membership

Section 1 establishes the definitions for all key terms used throughout Sections 1–28 of Chapter 32, the Massachusetts public employee retirement law. It defines over 60 terms including member classifications, types of deductions, compensation concepts, retirement allowance components, and system-specific vocabulary. Retirement board administrators rely on this section to correctly interpret and apply every other section in the chapter, as terms such as 'regular compensation,' 'creditable service,' and 'accumulated total deductions' appear throughout and carry precise statutory meanings.

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 12C extends the survivor benefits of Section 12B to the widow and children of a deceased employee who had completed two years of creditable service and had been married for at least one year but who — though eligible — failed or elected not to become a member of the retirement system. To qualify, the surviving family must pay into the annuity savings fund an amount equal to the deductions that would have been withheld during the employee's career, plus accumulated interest. This provision ensures that non-member eligible employees' families are not permanently foreclosed from survivor benefits when the failure to enroll was a matter of election rather than ineligibility.

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 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 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 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 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 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 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 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 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 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 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 77 provides pension eligibility for laborers in cities and towns (except Boston) that accepted the 1912 act: those with 35 years of service, those age 60+ with 25+ years who are incapacitated, or those with 15+ years incapacitated by on-duty injury, receive a pension equal to half their regular compensation; optional paragraphs allow broader definition of "laborers" in accepting cities and towns.

Section 78A bars laborers first employed after June 30, 1937 from coverage under sections 77, 77D, or 78, and clarifies that years of service required under those sections need not be continuous.

Section 85C bars police officers and firefighters whose employment began after June 30, 1937 from coverage under the noncontributory pension provisions of sections 83 through 85B.

Section 105 allows members retired under sections 5 or 10 to be reinstated in a retirement system by repaying all retirement allowances received plus buyback interest; upon reinstatement they resume contributing and earn creditable service, but receive a refund of reinstatement payments (without service credit) if they separate with fewer than 5 years of reinstatement service.

Section 106 protects retirement allowances that included annual vacation leave buyout payments on which contributions were made, providing that such allowances shall not be reduced because of those contributions; it also specifies that vacation leave buyout payments qualifying as regular compensation as of May 1, 2018 continue to be treated as such for members who were in service on that date, subject to anti-spiking conditions.

For members who joined a Massachusetts retirement system after January 1, 2011 (Tier 2 members), regular compensation used in benefit calculations is capped at 64% of the federal IRC § 401(a)(17) limit. With the 2026 federal limit set at $360,000, the 2026 Massachusetts cap for post-2011 members is $230,400. Boards must apply this limit when calculating retirement allowances for affected members.

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.

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 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.

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.

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 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.

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.

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.

Chapter 149 of the Acts of 2024 (effective October 29, 2024) creates a new enhanced accidental disability benefit under G.L. c. 32, § 7 for firefighters, police officers, EMTs, and licensed health care professionals who suffer a catastrophic, life-threatening or life-altering permanent physical injury as the direct result of an intentional violent attack with a dangerous weapon. Qualifying members receive 100% of their regular compensation (reduced to 80% upon reaching mandatory retirement age), rather than the standard 72% pension, with prescribed survivor benefits for spouses and children. Boards must include Findings of Fact with every Violent Act Injury application submitted to PERAC for the required 30-day review.

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.

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 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 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 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 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 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 establishes the 2022 regular compensation cap for members who joined a Massachusetts retirement system after January 1, 2011, pursuant to Section 23 of Chapter 131 of the Acts of 2010. Because the federal § 401(a)(17) compensation limit for 2022 is $305,000, the 2022 cap on regular compensation for post-2010 members is $195,200 (64% of $305,000). Boards must apply this limit when calculating retirement benefits for affected members.

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 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.

Following the SJC's February 4, 2022 decision in Vernava II (Worcester Regional Retirement Board v. PERAC), this memo provides comprehensive, action-required guidance directing all retirement boards to immediately implement the ruling that supplemental payments of any kind made concurrently with Workers' Compensation benefits do not constitute "regular compensation" under any section of Chapter 32. Boards must identify all active members, inactive members, and retirees who received such supplemental payments, remove previously awarded regular compensation and creditable service for periods of concurrent Section 35 Workers' Compensation receipt, recalculate allowances, and return all deductions taken on those supplemental payments. The memo includes detailed step-by-step instructions for active members, retired members, and their beneficiaries, and notes that PERAC is pursuing legislative relief for affected retirees.

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 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 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.

This memo announces the 2018 regular compensation cap for members who joined a Massachusetts retirement system after January 1, 2011. Under Chapter 131 of the Acts of 2010, that cap is 64% of the federal § 401(a)(17) limit; since the 2018 federal limit is $275,000 (per Memo #1/2018), the 2018 state cap is $176,000. Boards must apply this limit when calculating retirement allowances for post-2010 members.

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 announces the 2017 regular compensation cap for members who joined a retirement system after January 1, 2011, under pension reform provisions of Chapter 131 of the Acts of 2010. The cap is set at 64% of the federal IRC § 401(a)(17) limit, resulting in a maximum regular compensation of $172,800 for 2017. Boards must apply this limit when calculating contributions and benefits for post-2011 members.

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 advises that G.L. c. 32, § 90G¾, which had required members approaching age 70 to decide whether to continue making retirement contributions, was repealed effective July 1, 2017 through the FY18 budget. Going forward, no notices need to be sent to members approaching age 70 and contributions will continue on a pre-tax basis. Members who had already made an election under § 90G¾ prior to July 1, 2017 retain their prior election status.

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 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.