SENATE……………………..No. 2540The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Second General Court
(2023-2024)
_______________
REPORT OF THE
PUBLIC EMPLOYEE RETIREMENT
ADMINISTRATION COMMISSION
SUBMITTING AMENDMENTS TO THE RULES
AND REGULATIONS GOVERNING RETIREMENT
OF PUBLIC EMPLOYEES IN
MASSACHUSETTS
(840 CMR 2.00 Retirement Board Travel)
(840 CMR 4.00 Financial Operations/Standard Method of Accounting)
(840 CMR 8.00 Applicability of $30,000 Salary Cap)
(840 CMR 11.00 Service After Age 70)
(840 CMR 12.00 Service Between Age 65 and 70)
(840 CMR 15.00 Miscellaneous) and
(840 CMR 25.00 The Conduct of Field Examinations of Contributory Retirement Systems)
(pursuant to Section 50 of
Chapter 7 of the General Laws)
December 28, 2023 PERAC
PHILIP Y. BROWN, ESQ., Choir JOHN W. PARSONS. ESQ., Executive Director
Auditor
DIANA
DIZOGLIO
I
KATHLEEN
M.
FALLON
I
KATE
FITZPATRICK
I
JAMES J.
GUIDO
I
RICHARD
MACKINNON, JR.
I
JENNIFER
F.
SULLIVAN,
ESQ.
December 20, 2023
Michael D. Hurley, Senate Clerk
Office of the Clerk of the Senate
Senate
State House, Room 335
Boston, MA 02133
Dear Mr. Hurley:
In accordance with the provisions of Chapter 7, Section 50 of the General Laws, I am pleased on
behalf of the Public Employee Retirement Administration Commission (PERAC), to file
amendments to the rules and regulations governing retirement of public employees in
Massachusetts. PERAC is proposing amendments to seven of our regulations, 840 CMR 2.00
Retirement Board Travel, 840 CMR 4.00 Financial Operations/Standard Method of Accounting,
840 CMR 8.00 Applicability of $30,000 Salary Cap, 840 CMR 11.00 Service After Age 70, 840
CMR 12.00 Service Between Age 65 and 70, 840 CMR 15.00 Miscellaneous, and 840 CMR 25.00
The Conduct of Field Examinations of Contributory Retirement Systems.
These regulations are necessary
r
to ensure that our retirement systems operate m an efficient manner
and comply with the provisions of the retirement law, Chapter 32.
Pursuant to the provisions of G.L. c. 7, § 50, the clerks shall refer this matter to the appropriate
standing committee of the General Court. If the General Court takes no final action relative to the
regulations within forty-five days of the date said regulations are refenced to the appropriate
committee, the General Court not having prorogued within said forty-five days, the regulations shall
be deemed to be approved. Within fifteen days of receipt of any recommendations, the committee
shall transmit in writing to PERAC its suggestions, if any, for modifications in recommended
regulations. Within fifteen days of receipt of the
committee’s suggestions, PERAC shall resubmit
the regulations to the committee, together with any modifications made to them.
If you have any questions or need additional information, please feel free to contact me.
Sincerely,
John W. Parsons, Esq.
Executive Director
Enclosure
JWP/pmc
senate transmittal 840 cmr 2, 4,8,11, 12,15,25.doc
COMMONWEALTH OF MASSACHUSETTS | PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION
COMMISSION 840 Mass. Code Regs. 2.01 General Provisions (Code of
Massachusetts Regulations (2021 Edition))
2.01.General Provisions
(1)840 CMR 2.00 is the standard rule for travel and travel related expenditures by retirement
board members and retirement board staff members. PERAC recognizes that retirement board
members and the retirement board staff must perform their fiduciary duties in an efficient,
effective, and informed manner. All travel related expenses that are to be paid for by the board
shall be related to the purpose of the authorized travel and shall be cost-effective.
(2)PERAC recognizes the importance of continuing education; the need for informed decision
making by retirement board members; and the need for a broader public pension perspective,
gained through association with other retirement boards and administrators, both within the
Commonwealth of Massachusetts and throughout the nation, whether virtually or in-person.
(3)Except as otherwise provided by PERAC or by supplementary rules of a particular
retirement board approved by PERAC pursuant to 840 CMR 14.02 all travel by retirement
board members and board staff shall comply with 840 CMR 2.00.
(4)Retirement boards may adopt supplementary regulations to supplement and expand upon
the regulations contained in 840 CMR 2.00. Any such board regulations are to be submitted to
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
Massachusetts Regulations (2021 Edition))
2.02.Meaning of Terms
Terms common to these regulations and G.L. c. 268A shall have the
meaning ascribed to them by G.L. c. 268A and rulings issued pursuant to that
law. The regulations contained in 840 CMR 2.00 are in addition to, and, in
some respects, more stringent than the provisions of G.L. c. 268A. Unless
otherwise defined by the provisions of G.L. c. 32 or regulations promulgated
by PERAC or by G.L. c. 268A and rulings issued pursuant to that law, the
usual and customary definitions for terms used in these regulations shall
apply. 840 Mass. Code Regs. 2.03 Board Authorization of Travel and
Travel Related Expenditures (Code of Massachusetts Regulations
(2021 Edition))
2.03.Board Authorization of Travel and Travel Related
Expenditures
The retirement board shall pay for or make reimbursement to Board
Members and the staff of the retirement board for all travel and lodging
expenses except as specifically authorized pursuant to 840 CMR 2.13 for
expenses related to legitimate speaking engagements.
1.Travel and related expenses are to be approved by the board in advance of
the travel.
2.Requests for travel by board members and the retirement board
Executive Director/Administrator shall be placed on a board meeting
agenda, discussed in open session, and approved by a majority vote of the
members of the board present and voting. The meeting minutes shall reflect
the board's action, the extent of the authorization, and supporting
information addressing the nature of the travel and its purpose.
3.A board may authorize the Executive Director/Board Administrator to
approve travel for other members of the board's staff. The board should
establish policies and procedures for staff travel. Such policies and
procedures shall be consistent with 840 CMR 2.00.
4.A statement describing the presentation, conference, or seminar should
be entered into the minutes of the meeting following the travel.
5.Boards shall obtain the most cost-effective means of travel and
travel related expenses, pursuant to these regulations and the board’s
approved supplementary regulations. 840 Mass. Code Regs. 2.04 Required Documentation for
Reimbursement (Code of Massachusetts Regulations (2021
Edition))
2.04.Required Documentation for Reimbursement
1.The board shall develop a form to be used in connection with any requests
for reimbursement, requiring that the traveler certify that the expenses were
incurred and were necessary and incidental to the approved travel.
2.All requests for reimbursement shall be completed and properly approved
after incurring any travel, transportation or meal or other travel related
expenses and before reimbursement takes place. The retirement boards
shall require that requests for reimbursement be submitted within a
reasonable time after the expenses are incurred, but in no event longer than
60 days after the expenses were incurred. If expenses for a single event were
incurred over a number of days, requests for reimbursement shall be
submitted no later than 60 days from the last day that expenses were
incurred.
3.Itemized receipts must be submitted for all expenses including
transportation, lodging, and other expenses incidental to travel.
4.Travel-related expenses that are under $10 (such as gratuities) should be
fully described and reimbursed based on the traveler's certification that the
expenses were necessary and incidental to the approved travel.
5.The board should use due diligence in reviewing and approving
reimbursement requests. Any travel related expenditures which have not
been properly documented or approved or are not in conformity with 840
CMR 2.00 must be rejected or adjusted.
6.Reimbursement shall only be made to the person who actually made
payment for the expense.
7.The reimbursement request form must be signed by the person seeking
reimbursement and signed under the penalties of perjury. 840 Mass. Code Regs. 2.05 Travel Arrangements (Code of
Massachusetts Regulations (2021 Edition))
2.05.Travel Arrangements
1.The board should designate a board staff member to be responsible for
making all travel arrangements and for assisting board members and board
staff in completing reimbursement forms. If a board member or board staff
member elects to make his or her own travel arrangements, the provisions
of 840 CMR 2.00 shall apply.
2.When making travel arrangements, government rates, business rates, or
the most cost-effective rate shall be secured. The board must be satisfied
that the rate is fair and reasonable before reimbursement is approved.
3.The board may authorize an extended stay if the net cost to the board will
be lower. For example, if airline fare is lowered by staying an extra day and
the cost of accommodations and meals for that extra day results in a net
savings to the board, an extended stay can be authorized. 840 Mass. Code Regs. 2.06 Transportation (Code of
Massachusetts Regulations (2021 Edition))
2.06.Transportation
1.Cost effective means of transportation shall be utilized.
2.All travel should be at the lowest fare available, generally economy/coach.
The board may, by supplementary regulation, submitted and approved by
PERAC, establish routing criteria, for example, requiring no more than one
interim stop each way; not requiring more than one scheduled airplane
transfer each way; or allowing for reasonable departure and arrival times.
3.A retirement board shall not make payment or reimbursement for airline
club memberships.
4.If a retirement board authorizes the use of rental cars, the board may, by
supplementary regulation, submitted to and approved by PERAC, establish
that the source of such cars shall be a national rental agency, and that the
rental cars shall be "standard class". It is the traveler's responsibility to
verify that the rate charged is the rate negotiated.
5.The retirement board shall determine whether optional insurance
coverage for travel will be required.
6.Any motor vehicle accidents, which occur while using a rental car while on
board-approved travel, are to be reported as soon as practicable, in writing
to the appropriate authorities, with copies of all such reports provided to the
board.
7.No reimbursements shall be made for fines or other expenses incurred as
a result of traffic violations while on board-approved travel. The traveler is
personally responsible for such expenses.
8.The retirement board shall, by supplementary regulation, submitted and
approved by PERAC, establish the allowable rate of reimbursement for use
of personal motor vehicle. The per mile rate of reimbursement shall not
exceed the amount allowed by the Internal Revenue Service. If the board
does not submit a supplementary regulation, then the Internal Revenue
Service rate shall be used. Parking fees and toll charges may be reimbursed,
subject to proper documentation. 840 Mass. Code Regs. 2.07 Lodging (Code of Massachusetts
Regulations (2021 Edition))
2.07.Lodging
1.All reservations for accommodations should be made in advance. It is the
traveler's responsibility to verify that the rate charged is the rate negotiated.
Reimbursement for accommodations shall not exceed the amount charged
for "standard" accommodations. If accommodations are included as a part
of a registration fee, the board must be satisfied that the rate for such
accommodations is fair and reasonable before reimbursement or payment is
approved.
2. Reimbursement is prohibited if lodging is included in the cost of registration for a
conference or seminar. 840 Mass. Code Regs. 2.08 Meals (Code of Massachusetts
Regulations (2021 Edition))
2.08.Meals
1.retirement boards must, by supplementary regulation, submitted and
approved by PERAC, establish and identify the maximum daily
reimbursable amount for the cost of meals while on board authorized travel.
The board may, by supplementary regulation, submitted and approved by
PERAC, allow for reimbursement in excess of the allowable amount for
travel to high-cost locations.
2.Reimbursement is prohibited if meals are included in the cost of
registration for a conference or seminar. If the board determines that special
circumstances require a board member or board staff member to take meals
other than those included in the cost of registration, reimbursement may be
made provided that all provisions of 840 CMR 2.00 are met. The special
circumstances must be discussed in a board meeting and the board's
determination must be reflected in the minutes of the board.
3.If reimbursement is sought for meal expenses for others, those individuals
are to be identified along with their affiliation and a description of the
purpose of the meeting. Reimbursement shall be made only for meetings
that are for business purposes.
4. Retirement boards shall never reimburse for the cost of alcoholic beverages. 840 Mass. Code Regs. 2.09 Other Reimbursable and Non-
Reimbursable Expenses (Code of Massachusetts Regulations
(2021 Edition))
2.09.Other Reimbursable and Non-Reimbursable Expenses
1.Retirement boards may reimburse board members or board staff
members for the following items:
a)gratuities paid in accordance with local custom;
b)telephone expenses limited to board or business related calls;
c)internet connection charges;
d)costs for faxing related to Board business;
e)costs for necessary copying related to board business; or
f)mandatory resort or hotel fees.
2. Retirement boards shall not reimburse board members or board staff members for the
following items:
a)personal expenses, for example, in-room movies, mini-bar
charges, gym fees, entertainment or recreational expenses,
laundry and dry cleaning, spa visits, or payments for alcoholic
beverages.
b)This list of prohibited reimbursements is not exhaustive. 840 Mass. Code Regs. 2.10 Cash Advances (Code of Massachusetts
Regulations (2021 Edition))
2.10.Cash Advances
Retirement boards shall not make cash advances to board members or
Board staff members. 840 Mass. Code Regs. 2.11 Board Credit Cards (Code of
Massachusetts Regulations (2021 Edition))
2.11.Reserved 840 Mass. Code Regs. 2.12 Personal Travel Combined with Board
Related Travel (Code of Massachusetts Regulations (2021
Edition))
2.12.Personal Travel Combined with Board Related Travel
If personal travel is combined with board related travel, the personal portion
of the travel and related expenses will be clearly identified and paid for by
the traveler. Travel expenses or any other expenses incurred by a spouse,
relative, friend, or other individual accompanying a board member or board
staff member will be considered to be personal travel and will, in no event,
be a proper expense of the retirement board. 840 Mass. Code Regs. 2.13 Payments or Reimbursements for
Expenses by Third Parties (Code of Massachusetts Regulations
(2021 Edition))
2.13. Payments or Reimbursements for Expenses by Third
Parties
1.Providing to or receipt by a board member or staff member of anything of
substantial value from any person, firm, partnership, or other entity, either
directly or indirectly, as outlined and discussed in G.L. c. 268A, is strictly
prohibited.
2.In instances where a retirement board member or board staff member
participates in a legitimate speaking engagement, the board shall pay all
costs and expenses related to such speaking engagement, provided, that the
board member or board staff member complies with all of the board's travel
regulations. The board may accept reimbursement for such travel related
expenses of a board member or a member of the board's staff from the third
party, only under the following limited circumstances:
a) A board member or a board staff member may participate in
legitimate speaking engagements in connection with their positions
on the retirement board or as a member of the board's staff and the
board may accept reimbursements from third parties necessary to
cover travel related costs for such engagements.
b) Acceptance of an honorarium or any other form of
compensation is strictly prohibited.
c) To be considered a legitimate speaking engagement, the
presentation must be formally scheduled on the agenda of a
convention or conference.
d) The speaking engagement must be scheduled in advance
of the board member's or board staff member's arrival at the
event.
e) The presentation must be before an organization that
would normally have outside speakers address them at such an
event.
f) The presentation cannot be perfunctory, but should
significantly contribute to the event, taking into account such
factors as the length of the speech or presentation, the size of the
audience, and the extent to which the speaker is providing
substantive or unique information or viewpoints.
g) The retirement board can be reimbursed by a third party
for expenses only to the extent necessary for making the speech
or presentation. 840 Mass. Code Regs. 2.13 Payments or Reimbursements for
Expenses by Third Parties (Code of Massachusetts Regulations
(2021 Edition))
h) Under no circumstances can a board member or board staff
member receive reimbursement or any other payment or
compensation from a third party.
3.In instances where a retirement board member or board staff member
participates in a non-profit professional organization related to public
pension or public retirement, the retirement board may be reimbursed by
the organization for the expenses related to such participation. The travel or
participation must be approved by the board in advance of any
expenditures, and the minutes of the board must note this action. No
organization, association, or group of any sort that is comprised of or
supported by any person, firm, partnership, or other entity, either directly
or indirectly, as outlined and discussed in G.L. c. 268A, shall reimburse a
retirement board for any expenses of a board member or board staff
member to participate in any activities of that organization. Board Travel Supplementary Regulations (Code of Massachusetts
Regulations (2021 Edition))
2.14.Violation of These Regulations or Board Travel
Supplementary Regulations
Any person or entity that violates 840 CMR 2.00 or any retirement board
supplementary regulation approved by PERAC prior to the effective date of
840 CMR 2.00 shall be deemed to have violated the provisions of 840 CMR
17.00 and shall be subject to removal as an investment manager or
consultant. 840 CMR 4.00 Financial Operations/Standard Method of
Accounting (Code of Massachusetts Regulations (2021 Edition))
840 CMR 4.00. Financial Operations/Standard Method of
Accounting
840 CMR 4.00, establishing standard methods of accounting for boards, is
promulgated by PERAC pursuant to M.G.L. c. 7, § 50 and M.G.L. c. 32, §
21. Except as may otherwise be provided by the PERAC, or by
supplementary rules of a particular retirement board approved by the
PERAC pursuant to 840 CMR 14.02, or by statute, 840 CMR 4.00 shall
govern methods of accounting of all retirement boards.
REGULATORY AUTHORITY
840 CMR 4.00: M.G.L. c. 7, §50; c. 32, §§ 21. 840 Mass. Code Regs. 4.01
Definitions (Code of Massachusetts Regulations (2021 Edition))
4.01.Definitions
Accounting Period – January 1
st
through December 31
st
.
Adjusting Journal – contains all entries that do not involve cash.
Cash Books – includes the following reports: cash receipts, cash
disbursements, adjusting journal entries, trial balance and general ledger.
Cash Disbursements Journal – contains entries of all cash disbursements
from the system.
Cash Receipts Journal – contains entries of all cash receipts into the system.
Extension – when PERAC allows a board, upon a written request, to submit
the Annual Statement by June 1 rather than May 1.
General Ledger – a means for keeping record of the system’s total financial
accounts. It includes all accounts, entries and balances for: Assets,
Liabilities, Funds, Receipts and Disbursements.
Pre-Close Trial Balance/General Ledger – lists all ledger accounts and
balances before the closing entries are made.
Post-Close Trial Balance/General Ledger – produced after the closing entries
are made to zero out the receipts and disbursements accounts.
Trial Balance – list of all ledger accounts showing a beginning balance,
debits, credits, and ending balance. 840 Mass. Code Regs. 4.02 Entries and Posting of Accounts; Trial
Balance and General Ledger (Code of Massachusetts Regulations
(2021 Edition))
4.02.Entries and Posting of Accounts; Trial Balance and General
Ledger
Every board shall establish, number, and maintain ledger accounts in the form
prescribed by PERAC.
(1)Transactions shall be entered daily.
(2)A Trial Balance shall be run monthly.
(3)A General Ledger shall be run monthly. 840 Mass. Code Regs. 4.03 Copies to be Sent to PERAC (Code of
Massachusetts Regulations (2021 Edition))
4.03.Copies to be Sent to PERAC
(1)After all entries for the month have been posted , the board shall send to
PERAC in the prescribed format the following for the month:
(a)monthly cash receipts ;
(b)monthly cash disbursements;
(c)monthly adjusting journal entries;
(d)monthly general ledger; and
(e)year-to-date trial balance.
The following chart indicates the due dates for the monthly cash books:
Month of AccountingDue Date JanuaryMay 31
st
FebruaryMay 31
st
MarchJune 30
th
AprilJune 30
th
MayJuly 31
st
JuneJuly 31
st
JulyAugust 31
st
AugustSeptember 30
th
SeptemberOctober 31
st
OctoberNovember 30
th
NovemberDecember 31
st
December*March 31
st
*Along with the December cash books, the board should also provide a January-
December post-close trial balance and general ledger.
The State and Teachers systems will not be subject to this timeline as they operate
on the state fiscal year.
(2)The board shall send or have sent to PERAC a copy of all custodian
statements received by the board within four weeks of the close of the
month. Such statements shall be separated into the following five
categories: cash, short term investments*, fixed income investments,
equities, and pooled funds. Such statements shall include, but not be limited
to:
(a)monthly custodian bank statements which detail transaction activity
including investment income, investments purchased, accrued interest paid,
investments sold, book value of investments sold, profit/loss on investments
sold, accrued interest sold, cusip numbers, name of brokers and 840 Mass. Code Regs. 4.03 Copies to be Sent to PERAC (Code of
commissions paid, trade receivables and payables, trade dates, settlement
dates and actual settlement dates.
*Short term investments are defined as U.S. Treasury Bills, Commercial
Paper, Certificates of Deposit, Repurchase Agreements, Cooperative Shares,
Savings and Loan Shares, Money Market and Term Deposits.
(b)monthly account appraisal which provides an alphabetical listing of
assets held for each category; information for each asset should include a
complete description of the asset, cusip numbers, number of shares, book
value and market value.
(3)The board shall send or have sent to PERAC a copy of all manager
statements received by the board within four weeks of the close of the
month. Such statements shall detail the activity of the retirement system
including purchases and sales of fund shares, income, dividend re-
investments, fund expenses, and ownership interest of the retirement
system in any commingled funds, including, but not limited to, separate
accounts, bank pooled funds, mutual funds, group trusts and limited
partnerships.
(4) The board shall send or have sent to PERAC a copy of all Consultant
statements received by the board within four weeks of the close of the month. Such
statements shall include quarterly and year to date performance figures, listing of
assets, asset allocations, and individual asset appraisal values. 840 Mass. Code Regs. 4.03 Copies to be Sent to PERAC (Code of
(Code of Massachusetts Regulations (2021 Edition))
4.04.Failure to File Financial Reports
Any retirement board failing to file the financial statements and reports
required by M.G.L. c. 32, § 20(5)(g), or by 840 CMR 4.03 shall be subject
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
4.05 Copies to be Shared with Board Members
Board staff shall share completed monthly cash books with all Board members.
Additionally, Board staff shall share cash reconciliations, as well as a quarterly comparison
of budgeted amounts to actual spending with all board members. 840 Mass. Code Regs. 8.01 Definitions (Code of Massachusetts
Regulations (2021 Edition)) 840 Mass. Code Regs. 8.01 Definitions (Code of Massachusetts
Regulations (2021 Edition))
840 CMR 8.00. Applicability Of $30,000 Salary Cap [Details]
REGULATORY AUTHORITY
840 CMR 8.00: M.G.L. c. 7, § 50; c. 32, § 21. 840 Mass. Code Regs. 8.01 Definitions (Code of Massachusetts
Regulations (2021 Edition))
8.01.Definitions
As used in 840 CMR 8.00, unless a different meaning is plainly required by
the context, the following terms shall have the following meanings:
Capped system, any retirement system other than an uncapped system
Non-section 50 restricted service, any service other than St. 1978, c. 367, §50
restricted service.
Section 50 restricted service, service by an employee to whom the $30,000
cap applies in a system that remains a capped system.
$30,000 cap, The maximum salary upon which a retirement allowance may
be based pursuant to St. 1978, c. 367, § 50.
Uncapped system , the state employees' and the state teachers' retirement
systems and any other system that:
(a)
(a)accepts the provisions of M.G.L. c. 32, § 22(1)(b½), or
(b)accepts an annual pension funding grant pursuant to M.G.L. c. 32, §
22D. 840 Mass. Code Regs. 8.02 Applicability of the $30,000
Cap (Code of Massachusetts Regulations (2021 Edition))
8.02.Applicability of the $30,000 Cap
(1)St. 1987, c. 697, § 64 makes the $30,000 cap inapplicable to members of
the state employees' and teachers' retirement systems and members of any
system that:
(a)accepts the provisions of M.G.L. c. 32, § 22(1)(b½), or
(b)accepts an annual pension funding grant pursuant to M.G.L. c. 32, § 22D
The $30,000 cap is, in effect, repealed for members of these uncapped
systems.
(2)The state employees' and teachers' retirement systems became uncapped
as of January 1, 1988. Other systems become uncapped effective upon filing
with the Commission a certificate of acceptance pursuant to 840 CMR
8.02(1)(a) or upon a vote to accept a grant pursuant to 840 CMR 8.02(1)(b),
whichever occurs first.
(3)The $30,000 cap remains applicable to those members of capped
systems who became members on or after January 1, 1979. This includes:
(a)Members who were employed prior to January 1, 1979 but became
members on or after January 1, 1979. Persons who were employed prior to
January 1, 1979 and were not permitted membership by administrative
oversight, or through no fault on the part of the member, are not subject to
the $30,000 cap.
(b)Individuals who were members prior to January 1, 1979 but left
employment taking a return of accumulated deductions and then returned
to employment and become members after January 1, 1979, whether or not
previous service was repurchased. Persons who become members prior to
January 1, 1979 and thereafter maintained membership, active or inactive,
are not subject to the $30,000 cap. 840 Mass. Code Regs. 8.03 Additional Two Percent Contribution
(Code of Massachusetts Regulations (2021 Edition))
8.03.Additional Two Percent Contribution
Effective on the date that a system becomes uncapped, for each member of
the system to whom the $30,000 cap had applied an additional two percent of
that portion of regular compensation in excess of an annualized rate of
$30,000 shall be withheld each payday. For such members paid weekly, for
example, two percent shall be withheld from all regular compensation in
excess of $576.92 per week. 840 Mass. Code Regs. 8.04 Other Contributions (Code of
Massachusetts Regulations (2021 Edition))
8.04.Other Contributions
(1)In the case of systems (other than the state employees' and teachers'
systems) that become uncapped on or before July 1, 1988, for each member
of the system to whom the $30,000 cap had applied an amount shall be
withheld from that portion of regular compensation in excess of an
annualized rate of $30,000, in such installments as the retirement board
shall direct, equal to the additional amount that would have been withheld
pursuant to 840 CMR 8.03 between January 1, 1988 and the date the system
becomes uncapped.
(2)In the case of systems that become uncapped after July 1, 1988
contributions pursuant to 840 CMR 8.04(1) shall not be required. 840 Mass. Code Regs. 8.04 Other Contributions (Code of
(Code of Massachusetts Regulations (2021 Edition))
8.05.Effect of Cap on Retirement Allowance
(1)If upon retirement a member to whom the $30,000 cap applied has
service in a capped system, and no service in an uncapped system, the
maximum salary upon which the retirement allowance may be based is
$30,000 whether the member is retired for superannuation or for ordinary or
accidental disability.
The amount of regular compensation to be used in calculating the
retirement allowance of such members shall not exceed $30,000.
(2)If upon retirement a member to whom the $30,000 cap applied has
service in both a capped system and an uncapped system, the retirement
allowance shall be based upon the number of years of section 50 restricted
service and the number of years of non-section 50 restricted service. For this
purpose, all service of a member in a system that remains a capped system
at the time of retirement shall be included in section 50 restricted service,
regardless of the member's actual rate of regular compensation, if the
$30,000 cap was applicable to the member at the time of the service. All
service of a member in a system that is uncapped at the time of retirement
shall be included in non-section 50 restricted service. The retirement
allowance of any such member shall be the sum of the allowance calculated
based upon the years of section 50 restricted service and the allowance
calculated based upon the years of non-section 50 restricted service.
(3)If the retirement allowance of a member, or eligible beneficiary of a
member, is affected by service in a system that remained capped at the time
of retirement and the system later becomes uncapped, the retirement
allowance shall be recalculated as of the date the system becomes uncapped.
Any service in a system that has become uncapped since the time of
retirement shall be included in non-section 50 restricted service for
purposes of this recalculation. No member or beneficiary shall be required
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
840 CMR 11.00. Service After Age 70 [Details]
840 CMR 11.00 is the standard rule for service after age 70 promulgated by
the Public Employee Retirement Administration Commission pursuant to
M.G.L. c. 7, § 50. Except as otherwise provided by the Commission, by
supplementary rules of a particular retirement board approved by the
Commission pursuant to 840 CMR 14.02, or by statute, 840 CMR 11.00
shall govern the procedures of all retirement boards relating to service after
age 70.
REGULATORY AUTHORITY
840 CMR 11.00: M.G.L. c. 7, § 50; c. 32, § 21. 840 Mass. Code Regs. 11.01 Notice to Members (Code of
Massachusetts Regulations (2021 Edition))
11.01.Notice to Members
Not more than 180 nor less than 120 days before the last day of the month in
which a member in service attains the age of 70, the retirement board shall
estimate the member's option (a), (b) and, if sufficient information is
available, (c) retirement benefits as of age 70 and shall notify the member of
the estimate and procedures for continuing in service after age 70. The board
shall also supply the member with the appropriate form on which to choose
whether to continue to have deductions made from regular compensation
until the date of retirement as prescribed by 840 CMR 11.02. 840 Mass. Code Regs. 11.02 Deductions After Age 70; Election
(Code of Massachusetts Regulations (2021 Edition))
11.02.Deductions After Age 70; Election
(1)Any member who chooses to continue in service after age 70 may elect to
have deductions made from regular compensation until the date of
retirement. The retirement board shall provide the member with the
appropriate form on which the member may elect to have deductions made
after age 70. This form shall be completed and filed by the member with the
retirement board within 15 working days of the board's notice to the
member or the member's 70th birthday, whichever is later. If this form is
not timely filed, no deductions shall be made after age 70.
(2)An election to have deductions made after age 70 shall be final and
deductions shall not thereafter be discontinued for any active member. 840 Mass. Code Regs. 11.02 Deductions After Age 70; Election
of Massachusetts Regulations (2021 Edition))
11.03.Effect on Retirement Benefits
(1)Except as provided by 840 CMR 11.02, no deductions shall be made from the
regular compensation of a member continuing in service after age 70 and the
retirement allowance shall be calculated based on average annual rate of regular
compensation received prior to age 70.
(2)For members who timely so elect pursuant to 840 CMR 11.02,
deductions shall be made from regular compensation until the date of
retirement and the retirement allowance shall be calculated based on
average annual rate of regular compensation including compensation
received after age 70.
(3)No member shall be required to elect a retirement option pursuant to
M.G.L. c. 32, § 12 until termination of employment.
(4)If a member dies after age 70 but before termination, the member's spouse
shall be entitled, if otherwise eligible pursuant to M.G.L. c. 32, to the benefits that
would have been payable if the member had retired on the date of death and
elected Option C.
(5)Upon the decision of a member to terminate service, the member may file a
retirement application with the retirement board and the retirement allowance
shall be calculated pursuant to 840 CMR 15.04. 840 Cmr 12.00 Service After Age 65 (Code of Massachusetts
Regulations (2021 Edition))
840 CMR 12.00. Service After Age 65
840 CMR 12.00 is the standard rule for service after age 65 promulgated by
the Public Employee Retirement Administration Commission pursuant to
M.G.L. c. 7, § 50 and St. 1987, c. 415.
Except as otherwise provided by the Commission, by supplementary rules of a
particular retirement board approved by the Commission pursuant to 840 CMR
14.02, or by statute, 840 CMR 12.00 shall govern the procedures of all retirement
boards relating to service after age 65.
REGULATORY AUTHORITY
840 CMR 12.00: M.G.L. c. 7, § 50; c. 32, § 21. 840 Mass. Code Regs. 12.03 Effect on Retirent Benefits (Code
12.01.Notice to Members
(1)No member may continue in service after age 65 if the member is in an
occupation or position classification for which the personnel administrator
determines by regulation that age is a bona fide occupational qualification or is in
one of the following occupations or position classifications unless the personnel
administrator determines by regulation that age is not a reasonably necessary
bona fide occupational qualification:
(a)uniformed member of a paid fire department;
(b)uniformed member of a police department;
(c)member of the department of fisheries and wildlife, as determined by the
personnel administrator;
(d)correctional officer;
(e)permanent crash crewman, crash boatman, fire controlman, or assistant fire
controlman employed at the General Edward Lawrence Logan International
Airport.
(2)If the board determines that the member is in an occupation or position
classification which requires that the member retire at age 65, the board shall
notify the member 120 prior to the date the member is required to retire. 840 Cmr 15.00 Miscellaneous (Code of Massachusetts
Regulations (2021 Edition))
840 CMR 15.00. Miscellaneous
REGULATORY AUTHORITY
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
Beneficiaries (Code of Massachusetts Regulations (2021 Edition))
15.01.Attestation of Retired Members and Beneficiaries
(1)No less frequently than once every two years, each retirement board shall
require each member or beneficiary who receives a pension, retirement
allowance, or survivor's allowance to file with the retirement board an
attestation under the penalties of perjury, at such time and in such form as
the board shall prescribe, containing the following information:
(a)the name of the member or beneficiary;
(b)the current address of the member or beneficiary;
(c)a statement certifying that the member or beneficiary is currently living;
(d)a statement describing the beneficiary's current marital
status where marital status is relevant to continued receipt of
benefits;
(e)a statement describing the beneficiary's current dependency
status where dependency is relevant to continued receipt of benefits;
and
(f)such additional information as the board may require
to determine whether the member or beneficiary is entitled to
continued receipt of benefits.
(2)If a member or beneficiary comes to the retirement office in person to
verify the above information, they will be considered to have satisfied the
requirements of the attestation.
(3)The retirement board shall withhold the retirement benefits of any
member or beneficiary who fails to file the attestation within the time
prescribed pending receipt of the attestation. Upon receipt of the
attestation, any benefits so withheld shall be paid to the retired member or
beneficiary.
(4)The retirement board may review and verify the accuracy of any
attestation submitted and shall audit a random sample of at least five per
cent of the attestations received.
A retirement board shall be deemed to have complied with Sections 1-4 if it performs a
data match of the demographic information and status of current retirees and beneficiaries
receiving benefits no less than every six months by a third-party entity contracted through
an approved selection or procurement process.
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
Creditable Service; Purchase of Creditable Service for Non-
membership Service; Rates of Contribution Upon Return to
Active Service (Code of Massachusetts Regulations (2021
Edition))
15.02.Purchase of Prior Membership Creditable Service;
Purchase of Creditable Service for Non-Membership Service;
Rates of Contribution Upon Return to Active Service
(1)Purchase of Prior Membership Creditable Service. Any member
authorized by law to purchase prior creditable service may purchase such
service by paying an amount equal to the accumulated regular deductions
withdrawn by the member, together with the appropriate statutorily
defined interest. Any member may make a lump sum payment or
installment payments over a period not exceeding five years and may, with
the approval of the board, make installment payments over a period
exceeding five years.
(2)Purchase of Non-Membership Creditable Service. Upon submission of
documentation satisfactory to the retirement board and consistent with
Chapter 32, a member will be allowed to purchase creditable service for
periods of non- membership employment. The amount of creditable service
that may be purchased shall be determined by the retirement board in a
manner consistent with the retirement board's supplementary regulations
that have been approved by PERAC pursuant to 840 CMR 14.00. The
member may purchase less than all non-membership service available for
purchase; provided, however, that in such event the member must purchase
the most recent time first.
(3)If more than one type of purchase is available, the member can choose
which type of service they wish to purchase. Additionally, if the member
can complete both a purchase of non-membership and membership
service, the member has the option to choose which to complete first.
(4)Rates of Contribution Upon Return to Active Service. The rates of
contribution for members formerly in service who have returned to the
service of the same or another governmental unit shall be as follows:
(a)for any member who contributed to a retirement system and
did not receive a refund of accumulated deductions when he or she
left service, the contribution rate upon the member's return to
service shall be the same rate as the member was contributing at the
time he or she left service;
(b)the contribution rate for any member who contributed to a
retirement system, and received a refund of accumulated
deductions after termination of service, shall be the contribution
rate in effect when the member re- established membership,
whether or not the member purchases prior creditable service. 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
Massachusetts Regulations (2021 Edition))
15.03.Regular Compensation
(1)During any period of active service prior to July 1, 2009 the term "regular
compensation" as defined by M.G.L. c. 32, § 1, shall be determined subject to
the following:
(a)To be considered regular compensation, any compensation to an
employee must:
1.have been actually paid to or on behalf of a member:
2.be made as remuneration for services actually rendered, for recurring
payments for accrued sick leave, or for payments made pursuant to M.G.L. c.
41, § 111F in the year or part of a year to which the compensation is
attributed;
3.be ordinary, normal, recurrent, repeated, and of indefinite duration;
4.be made pursuant to an official written policy of the employer or to a
collective bargaining agreement;
5.be made on a non-discriminatory basis and be generally available for
employees who are similarly situated relative to the purpose of the payment
(e.g. a longevity payment made recurrently to all employees in a bargaining
unit having attained a specific length of service) provided that the ability of a
payment to be denied due to merit shall not exclude it for that reason from
regular compensation.
(b)Regular compensation shall include any part of such salary, wages, or
other compensation derived from federal grants, except as otherwise
provided in M.G.L. c. 32, § 3(2)(a)(xi);
(c)Lump-sum or retroactive payments which would have been regular
compensation if paid in the periods in which the services remunerated
thereby were actually rendered will be allocated to said periods rather than
being entirely attributed to the time of receipt for the purpose of
determining a member's regular compensation.
(d)Provided they meet the general criteria in 840 CMR 15.03(1)(a) through
(c), payments to be considered regular compensation shall include:
1.a member's annual rate of compensation as provided in an approved
salary schedule;
2.any non-cash maintenance allowances in the form of full or partial
boarding and housing, as provided in M.G.L. c. 32, § 22(1)(c); 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
Massachusetts Regulations (2021 Edition))
3.any premiums paid by any governmental unit for the purchase of an
individual or group annuity contract as authorized by M.G.L. c. 15, § 18A or
by M.G.L. c. 71, § 37B;
4.any amounts paid as educational incentives;
5.any amounts paid for length of service;
6.any amounts paid as premiums for shift differentials; and
7.any amounts paid as cost-of-living bonuses or cost-of-living pay
adjustments.
(2)During any period of active service prior to July 1, 2009, any
extraordinary or ad hoc payment amount shall be excluded from regular
compensation. Exclusions shall include, but not be limited to:
(a)any amounts paid for hours worked beyond the member's normal work
schedule;
(b)any amounts paid as premiums for working holidays, except as
authorized by law;
(c)any amounts paid as bonuses other than cost-of-living bonuses, provided
that any payment to an employee or group of employees which will not recur
or which will recur for only a limited or definite term will be considered a
bonus, and further provided that any payments to an employee or group of
employees as part of a salary augmentation plan or salary enhancement
program which is provided for in an individual contract in effect on or
before January 25, 2006 or in a collective bargaining agreement in effect on
or before January 25, 2006, including payments under such a plan or
program which will not recur or which will recur for only a limited or
definite term, shall be treated as regular compensation; and further
provided, that any employee who is covered by such an agreement or
contract on January 25, 2006 and who begins, at any time during the life of
a collective bargaining agreement or individual employment contract in
effect on or before January 25, 2006, to receive benefits and make
retirement contributions pursuant to a salary augmentation plan or salary
enhancement program under such a collective bargaining agreement or
individual employment contract, may complete the plan or program under
that agreement or contract or under a successor collective bargaining
agreement or individual employment contract, provided that the successor
collective bargaining agreement or individual employment contract contains
a salary augmentation plan or salary enhancement program; and further
provided that the amount of the salary augmentation plan or salary 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
Massachusetts Regulations (2021 Edition))
enhancement program under a successor collective bargaining agreement or
individual employment contract which shall be treated as regular
compensation shall not exceed the amount of the salary augmentation plan or
salary enhancement program provided under the collective bargaining
agreement or individual employment contract in effect on or before January
25, 2006, and further provided that any member who has previously retired
and is receiving benefits as of April 7, 2006 under the provisions of a salary
augmentation plan or salary enhancement program shall have that plan
deemed in compliance with the provisions of M.G.L. c. 32.
(d)any amounts paid in lieu of or for unused vacation, sick leave, or other
leave;
(e)severance pay;
(f)any amounts paid as early retirement incentives; and
(g)any other payments made as a result of the member giving notice of
retirement.
(3)During any period of active service subsequent to July 1, 2009 the term
"regular compensation", as defined by M.G.L. c. 32, § 1, shall be determined
subject to the following:
(a)to be considered regular compensation, any compensation to an
employee must be compensation received exclusively as wages by an
employee for services performed in the course of employment for his
employer;
(b)"wages" shall mean the base salary or other base compensation of an
employee paid to that employee for employment by an employer including
pre-determined, non-discretionary, guaranteed payments paid by the
employer to similarly situated employees, provided, that "wages" shall
include payments made by the employer to the employee because of the
character of the work, because of the employee's length of service, because of
the time at which the work takes place as a condition of employment in a
particular position, because of educational incentives, and payments for
holding the training, certification, licensing or other educational incentives
approved by the employer for the performance of services related to the
position the employee holds and payments made by the employer to the
employee calculated as a percentage of base pay;
(c)Any amount, benefit or payment included in the definition of "regular
compensation" by law or by regulation prior to July 1, 2009 and included in
any applicable collective bargaining agreement or individual contract for 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
Massachusetts Regulations (2021 Edition))
employment in effect on May 1, 2009, shall continue to be included in the
definition of "regular compensation" during the term of that collective
bargaining agreement or contract; provided, however, that any such
amount, benefit or payment received after the term of said collective
bargaining agreement or contract ends or after June 30, 2012, as the case
may be, shall continue to be considered regular compensation unless such
payment does not meet the criteria set forth in 840 CMR 15.03(3)(b) or is
excluded by the provision of 840 CMR 15.03(3)(f);
(d)Regular compensation shall include any part of the wages derived from
federal grants except as provided in M.G.L. c. 2 and (2)(a)(xi);
(e)Lump-sum retroactive payments which would have been wages if paid in
the periods in which the services remunerated thereby were actually
rendered will be allocated to said periods rather than being entirely
attributed to the time of receipt for the purpose of determining a member's
regular compensation;
(f)"Wages" shall not include, without limitation, overtime, commissions,
bonuses other than cost-of-living bonuses, amounts derived from salary
enhancements or salary augmentation plans which will recur for a limited or
definite term, indirect, in-kind or other payments for such items as housing,
lodging, travel, clothing allowances, annuities, welfare benefits, lump sum
buyouts for workers' compensation, job-related expense payments,
automobile usage, insurance premiums, dependent care assistance, one-
time lump sum payments in lieu of or for unused vacation or sick leave or
the payment for termination, severance, dismissal or ally amounts paid as
premiums for working holidays, except in the case of police officers,
firefighters and employees of a municipal department who are employed as
fire alarm signal operators or signal maintenance repairmen money paid for
holidays shall be regarded as regular compensation, amounts paid as early
retirement incentives or any other payment made as a result of the employer
having knowledge of the member's retirement, tuition, payments in kind
and all payments other than payment received by an individual from his
employing unit for services rendered to such employing unit, regardless of
federal taxability; provided further, that notwithstanding the foregoing, in
the case of a teacher employed in a public day school who is a member of the
teachers' retirement system, salary payable under the terms of an annual
contract for additional services in such school and compensation for services
rendered by a teacher in connection with a school lunch program or for
services in connection with a program of instruction of physical education
and athletic contests as authorized by M.G.L. c. 71, § 47 shall be regarded as
"regular compensation" rather than as bonus or overtime and shall be
included in the salary on which deductions are to be paid to the annuity
savings fund of the teachers' retirement system. 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
Massachusetts Regulations (2021 Edition)) 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
Massachusetts Regulations (2021 Edition))
15.04.Benefit Calculation Factors
PERAC, through its Actuary, is required to review the mortality table and interest rate used in the
determination of the actuarial equivalence factors for Options A, B, and C on or before January 1,
2014 and every 10 years thereafter. After the review, if changes are warranted, the Actuary will
select a revised mortality table and/or a revised interest rate to be used in the determination of
actuarial equivalence factors and develop such revised factors.
15.05. Board Credit Cards
1. Retirement Boards may, by supplementary regulation, submitted to and
approved by PERAC, authorize use of a credit card account issued to the Retirement
Board. This regulation should specifically include the amount upon which prior
spending authorization is required and the categories for which the credit card account
can be used.
2. Authorized users should be voted upon by the board and included in the board
meeting minutes. No one other than an authorized user may utilize the board credit card
account.
3. Any personal use of said credit card account issued to the board is prohibited.
4. The board credit card account shall not be used to obtain cash advances, bank
checks, traveler’s checks, or electronic cash transfers.
5. The credit card account billings shall be issued to the board office and any
authorized user shall be required to provide receipts for all expenses included in the
monthly statement within 10 business days of the statement date. If receipts are not
provided, the authorized user will immediately reimburse the board for those items that
appear on the credit card billing.
6. Credit card accounts issued to the board may be used to purchase supplies or
other items that the Board, the board members, or the board’s staff use on a regular basis
in the performance of board-related duties. However, the board should follow a
procurement process for the goods and services whenever possible. Credit card accounts
issued to the board may also be used for board-related travel expenses, as described at
840 CMR 2.00, et seq., or the supplementary regulations of the board.
7. If the board credit card is lost or stolen, this must be immediately reported to the
Board and to the financial institution issuing the card. 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
Massachusetts Regulations (2021 Edition))
8. The board must pay off the credit card account in full every month so as not to
incur any interest on the account.
9. The board’s supplementary regulation shall include a provision that continued or
repeated non-conformance to this policy will result in cancellation of the credit card
account and such other actions as appropriate.
15.06. Board Debit Cards
Retirement boards are prohibited from the use of debit cards for any purchases of goods
or services.
15.07 NON-DISABILITY HEARINGS BY A RETIREMENT BOARD
(1)Purpose. The following procedures shall be used for all Board hearings not related to
disability applications including, but not limited to, matters involving G.L. c. 32, §§ 15,
16 (involuntary superannuation), 91, and 91A.
(2)Notice. The retirement board shall give all parties at least 30 days notice of the time and
place for the hearing and of the issues involved in the hearing. If the issues cannot be fully
stated in advance of the hearing, they shall be fully stated as soon as practicable.
(3)Discovery. Any party and any authorized representative shall, at any time after a hearing
has been requested or ordered and after reasonable notice to the retirement board, be
permitted to examine and/or copy, during normal business hours, any document in the
case file pertaining to the member's file or the record of the hearing. All other discovery
shall be at the discretion of the retirement board. A request for discovery may be made by
any party at any time after a hearing has been requested or ordered.
(4)Conduct of Hearing. Hearings shall be conducted in an informal manner that affords all
parties an opportunity to present all information and argument relevant to the proceeding.
(a)Presiding Officer . The chairperson of the retirement board, any other member of the
board acting as chairperson, or any individual designated by the board, shall be the
presiding officer and shall assure parties the right to call and question witnesses and
introduce exhibits, and to present argument relevant to the proceeding. The presiding
officer shall assure an orderly presentation of the evidence and argument and that a
record is made of the hearing.
(b)Continuances. The presiding officer may change the date, time or place of the hearing
on his or her own motion or on the request of any party, upon due notice to all other
parties, and may continue the hearing to a subsequent date to permit any party to
present additional evidence, witnesses or other materials. At any time prior to decision,
the presiding officer may reconvene the hearing for any purpose upon ten days written 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
Massachusetts Regulations (2021 Edition))
notice to all parties, stating therein the purposes for reconvening, and the date, time
and place of the reconvened hearing.
(c)Oaths; Rulings; Briefs. The presiding officer shall administer the oath or affirmation to
witnesses, shall rule upon the admissibility of evidence and upon any requests for
rulings, and may order that pre and/or post hearing written briefs be submitted by the
parties .
(d)The Record. All proceedings in connection with the hearing shall be recorded by
electronic or stenographic means and such record shall be maintained as part of the
hearing record. Transcripts or duplicate tapes of the proceedings shall be supplied to
any party, upon request. At the discretion of the presiding officer, any party may be
permitted to record the hearing (except, in the case of those hearings taking place at a
meeting of the retirement board, those portions of the hearing which may be held in
executive session) so long as this does not interfere with the conduct of the
proceedings. All documents and other evidence received shall also become part of the
record.
(e)Executive Session. If a hearing occurs at a meeting of the retirement board, and if the
subject of the hearing is such that the matter may proceed in executive session the
board must first convene in open session for which notice has been given, a majority
of the members of the board must vote to go into executive session and the vote of
each member must be recorded on a roll call vote and entered into the minutes, the
presiding officer must have stated the purpose for an executive session, and stated
before the executive session if the board will reconvene after the executive session. In
such executive session only the retirement board, the secretary and the retirement
board's counsel, the parties and their authorized representatives and such other persons
as the presiding officer shall deem necessary for the conduct of the hearing shall be
permitted to be present. The records of the hearing in executive session shall not be
made available to the public except in accordance with the board's regulations on
privacy and confidentiality and such other laws or regulations as may be applicable to
such records.
(f)Evidence.
1.General. The retirement board need not observe the rules of evidence observed by
courts but shall observe the rules of privilege recognized by law. Evidence shall be
admitted and given probative effect only if it is the kind of evidence on which
reasonable persons are accustomed to rely upon. Unduly repetitious evidence may be
excluded.
2.Testimony; Stipulation. Witnesses shall testify under oath or affirmation and shall be
available for questions by all parties. If a witness cannot, as a practical matter, be
available in person the witness shall be available and testify remotely using adequate
electronic means as ordered by the presiding officer. Stipulations by the parties as to 840 Mass. Code Regs. 15.03 Regular Compensation (Code of
Massachusetts Regulations (2021 Edition))
any fact or as to the testimony that would be given by an absent witness may be
offered and received as evidence.
3.Documentary Evidence. Documentary evidence may be received in the form of copies
or excerpts or by incorporation by reference at the discretion of the presiding officer.
4.Taking Notice of Facts. The retirement board may take notice of any fact which may
be judicially noticed by the courts, and any fact within the retirement board's
specialized knowledge. Parties shall be notified and afforded an opportunity to contest
any facts so noticed.
5.Evidence to Be Part of Record. All evidence, including any records, reports and
documents of the retirement board, to be considered in making a decision shall be
offered and made a part of the record of the proceeding and the record shall at all times
be open for inspection by any party or authorized representative during business hours.
The retirement board may, with notice to all parties, require any party to submit
additional evidence for the record and shall afford parties an opportunity to submit
rebuttal evidence.
(g)Subpoenas.
1.Issuance. The presiding officer shall, within five days of a written request of a party,
issue a subpoena requiring the attendance and testimony of a witness or the production
of any evidence including books, records, correspondence or documents relating to
any matter in question at the hearing.
2.Request to Vacate. Any person subpoenaed may file a written request to the presiding
officer to vacate or modify the subpoena.
3.Decision on Request to Vacate or Modify Subpoena . The presiding officer shall notify
all parties of the request to vacate or modify the subpoena and afford parties a
reasonable time to respond. The presiding officer shall grant the request to vacate or
modify the subpoena if the testimony or evidence subpoenaed does not relate with
reasonable directness to any matter at issue in the proceeding or if the subpoena is
otherwise unreasonable or oppressive.
4.Failure to Comply with Subpoena. If any person fails to comply with a properly
issued subpoena, the retirement board or the party requesting the issuance of the
subpoena may petition the Superior Court for an order requiring compliance.
(5) Written Decision. The presiding officer shall issue a written decision to the retirement board
following the conclusion of the hearing. The Board shall vote and issue a decision following
receipt of the Presiding Officer’s decision and provide the parties with the appropriate appeal
rights. 840 CMR 25.00 Field Examinations Of
840 CMR 25.00. Field Examinations of Contributory Retirement
Systems
REGULATORY AUTHORITY
840 CMR 25.00: M.G.L. c. 7, § 50; c. 32, § 21. 840 Mass. Code Regs. 25.01 Field Examinations of
Contributory Retirement Systems (Code of Massachusetts
Regulations (2021 Edition))
25.01. Field Examinations of Contributory Retirement Systems
840 CMR 25.00 is the standard rule for the field examinations of contributory
retirement systems promulgated by PERAC pursuant to M.G.L. c. 7, § 50(a) and c.
32, § 21(1)(a). Except as otherwise provided by PERAC, or by statute, 840 CMR
25.00 shall govern any examination of the financial condition of a contributory
retirement system.
Examinations of contributory retirement systems are conducted to determine the
system's financial condition, to monitor performance under the terms of its legal,
contractual and fiduciary requirements, and to examine the system's effectiveness
in achieving the intended results established by M.G.L. c. 32.
An examination of each system shall be conducted at intervals not exceeding every
three years to ascertain the system's financial condition, its ability to fulfill its
obligations, whether all parties in interest have complied with the laws applicable
thereto, and whether the transactions of the board have been in accordance with the
rights and equities of those in interest.
The examination of a retirement system encompasses the period beginning on
January 1 immediately following the ending date of the preceding M.G.L.
c. 32, § 21(1)(a) examination. An examination of each intervening year of the audit
period must be conducted as well as a review of the subsequent years as
appropriate to ensure that the board is presently operating within the practices and
procedures prescribed by PERAC and M.G.L. c. 32.
Prior to the start of the examination, the Board's Administrator will be provided
with the Internal Control Questionnaire prescribed by PERAC. This questionnaire
is designed to assist in understanding and evaluating internal controls. It consists of
general questions that apply to all retirement boards, however, it does not purport to
cover all aspects of internal control present at a particular system.
The board of any system may have an examination of its financial condition
conducted by a certified public accountant or a public accountant selected by the
board. Upon the employment of such person or firm, the board shall file said
individual's or firm’s name and address with PERAC.
Within ten days of making a report on the financial condition of the system to the
board of such system, the individual or firm conducting the examination shall file
a certified copy thereof with the PERAC. 840 Mass. Code Regs. 25.01 Field Examinations of
Contributory Retirement Systems (Code of Massachusetts
Regulations (2021 Edition))
Any such examination conducted in accordance with 840 CMR 25.00 shall be
deemed upon acceptance by PERAC to be the examination required by M.G.L. c.
32, § 21(1)(a). To be so accepted by PERAC the examination(s) must cover the
period beginning on January 1st of the year following the completion of the most
recent examination conducted pursuant to said M.G.L. c. 32, § 21(1)(a), and
ending on December 31
st
three years later. Acceptance is contingent upon
PERAC’s review of the audit workpapers.
In conducting an examination pursuant to 840 CMR 25.00, PERAC audit staff may
utilize and rely on such portions of the report of an examination by a certified
public accountant or public accountant selected by a retirement board as it deems
appropriate. PERAC audit staff shall then examine areas supplemental to the
board-selected accountant required by 840 CMR 25.00 and, together with the
board-selected accountant’s work, it shall be deemed acceptable as the
examination required by M.G.L. c. 32, § 21(1)(a).