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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 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 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.

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 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.

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.

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.