERAC actuary Jim Lamenzo.

This memo transmits the October 2017 updated Tobacco Company List, which replaces all prior versions and is effective immediately upon receipt. Under Chapter 119 of the Acts of 1997, retirement systems may not make new investments in companies deriving more than 15% of their revenue from tobacco products. Boards must forward the list to their investment advisors; PERAC will verify compliance during its audit process.

This memo announces PERAC's 2017 fraud prevention campaign with the theme 'One Bad Apple Can Spoil the Whole Bunch,' reminding boards that PERAC maintains a confidential fraud hotline at 1-800-445-3266 and email at PensionFraud@per.state.ma.us. Boards will receive three posters, brochures, and Referral Report of Potential Fraud forms under separate cover, and should display materials prominently and use the forms to report suspected fraud to PERAC's Fraud Prevention Unit.

This memo notifies boards that the November 14, 2017 Administrator's Training originally scheduled at the Danvers Retirement Board has been relocated to the Double Tree by Hilton, 50 Ferncroft Road, Danvers, MA due to higher-than-expected enrollment. Board members who attend will receive three educational credits; registration is available through PROSPER or by email to Rose Morrison.

This memo provides a corrected list of public employees whose pension benefits have been forfeited as of July 2017, noting that one member (Steven Pereira) was incorrectly included on the prior list and should be removed. Boards with any forfeited member on the attached list who are active in their system should contact Kim Boisvert at PERAC with the last four digits of the member's Social Security number to verify the match.

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.

This memo requests that boards review the attached list of their disability retirees and update PERAC's database with all status changes occurring in 2017, including death, nursing home placement, allowance waiver, return to active status, and address changes. Boards must also complete the New Member Data form for all accidental or ordinary disability retirees approved in 2017 and return all information by January 16, 2018, prior to PERAC's mailing of 2017 Annual Statements of Earned Income in February.

840 CMR 1.00 establishes the core fiduciary duties of retirement board members, requiring them to act solely in the interest of members and beneficiaries for the exclusive purpose of providing benefits and defraying reasonable administrative expenses. Board members must exercise the care, skill, prudence, and diligence of a prudent person familiar with such matters, diversify investments to minimize risk, and comply with Massachusetts General Laws and PERAC regulations. Breaches of fiduciary duty—including knowing participation in a co-fiduciary's breach or failure to remedy a known breach—can result in personal liability for losses to the system. The regulation also bars anyone convicted of certain crimes or found to have violated fiduciary or ethics laws from serving in any capacity for a retirement board.

840 CMR 2.00 establishes the rules governing travel and travel-related expenditures by retirement board members and staff. All travel expenses must be related to the authorized purpose, cost-effective, and approved in advance by the board through a recorded vote in open session. Board members must submit itemized receipts for all expenses within 60 days, and reimbursement is limited to the person who actually incurred the expense. The regulation covers transportation, lodging, meals, and other incidental costs, and requires boards to seek government or business rates when making travel arrangements.

840 CMR 3.00 incorporates federal Internal Revenue Code qualification requirements into Massachusetts public retirement systems, ensuring they maintain their status as governmental qualified plans under IRC § 401. The regulation addresses requirements including the exclusive benefit rule (IRC § 401(a)(1),(2)), forfeiture restrictions, required minimum distributions (IRC § 401(a)(9)), annual compensation limits (IRC § 401(a)(17)), and rollover provisions. These provisions became effective January 1, 1989, and apply to all Chapter 32 retirement systems regardless of other Massachusetts law, including the compensation cap of $200,000 (adjusted for cost-of-living) for members who joined on or after January 1, 2002, and 64% of that cap for members joining after January 1, 2011.

840 CMR 4.00 establishes the standard methods of accounting that all retirement boards must follow, ensuring uniform financial reporting across all Massachusetts public retirement systems. Boards must maintain PERAC-prescribed ledger accounts, enter transactions daily, run monthly trial balances and general ledgers, and submit monthly financial reports to PERAC. The regulation defines core accounting terms and requires boards to send annual statements by May 1 each year (with extensions available upon written request). Boards that fail to file timely reports may have their investment exemptions revoked after 14 days' written notice.

840 CMR 5.00 establishes the records and reports that retirement boards must maintain and submit to PERAC. Boards must file quarterly reports identifying any changes in board membership or staff, and an annual report by May 1 each year using PERAC's prescribed form. Each retirement system must also furnish the actuary with appropriation data by October 15 annually, and must notify PERAC 30 days before automating any board functions. Extensions to the annual filing deadline may be granted upon a written request submitted before May 1, at PERAC's discretion.

840 CMR 6.00 establishes uniform standards for how retirement boards maintain and disclose records, with particular attention to protecting personal data. Boards must designate a Custodian of records responsible for maintaining custody, protecting records from unauthorized access, and determining whether requested records are public. Member names, addresses, and type of retirement are generally public records, but medical files and other sensitive personal information are protected. The regulation balances the public's right to know against individual privacy rights, and establishes procedures for members and their representatives to access their own retirement files.

840 CMR 7.00 governs elections of elected board members for most Massachusetts retirement systems, excluding the State Employees', Teachers', county, and regional retirement systems which have their own statutory election rules. Boards must provide notice of elections at least 90 days in advance, make nomination papers available to all active and retired members, and require candidates to collect at least 20 qualifying signatures. If only one candidate is nominated the board may declare that candidate elected without a formal election. Elections may be conducted by mail or at a polling place, and the regulation includes detailed requirements for absentee ballots, tabulation, and certification of results.

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 10.00 is the comprehensive standard rule governing all disability retirement proceedings before Massachusetts retirement boards, effective for proceedings commenced after January 1, 2016. It covers ordinary and accidental disability retirement applications, proceedings for restoration to active service, modification of disability retirement allowances, medical panel examinations, re-examination and rehabilitation of disability retirees, and annual earnings reporting under M.G.L. c. 32, § 91A. The regulation establishes procedural rights for applicants including representation by counsel, the right to submit evidence, and appeal procedures. Medical panels play a central role, conducting independent examinations and issuing certificates that boards must follow unless specific grounds for departure exist.

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 14.00 establishes the framework by which PERAC's rules apply to all retirement boards and by which individual boards may obtain approval for supplementary rules tailored to their particular needs. PERAC's rules apply universally unless the Commission provides otherwise or a board has obtained approval for supplementary rules. A board may request supplementary rules if they are consistent with PERAC's rules (or good cause exists for an exception), their purpose cannot be accomplished by amending the Commission's rules, and the proposed rules were the subject of a public hearing with reasonable notice. Approved supplementary rules remain in effect according to their terms until amended or repealed as approved by the Commission.

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.

840 CMR 20.00 is currently reserved and contains no regulatory content. This chapter number has been set aside by PERAC but has not been assigned a substantive regulation. No requirements or obligations arise from this chapter number.

840 CMR 22.00 is currently reserved and contains no regulatory content. This chapter number has been set aside by PERAC but has not been assigned a substantive regulation. No requirements or obligations arise from this chapter number.

840 CMR 24.00 is currently reserved and contains no regulatory content. This chapter number has been set aside by PERAC but has not been assigned a substantive regulation. No requirements or obligations arise from this chapter number.

840 CMR 25.00 governs the field examinations of contributory retirement systems conducted by PERAC to assess each system's financial condition and compliance with M.G.L. c. 32. Examinations must be conducted at intervals not exceeding every three years and must cover the period since the last examination. Before an examination begins, the board's administrator receives an Internal Control Questionnaire from PERAC. A board may also hire a certified public accountant or public accountant to conduct the examination; upon PERAC's acceptance of that report, it satisfies the statutory examination requirement. PERAC audit staff may rely on portions of a board-selected accountant's work and supplement it to complete the required examination.

840 CMR 27.00 establishes PERAC's authority to issue protective orders against retirement boards whose investment or recordkeeping practices are not being conducted with reasonable care, skill, prudence, or diligence. PERAC may issue an immediate temporary order upon reasonable belief of improper practices, which remains in effect pending a full investigation and hearing. An investigative hearing may be convened within 60 days of a temporary order, with at least 30 days' notice required in other cases. After findings of fact, PERAC may issue a permanent order directing the board to take or cease specific actions; violations of such orders are punishable under M.G.L. c. 32, § 24.

840 CMR 28.00 authorizes and governs the use of electronic signatures by retirement boards governed by Chapter 32, enacted in response to the growing use of digital document workflows. The regulation defines "electronic signature" broadly to include digital signatures, faxed signatures (if legible), and signatures transmitted as part of scanned documents. Electronic signatures have the same legal effect and enforceability as wet (handwritten) signatures for retirement board purposes. The regulation also addresses attribution of electronic signatures, security procedures for verifying their authenticity, and makes clear that wet signatures remain permissible—retirement boards may choose which format to accept.