Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S2540 Compare Versions

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1	1	SENATE……………………..No. 2540The Commonwealth of Massachusetts
2	2	_______________
3	3	In the One Hundred and Ninety-Second General Court
4	4	(2023-2024)
5	5	_______________
6	6	REPORT OF THE
7	7	PUBLIC EMPLOYEE RETIREMENT
8	8	ADMINISTRATION COMMISSION
9	9	SUBMITTING AMENDMENTS TO THE RULES
10	10	AND REGULATIONS GOVERNING RETIREMENT
11	11	OF PUBLIC EMPLOYEES IN
12	12	MASSACHUSETTS
13	13	(840 CMR 2.00 Retirement Board Travel)
14	14	(840 CMR 4.00 Financial Operations/Standard Method of Accounting)
15	15	(840 CMR 8.00 Applicability of $30,000 Salary Cap)
16	16	(840 CMR 11.00 Service After Age 70)
17	17	(840 CMR 12.00 Service Between Age 65 and 70)
18	18	(840 CMR 15.00 Miscellaneous) and
19	19	(840 CMR 25.00 The Conduct of Field Examinations of Contributory Retirement Systems)
20	20	(pursuant to Section 50 of
21	21	Chapter 7 of the General Laws)
22	22	December 28, 2023 PERAC
23	23	PHILIP Y. BROWN, ESQ., Choir JOHN W. PARSONS. ESQ., Executive Director
24	24	Auditor
25	25
26	26	DIANA
27	27
28	28	DIZOGLIO
29	29
30	30	I
31	31
32	32	KATHLEEN
33	33
34	34	M.
35	35
36	36	FALLON
37	37
38	38	I
39	39
40	40	KATE
41	41
42	42	FITZPATRICK
43	43
44	44	I
45	45
46	46	JAMES J.
47	47
48	48	GUIDO
49	49
50	50	I
51	51
52	52	RICHARD
53	53
54	54	MACKINNON, JR.
55	55
56	56	I
57	57
58	58	JENNIFER
59	59
60	60	F.
61	61
62	62	SULLIVAN,
63	63
64	64	ESQ.
65	65	December 20, 2023
66	66	Michael D. Hurley, Senate Clerk
67	67	Office of the Clerk of the Senate
68	68	Senate
69	69	State House, Room 335
70	70	Boston, MA 02133
71	71	Dear Mr. Hurley:
72	72	In accordance with the provisions of Chapter 7, Section 50 of the General Laws, I am pleased on
73	73	behalf of the Public Employee Retirement Administration Commission (PERAC), to file
74	74	amendments to the rules and regulations governing retirement of public employees in
75	75	Massachusetts. PERAC is proposing amendments to seven of our regulations, 840 CMR 2.00
76	76	Retirement Board Travel, 840 CMR 4.00 Financial Operations/Standard Method of Accounting,
77	77	840 CMR 8.00 Applicability of $30,000 Salary Cap, 840 CMR 11.00 Service After Age 70, 840
78	78	CMR 12.00 Service Between Age 65 and 70, 840 CMR 15.00 Miscellaneous, and 840 CMR 25.00
79	79	The Conduct of Field Examinations of Contributory Retirement Systems.
80	80	These regulations are necessary
81	81	r
82	82	to ensure that our retirement systems operate m an efficient manner
83	83	and comply with the provisions of the retirement law, Chapter 32.
84	84	Pursuant to the provisions of G.L. c. 7, § 50, the clerks shall refer this matter to the appropriate
85	85	standing committee of the General Court. If the General Court takes no final action relative to the
86	86	regulations within forty-five days of the date said regulations are refenced to the appropriate
87	87	committee, the General Court not having prorogued within said forty-five days, the regulations shall
88	88	be deemed to be approved. Within fifteen days of receipt of any recommendations, the committee
89	89	shall transmit in writing to PERAC its suggestions, if any, for modifications in recommended
90	90	regulations. Within fifteen days of receipt of the
91	91
92	92	committee’s suggestions, PERAC shall resubmit
93	93	the regulations to the committee, together with any modifications made to them.
94	94	If you have any questions or need additional information, please feel free to contact me.
95	95	Sincerely,
96	96	John W. Parsons, Esq.
97	97	Executive Director
98	98	Enclosure
99	99	JWP/pmc
100	100	senate transmittal 840 cmr 2, 4,8,11, 12,15,25.doc
101	101	COMMONWEALTH OF MASSACHUSETTS \| PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION
102	102	COMMISSION 840 Mass. Code Regs. 2.01 General Provisions (Code of
103	103	Massachusetts Regulations (2021 Edition))
104	104	2.01.General Provisions
105	105	(1)840 CMR 2.00 is the standard rule for travel and travel related expenditures by retirement
106	106	board members and retirement board staff members. PERAC recognizes that retirement board
107	107	members and the retirement board staff must perform their fiduciary duties in an efficient,
108	108	effective, and informed manner. All travel related expenses that are to be paid for by the board
109	109	shall be related to the purpose of the authorized travel and shall be cost-effective.
110	110	(2)PERAC recognizes the importance of continuing education; the need for informed decision
111	111	making by retirement board members; and the need for a broader public pension perspective,
112	112	gained through association with other retirement boards and administrators, both within the
113	113	Commonwealth of Massachusetts and throughout the nation, whether virtually or in-person.
114	114	(3)Except as otherwise provided by PERAC or by supplementary rules of a particular
115	115	retirement board approved by PERAC pursuant to 840 CMR 14.02 all travel by retirement
116	116	board members and board staff shall comply with 840 CMR 2.00.
117	117	(4)Retirement boards may adopt supplementary regulations to supplement and expand upon
118	118	the regulations contained in 840 CMR 2.00. Any such board regulations are to be submitted to
119	119	PERAC for review and approval as required by the provisions of G.L. c. 7, § 50 and c. 32, § 21(4). 840 Mass. Code Regs. 2.02 Meaning of Terms (Code of
120	120	Massachusetts Regulations (2021 Edition))
121	121	2.02.Meaning of Terms
122	122	Terms common to these regulations and G.L. c. 268A shall have the
123	123	meaning ascribed to them by G.L. c. 268A and rulings issued pursuant to that
124	124	law. The regulations contained in 840 CMR 2.00 are in addition to, and, in
125	125	some respects, more stringent than the provisions of G.L. c. 268A. Unless
126	126	otherwise defined by the provisions of G.L. c. 32 or regulations promulgated
127	127	by PERAC or by G.L. c. 268A and rulings issued pursuant to that law, the
128	128	usual and customary definitions for terms used in these regulations shall
129	129	apply. 840 Mass. Code Regs. 2.03 Board Authorization of Travel and
130	130	Travel Related Expenditures (Code of Massachusetts Regulations
131	131	(2021 Edition))
132	132	2.03.Board Authorization of Travel and Travel Related
133	133	Expenditures
134	134	The retirement board shall pay for or make reimbursement to Board
135	135	Members and the staff of the retirement board for all travel and lodging
136	136	expenses except as specifically authorized pursuant to 840 CMR 2.13 for
137	137	expenses related to legitimate speaking engagements.
138	138	1.Travel and related expenses are to be approved by the board in advance of
139	139	the travel.
140	140	2.Requests for travel by board members and the retirement board
141	141	Executive Director/Administrator shall be placed on a board meeting
142	142	agenda, discussed in open session, and approved by a majority vote of the
143	143	members of the board present and voting. The meeting minutes shall reflect
144	144	the board's action, the extent of the authorization, and supporting
145	145	information addressing the nature of the travel and its purpose.
146	146	3.A board may authorize the Executive Director/Board Administrator to
147	147	approve travel for other members of the board's staff. The board should
148	148	establish policies and procedures for staff travel. Such policies and
149	149	procedures shall be consistent with 840 CMR 2.00.
150	150	4.A statement describing the presentation, conference, or seminar should
151	151	be entered into the minutes of the meeting following the travel.
152	152	5.Boards shall obtain the most cost-effective means of travel and
153	153	travel related expenses, pursuant to these regulations and the board’s
154	154	approved supplementary regulations. 840 Mass. Code Regs. 2.04 Required Documentation for
155	155	Reimbursement (Code of Massachusetts Regulations (2021
156	156	Edition))
157	157	2.04.Required Documentation for Reimbursement
158	158	1.The board shall develop a form to be used in connection with any requests
159	159	for reimbursement, requiring that the traveler certify that the expenses were
160	160	incurred and were necessary and incidental to the approved travel.
161	161	2.All requests for reimbursement shall be completed and properly approved
162	162	after incurring any travel, transportation or meal or other travel related
163	163	expenses and before reimbursement takes place. The retirement boards
164	164	shall require that requests for reimbursement be submitted within a
165	165	reasonable time after the expenses are incurred, but in no event longer than
166	166	60 days after the expenses were incurred. If expenses for a single event were
167	167	incurred over a number of days, requests for reimbursement shall be
168	168	submitted no later than 60 days from the last day that expenses were
169	169	incurred.
170	170	3.Itemized receipts must be submitted for all expenses including
171	171	transportation, lodging, and other expenses incidental to travel.
172	172	4.Travel-related expenses that are under $10 (such as gratuities) should be
173	173	fully described and reimbursed based on the traveler's certification that the
174	174	expenses were necessary and incidental to the approved travel.
175	175	5.The board should use due diligence in reviewing and approving
176	176	reimbursement requests. Any travel related expenditures which have not
177	177	been properly documented or approved or are not in conformity with 840
178	178	CMR 2.00 must be rejected or adjusted.
179	179	6.Reimbursement shall only be made to the person who actually made
180	180	payment for the expense.
181	181	7.The reimbursement request form must be signed by the person seeking
182	182	reimbursement and signed under the penalties of perjury. 840 Mass. Code Regs. 2.05 Travel Arrangements (Code of
183	183	Massachusetts Regulations (2021 Edition))
184	184	2.05.Travel Arrangements
185	185	1.The board should designate a board staff member to be responsible for
186	186	making all travel arrangements and for assisting board members and board
187	187	staff in completing reimbursement forms. If a board member or board staff
188	188	member elects to make his or her own travel arrangements, the provisions
189	189	of 840 CMR 2.00 shall apply.
190	190	2.When making travel arrangements, government rates, business rates, or
191	191	the most cost-effective rate shall be secured. The board must be satisfied
192	192	that the rate is fair and reasonable before reimbursement is approved.
193	193	3.The board may authorize an extended stay if the net cost to the board will
194	194	be lower. For example, if airline fare is lowered by staying an extra day and
195	195	the cost of accommodations and meals for that extra day results in a net
196	196	savings to the board, an extended stay can be authorized. 840 Mass. Code Regs. 2.06 Transportation (Code of
197	197	Massachusetts Regulations (2021 Edition))
198	198	2.06.Transportation
199	199	1.Cost effective means of transportation shall be utilized.
200	200	2.All travel should be at the lowest fare available, generally economy/coach.
201	201	The board may, by supplementary regulation, submitted and approved by
202	202	PERAC, establish routing criteria, for example, requiring no more than one
203	203	interim stop each way; not requiring more than one scheduled airplane
204	204	transfer each way; or allowing for reasonable departure and arrival times.
205	205	3.A retirement board shall not make payment or reimbursement for airline
206	206	club memberships.
207	207	4.If a retirement board authorizes the use of rental cars, the board may, by
208	208	supplementary regulation, submitted to and approved by PERAC, establish
209	209	that the source of such cars shall be a national rental agency, and that the
210	210	rental cars shall be "standard class". It is the traveler's responsibility to
211	211	verify that the rate charged is the rate negotiated.
212	212	5.The retirement board shall determine whether optional insurance
213	213	coverage for travel will be required.
214	214	6.Any motor vehicle accidents, which occur while using a rental car while on
215	215	board-approved travel, are to be reported as soon as practicable, in writing
216	216	to the appropriate authorities, with copies of all such reports provided to the
217	217	board.
218	218	7.No reimbursements shall be made for fines or other expenses incurred as
219	219	a result of traffic violations while on board-approved travel. The traveler is
220	220	personally responsible for such expenses.
221	221	8.The retirement board shall, by supplementary regulation, submitted and
222	222	approved by PERAC, establish the allowable rate of reimbursement for use
223	223	of personal motor vehicle. The per mile rate of reimbursement shall not
224	224	exceed the amount allowed by the Internal Revenue Service. If the board
225	225	does not submit a supplementary regulation, then the Internal Revenue
226	226	Service rate shall be used. Parking fees and toll charges may be reimbursed,
227	227	subject to proper documentation. 840 Mass. Code Regs. 2.07 Lodging (Code of Massachusetts
228	228	Regulations (2021 Edition))
229	229	2.07.Lodging
230	230	1.All reservations for accommodations should be made in advance. It is the
231	231	traveler's responsibility to verify that the rate charged is the rate negotiated.
232	232	Reimbursement for accommodations shall not exceed the amount charged
233	233	for "standard" accommodations. If accommodations are included as a part
234	234	of a registration fee, the board must be satisfied that the rate for such
235	235	accommodations is fair and reasonable before reimbursement or payment is
236	236	approved.
237	237	2. Reimbursement is prohibited if lodging is included in the cost of registration for a
238	238	conference or seminar. 840 Mass. Code Regs. 2.08 Meals (Code of Massachusetts
239	239	Regulations (2021 Edition))
240	240	2.08.Meals
241	241	1.retirement boards must, by supplementary regulation, submitted and
242	242	approved by PERAC, establish and identify the maximum daily
243	243	reimbursable amount for the cost of meals while on board authorized travel.
244	244	The board may, by supplementary regulation, submitted and approved by
245	245	PERAC, allow for reimbursement in excess of the allowable amount for
246	246	travel to high-cost locations.
247	247	2.Reimbursement is prohibited if meals are included in the cost of
248	248	registration for a conference or seminar. If the board determines that special
249	249	circumstances require a board member or board staff member to take meals
250	250	other than those included in the cost of registration, reimbursement may be
251	251	made provided that all provisions of 840 CMR 2.00 are met. The special
252	252	circumstances must be discussed in a board meeting and the board's
253	253	determination must be reflected in the minutes of the board.
254	254	3.If reimbursement is sought for meal expenses for others, those individuals
255	255	are to be identified along with their affiliation and a description of the
256	256	purpose of the meeting. Reimbursement shall be made only for meetings
257	257	that are for business purposes.
258	258	4. Retirement boards shall never reimburse for the cost of alcoholic beverages. 840 Mass. Code Regs. 2.09 Other Reimbursable and Non-
259	259	Reimbursable Expenses (Code of Massachusetts Regulations
260	260	(2021 Edition))
261	261	2.09.Other Reimbursable and Non-Reimbursable Expenses
262	262	1.Retirement boards may reimburse board members or board staff
263	263	members for the following items:
264	264	a)gratuities paid in accordance with local custom;
265	265	b)telephone expenses limited to board or business related calls;
266	266	c)internet connection charges;
267	267	d)costs for faxing related to Board business;
268	268	e)costs for necessary copying related to board business; or
269	269	f)mandatory resort or hotel fees.
270	270	2. Retirement boards shall not reimburse board members or board staff members for the
271	271	following items:
272	272	a)personal expenses, for example, in-room movies, mini-bar
273	273	charges, gym fees, entertainment or recreational expenses,
274	274	laundry and dry cleaning, spa visits, or payments for alcoholic
275	275	beverages.
276	276	b)This list of prohibited reimbursements is not exhaustive. 840 Mass. Code Regs. 2.10 Cash Advances (Code of Massachusetts
277	277	Regulations (2021 Edition))
278	278	2.10.Cash Advances
279	279	Retirement boards shall not make cash advances to board members or
280	280	Board staff members. 840 Mass. Code Regs. 2.11 Board Credit Cards (Code of
281	281	Massachusetts Regulations (2021 Edition))
282	282	2.11.Reserved 840 Mass. Code Regs. 2.12 Personal Travel Combined with Board
283	283	Related Travel (Code of Massachusetts Regulations (2021
284	284	Edition))
285	285	2.12.Personal Travel Combined with Board Related Travel
286	286	If personal travel is combined with board related travel, the personal portion
287	287	of the travel and related expenses will be clearly identified and paid for by
288	288	the traveler. Travel expenses or any other expenses incurred by a spouse,
289	289	relative, friend, or other individual accompanying a board member or board
290	290	staff member will be considered to be personal travel and will, in no event,
291	291	be a proper expense of the retirement board. 840 Mass. Code Regs. 2.13 Payments or Reimbursements for
292	292	Expenses by Third Parties (Code of Massachusetts Regulations
293	293	(2021 Edition))
294	294	2.13. Payments or Reimbursements for Expenses by Third
295	295	Parties
296	296	1.Providing to or receipt by a board member or staff member of anything of
297	297	substantial value from any person, firm, partnership, or other entity, either
298	298	directly or indirectly, as outlined and discussed in G.L. c. 268A, is strictly
299	299	prohibited.
300	300	2.In instances where a retirement board member or board staff member
301	301	participates in a legitimate speaking engagement, the board shall pay all
302	302	costs and expenses related to such speaking engagement, provided, that the
303	303	board member or board staff member complies with all of the board's travel
304	304	regulations. The board may accept reimbursement for such travel related
305	305	expenses of a board member or a member of the board's staff from the third
306	306	party, only under the following limited circumstances:
307	307	a) A board member or a board staff member may participate in
308	308	legitimate speaking engagements in connection with their positions
309	309	on the retirement board or as a member of the board's staff and the
310	310	board may accept reimbursements from third parties necessary to
311	311	cover travel related costs for such engagements.
312	312	b) Acceptance of an honorarium or any other form of
313	313	compensation is strictly prohibited.
314	314	c) To be considered a legitimate speaking engagement, the
315	315	presentation must be formally scheduled on the agenda of a
316	316	convention or conference.
317	317	d) The speaking engagement must be scheduled in advance
318	318	of the board member's or board staff member's arrival at the
319	319	event.
320	320	e) The presentation must be before an organization that
321	321	would normally have outside speakers address them at such an
322	322	event.
323	323	f) The presentation cannot be perfunctory, but should
324	324	significantly contribute to the event, taking into account such
325	325	factors as the length of the speech or presentation, the size of the
326	326	audience, and the extent to which the speaker is providing
327	327	substantive or unique information or viewpoints.
328	328	g) The retirement board can be reimbursed by a third party
329	329	for expenses only to the extent necessary for making the speech
330	330	or presentation. 840 Mass. Code Regs. 2.13 Payments or Reimbursements for
331	331	Expenses by Third Parties (Code of Massachusetts Regulations
332	332	(2021 Edition))
333	333	h) Under no circumstances can a board member or board staff
334	334	member receive reimbursement or any other payment or
335	335	compensation from a third party.
336	336	3.In instances where a retirement board member or board staff member
337	337	participates in a non-profit professional organization related to public
338	338	pension or public retirement, the retirement board may be reimbursed by
339	339	the organization for the expenses related to such participation. The travel or
340	340	participation must be approved by the board in advance of any
341	341	expenditures, and the minutes of the board must note this action. No
342	342	organization, association, or group of any sort that is comprised of or
343	343	supported by any person, firm, partnership, or other entity, either directly
344	344	or indirectly, as outlined and discussed in G.L. c. 268A, shall reimburse a
345	345	retirement board for any expenses of a board member or board staff
346	346	member to participate in any activities of that organization. Board Travel Supplementary Regulations (Code of Massachusetts
347	347	Regulations (2021 Edition))
348	348	2.14.Violation of These Regulations or Board Travel
349	349	Supplementary Regulations
350	350	Any person or entity that violates 840 CMR 2.00 or any retirement board
351	351	supplementary regulation approved by PERAC prior to the effective date of
352	352	840 CMR 2.00 shall be deemed to have violated the provisions of 840 CMR
353	353	17.00 and shall be subject to removal as an investment manager or
354	354	consultant. 840 CMR 4.00 Financial Operations/Standard Method of
355	355	Accounting (Code of Massachusetts Regulations (2021 Edition))
356	356	840 CMR 4.00. Financial Operations/Standard Method of
357	357	Accounting
358	358	840 CMR 4.00, establishing standard methods of accounting for boards, is
359	359	promulgated by PERAC pursuant to M.G.L. c. 7, § 50 and M.G.L. c. 32, §
360	360	21. Except as may otherwise be provided by the PERAC, or by
361	361	supplementary rules of a particular retirement board approved by the
362	362	PERAC pursuant to 840 CMR 14.02, or by statute, 840 CMR 4.00 shall
363	363	govern methods of accounting of all retirement boards.
364	364	REGULATORY AUTHORITY
365	365	840 CMR 4.00: M.G.L. c. 7, §50; c. 32, §§ 21. 840 Mass. Code Regs. 4.01
366	366	Definitions (Code of Massachusetts Regulations (2021 Edition))
367	367	4.01.Definitions
368	368	Accounting Period – January 1
369	369	st
370	370	through December 31
371	371	st
372	372	.
373	373	Adjusting Journal – contains all entries that do not involve cash.
374	374	Cash Books – includes the following reports: cash receipts, cash
375	375	disbursements, adjusting journal entries, trial balance and general ledger.
376	376	Cash Disbursements Journal – contains entries of all cash disbursements
377	377	from the system.
378	378	Cash Receipts Journal – contains entries of all cash receipts into the system.
379	379	Extension – when PERAC allows a board, upon a written request, to submit
380	380	the Annual Statement by June 1 rather than May 1.
381	381	General Ledger – a means for keeping record of the system’s total financial
382	382	accounts. It includes all accounts, entries and balances for: Assets,
383	383	Liabilities, Funds, Receipts and Disbursements.
384	384	Pre-Close Trial Balance/General Ledger – lists all ledger accounts and
385	385	balances before the closing entries are made.
386	386	Post-Close Trial Balance/General Ledger – produced after the closing entries
387	387	are made to zero out the receipts and disbursements accounts.
388	388	Trial Balance – list of all ledger accounts showing a beginning balance,
389	389	debits, credits, and ending balance. 840 Mass. Code Regs. 4.02 Entries and Posting of Accounts; Trial
390	390	Balance and General Ledger (Code of Massachusetts Regulations
391	391	(2021 Edition))
392	392	4.02.Entries and Posting of Accounts; Trial Balance and General
393	393	Ledger
394	394	Every board shall establish, number, and maintain ledger accounts in the form
395	395	prescribed by PERAC.
396	396	(1)Transactions shall be entered daily.
397	397	(2)A Trial Balance shall be run monthly.
398	398	(3)A General Ledger shall be run monthly. 840 Mass. Code Regs. 4.03 Copies to be Sent to PERAC (Code of
399	399	Massachusetts Regulations (2021 Edition))
400	400	4.03.Copies to be Sent to PERAC
401	401	(1)After all entries for the month have been posted , the board shall send to
402	402	PERAC in the prescribed format the following for the month:
403	403	(a)monthly cash receipts ;
404	404	(b)monthly cash disbursements;
405	405	(c)monthly adjusting journal entries;
406	406	(d)monthly general ledger; and
407	407	(e)year-to-date trial balance.
408	408	The following chart indicates the due dates for the monthly cash books:
409	409	Month of AccountingDue Date JanuaryMay 31
410	410	st
411	411	FebruaryMay 31
412	412	st
413	413	MarchJune 30
414	414	th
415	415	AprilJune 30
416	416	th
417	417	MayJuly 31
418	418	st
419	419	JuneJuly 31
420	420	st
421	421	JulyAugust 31
422	422	st
423	423	AugustSeptember 30
424	424	th
425	425	SeptemberOctober 31
426	426	st
427	427	OctoberNovember 30
428	428	th
429	429	NovemberDecember 31
430	430	st
431	431	December*March 31
432	432	st
433	433	*Along with the December cash books, the board should also provide a January-
434	434	December post-close trial balance and general ledger.
435	435	The State and Teachers systems will not be subject to this timeline as they operate
436	436	on the state fiscal year.
437	437	(2)The board shall send or have sent to PERAC a copy of all custodian
438	438	statements received by the board within four weeks of the close of the
439	439	month. Such statements shall be separated into the following five
440	440	categories: cash, short term investments*, fixed income investments,
441	441	equities, and pooled funds. Such statements shall include, but not be limited
442	442	to:
443	443	(a)monthly custodian bank statements which detail transaction activity
444	444	including investment income, investments purchased, accrued interest paid,
445	445	investments sold, book value of investments sold, profit/loss on investments
446	446	sold, accrued interest sold, cusip numbers, name of brokers and 840 Mass. Code Regs. 4.03 Copies to be Sent to PERAC (Code of
447	447	commissions paid, trade receivables and payables, trade dates, settlement
448	448	dates and actual settlement dates.
449	449	*Short term investments are defined as U.S. Treasury Bills, Commercial
450	450	Paper, Certificates of Deposit, Repurchase Agreements, Cooperative Shares,
451	451	Savings and Loan Shares, Money Market and Term Deposits.
452	452	(b)monthly account appraisal which provides an alphabetical listing of
453	453	assets held for each category; information for each asset should include a
454	454	complete description of the asset, cusip numbers, number of shares, book
455	455	value and market value.
456	456	(3)The board shall send or have sent to PERAC a copy of all manager
457	457	statements received by the board within four weeks of the close of the
458	458	month. Such statements shall detail the activity of the retirement system
459	459	including purchases and sales of fund shares, income, dividend re-
460	460	investments, fund expenses, and ownership interest of the retirement
461	461	system in any commingled funds, including, but not limited to, separate
462	462	accounts, bank pooled funds, mutual funds, group trusts and limited
463	463	partnerships.
464	464	(4) The board shall send or have sent to PERAC a copy of all Consultant
465	465	statements received by the board within four weeks of the close of the month. Such
466	466	statements shall include quarterly and year to date performance figures, listing of
467	467	assets, asset allocations, and individual asset appraisal values. 840 Mass. Code Regs. 4.03 Copies to be Sent to PERAC (Code of
468	468	(Code of Massachusetts Regulations (2021 Edition))
469	469	4.04.Failure to File Financial Reports
470	470	Any retirement board failing to file the financial statements and reports
471	471	required by M.G.L. c. 32, § 20(5)(g), or by 840 CMR 4.03 shall be subject
472	472	to the penalties provided by M.G.L. c. 32, § 24(2). 840 Mass. Code Regs. 4.03 Copies to be Sent to PERAC (Code of
473	473	4.05 Copies to be Shared with Board Members
474	474	Board staff shall share completed monthly cash books with all Board members.
475	475	Additionally, Board staff shall share cash reconciliations, as well as a quarterly comparison
476	476	of budgeted amounts to actual spending with all board members. 840 Mass. Code Regs. 8.01 Definitions (Code of Massachusetts
477	477	Regulations (2021 Edition)) 840 Mass. Code Regs. 8.01 Definitions (Code of Massachusetts
478	478	Regulations (2021 Edition))
479	479	840 CMR 8.00. Applicability Of $30,000 Salary Cap [Details]
480	480	REGULATORY AUTHORITY
481	481	840 CMR 8.00: M.G.L. c. 7, § 50; c. 32, § 21. 840 Mass. Code Regs. 8.01 Definitions (Code of Massachusetts
482	482	Regulations (2021 Edition))
483	483	8.01.Definitions
484	484	As used in 840 CMR 8.00, unless a different meaning is plainly required by
485	485	the context, the following terms shall have the following meanings:
486	486	Capped system, any retirement system other than an uncapped system
487	487	Non-section 50 restricted service, any service other than St. 1978, c. 367, §50
488	488	restricted service.
489	489	Section 50 restricted service, service by an employee to whom the $30,000
490	490	cap applies in a system that remains a capped system.
491	491	$30,000 cap, The maximum salary upon which a retirement allowance may
492	492	be based pursuant to St. 1978, c. 367, § 50.
493	493	Uncapped system , the state employees' and the state teachers' retirement
494	494	systems and any other system that:
495	495	(a)
496	496	(a)accepts the provisions of M.G.L. c. 32, § 22(1)(b½), or
497	497	(b)accepts an annual pension funding grant pursuant to M.G.L. c. 32, §
498	498	22D. 840 Mass. Code Regs. 8.02 Applicability of the &dollar;30,000
499	499	Cap (Code of Massachusetts Regulations (2021 Edition))
500	500	8.02.Applicability of the $30,000 Cap
501	501	(1)St. 1987, c. 697, § 64 makes the $30,000 cap inapplicable to members of
502	502	the state employees' and teachers' retirement systems and members of any
503	503	system that:
504	504	(a)accepts the provisions of M.G.L. c. 32, § 22(1)(b½), or
505	505	(b)accepts an annual pension funding grant pursuant to M.G.L. c. 32, § 22D
506	506	The $30,000 cap is, in effect, repealed for members of these uncapped
507	507	systems.
508	508	(2)The state employees' and teachers' retirement systems became uncapped
509	509	as of January 1, 1988. Other systems become uncapped effective upon filing
510	510	with the Commission a certificate of acceptance pursuant to 840 CMR
511	511	8.02(1)(a) or upon a vote to accept a grant pursuant to 840 CMR 8.02(1)(b),
512	512	whichever occurs first.
513	513	(3)The $30,000 cap remains applicable to those members of capped
514	514	systems who became members on or after January 1, 1979. This includes:
515	515	(a)Members who were employed prior to January 1, 1979 but became
516	516	members on or after January 1, 1979. Persons who were employed prior to
517	517	January 1, 1979 and were not permitted membership by administrative
518	518	oversight, or through no fault on the part of the member, are not subject to
519	519	the $30,000 cap.
520	520	(b)Individuals who were members prior to January 1, 1979 but left
521	521	employment taking a return of accumulated deductions and then returned
522	522	to employment and become members after January 1, 1979, whether or not
523	523	previous service was repurchased. Persons who become members prior to
524	524	January 1, 1979 and thereafter maintained membership, active or inactive,
525	525	are not subject to the $30,000 cap. 840 Mass. Code Regs. 8.03 Additional Two Percent Contribution
526	526	(Code of Massachusetts Regulations (2021 Edition))
527	527	8.03.Additional Two Percent Contribution
528	528	Effective on the date that a system becomes uncapped, for each member of
529	529	the system to whom the $30,000 cap had applied an additional two percent of
530	530	that portion of regular compensation in excess of an annualized rate of
531	531	$30,000 shall be withheld each payday. For such members paid weekly, for
532	532	example, two percent shall be withheld from all regular compensation in
533	533	excess of $576.92 per week. 840 Mass. Code Regs. 8.04 Other Contributions (Code of
534	534	Massachusetts Regulations (2021 Edition))
535	535	8.04.Other Contributions
536	536	(1)In the case of systems (other than the state employees' and teachers'
537	537	systems) that become uncapped on or before July 1, 1988, for each member
538	538	of the system to whom the $30,000 cap had applied an amount shall be
539	539	withheld from that portion of regular compensation in excess of an
540	540	annualized rate of $30,000, in such installments as the retirement board
541	541	shall direct, equal to the additional amount that would have been withheld
542	542	pursuant to 840 CMR 8.03 between January 1, 1988 and the date the system
543	543	becomes uncapped.
544	544	(2)In the case of systems that become uncapped after July 1, 1988
545	545	contributions pursuant to 840 CMR 8.04(1) shall not be required. 840 Mass. Code Regs. 8.04 Other Contributions (Code of
546	546	(Code of Massachusetts Regulations (2021 Edition))
547	547	8.05.Effect of Cap on Retirement Allowance
548	548	(1)If upon retirement a member to whom the $30,000 cap applied has
549	549	service in a capped system, and no service in an uncapped system, the
550	550	maximum salary upon which the retirement allowance may be based is
551	551	$30,000 whether the member is retired for superannuation or for ordinary or
552	552	accidental disability.
553	553	The amount of regular compensation to be used in calculating the
554	554	retirement allowance of such members shall not exceed $30,000.
555	555	(2)If upon retirement a member to whom the $30,000 cap applied has
556	556	service in both a capped system and an uncapped system, the retirement
557	557	allowance shall be based upon the number of years of section 50 restricted
558	558	service and the number of years of non-section 50 restricted service. For this
559	559	purpose, all service of a member in a system that remains a capped system
560	560	at the time of retirement shall be included in section 50 restricted service,
561	561	regardless of the member's actual rate of regular compensation, if the
562	562	$30,000 cap was applicable to the member at the time of the service. All
563	563	service of a member in a system that is uncapped at the time of retirement
564	564	shall be included in non-section 50 restricted service. The retirement
565	565	allowance of any such member shall be the sum of the allowance calculated
566	566	based upon the years of section 50 restricted service and the allowance
567	567	calculated based upon the years of non-section 50 restricted service.
568	568	(3)If the retirement allowance of a member, or eligible beneficiary of a
569	569	member, is affected by service in a system that remained capped at the time
570	570	of retirement and the system later becomes uncapped, the retirement
571	571	allowance shall be recalculated as of the date the system becomes uncapped.
572	572	Any service in a system that has become uncapped since the time of
573	573	retirement shall be included in non-section 50 restricted service for
574	574	purposes of this recalculation. No member or beneficiary shall be required
575	575	to make any additional contributions as a condition of such recalculation. 840 Cmr 11.00 Service After Age 70 [Details] (Code of 840 Cmr 11.00 Service After Age 70 [Details] (Code of
576	576	840 CMR 11.00. Service After Age 70 [Details]
577	577	840 CMR 11.00 is the standard rule for service after age 70 promulgated by
578	578	the Public Employee Retirement Administration Commission pursuant to
579	579	M.G.L. c. 7, § 50. Except as otherwise provided by the Commission, by
580	580	supplementary rules of a particular retirement board approved by the
581	581	Commission pursuant to 840 CMR 14.02, or by statute, 840 CMR 11.00
582	582	shall govern the procedures of all retirement boards relating to service after
583	583	age 70.
584	584	REGULATORY AUTHORITY
585	585	840 CMR 11.00: M.G.L. c. 7, § 50; c. 32, § 21. 840 Mass. Code Regs. 11.01 Notice to Members (Code of
586	586	Massachusetts Regulations (2021 Edition))
587	587	11.01.Notice to Members
588	588	Not more than 180 nor less than 120 days before the last day of the month in
589	589	which a member in service attains the age of 70, the retirement board shall
590	590	estimate the member's option (a), (b) and, if sufficient information is
591	591	available, (c) retirement benefits as of age 70 and shall notify the member of
592	592	the estimate and procedures for continuing in service after age 70. The board
593	593	shall also supply the member with the appropriate form on which to choose
594	594	whether to continue to have deductions made from regular compensation
595	595	until the date of retirement as prescribed by 840 CMR 11.02. 840 Mass. Code Regs. 11.02 Deductions After Age 70; Election
596	596	(Code of Massachusetts Regulations (2021 Edition))
597	597	11.02.Deductions After Age 70; Election
598	598	(1)Any member who chooses to continue in service after age 70 may elect to
599	599	have deductions made from regular compensation until the date of
600	600	retirement. The retirement board shall provide the member with the
601	601	appropriate form on which the member may elect to have deductions made
602	602	after age 70. This form shall be completed and filed by the member with the
603	603	retirement board within 15 working days of the board's notice to the
604	604	member or the member's 70th birthday, whichever is later. If this form is
605	605	not timely filed, no deductions shall be made after age 70.
606	606	(2)An election to have deductions made after age 70 shall be final and
607	607	deductions shall not thereafter be discontinued for any active member. 840 Mass. Code Regs. 11.02 Deductions After Age 70; Election
608	608	of Massachusetts Regulations (2021 Edition))
609	609	11.03.Effect on Retirement Benefits
610	610	(1)Except as provided by 840 CMR 11.02, no deductions shall be made from the
611	611	regular compensation of a member continuing in service after age 70 and the
612	612	retirement allowance shall be calculated based on average annual rate of regular
613	613	compensation received prior to age 70.
614	614	(2)For members who timely so elect pursuant to 840 CMR 11.02,
615	615	deductions shall be made from regular compensation until the date of
616	616	retirement and the retirement allowance shall be calculated based on
617	617	average annual rate of regular compensation including compensation
618	618	received after age 70.
619	619	(3)No member shall be required to elect a retirement option pursuant to
620	620	M.G.L. c. 32, § 12 until termination of employment.
621	621	(4)If a member dies after age 70 but before termination, the member's spouse
622	622	shall be entitled, if otherwise eligible pursuant to M.G.L. c. 32, to the benefits that
623	623	would have been payable if the member had retired on the date of death and
624	624	elected Option C.
625	625	(5)Upon the decision of a member to terminate service, the member may file a
626	626	retirement application with the retirement board and the retirement allowance
627	627	shall be calculated pursuant to 840 CMR 15.04. 840 Cmr 12.00 Service After Age 65 (Code of Massachusetts
628	628	Regulations (2021 Edition))
629	629	840 CMR 12.00. Service After Age 65
630	630	840 CMR 12.00 is the standard rule for service after age 65 promulgated by
631	631	the Public Employee Retirement Administration Commission pursuant to
632	632	M.G.L. c. 7, § 50 and St. 1987, c. 415.
633	633	Except as otherwise provided by the Commission, by supplementary rules of a
634	634	particular retirement board approved by the Commission pursuant to 840 CMR
635	635	14.02, or by statute, 840 CMR 12.00 shall govern the procedures of all retirement
636	636	boards relating to service after age 65.
637	637	REGULATORY AUTHORITY
638	638	840 CMR 12.00: M.G.L. c. 7, § 50; c. 32, § 21. 840 Mass. Code Regs. 12.03 Effect on Retirent Benefits (Code
639	639	12.01.Notice to Members
640	640	(1)No member may continue in service after age 65 if the member is in an
641	641	occupation or position classification for which the personnel administrator
642	642	determines by regulation that age is a bona fide occupational qualification or is in
643	643	one of the following occupations or position classifications unless the personnel
644	644	administrator determines by regulation that age is not a reasonably necessary
645	645	bona fide occupational qualification:
646	646	(a)uniformed member of a paid fire department;
647	647	(b)uniformed member of a police department;
648	648	(c)member of the department of fisheries and wildlife, as determined by the
649	649	personnel administrator;
650	650	(d)correctional officer;
651	651	(e)permanent crash crewman, crash boatman, fire controlman, or assistant fire
652	652	controlman employed at the General Edward Lawrence Logan International
653	653	Airport.
654	654	(2)If the board determines that the member is in an occupation or position
655	655	classification which requires that the member retire at age 65, the board shall
656	656	notify the member 120 prior to the date the member is required to retire. 840 Cmr 15.00 Miscellaneous (Code of Massachusetts
657	657	Regulations (2021 Edition))
658	658	840 CMR 15.00. Miscellaneous
659	659	REGULATORY AUTHORITY
660	660	840 CMR 15.00: M.G.L. c. 7, § 50; c. 32, and 21. 840 Mass. Code Regs. 15.01 Attestation of Retired Members and
661	661	Beneficiaries (Code of Massachusetts Regulations (2021 Edition))
662	662	15.01.Attestation of Retired Members and Beneficiaries
663	663	(1)No less frequently than once every two years, each retirement board shall
664	664	require each member or beneficiary who receives a pension, retirement
665	665	allowance, or survivor's allowance to file with the retirement board an
666	666	attestation under the penalties of perjury, at such time and in such form as
667	667	the board shall prescribe, containing the following information:
668	668	(a)the name of the member or beneficiary;
669	669	(b)the current address of the member or beneficiary;
670	670	(c)a statement certifying that the member or beneficiary is currently living;
671	671	(d)a statement describing the beneficiary's current marital
672	672	status where marital status is relevant to continued receipt of
673	673	benefits;
674	674	(e)a statement describing the beneficiary's current dependency
675	675	status where dependency is relevant to continued receipt of benefits;
676	676	and
677	677	(f)such additional information as the board may require
678	678	to determine whether the member or beneficiary is entitled to
679	679	continued receipt of benefits.
680	680	(2)If a member or beneficiary comes to the retirement office in person to
681	681	verify the above information, they will be considered to have satisfied the
682	682	requirements of the attestation.
683	683	(3)The retirement board shall withhold the retirement benefits of any
684	684	member or beneficiary who fails to file the attestation within the time
685	685	prescribed pending receipt of the attestation. Upon receipt of the
686	686	attestation, any benefits so withheld shall be paid to the retired member or
687	687	beneficiary.
688	688	(4)The retirement board may review and verify the accuracy of any
689	689	attestation submitted and shall audit a random sample of at least five per
690	690	cent of the attestations received.
691	691	A retirement board shall be deemed to have complied with Sections 1-4 if it performs a
692	692	data match of the demographic information and status of current retirees and beneficiaries
693	693	receiving benefits no less than every six months by a third-party entity contracted through
694	694	an approved selection or procurement process.
695	695	A retirement board shall preserve or ensure that the results of any such data match are accessible through the next PERAC audit. 840 Mass. Code Regs. 15.02 Purchase of Prior Membership
696	696	Creditable Service; Purchase of Creditable Service for Non-
697	697	membership Service; Rates of Contribution Upon Return to
698	698	Active Service (Code of Massachusetts Regulations (2021
699	699	Edition))
700	700	15.02.Purchase of Prior Membership Creditable Service;
701	701	Purchase of Creditable Service for Non-Membership Service;
702	702	Rates of Contribution Upon Return to Active Service
703	703	(1)Purchase of Prior Membership Creditable Service. Any member
704	704	authorized by law to purchase prior creditable service may purchase such
705	705	service by paying an amount equal to the accumulated regular deductions
706	706	withdrawn by the member, together with the appropriate statutorily
707	707	defined interest. Any member may make a lump sum payment or
708	708	installment payments over a period not exceeding five years and may, with
709	709	the approval of the board, make installment payments over a period
710	710	exceeding five years.
711	711	(2)Purchase of Non-Membership Creditable Service. Upon submission of
712	712	documentation satisfactory to the retirement board and consistent with
713	713	Chapter 32, a member will be allowed to purchase creditable service for
714	714	periods of non- membership employment. The amount of creditable service
715	715	that may be purchased shall be determined by the retirement board in a
716	716	manner consistent with the retirement board's supplementary regulations
717	717	that have been approved by PERAC pursuant to 840 CMR 14.00. The
718	718	member may purchase less than all non-membership service available for
719	719	purchase; provided, however, that in such event the member must purchase
720	720	the most recent time first.
721	721	(3)If more than one type of purchase is available, the member can choose
722	722	which type of service they wish to purchase. Additionally, if the member
723	723	can complete both a purchase of non-membership and membership
724	724	service, the member has the option to choose which to complete first.
725	725	(4)Rates of Contribution Upon Return to Active Service. The rates of
726	726	contribution for members formerly in service who have returned to the
727	727	service of the same or another governmental unit shall be as follows:
728	728	(a)for any member who contributed to a retirement system and
729	729	did not receive a refund of accumulated deductions when he or she
730	730	left service, the contribution rate upon the member's return to
731	731	service shall be the same rate as the member was contributing at the
732	732	time he or she left service;
733	733	(b)the contribution rate for any member who contributed to a
734	734	retirement system, and received a refund of accumulated
735	735	deductions after termination of service, shall be the contribution
736	736	rate in effect when the member re- established membership,
737	737	whether or not the member purchases prior creditable service. 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
738	738	Massachusetts Regulations (2021 Edition))
739	739	15.03.Regular Compensation
740	740	(1)During any period of active service prior to July 1, 2009 the term "regular
741	741	compensation" as defined by M.G.L. c. 32, § 1, shall be determined subject to
742	742	the following:
743	743	(a)To be considered regular compensation, any compensation to an
744	744	employee must:
745	745	1.have been actually paid to or on behalf of a member:
746	746	2.be made as remuneration for services actually rendered, for recurring
747	747	payments for accrued sick leave, or for payments made pursuant to M.G.L. c.
748	748	41, § 111F in the year or part of a year to which the compensation is
749	749	attributed;
750	750	3.be ordinary, normal, recurrent, repeated, and of indefinite duration;
751	751	4.be made pursuant to an official written policy of the employer or to a
752	752	collective bargaining agreement;
753	753	5.be made on a non-discriminatory basis and be generally available for
754	754	employees who are similarly situated relative to the purpose of the payment
755	755	(e.g. a longevity payment made recurrently to all employees in a bargaining
756	756	unit having attained a specific length of service) provided that the ability of a
757	757	payment to be denied due to merit shall not exclude it for that reason from
758	758	regular compensation.
759	759	(b)Regular compensation shall include any part of such salary, wages, or
760	760	other compensation derived from federal grants, except as otherwise
761	761	provided in M.G.L. c. 32, § 3(2)(a)(xi);
762	762	(c)Lump-sum or retroactive payments which would have been regular
763	763	compensation if paid in the periods in which the services remunerated
764	764	thereby were actually rendered will be allocated to said periods rather than
765	765	being entirely attributed to the time of receipt for the purpose of
766	766	determining a member's regular compensation.
767	767	(d)Provided they meet the general criteria in 840 CMR 15.03(1)(a) through
768	768	(c), payments to be considered regular compensation shall include:
769	769	1.a member's annual rate of compensation as provided in an approved
770	770	salary schedule;
771	771	2.any non-cash maintenance allowances in the form of full or partial
772	772	boarding and housing, as provided in M.G.L. c. 32, § 22(1)(c); 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
773	773	Massachusetts Regulations (2021 Edition))
774	774	3.any premiums paid by any governmental unit for the purchase of an
775	775	individual or group annuity contract as authorized by M.G.L. c. 15, § 18A or
776	776	by M.G.L. c. 71, § 37B;
777	777	4.any amounts paid as educational incentives;
778	778	5.any amounts paid for length of service;
779	779	6.any amounts paid as premiums for shift differentials; and
780	780	7.any amounts paid as cost-of-living bonuses or cost-of-living pay
781	781	adjustments.
782	782	(2)During any period of active service prior to July 1, 2009, any
783	783	extraordinary or ad hoc payment amount shall be excluded from regular
784	784	compensation. Exclusions shall include, but not be limited to:
785	785	(a)any amounts paid for hours worked beyond the member's normal work
786	786	schedule;
787	787	(b)any amounts paid as premiums for working holidays, except as
788	788	authorized by law;
789	789	(c)any amounts paid as bonuses other than cost-of-living bonuses, provided
790	790	that any payment to an employee or group of employees which will not recur
791	791	or which will recur for only a limited or definite term will be considered a
792	792	bonus, and further provided that any payments to an employee or group of
793	793	employees as part of a salary augmentation plan or salary enhancement
794	794	program which is provided for in an individual contract in effect on or
795	795	before January 25, 2006 or in a collective bargaining agreement in effect on
796	796	or before January 25, 2006, including payments under such a plan or
797	797	program which will not recur or which will recur for only a limited or
798	798	definite term, shall be treated as regular compensation; and further
799	799	provided, that any employee who is covered by such an agreement or
800	800	contract on January 25, 2006 and who begins, at any time during the life of
801	801	a collective bargaining agreement or individual employment contract in
802	802	effect on or before January 25, 2006, to receive benefits and make
803	803	retirement contributions pursuant to a salary augmentation plan or salary
804	804	enhancement program under such a collective bargaining agreement or
805	805	individual employment contract, may complete the plan or program under
806	806	that agreement or contract or under a successor collective bargaining
807	807	agreement or individual employment contract, provided that the successor
808	808	collective bargaining agreement or individual employment contract contains
809	809	a salary augmentation plan or salary enhancement program; and further
810	810	provided that the amount of the salary augmentation plan or salary 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
811	811	Massachusetts Regulations (2021 Edition))
812	812	enhancement program under a successor collective bargaining agreement or
813	813	individual employment contract which shall be treated as regular
814	814	compensation shall not exceed the amount of the salary augmentation plan or
815	815	salary enhancement program provided under the collective bargaining
816	816	agreement or individual employment contract in effect on or before January
817	817	25, 2006, and further provided that any member who has previously retired
818	818	and is receiving benefits as of April 7, 2006 under the provisions of a salary
819	819	augmentation plan or salary enhancement program shall have that plan
820	820	deemed in compliance with the provisions of M.G.L. c. 32.
821	821	(d)any amounts paid in lieu of or for unused vacation, sick leave, or other
822	822	leave;
823	823	(e)severance pay;
824	824	(f)any amounts paid as early retirement incentives; and
825	825	(g)any other payments made as a result of the member giving notice of
826	826	retirement.
827	827	(3)During any period of active service subsequent to July 1, 2009 the term
828	828	"regular compensation", as defined by M.G.L. c. 32, § 1, shall be determined
829	829	subject to the following:
830	830	(a)to be considered regular compensation, any compensation to an
831	831	employee must be compensation received exclusively as wages by an
832	832	employee for services performed in the course of employment for his
833	833	employer;
834	834	(b)"wages" shall mean the base salary or other base compensation of an
835	835	employee paid to that employee for employment by an employer including
836	836	pre-determined, non-discretionary, guaranteed payments paid by the
837	837	employer to similarly situated employees, provided, that "wages" shall
838	838	include payments made by the employer to the employee because of the
839	839	character of the work, because of the employee's length of service, because of
840	840	the time at which the work takes place as a condition of employment in a
841	841	particular position, because of educational incentives, and payments for
842	842	holding the training, certification, licensing or other educational incentives
843	843	approved by the employer for the performance of services related to the
844	844	position the employee holds and payments made by the employer to the
845	845	employee calculated as a percentage of base pay;
846	846	(c)Any amount, benefit or payment included in the definition of "regular
847	847	compensation" by law or by regulation prior to July 1, 2009 and included in
848	848	any applicable collective bargaining agreement or individual contract for 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
849	849	Massachusetts Regulations (2021 Edition))
850	850	employment in effect on May 1, 2009, shall continue to be included in the
851	851	definition of "regular compensation" during the term of that collective
852	852	bargaining agreement or contract; provided, however, that any such
853	853	amount, benefit or payment received after the term of said collective
854	854	bargaining agreement or contract ends or after June 30, 2012, as the case
855	855	may be, shall continue to be considered regular compensation unless such
856	856	payment does not meet the criteria set forth in 840 CMR 15.03(3)(b) or is
857	857	excluded by the provision of 840 CMR 15.03(3)(f);
858	858	(d)Regular compensation shall include any part of the wages derived from
859	859	federal grants except as provided in M.G.L. c. 2 and (2)(a)(xi);
860	860	(e)Lump-sum retroactive payments which would have been wages if paid in
861	861	the periods in which the services remunerated thereby were actually
862	862	rendered will be allocated to said periods rather than being entirely
863	863	attributed to the time of receipt for the purpose of determining a member's
864	864	regular compensation;
865	865	(f)"Wages" shall not include, without limitation, overtime, commissions,
866	866	bonuses other than cost-of-living bonuses, amounts derived from salary
867	867	enhancements or salary augmentation plans which will recur for a limited or
868	868	definite term, indirect, in-kind or other payments for such items as housing,
869	869	lodging, travel, clothing allowances, annuities, welfare benefits, lump sum
870	870	buyouts for workers' compensation, job-related expense payments,
871	871	automobile usage, insurance premiums, dependent care assistance, one-
872	872	time lump sum payments in lieu of or for unused vacation or sick leave or
873	873	the payment for termination, severance, dismissal or ally amounts paid as
874	874	premiums for working holidays, except in the case of police officers,
875	875	firefighters and employees of a municipal department who are employed as
876	876	fire alarm signal operators or signal maintenance repairmen money paid for
877	877	holidays shall be regarded as regular compensation, amounts paid as early
878	878	retirement incentives or any other payment made as a result of the employer
879	879	having knowledge of the member's retirement, tuition, payments in kind
880	880	and all payments other than payment received by an individual from his
881	881	employing unit for services rendered to such employing unit, regardless of
882	882	federal taxability; provided further, that notwithstanding the foregoing, in
883	883	the case of a teacher employed in a public day school who is a member of the
884	884	teachers' retirement system, salary payable under the terms of an annual
885	885	contract for additional services in such school and compensation for services
886	886	rendered by a teacher in connection with a school lunch program or for
887	887	services in connection with a program of instruction of physical education
888	888	and athletic contests as authorized by M.G.L. c. 71, § 47 shall be regarded as
889	889	"regular compensation" rather than as bonus or overtime and shall be
890	890	included in the salary on which deductions are to be paid to the annuity
891	891	savings fund of the teachers' retirement system. 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
892	892	Massachusetts Regulations (2021 Edition)) 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
893	893	Massachusetts Regulations (2021 Edition))
894	894	15.04.Benefit Calculation Factors
895	895	PERAC, through its Actuary, is required to review the mortality table and interest rate used in the
896	896	determination of the actuarial equivalence factors for Options A, B, and C on or before January 1,
897	897	2014 and every 10 years thereafter. After the review, if changes are warranted, the Actuary will
898	898	select a revised mortality table and/or a revised interest rate to be used in the determination of
899	899	actuarial equivalence factors and develop such revised factors.
900	900	15.05. Board Credit Cards
901	901	1. Retirement Boards may, by supplementary regulation, submitted to and
902	902	approved by PERAC, authorize use of a credit card account issued to the Retirement
903	903	Board. This regulation should specifically include the amount upon which prior
904	904	spending authorization is required and the categories for which the credit card account
905	905	can be used.
906	906	2. Authorized users should be voted upon by the board and included in the board
907	907	meeting minutes. No one other than an authorized user may utilize the board credit card
908	908	account.
909	909	3. Any personal use of said credit card account issued to the board is prohibited.
910	910	4. The board credit card account shall not be used to obtain cash advances, bank
911	911	checks, traveler’s checks, or electronic cash transfers.
912	912	5. The credit card account billings shall be issued to the board office and any
913	913	authorized user shall be required to provide receipts for all expenses included in the
914	914	monthly statement within 10 business days of the statement date. If receipts are not
915	915	provided, the authorized user will immediately reimburse the board for those items that
916	916	appear on the credit card billing.
917	917	6. Credit card accounts issued to the board may be used to purchase supplies or
918	918	other items that the Board, the board members, or the board’s staff use on a regular basis
919	919	in the performance of board-related duties. However, the board should follow a
920	920	procurement process for the goods and services whenever possible. Credit card accounts
921	921	issued to the board may also be used for board-related travel expenses, as described at
922	922	840 CMR 2.00, et seq., or the supplementary regulations of the board.
923	923	7. If the board credit card is lost or stolen, this must be immediately reported to the
924	924	Board and to the financial institution issuing the card. 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
925	925	Massachusetts Regulations (2021 Edition))
926	926	8. The board must pay off the credit card account in full every month so as not to
927	927	incur any interest on the account.
928	928	9. The board’s supplementary regulation shall include a provision that continued or
929	929	repeated non-conformance to this policy will result in cancellation of the credit card
930	930	account and such other actions as appropriate.
931	931	15.06. Board Debit Cards
932	932	Retirement boards are prohibited from the use of debit cards for any purchases of goods
933	933	or services.
934	934	15.07 NON-DISABILITY HEARINGS BY A RETIREMENT BOARD
935	935	(1)Purpose. The following procedures shall be used for all Board hearings not related to
936	936	disability applications including, but not limited to, matters involving G.L. c. 32, §§ 15,
937	937	16 (involuntary superannuation), 91, and 91A.
938	938	(2)Notice. The retirement board shall give all parties at least 30 days notice of the time and
939	939	place for the hearing and of the issues involved in the hearing. If the issues cannot be fully
940	940	stated in advance of the hearing, they shall be fully stated as soon as practicable.
941	941	(3)Discovery. Any party and any authorized representative shall, at any time after a hearing
942	942	has been requested or ordered and after reasonable notice to the retirement board, be
943	943	permitted to examine and/or copy, during normal business hours, any document in the
944	944	case file pertaining to the member's file or the record of the hearing. All other discovery
945	945	shall be at the discretion of the retirement board. A request for discovery may be made by
946	946	any party at any time after a hearing has been requested or ordered.
947	947	(4)Conduct of Hearing. Hearings shall be conducted in an informal manner that affords all
948	948	parties an opportunity to present all information and argument relevant to the proceeding.
949	949	(a)Presiding Officer . The chairperson of the retirement board, any other member of the
950	950	board acting as chairperson, or any individual designated by the board, shall be the
951	951	presiding officer and shall assure parties the right to call and question witnesses and
952	952	introduce exhibits, and to present argument relevant to the proceeding. The presiding
953	953	officer shall assure an orderly presentation of the evidence and argument and that a
954	954	record is made of the hearing.
955	955	(b)Continuances. The presiding officer may change the date, time or place of the hearing
956	956	on his or her own motion or on the request of any party, upon due notice to all other
957	957	parties, and may continue the hearing to a subsequent date to permit any party to
958	958	present additional evidence, witnesses or other materials. At any time prior to decision,
959	959	the presiding officer may reconvene the hearing for any purpose upon ten days written 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
960	960	Massachusetts Regulations (2021 Edition))
961	961	notice to all parties, stating therein the purposes for reconvening, and the date, time
962	962	and place of the reconvened hearing.
963	963	(c)Oaths; Rulings; Briefs. The presiding officer shall administer the oath or affirmation to
964	964	witnesses, shall rule upon the admissibility of evidence and upon any requests for
965	965	rulings, and may order that pre and/or post hearing written briefs be submitted by the
966	966	parties .
967	967	(d)The Record. All proceedings in connection with the hearing shall be recorded by
968	968	electronic or stenographic means and such record shall be maintained as part of the
969	969	hearing record. Transcripts or duplicate tapes of the proceedings shall be supplied to
970	970	any party, upon request. At the discretion of the presiding officer, any party may be
971	971	permitted to record the hearing (except, in the case of those hearings taking place at a
972	972	meeting of the retirement board, those portions of the hearing which may be held in
973	973	executive session) so long as this does not interfere with the conduct of the
974	974	proceedings. All documents and other evidence received shall also become part of the
975	975	record.
976	976	(e)Executive Session. If a hearing occurs at a meeting of the retirement board, and if the
977	977	subject of the hearing is such that the matter may proceed in executive session the
978	978	board must first convene in open session for which notice has been given, a majority
979	979	of the members of the board must vote to go into executive session and the vote of
980	980	each member must be recorded on a roll call vote and entered into the minutes, the
981	981	presiding officer must have stated the purpose for an executive session, and stated
982	982	before the executive session if the board will reconvene after the executive session. In
983	983	such executive session only the retirement board, the secretary and the retirement
984	984	board's counsel, the parties and their authorized representatives and such other persons
985	985	as the presiding officer shall deem necessary for the conduct of the hearing shall be
986	986	permitted to be present. The records of the hearing in executive session shall not be
987	987	made available to the public except in accordance with the board's regulations on
988	988	privacy and confidentiality and such other laws or regulations as may be applicable to
989	989	such records.
990	990	(f)Evidence.
991	991	1.General. The retirement board need not observe the rules of evidence observed by
992	992	courts but shall observe the rules of privilege recognized by law. Evidence shall be
993	993	admitted and given probative effect only if it is the kind of evidence on which
994	994	reasonable persons are accustomed to rely upon. Unduly repetitious evidence may be
995	995	excluded.
996	996	2.Testimony; Stipulation. Witnesses shall testify under oath or affirmation and shall be
997	997	available for questions by all parties. If a witness cannot, as a practical matter, be
998	998	available in person the witness shall be available and testify remotely using adequate
999	999	electronic means as ordered by the presiding officer. Stipulations by the parties as to 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
1000	1000	Massachusetts Regulations (2021 Edition))
1001	1001	any fact or as to the testimony that would be given by an absent witness may be
1002	1002	offered and received as evidence.
1003	1003	3.Documentary Evidence. Documentary evidence may be received in the form of copies
1004	1004	or excerpts or by incorporation by reference at the discretion of the presiding officer.
1005	1005	4.Taking Notice of Facts. The retirement board may take notice of any fact which may
1006	1006	be judicially noticed by the courts, and any fact within the retirement board's
1007	1007	specialized knowledge. Parties shall be notified and afforded an opportunity to contest
1008	1008	any facts so noticed.
1009	1009	5.Evidence to Be Part of Record. All evidence, including any records, reports and
1010	1010	documents of the retirement board, to be considered in making a decision shall be
1011	1011	offered and made a part of the record of the proceeding and the record shall at all times
1012	1012	be open for inspection by any party or authorized representative during business hours.
1013	1013	The retirement board may, with notice to all parties, require any party to submit
1014	1014	additional evidence for the record and shall afford parties an opportunity to submit
1015	1015	rebuttal evidence.
1016	1016	(g)Subpoenas.
1017	1017	1.Issuance. The presiding officer shall, within five days of a written request of a party,
1018	1018	issue a subpoena requiring the attendance and testimony of a witness or the production
1019	1019	of any evidence including books, records, correspondence or documents relating to
1020	1020	any matter in question at the hearing.
1021	1021	2.Request to Vacate. Any person subpoenaed may file a written request to the presiding
1022	1022	officer to vacate or modify the subpoena.
1023	1023	3.Decision on Request to Vacate or Modify Subpoena . The presiding officer shall notify
1024	1024	all parties of the request to vacate or modify the subpoena and afford parties a
1025	1025	reasonable time to respond. The presiding officer shall grant the request to vacate or
1026	1026	modify the subpoena if the testimony or evidence subpoenaed does not relate with
1027	1027	reasonable directness to any matter at issue in the proceeding or if the subpoena is
1028	1028	otherwise unreasonable or oppressive.
1029	1029	4.Failure to Comply with Subpoena. If any person fails to comply with a properly
1030	1030	issued subpoena, the retirement board or the party requesting the issuance of the
1031	1031	subpoena may petition the Superior Court for an order requiring compliance.
1032	1032	(5) Written Decision. The presiding officer shall issue a written decision to the retirement board
1033	1033	following the conclusion of the hearing. The Board shall vote and issue a decision following
1034	1034	receipt of the Presiding Officer’s decision and provide the parties with the appropriate appeal
1035	1035	rights. 840 CMR 25.00 Field Examinations Of
1036	1036	840 CMR 25.00. Field Examinations of Contributory Retirement
1037	1037	Systems
1038	1038	REGULATORY AUTHORITY
1039	1039	840 CMR 25.00: M.G.L. c. 7, § 50; c. 32, § 21. 840 Mass. Code Regs. 25.01 Field Examinations of
1040	1040	Contributory Retirement Systems (Code of Massachusetts
1041	1041	Regulations (2021 Edition))
1042	1042	25.01. Field Examinations of Contributory Retirement Systems
1043	1043	840 CMR 25.00 is the standard rule for the field examinations of contributory
1044	1044	retirement systems promulgated by PERAC pursuant to M.G.L. c. 7, § 50(a) and c.
1045	1045	32, § 21(1)(a). Except as otherwise provided by PERAC, or by statute, 840 CMR
1046	1046	25.00 shall govern any examination of the financial condition of a contributory
1047	1047	retirement system.
1048	1048	Examinations of contributory retirement systems are conducted to determine the
1049	1049	system's financial condition, to monitor performance under the terms of its legal,
1050	1050	contractual and fiduciary requirements, and to examine the system's effectiveness
1051	1051	in achieving the intended results established by M.G.L. c. 32.
1052	1052	An examination of each system shall be conducted at intervals not exceeding every
1053	1053	three years to ascertain the system's financial condition, its ability to fulfill its
1054	1054	obligations, whether all parties in interest have complied with the laws applicable
1055	1055	thereto, and whether the transactions of the board have been in accordance with the
1056	1056	rights and equities of those in interest.
1057	1057	The examination of a retirement system encompasses the period beginning on
1058	1058	January 1 immediately following the ending date of the preceding M.G.L.
1059	1059	c. 32, § 21(1)(a) examination. An examination of each intervening year of the audit
1060	1060	period must be conducted as well as a review of the subsequent years as
1061	1061	appropriate to ensure that the board is presently operating within the practices and
1062	1062	procedures prescribed by PERAC and M.G.L. c. 32.
1063	1063	Prior to the start of the examination, the Board's Administrator will be provided
1064	1064	with the Internal Control Questionnaire prescribed by PERAC. This questionnaire
1065	1065	is designed to assist in understanding and evaluating internal controls. It consists of
1066	1066	general questions that apply to all retirement boards, however, it does not purport to
1067	1067	cover all aspects of internal control present at a particular system.
1068	1068	The board of any system may have an examination of its financial condition
1069	1069	conducted by a certified public accountant or a public accountant selected by the
1070	1070	board. Upon the employment of such person or firm, the board shall file said
1071	1071	individual's or firm’s name and address with PERAC.
1072	1072	Within ten days of making a report on the financial condition of the system to the
1073	1073	board of such system, the individual or firm conducting the examination shall file
1074	1074	a certified copy thereof with the PERAC. 840 Mass. Code Regs. 25.01 Field Examinations of
1075	1075	Contributory Retirement Systems (Code of Massachusetts
1076	1076	Regulations (2021 Edition))
1077	1077	Any such examination conducted in accordance with 840 CMR 25.00 shall be
1078	1078	deemed upon acceptance by PERAC to be the examination required by M.G.L. c.
1079	1079	32, § 21(1)(a). To be so accepted by PERAC the examination(s) must cover the
1080	1080	period beginning on January 1st of the year following the completion of the most
1081	1081	recent examination conducted pursuant to said M.G.L. c. 32, § 21(1)(a), and
1082	1082	ending on December 31
1083	1083	st
1084	1084	three years later. Acceptance is contingent upon
1085	1085	PERAC’s review of the audit workpapers.
1086	1086	In conducting an examination pursuant to 840 CMR 25.00, PERAC audit staff may
1087	1087	utilize and rely on such portions of the report of an examination by a certified
1088	1088	public accountant or public accountant selected by a retirement board as it deems
1089	1089	appropriate. PERAC audit staff shall then examine areas supplemental to the
1090	1090	board-selected accountant required by 840 CMR 25.00 and, together with the
1091	1091	board-selected accountant’s work, it shall be deemed acceptable as the
1092	1092	examination required by M.G.L. c. 32, § 21(1)(a).