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USA Statutes : massachusetts
Title : PART I. ADMINISTRATION OF THE GOVERNMENT
Chapter : TITLE IV. CIVIL SERVICE, RETIREMENTS AND PENSIONS
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Chapter 32: Section 105. Reinstatement Section 105. (a) Any member retired under section 5 or section 10 shall be eligible to be reinstated in a retirement system established under this chapter, if the retired member repays to the system from which he retired an amount equal to the total amount of any retirement allowance received by the retired member, together with actuarial assumed interest thereon. Such payment shall be made in one lump sum or in installments as the board shall prescribe. Upon such reinstatement, regular deductions shall be made from regular compensation pursuant to paragraphs (b) and (b 1/2) of subdivision (1) of section 22, and for such purpose, the member’s date of entry into service shall be the date such member waived his retirement allowance or the date of reinstatement, whichever occurs earlier. Upon completion of such payment, the member shall be entitled to creditable service for all periods of service for which deductions were made from the member’s regular compensation. For purposes of this section, the term “reinstatement service” shall mean a member’s period of full-time employment after reinstatement in a retirement system under this section.
(b) If the member shall have less than 5 years reinstatement service, upon retirement, that member shall receive a refund of the payments actually made to the system under this section. The member shall not be entitled to any creditable service for the reinstatement service, nor shall the member be eligible to establish any additional creditable service under any provision for make up payments or other payments.
(c) If the member shall have 5 years or more of reinstatement service, the member shall be entitled to creditable service resulting from his reinstatement service upon the completion of payments required under subsection (a) and payment of regular deductions under section 22 for the reinstatement service. In the event that a retirement allowance becomes effective for the member before the completion of payments under subsection (a), the member shall be entitled to credit for that proportion of reinstatement service as the board shall prescribe, in addition to any credit for service rendered prior to the date of reinstatement, provided that the member would have otherwise been eligible for that prior service.
amounts due beneficiaries of deceased members Section 11. (1) Return of Accumulated Total Deductions to Members. — (a) Any member entitled to a return of his accumulated total deductions as provided for in paragraph (1)(c) or (1)(d) of section five, in subdivision (4) of section ten, in paragraph (2)(b) of section thirteen or in subdivision (3) of section twenty-five, shall, subject to the provisions of subdivision (8) of section three, to the provisions of this section, and to the provisions of section fifteen, be paid in one sum the amount of his accumulated total deductions within sixty days after his filing with the board on a prescribed form his written request therefor. For any such member who becomes a member subsequent to January first, nineteen hundred and eighty-four, who voluntarily withdraws from service with creditable service of less than sixty months, the rate of regular interest for purposes of calculating accumulated total deductions shall be zero. For any such member who becomes a member subsequent to January first, nineteen hundred and eighty-four, who voluntarily withdraws from service with creditable service of less than one hundred and twenty months but equal to or greater than sixty months, the rate of regular interest for purposes of calculating total deductions shall be fifty per cent of the rate of regular interest otherwise payable. Any other member entitled to return of his accumulated total deduction shall receive one hundred per cent of the rate of interest payable. For any such member who becomes a member subsequent to January first, nineteen hundred and eighty-four, the difference between the accumulated total deductions otherwise payable and the reduced accumulated deductions as provided for in this paragraph shall be transferred into the Pension Reserve Fund and shall be used to reduce the unfunded pension liability of the system.
(b) If any member entitled to a return of his accumulated total deductions as provided for in paragraph (a) of this subdivision has failed to request such return by the time interest has ceased to accrue thereon under the provisions of paragraph (6)(d) of section twenty-two for the purpose of determining any amount available to him upon such return, the board shall notify him in writing of the amount of his accumulated total deductions, of the fact that interest has ceased to accrue thereon for such purpose and of his rights, if any, to a prospective retirement allowance as provided for in section ten in case he is not paid the amount of his accumulated total deductions.
(c) If a member is eligible to receive a return of accumulated total deductions and requests such return from the board on the prescribed form, prior to the return of such accumulated total deductions, the board shall provide to the IV-D agency the member’s name, date of birth, address, and social security number. Within 15 days of receipt of such information the IV-D agency shall notify the board if such member owes child support arrears, provided, however, that if, due to unforeseen circumstances, the IV-D agency is unable to provide such notice within 15 days, said IV-D agency shall notify the board of said unforeseen circumstances and the anticipated date by which the IV-D agency will provide such notice. In the event the member owes child support arrears, upon receipt of a levy from the IV-D agency on the accumulated total deductions, the board shall withhold the child support arrears from the accumulated total deductions and, unless the IV-D agency releases the levy or the board receives notice from either the IV-D agency or the member that an appeal of the levy is pending, the board shall, within 60 days, disburse to the IV-D agency the accumulated total deductions up to the amount of child support arrears. If the board receives such notice of an appeal, the board shall not disburse such accumulated total deductions until the board receives notice that the appeal has been resolved and in what manner the accumulated total deductions should be disposed.
Upon notice by the IV-D agency to the board that a lien has arisen under section 6 of chapter 119A against a member and if the member has terminated service, the board shall send to the member the prescribed form to request a return of accumulated total deductions. If the member fails to file the prescribed form with the board within 60 days, the board shall notify the IV-D agency of such failure and whether the board has received notice that the member has become a member of any other system. The IV-D agency may seek a court order for the submission of the prescribed form to request a return of accumulated total deductions. Upon request of the IV-D agency, the court shall order the member to sign and submit the prescribed form or shall appoint a special master to sign and submit such form in place of the member. Upon receipt of a levy from the IV-D agency on the accumulated total deductions, the board shall withhold any child support arrears owed by such member from the accumulated total deductions and, unless the IV-D agency releases the levy or the board receives notice from the IV-D agency or the member, that an appeal of the levy is pending, the board shall, within 60 days, disburse to the IV-D agency the accumulated total deductions up to the amount of child support arrears. If the board receives such notice of an appeal, the board shall not disburse such accumulated total deductions until the board receives notice that the appeal has been resolved and in what manner the accumulated total deductions should be disposed. Notwithstanding the provisions of any general or special law to the contrary, a disbursement of accumulated total deductions and a return of accumulated total deductions pursuant to the provisions of this subdivision shall have the same effect on the rights of the member as a return of accumulated total deductions pursuant to the provisions of this chapter.
(2) Amounts Due Beneficiaries of Deceased Members. — (a) Upon receipt by the board of proper proof of the death of any member before the date any retirement allowance becomes effective for him under the provisions of sections one to twenty-eight inclusive, the amount of any accumulated total deductions credited to his account in the annuity savings fund of the system shall, subject to the provisions of paragraph (c) of this subdivision, to the provisions of option (d) of subdivision (2) of section twelve, to the provisions of section twelve B and to the provisions of section fifteen, be paid in one sum to his surviving beneficiary or beneficiaries entitled thereto; provided, however, that prior to the payment of such accumulated total deductions to said beneficiary or beneficiaries, the board shall provide to the IV-D agency the name, date of birth, address, and social security number of each beneficiary; and provided further, that within 15 days of receipt of such information the IV-D agency shall notify the board if such beneficiary owes child support arrears. If due to unforeseen circumstances the IV-D agency is unable to provide such notice within 15 days, said agency shall notify the board of the unforeseen circumstances and the anticipated date by which the IV-D agency shall provide such notice. If such beneficiary owes arrears, upon receipt of a levy from the IV-D agency, the board shall withhold any arrears owed by any such beneficiary and disburse the accumulated total deductions due that beneficiary, up to the amount of the arrearage, to the IV-D agency within 60 days.
(b) Upon receipt by the board of proper proof of the death of any member on or after the date any retirement allowance payable under the terms of option (b) of subdivision (2) of section twelve becomes effective for him and during the continuance of such allowance and while there is any cash refund due under the terms of such option, the amount of any such cash refund shall, subject to the provisions of paragraph (c) of this subdivision and to the provisions of section fifteen, be paid in one sum to his surviving beneficiary or beneficiaries entitled thereto. Upon receipt by the board of proper proof of the death of any person who is receiving payments under any retirement allowance payable under the provisions of sections one to twenty-eight inclusive, any pro rata payment allowable at his death under the provisions of subdivision (1) of section thirteen and not included in the amount of any cash refund payable under the terms of option (b) of subdivision (2) of section twelve, shall be paid to his surviving beneficiary or beneficiaries, or if there is no beneficiary living, then to the person or persons appearing in the judgment of the board to be entitled thereto, and such payment shall constitute a legal settlement of all claims on account thereof and shall bar recovery thereof by any other person.
(c) Any member, upon his written notice on a prescribed form filed with the board prior to his death, may nominate, and from time to time change, one or more beneficiaries to receive in designated proportions, or in the alternative, any sum becoming payable under the provisions of this subdivision on his death, and/or any uncashed checks in payment of amounts to which he was entitled from the funds of the system of which he was a member, or any sum payable to his estate from said funds; provided, that any such beneficiary or beneficiaries nominated by a minor shall be of his kindred. The payment of any such sum or portion thereof to his beneficiary or beneficiaries of record surviving at his death shall bar the recovery of such payment by any other person. If there is no beneficiary of record or if any beneficiary of record is not living at the death of such member, such sum or the amount which would have been paid to such beneficiary if he had survived such member, as the case may be, shall be paid to the legal representatives of such member; provided, that if any such sum or amount does not exceed three hundred dollars, and if there has been no written demand upon the board for payment thereof by a duly appointed executor or administrator of the estate of such member and the board has not otherwise been informed that probate proceedings relative to such estate have been commenced, such sum or amount may be paid after the expiration of ninety days from the date of death of such member, to the person or persons appearing in the judgment of the board to be entitled thereto. The payment of any such sum or amount in such a manner, or to the natural or legal guardian or conservator of a minor or incompetent beneficiary, shall constitute a legal settlement of all claims on account thereof to the extent of such payment and shall bar recovery of such payment by any other person. Payment shall not be made under this subdivision if the deceased member is survived by a beneficiary appointed under option (d) of subdivision (2) of section twelve who is eligible to receive the allowance provided by said option, nor if the deceased member is a male and is survived by a person eligible to receive the allowance provided for in section twelve B, or is a female and is survived by a child eligible to receive the allowances provided for in section twelve B, unless the widow or person acting for such child elects, in lieu of receiving allowances provided for in said section twelve B, to have payment of any moneys due made in accordance with the provisions of this paragraph.
(3) Transfer to Pension Fund of Accumulated Total Deductions. — The accumulated total deductions of any member not having the right to receive a retirement allowance under the provisions of section five, six, seven or ten, and whose service has been terminated for at least ten years, or any amounts due to any designated beneficiary or beneficiaries or to the estate of a deceased member which has not been claimed within ten years of the date of death of such member shall be transferred to the Pension Reserve Fund or the Commonwealth’s Pension Liability Fund established under section twenty-two.
No check, which has been issued by the state treasurer in payment of any obligation of the state board of retirement or the teachers’ retirement board under authority of sections one to twenty-eight, inclusive, or which is issued by any county, city or town treasurer, by the secretary-treasurer of the Massachusetts Turnpike Authority, the treasurer of the Massachusetts Housing Finance Agency, the secretary-treasurer of the Massachusetts Port Authority, the Greater Lawrence Sanitary District, the Blue Hills Regional Vocational School system, or by the Minuteman Regional Vocational Technical School District in payment of any obligation of any retirement system established under this chapter, shall be payable later than six years after its date, and the obligation of the commonwealth or of any county, city, town, the Massachusetts Turnpike Authority, the Massachusetts Housing Finance Agency, the Massachusetts Port Authority, Greater Lawrence Sanitary District, the Blue Hills Regional Vocational School system or the Minuteman Regional Vocational Technical School District, represented by any such check, shall not be enforceable if such check is not presented for payment within such period. The amount represented by such check shall thereupon be transferred to the Pension Reserve Fund or the Commonwealth’s Pension Liability Fund of the retirement system under whose authority the check was originally issued.
Any person entitled to payment of accumulated total deductions or payment of amounts due beneficiaries or estates of deceased members or amounts represented by uncashed checks, which were transferred to the Pension Reserve Fund or the Commonwealth’s Pension Liability Fund under the provisions of this section may establish a claim therefor at any time. The board shall determine all such claims and if it finds such claim to be valid shall pay the amount of the claim out of the Pension Reserve Fund or the Commonwealth’s Pension Liability Fund.
Section 12. (1) Election of Option. — Any member who is retired for superannuation under the provisions of section five or who applies for a retirement allowance under the provisions of section ten or subdivision (3) of section twenty-six, may elect to have his allowance paid in accordance with the terms of any one of the three options specified in subdivision (2) of this section. Any member who is retired for disability under section 6, or section 7 or who is retired under subdivision (2) of section 26, may elect to have his allowance paid in accordance with the terms of option (a), option (b) or option (c), provided, however, that, in the event that the surviving eligible beneficiary of a member under said option (c) is eligible for a benefit under section 9, the beneficiary shall elect to receive either a benefit pursuant to said option (c) or a benefit pursuant to said section 9 but in no event shall the beneficiary be eligible for both benefits. Election of an option shall be made by such member in writing on a prescribed form filed with the board, and once made may be changed from time to time by making a new election in a similar manner; provided, that no election of an option shall be valid unless such election is filed with the board on or before the date of receipt by the board of the written application for the retirement of such member or for a retirement allowance under the provisions of section ten, as the case may be, or unless such election is held with the board not more than fifteen days after the date of receipt by the board of the written application for the retirement of such member in case such application is made by the head of his department, or unless such election is filed with the board on or before the date his allowance becomes effective. Upon receipt of such election by the board, the option elected shall take effect as of the date the retirement allowance of such member becomes effective; provided, that if his death occurs before such date such option shall not take effect and his accumulated total deductions, if any, shall be returned as provided for in subdivision (2) of section eleven. If no election of an option is made or if none is in effect as provided for in this section, the retirement allowance of such member shall be paid in accordance with the terms of option (b) of subdivision (2) of this section.
For any member who is married, an election shall not be valid unless it is accompanied by the signature of the member’s spouse indicating the member’s spouse’s knowledge and understanding of the retirement option selected. The retirement board shall provide the member and spouse with detailed information regarding the benefit option selected in order for the member and spouse to make an informed decision regarding said option. If any member who is married files an election which is not so accompanied, the board shall within fifteen days notify the member’s spouse by registered mail of the option election and of the spouse’s right to sign and return an acknowledgment of receipt and understanding of such information within thirty days after receipt of the acknowledgment. The election shall not take effect until it is accompanied by the signature of the member’s spouse; provided, however, that no such signature shall be required if the spouse fails to submit such signed acknowledgment on or before the thirtieth day from receipt of the information from the retirement board. Such election made prior to the spousal notification may be changed in accordance with the spouses understanding of the retirement allowance selected, or at any later time otherwise permitted under this chapter. Nothing in this paragraph shall be deemed to affect the effective date of any retirement allowance. The provisions of this section relative to the retirement of the member’s election being accompanied by the member’s spouse shall not apply in the case of a member who is divorced and who has previously filed with the retirement board a domestic relations order which has been entered by the probate court and provides for the option to be elected by the member.
(2) Terms of Options. — Any retirement allowance paid in accordance with the terms of any one of the three options specified in this subdivision shall be payable during the lifetime of the member to whom the allowance is granted and shall cease upon his death except as otherwise provided for in the option elected; provided, that the continuance of payments during the lifetime of such member and the amount thereof shall be subject to the provisions of sections eight, fourteen, fifteen and twenty-five.
Option (a), Life Annuity. — A full retirement allowance payable to such member which shall consist of—(i) A regular life annuity, the yearly amount of which shall be determined so that the value of such annuity on the date such allowance becomes effective shall be the actuarial equivalent of the value of his accumulated regular deductions, if any, on such date;(ii) A pension, the yearly amount of which shall be equal to the excess of the normal yearly amount of the retirement allowance determined in accordance with the provisions of the section under which such allowance is being granted to such member over the yearly amount of the regular life annuity specified in clause (i) of this option; and(iii) An additional life annuity, the yearly amount of which shall be determined so that the value of such annuity on the date such allowance becomes effective shall be the actuarial equivalent of the value of his accumulated additional deductions, if any, on such date.
Option (b), Cash Refund Annuity. — A lesser retirement allowance payable to such member which shall consist of—(i) A cash refund life annuity, the yearly amount of which shall be determined so that the value of such annuity on the date such allowance becomes effective shall be the actuarial equivalent of the value of his accumulated total deductions, if any, on such date. Such cash refund life annuity shall provide that, if such member dies before receiving in annuity payments a total amount equal to such value of such accumulated total deductions, the excess of such value over such total amount shall be paid in one sum in accordance with the provisions of subdivision (2) of section eleven to his surviving beneficiary or beneficiaries entitled thereto; and(ii) A pension, the yearly amount of which shall be equal to that specified in clause (ii) of option (a) of this subdivision.
Option (c), Joint and Last Survivor Allowance. — A lesser retirement allowance which shall be payable to such member during his lifetime, with the provisions that two-thirds of the yearly amount of such lesser retirement allowance shall be continued during the lifetime of and paid to such surviving eligible beneficiary as such member shall have nominated in his written election of this option; provided, however, that such eligible beneficiary shall receive not less than two-thirds of the retirement allowance such member is receiving at the time of his death; and provided, further, that if such eligible beneficiary dies on or after the date such lesser retirement allowance becomes effective and before the death of such member, such member thereafter shall be paid a full retirement allowance and may not choose another option. Such full retirement allowance shall be determined by multiplying the amount of the lesser retirement allowance at the time of the death of such eligible beneficiary by a fraction the numerator of which is the yearly amount of the full retirement allowance which such member would have received at the time his retirement allowance became effective if he had elected that it be paid in accordance with the terms of Option (a), and the denominator of which is the yearly amount of the lesser retirement allowance which such member received at the time his retirement allowance first became effective.
If such beneficiary dies before the date such retirement allowance becomes effective, this option shall not take effect, and in such case such member, upon his written request on a prescribed form filed with the board prior to such effective date, may make a new election of any one of the first three options specified in this subdivision. The yearly amount of such lesser retirement allowance shall be determined so that the actuarial value of the prospective payments to such member, including those for a full retirement allowance made in accordance with the first paragraph of this option, and to such eligible beneficiary shall, on the date such allowance becomes effective, be the actuarial equivalent of the value on such date of the full retirement allowance specified in Option (a). Any such lesser retirement allowance payable under this option shall be divided between annuity and pension in the same proportion as the corresponding full retirement allowance specified in said Option (a) is so divided, and any such full retirement allowance payable under this option shall be divided between annuity and pension in the same proportion as the lesser retirement allowance which it replaces.
No person shall be eligible for nomination as beneficiary under this option unless such person is the spouse former spouse who has not remarried, child, father, mother, sister or brother of such member.
If a spouse receiving an allowance as beneficiary under this option dies leaving any children of the deceased member and of such spouse who are under age eighteen, such amount as would have been paid to such spouse shall be divided into such number of equal shares as there are such children, and each such share shall be paid to a guardian for the benefit of each such child until the child reaches age eighteen.
Option (d), Member Survivor Allowance. — At any time a member, upon his written notice on a prescribed form filed with the board prior to his death, may nominate an eligible beneficiary as set forth under option (c) of this section, who if such member dies before being retired shall receive the yearly amount of the option (c) allowance to which such member would have been entitled had his retirement taken place on the date of his death.
If such member dies before attaining age fifty-five and before being retired, such nominated eligible beneficiary shall receive the option (c) allowance to which such member would have been entitled had he attained age fifty-five at the time of his death and had his retirement taken place on the date of his death.
A member may at any time cancel the appointment of a beneficiary nominated under this option by a written notice filed with the board prior to his death.
If a member dies before being retired without an eligible beneficiary other than the spouse of such member nominated under this option, or, notwithstanding the provisions of paragraph (a) of subdivision (2) of section thirteen, if a member in service as described in subparagraph (i) of paragraph (a) of subdivision (1) of section three who has not less than two years of creditable service dies and leaves a spouse to whom such member had been married for not less than one year, or if a member dies within thirty days following the date the retirement of such member became effective without an eligible beneficiary nominated under Option (c) of this section, an election may be made by such spouse to receive the member-survivor allowance under this option; provided, that said spouse and the deceased member were living together at the time of death of such member, or that the board finds that they had been living apart for justifiable cause other than desertion or moral turpitude on the part of the spouse.
If the spouse eligible to elect the member-survivor allowance provided for in this option fails, as provided for in this option, to elect said allowance, the accumulated total deductions of the member shall be paid to the surviving beneficiary or beneficiaries of record, if any, nominated under the provisions of paragraph (c) of subdivision (2) of section eleven, and if there is no such surviving beneficiary or beneficiaries of record said accumulated total deductions shall be paid to such spouse in one sum as a cash refund under subdivision (2) of said section eleven.
Upon the receipt of the notice of death of any member, the board shall notify the spouse or the person who may act for a child or children as to what information must be furnished in order that the board may determine the eligibility of any person to receive benefits provided for the survivors of a deceased member; and, after it has received the necessary information, the board shall notify such spouse or such other person of the right of election, if any, provided by this option and of the approximate amount of the allowance which will be payable and of the payments due on account of a child or children, if any, provided by section 12B; and of the manner of settlement of the account of the member, including the amount of any cash refund that is payable if the spouse or person who may act for a child or children fails to elect to receive the member-survivor allowance provided herein, or the payments for a child or children provided under Section 12B.
No election of the form of settlement permitted under this option shall be valid unless it is made on a prescribed form filed with the board within ninety days following the date that such notice regarding the right of election is mailed to the spouse.
Any eligible beneficiary or spouse having a right under this option may, within ninety days from the date that the board mailed notice regarding the right of election to the spouse or eligible beneficiary, make any make-up payments which at the time of death the member had a right to make for the purpose of obtaining credit for service rendered by the member prior to his last becoming a member.
If any such member as is described in this option dies as a result of a personal injury sustained or hazard undergone while in the performance of the duties of such member, with a resultant death benefit as provided for in section nine or section one hundred of chapter thirty-two, such sections shall govern.
The normal monthly member-survivor allowance provided for under this option to a spouse of a deceased member shall not be less than two hundred and fifty dollars, subject to the provisions of paragraph (e) of section one hundred and two; provided, however that the deceased member was a member in service as described in subparagraph (i) of paragraph (a) of subdivision (1) of section three on the date of death and that the member had not less than two full years of creditable service and had been married to such spouse for not less than one year; and provided, further, that such member and such spouse were living together on the date of death of the member, or that the board finds that they were living apart for justifiable cause other than desertion or moral turpitude on the part of such spouse.
The total annual allowance derived from and payable under the provisions of this option, together with any allowance payable under the provisions of section twelve B, shall at no time be greater than the annual rate of regular compensation, payable to such member on the date of death of such member.
(3) Notification by Board. — In case any member in service is to be retired at the maximum age for his group, the board shall notify the head of his department of such fact in writing not less than thirty days nor more than four months prior to the date such member will attain such maximum age. The board shall also so notify any member whose allowance is to become effective at the maximum age for his group of such fact and at the same time shall furnish him with a brief statement of the options available to him, together with a statement of the conditions under which an option may be elected.
pending determination of accidental death benefits Section 12A. Any person, or the legal guardian of any person, who may be entitled to accidental death benefits under the provisions of section nine may, during and within the period of one year next succeeding the death of the member in service, avail himself of the allowance provided under option (d) of section twelve or under section twelve B in so far as it may be applicable and said person is eligible therefor, effective from the date of the death of the member and pending the determination of the application of said person for such accidental death benefits.
The filing of an application for accidental death benefits shall not arrest or suspend the payment of an allowance under option (d) of section twelve or under section twelve B; provided, however, that upon the first payment of any benefits provided under section nine payments under said option (d) or section twelve B shall cease and the amount of the first payment under said section nine shall be reduced by a sum equal to the aggregate allowance paid to said person under said option (d) or section twelve B.
Section 12B. If a member in service, as described in subparagraph (i) of paragraph (a) of subdivision (1) of section three, including such a member in the uniformed division of the state police, who has not nominated a beneficiary under Option (d) of subdivision (2) of section twelve other than the spouse of such member and who has two full years of creditable service, dies and leaves a spouse to whom such member had been married for at least one year and with whom such member was living at the time of the death of such member, or who the board finds had been living apart from said member for justifiable cause other than desertion or moral turpitude on the part of such spouse who is eligible to receive a member-survivor allowance under the provisions of said Option (d), and so elects, and if there are any surviving children of said deceased member who are under age eighteen or over said age and physically or mentally incapacitated from earning on the date of death of the member, or under age twenty-two if a full-time student, there shall be paid to such spouse for the benefit of all such children an additional allowance of one hundred and twenty dollars a month for one child plus an allowance of ninety dollars a month for each additional child subject to the provisions of paragraph (e) of section one hundred and two.
If there is no surviving spouse of such member or such surviving spouse dies, such amount of the member-survivor allowance as would have been payable or would be payable to a spouse under the provisions of Option (d) of subdivision (2) of section twelve shall be paid for the benefit of such surviving children to a legally appointed guardian, together with the allowances provided in this section for children.
If a spouse remarries, the allowances payable for the benefit of any children under this section shall terminate and thereafter there shall be paid to a legally appointed guardian for the benefit of each eligible surviving child an allowance of one hundred and twenty dollars a month for one child plus an allowance of ninety dollars a month for each additional child subject to the provisions of paragraph (e) of section one hundred and two.
Allowances payable under this section for the benefit of a child shall terminate upon his adoption, upon reaching the age of eighteen unless he is physically or mentally incapacitated from earning on the date of death of the member, or if a full-time student upon reaching the age of 22, or on the date a child ceases to be a full-time student, or upon his marriage, whichever first occurs, or upon his death. The word “child” shall include a legally adopted child of the deceased member. The words “full-time student” shall mean a child who is in full-time attendance in an accredited educational institution offering full-time courses of study equivalent to or higher than secondary school study. The words “accredited educational institution” shall mean any school, college or university that is licensed, approved or accredited, as the case may be, in the state in which it is located.
If allowances are granted only under this section, any accumulated regular deductions of such member and the amount equal to the value of the regular deductions credited to his account in the special fund for military service credit, if any, together with regular interest thereon to the date of his death, shall be transferred to the pension fund, to be merged, and to be used, on a basis that shall be determined by the actuary, for the exclusive purpose of defraying the payment of such allowances, and shall not be included in the factors that enter into the ordinary determination of the pension appropriation required by paragraph (d) of subdivision (3) of section twenty-two.
If allowances are granted only under this section any amount of accumulated additional deductions to the credit of such member shall be paid in accordance with paragraph (c) of subdivision (2) of section eleven.
If allowances are granted only under this section the total annual allowance derived from and payable under the provisions of this section shall at no time be greater than the annual rate of regular compensation payable to such member on the date of his death.
payment; contributions Section 12C. The benefits provided for a widow and children under section twelve B shall be paid in like manner to the widow and children of a deceased employee who had completed two years of creditable service and had been married to such widow for one year at the time of his death and who having had the right to become a member of the retirement system failed to become or elected not to become such a member; provided, that there is paid into the annuity savings fund of the appropriate retirement system an amount equal to the deductions that would have been made from his annual compensation had he become a member of the retirement system at the time of his entry into service together with accumulated interest to the date of such payment.
Section 13. (1) Amounts, Conditions and Intervals of Payments. — (a) Payments under any annuity, pension or retirement allowance provided for under this chapter and in effect on December thirty-first, nineteen hundred and forty-five, shall continue to be due and payable in the same amounts, under the same conditions and at the same intervals of time as were in effect on such date, except that such payments to members of the teachers’ retirement system shall be due and payable monthly, and the teachers’ retirement board is authorized to increase on December first, nineteen hundred and fifty-one, if necessary, the annual rate of the retirement allowance of any such member of the teachers’ retirement system by an amount not exceeding sixteen cents to provide equal monthly instalments of annuity and pension.
(b) Payments under any annuity, pension or retirement allowance provided for under sections one to twenty-eight inclusive and becoming effective after December thirty-first, nineteen hundred and forty-five, shall be due and payable for the month on the last day of each month during the continuance of such annuity, pension or retirement allowance, as the case may be. The yearly amount of any such annuity, pension or retirement allowance shall be computed to the nearest cent which makes such amount an integral multiple of twelve cents. The amount of each full monthly payment shall be one twelfth of the corresponding yearly amount and the first such full payment shall be due and payable on the last day of the month following the month in which falls the date as of which such annuity, pension or retirement allowance becomes effective. If such effective date is a day other than the last day of the month in which it falls, a pro rata payment shall be allowed for the period following such date and ending with such last day. No payment under any such annuity, pension or retirement allowance shall be made for any period prior to the day next following the date for which such member last received regular compensation for his employment in the public service. Except as otherwise specifically provided for in sections one to twenty-eight inclusive, monthly payments shall be made during the lifetime of the person upon the continuance of whose life the payments depend and shall cease with the last full monthly payment due prior to the death of such person; provided, that a pro rata payment shall be allowed for that portion of the month in which such death occurs which has elapsed up to and including the date of death.
(2) Settlement of Small Allowances in One Sum. — (a) Any member otherwise entitled to receive a retirement allowance under the provisions of sections one to twenty-eight inclusive, the normal yearly amount of which would be less than three hundred and sixty dollars, shall, in lieu of receiving such allowance, be paid the amount of his accumulated total deductions as of the date such allowance would otherwise become effective.
(b) Any member otherwise entitled to receive a retirement allowance under the provisions of sections one to twenty-eight inclusive, the normal yearly amount of which would be less than six hundred dollars but not less than three hundred and sixty dollars, shall, in lieu of receiving such allowance, be paid the amount of his accumulated total deductions as of the date such allowance would otherwise become effective if his written request therefor as provided for in subdivision (1) of section eleven is filed with the board on a prescribed form prior to the date the first payment of such allowance would otherwise become due.
(c) Nothing herein shall entitle any member who is paid the amount of his accumulated total deductions under the provisions of this subdivision to remain in service.
Section 14. (1) Retention of Rights of a Member in Service. — (a) Any employee who was a member in service at the time of sustaining an injury or undergoing a hazard on account of which he becomes entitled to payments under the provisions of chapter one hundred and fifty-two shall, during the period while he is receiving weekly payments for total incapacity under the provisions of sections sixty-nine to seventy-five, inclusive, of such chapter or of sections thirty-four, thirty-four A, thirty-four B, thirty-five A, thirty-five F or thirty-six of such chapter in the case of an employee of the Massachusetts Turnpike Authority, the Massachusetts Port Authority, the Greater Lawrence Sanitary District, the Blue Hills Regional Vocational School system, or the Minuteman Regional Vocational Technical School District, or during any period determined, as set forth, in paragraph (c), represented by the allocation of the amount of any lump sum settlement payable directly to him under the provisions of section forty-eight of such chapter in lieu of such weekly payments and also, in either event, during a further period of thirty days, retain all the rights of a member in service while he is living, unless and until a retirement allowance becomes effective for him under the provisions of sections one to twenty-eight, inclusive. During such periods, however, no deductions for the annuity savings fund of the system shall be made from payments such members shall receive under the provisions of chapter one hundred and fifty-two nor shall he withdraw his accumulated total deductions therefrom.
Any such member shall have credited to him as creditable service under the system the period during which he is receiving such weekly payments or lump sum settlement in lieu of such weekly payments. The board of each system shall keep an annual record of all such creditable service. At the time of his retirement there shall be transferred from the pension fund of the system of which he was a member at the time of the accident, to the annuity savings fund of the system of which he is then a member, the amount which said person would have paid into said fund had his employment in the service of the commonwealth or political subdivision thereof not been interrupted by his industrial accident with regular interest to the date of retirement, but in no event more than would be credited to him if regular deductions with interest were made on his full salary or wages; provided, that any sum so paid by the commonwealth or any political subdivision thereof shall be used only to provide an increased retirement allowance of the person on whose account such payment is made. Any period during which an employee is receiving weekly benefits for total incapacity under chapter one hundred fifty-two shall not be counted in computing such employee’s sick leave for severence pay purposes; nor may an employee use sick leave accrued during the time of total incapacity during such total incapacity.
(b) If such member attains the maximum age for his group during any such period he shall be retired for superannuation in the same manner as if he were actually in service; provided, that if prior to his attaining such maximum age there has been filed with the board an application for his retirement for accidental disability, his rights to such retirement, if any, shall not expire or be abridged by the attainment of such maximum age while action on such application is pending.
(c) Whenever such member receives an amount of lump sum settlement payable directly to him under the provisions of section forty-eight of chapter one hundred and fifty-two in lieu of weekly payments, the period represented thereby shall, for the purpose of this section, be computed to begin on the date for which he last received regular compensation prior to such settlement, or on the date of the last compensation payment in case weekly payments had previously been made under the provisions of sections sixty-nine to seventy-five, inclusive, or section thirty-four, thirty-four A, thirty-four B, thirty-five A or thirty-six of such chapter, and to continue during a number of weeks equal to the quotient of the amount of such lump sum settlement divided by the amount of the maximum weekly compensation which would otherwise be payable to him under the provisions of such sections. Any fraction of a week resulting from such division shall be taken as a full week.
(2) Workers’ Compensation Benefits Offset. — (a) All sums of money payable under the provisions of sections thirty-one, thirty-four, thirty-four A, thirty-four B, thirty-five and thirty-five A of chapter one hundred and fifty-two directly to a retired member or to the legal representative or dependents of a deceased member on account of his death, including so much of the amount of any lump sum settlement payable under the provisions of such sections directly to any such person as is allocable to the period following the retirement or death of such member, but excluding any payments for or amounts allocable to any period prior to the date his retirement allowance became effective, shall be offset against and payable in lieu of any pension payable on his account under the provisions of section six, seven or nine by reason of the same injury, but not against his accumulated total deductions or any annuity derived therefrom. Whenever the amount of any such lump settlement is payable directly to a beneficiary, the period over which it is allocable for purposes of this section shall be determined by the actuary in a manner which is consistent with that set forth in paragraph (1)(c) of this section. If any such pension exceeds the compensation payable on account of such member under such provisions of chapter one hundred and fifty-two when both are reduced to the same periodical basis, the excess only shall be paid as a pension so long as such compensation continues. If any such pension is less than or equal to such compensation, no pension shall be paid so long as such compensation continues to be equal to or greater than such pension.
(b) In all cases where a member or a beneficiary receives delayed compensation payments or an amount of any lump sum settlement payable directly to him under the provisions of sections thirty-one, thirty-four, thirty-four A, thirty-four B, thirty-five or thirty-five A of chapter one hundred and fifty-two subsequent to his receipt of payments under any pension granted under the provisions of section six, seven or nine by reason of the same injury, no further pension payments shall be made unless and until such time as the total amounts which by then would have been payable as compensation and pension together as set forth in paragraph (a) of this subdivision, if there had been no delay in making such compensation payments, shall exceed the total amounts of compensation and pension actually paid by them after due allowance in either case for the allocation of any such lump sum settlement.
(c) If a member or a beneficiary entitled to a pension under the provisions of section six, seven or nine, and also having a right to compensation under the provisions of chapter one hundred and fifty-two by reason of the same injury or death of such member, as the case may be, neglects or fails to prosecute fully such right or to co-operate with the board in its prosecution thereof, as provided for by the provisions of section seventy-three of such chapter, the board may, during the period of such neglect or failure, suspend such member’s or beneficiary’s right to further payment under the provisions of section six, seven or nine. Under the circumstances set forth in the said section seventy-three, the duty of the board to prosecute shall be mandatory.
Section 14A. Third Party Recovery. If a member or beneficiary entitled to a pension under the provisions of section six, seven or nine, also has a right to recover lost wages from any party other than his employer by reason of the same injury or death of such member, the amount of any such recovery for lost wages shall be offset against and payable in lieu of any pension payable on his account under the provisions of said sections according to a schedule approved by the actuary which is consistent with that set forth in paragraph (c) of subdivision (1) of section fourteen. If any such member or beneficiary neglects or fails to prosecute fully such right, the board shall prosecute such right on the member’s behalf. In the event the member or beneficiary fails to cooperate with the board in its prosecution thereof the board may, during the period of such failure, suspend such member’s or beneficiary’s right to further payment under the provisions of section six, seven or nine.
Section 15. (1) Misappropriation of Funds. — Any member who has been charged with the misappropriation of funds or property of any governmental unit in which or by which he is employed or was employed at the time of his retirement or termination of service, as the case may be, or of any system of which he is a member, and who files a written request therefor shall be granted a hearing by the board in accordance with the procedure set forth in subdivision (1) of section sixteen. If the board after the hearing finds the charges to be true, such member shall forfeit all rights under sections one to twenty-eight inclusive to a retirement allowance or to a return of his accumulated total deductions for himself and for his beneficiary, or to both, to the extent of the amount so found to be misappropriated and to the extent of the costs of the investigation, if any, as found by the board. He shall thereupon cease to be a member, except upon such terms and conditions as the board may determine.
(2) Initiation of Proceedings. — Proceedings under this section may be initiated by the board, by the head of the department, by the commission or board of the commonwealth or of any political subdivision thereof wherein the member is employed or was last employed if not then in service, or in a county by the county commissioners, in a city by the mayor, in a town by the board of selectmen, in the Massachusetts Turnpike Authority by the authority, in the Massachusetts Housing Finance Agency by the agency, in the Massachusetts Port Authority by the authority, in the Greater Lawrence Sanitary District by the district, in the Blue Hills Regional School System by the system or in the Minuteman Regional Vocational Technical School District by the district. The procedure set forth in subdivision (1) of section sixteen relative to delivery of copies, statement of service thereof, notice, hearing, if requested and the filing of a certificate of findings and decision, so far as applicable, shall apply to any proceedings under this section.
(3) Forfeiture of Rights upon Conviction. — In no event shall any member after final conviction of an offense involving the funds or property of a governmental unit or system referred to in subdivision (1) of this section, be entitled to receive a retirement allowance or a return of his accumulated total deductions under the provisions of sections one to twenty-eight inclusive, nor shall any beneficiary be entitled to receive any benefits under such provisions on account of such member, unless and until full restitution for any such misappropriation has been made.
(3A) Forfeiture of rights upon conviction. — In no event shall any member after final conviction of an offense set forth in section two of chapter two hundred and sixty-eight A or section twenty-five of chapter two hundred and sixty-five pertaining to police or licensing duties be entitled to receive a retirement allowance or a return of his accumulated total deductions under the provisions of sections one to twenty-eight, inclusive, nor shall any beneficiary be entitled to receive any benefits under such provisions on account of such member.
(4) Forfeiture of pension upon misconduct. — In no event shall any member after final conviction of a criminal offense involving violation of the laws applicable to his office or position, be entitled to receive a retirement allowance under the provisions of section one to twenty-eight, inclusive, nor shall any beneficiary be entitled to receive any benefits under such provisions on account of such member. The said member or his beneficiary shall receive, unless otherwise prohibited by law, a return of his accumulated total deductions; provided, however, that the rate of regular interest for the purpose of calculating accumulated total deductions shall be zero.
(5) If the attorney general or a district attorney becomes aware of a final conviction of a member of a retirement system under circumstances which may require forfeiture of the member’s rights to a pension, retirement allowance or a return of his accumulated total deductions pursuant to this chapter, sections 58 or 59 of chapter 30 or section 25 of Chapter 268A, he shall immediately notify the commission of such conviction.
of review or appeal Section 16. (1) Involuntary Retirement and Right to a Hearing. — (a) Any head of a department who is of the opinion that any member employed therein should be retired for superannuation, ordinary disability or accidental disability, in accordance with the provisions of section five, six, or seven, as the case may be, may file with the board on a prescribed form a written application for such retirement. Such application shall include a fair summary of the facts upon which such opinion is premised. The applicant shall forthwith deliver to such member by registered mail, with a return receipt requested, a true copy of such application, together with a brief statement of the options available to such member on his retirement and a statement of his right, if any, to request a hearing with regard to such retirement and of the right, if any, of review available to him, as provided for in this section, in case he is aggrieved by any action taken or decision of the board rendered or by failure of the board to act upon his request or to render a decision within the time specified in this subdivision. Upon such delivery to such member the head of the department, or one acting in his behalf, shall file with the board under the penalties of perjury a written notice of such delivery, including the date thereof.
(b) Any member in service classified in Group 1, Group 2 or Group 4 who has attained age fifty-five and completed fifteen or more years of creditable service, or any member in service so classified who has not attained age fifty-five but who has completed twenty or more years of creditable service, for whom an application for his retirement is filed by the head of his department as provided for in paragraph (a) of this subdivision, may, within fifteen days of the receipt of his copy of such application, file with the board a written request for a private or public hearing upon such application. If no such request is so filed, the facts set forth in such application shall be deemed to be admitted by such member; otherwise such hearing shall be held not less than ten nor more than thirty days after the filing of the request. The board, after giving due notice, shall conduct such hearing in such manner and at such time or times as the best interests of all parties concerned may require. The board shall prepare and file with its clerk or secretary a certificate containing its findings and decision, copies of which shall be sent to the proper parties within fifteen days after completion of such hearing.
(c) If the board finds that any member should be retired under the provisions of this subdivision, he shall receive the same retirement allowance as he would have received had the application been made by himself. If the board finds that such member should not be retired, he shall continue in his office or position without loss of compensation, subject to the provisions of sections one to twenty-eight inclusive, as though no such application had been made.
[There is no subdivision (2).
] (3) Right of Review by District Court. — (a) Any member classified in Group 1, Group 2 or Group 4 who has attained age fifty-five and completed fifteen or more years of creditable service, or any member so classified who has not attained age fifty-five but who has completed twenty or more years of creditable service, or any such member who is a veteran and has completed ten or more years of creditable service, and who is aggrieved by any action taken or decision of a board or the public employee retirement administration commission rendered with reference to his involuntary retirement under the provisions of subdivision (1) or to his removal or discharge as set forth in subdivision (2), or any member who is aggrieved by any action taken or decision of a board or the public employee retirement administration commission rendered with reference to his dereliction of duty as set forth in section fifteen, may, within thirty days after the certification of the decision of the board, bring a petition in the district court within the territorial jurisdiction in which he resides praying that such action and decision be reviewed by the court. After such notice as the court deems necessary, it shall review such action and decision, hear any and all evidence and determine whether such action was justified. If the court finds that such action was justified the decision of the board or the public employee retirement administration commission shall be affirmed; otherwise it shall be reversed and of no effect. If the court finds that such member was unjustifiably retired, removed or discharged from his office or position he shall be reinstated thereto without loss of compensation. The decision of the court shall be final.
(b) Any member whose office or position is subject to chapter thirty-one or to the rules and regulations made under authority thereof, who is aggrieved by any action taken or decision of a board or the public employee retirement administration commission rendered as described in paragraph (a) of this subdivision shall, for the purposes of sections one to twenty-eight, inclusive, have and retain such of the rights provided by sections forty-two A, forty-two B, forty-three and forty-five of chapter thirty-one as applied to his particular office or position, and the court shall, in addition to the matters it is required to review under such sections of chapter thirty-one, affirm or disaffirm the decision of the board or the public employee retirement administration commission as provided for in paragraph (a) of this subdivision.
(4) Right of Appeal to Contributory Retirement Appeal Board. — There shall be an unpaid contributory retirement appeal board which shall consist of three members as follows: an assistant attorney general who shall be designated in writing from time to time by the attorney general who shall act as chairman, the public employee retirement administration commission or an assistant who shall be designated in writing, from time to time, by the said commission, and a member appointed by the governor for a term of five years. In the event the matter before the contributory retirement appeal board deals with any matter related to disability retirement or interim benefits as awarded by the division of administrative law appeals, the commissioner of public health or his designee shall substitute for the public employee retirement administration commission.
The members of the contributory retirement appeal board shall be compensated for any expenses incurred in the performance of their official duties. On matters other than those subject to review by the district court as provided for in subdivision (3), or other than those which would have been subject to review had the requirement for the minimum period of creditable service been fulfilled, any person when aggrieved by any action taken or decision of the retirement board or the public employee retirement administration commission rendered, or by the failure of a retirement board or the public employee retirement administration commission to act, may appeal to the contributory retirement appeal board by filing therewith a claim in writing within fifteen days of notification of such action or decision of the retirement board or the commission, or may so appeal within fifteen days after the expiration of the time specified in sections one to twenty-eight, inclusive, within which a board or the commission must act upon a written request thereto, or within fifteen days after the expiration of one month following the date of filing a written request with the board or the commission if no time for action thereon is specified, in case the board or the commission failed to act thereon within the time specified or within one month, as the case may be. The contributory retirement appeal board, after giving due notice, shall, not less than ten nor more than sixty days after filing of any such claim of appeal, assign such appeal to the division of administrative law appeals for a hearing. The division of administrative law appeals shall maintain the official records of the contributory retirement appeal board. After the conclusion of such hearing, the division of Administrative Law Appeals shall submit to the parties a written decision which shall be final and binding upon the board involved and upon all other parties, and shall be complied with by such board and by such parties, unless within fifteen days after such decision, (1) either party objects to such decision, in writing, to the contributory retirement appeal board, or (2) the contributory retirement appeal board orders, in writing, that said board shall review such decision and take such further action as is appropriate and consistent with the appeal provided by this section. The contributory retirement appeal board shall then pass upon the appeal within six months after the conclusion of such hearing, and its decision shall be final and binding upon the board involved and upon all other parties, and shall be complied with by such board and by such parties. Any person, upon making an appeal involving a disability retirement allowance, shall be permitted to retire for superannuation retirement, if otherwise eligible, pending the decision of the contributory retirement appeal board, but in no event shall such action prejudice the person from receiving any further benefits which the contributory retirement appeal board may grant in its decision nor shall the person upon a finding in favor of the employer be required to reimburse the employer for payments made prior to the decision of the contributory retirement appeal board.
On appeals involving disability or where medical reports are part of the proceedings, the contributory retirement appeal board may request further information from the members of the appropriate regional medical panel, or may employ a registered physician to advise them in determination of an appeal.
The contributory retirement appeal board shall have the power to subpoena witnesses, administer oaths and examine such parts of the books and records of the parties to a proceeding as relate to questions in dispute. Fees for such witnesses shall be the same as for witnesses before the courts in civil actions, and shall be paid from the Appropriation Fund of the division of administrative law appeals.
The contributory retirement appeal board, acting through the division of administrative law appeals, shall arrange for the publication of its decisions and the cost of such publication shall be paid from the Appropriation Fund of the division of administrative law appeals.
The contributory retirement appeal board shall establish a fee structure for appeals brought under this section, which shall be subject to the approval of the commissioner of administration.
The division of administrative law appeals shall submit to the contributory retirement appeal board on an annual basis a report on the status of all cases that have been assigned to the division of administrative law appeals for a hearing.
(5) Provisions Not Applicable to Certain Members. — The provisions of this section relative to the right of any member to a hearing or to the right of review by the district court shall not apply in the case of the removal or discharge of any state official or of any official of any political subdivision of the commonwealth for which provision is otherwise made in any general or special law, anything in this section to the contrary notwithstanding. The provisions of this section relative to the right of any member to a hearing or to the right of review by the district court shall not apply to any teacher or principal or superintendent of schools employed at discretion or any superintendent employed under a contract, for the duration of his contract, or any principal or supervisor, who has been dismissed, demoted, or removed from a position by a vote of a school committee under the provisions of section forty-two, forty-two A or section sixty-three of chapter seventy-one. The provisions of this section shall not apply to any member classified in Group 3.
Section 17. Any option, election or right existing in any member may be exercised or enforced, if such member is incompetent or for any other reason is unable to exercise or enforce the same himself, by the spouse of such member if they are living together at the time any such action is instituted, or if there is no such spouse then by his guardian or conservator, or if there is no such spouse, guardian or conservator then by any other person found by the board to be acting in behalf of and for the best interests of such member.
against fraud Section 18. (1) Filing of Statements and Penalties for Failure to File. — Any employee or member upon request from the board shall file with it such written statement or certified record or copy thereof as shall be required by the provisions of sections one to twenty-eight, inclusive, or by rules and regulations of the board consistent with law. If the board is satisfied that there has been unreasonable delay in the filing of any such required statement or record, it shall so notify in writing such employee or member and the head of his department. If within thirty days thereafter the board has not received such required statement or record, it shall so notify in writing the head of such department and the treasurer of the governmental unit in which such employee or member is employed. Upon the receipt of such latter notice by the head of his department, such employee or member shall be suspended from service without compensation and such suspension shall remain in force until such required statement or record is so filed; provided, that in the case of any employee or member subject to the provisions of chapter thirty-one, the pertinent provisions of sections forty-one to forty-five, inclusive, thereof shall apply. Any member attaining the maximum age for his group during a period of suspension as above set forth shall be retired for superannuation but shall receive no retirement allowance until he has complied with the request of the board. No member shall be entitled to voluntary retirement or to a return of his accumulated total deductions during the period of any such suspension.
(1A) Filing of Reports and Penalties for Failure to File. — The treasurer or other disbursing officer in charge of payroll in any governmental unit or agency to which a system pertains, upon request from the board or the commission shall submit such written information as shall be required by the provisions of section one to twenty-eight, inclusive, or by rules and regulations of the board or the commission consistent with the law. If the board or the commission determines that there has been unreasonable delay in filing of any such required information, the board or the commission shall so notify in writing such treasurer or other disbursing officer. If within thirty days thereafter, the board or the commission has not received such required information, it shall so notify the treasurer or other disbursing officer and the chief executive officer for the governmental unit. The board or the commission may petition the superior court to compel compliance with this section and enforce the penalty thereunder.
(2) Protection against Fraud. — Every certified statement required by sections one to twenty-eight inclusive, or by rules and regulations of the board consistent with law, shall contain such information as the board may reasonably require and shall be verified by written declaration that it is made under the penalties of perjury. Any person who shall knowingly make any false statement or shall falsify or permit to be falsified any record or records of the system, with intent to defraud such system as a result of such act, shall, in addition to all other penalties to which he may be subject by law, be punished as provided for in section twenty-four. If any error in the records of such system caused by any such wrongful act results in the receipt from such system by any member or beneficiary of more or less than he would have been entitled to receive had the records been correct, payments shall, as far as practicable, be adjusted in such manner that the actuarial equivalent of the benefit to which he was correctly entitled shall be paid.
assignments; exception Section 19. The funds of each system established under the provisions of sections one to twenty-eight, inclusive, so far as they are invested in personal property, shall be exempt from taxation. The rights of a member to an annuity, pension or retirement allowance, such annuity, pension or retirement allowance itself, and all his rights in the funds of any system established under the provisions of such sections, shall be exempt from taxation, including income taxes levied under the provisions of chapter sixty-two, and from the operation of any law relating to bankruptcy or insolvency and shall not be attached or taken upon execution or other process. That portion of the estate of any deceased member consisting of any sum or sums received from any system under the provisions of sections one to twenty-eight, inclusive, shall not be included in computing any legacy or succession tax under the provisions of chapter sixty-five. No assignment of any right in or to any funds, annuities, pensions or retirement allowances under any system shall be valid except such assignment as may be made for the purpose of making restitution in the case of dereliction of duty by any member as set forth in section fifteen, and except such assignment made in writing by a retired member, authorizing the board to withhold each month such amount as he may designate for the payment of subscriber premiums applicable to a hospitalization, medical and surgical insurance, or to a life insurance, in effect with a nonprofit hospital and medical service corporation or insurance company at the time of his retirement, and except such assignment made in writing by a retired member authorizing the board to withhold each month such amount as he may designate for the payment of income taxes levied under the Internal Revenue Code of the United States or the General Laws of the commonwealth. No assignment shall be permitted in the case of a retired member of the teachers’ retirement system for the payment of the monthly premium for an insurance policy issued under chapter thirty-two B, except as provided for in section nineteen B of this chapter or in section twelve of chapter thirty-two A. For persons making the election provided for in subdivision (1) of section nineteen B, such premium payments shall be paid by the retired member to the treasurer of the governmental unit to which the group policy under which the member is insured was issued, in accordance with such requirements as such treasurer may prescribe.
Nothing in this section shall prevent a member’s annuity pension, retirement allowance or return of accumulated total deductions from being attached, taken on execution, assigned, or subject to other process to satisfy a support order under chapter two hundred and eight, two hundred and nine, two hundred and nine A, two hundred and nine C, two hundred and seventy-three, or received, entered or registered pursuant to chapter 209D, or an assignment of marital property under chapter two hundred and eight.
subscriber premiums or for payment of income taxes Section 19A. Any employee of the commonwealth retired under this chapter may by assignment made in writing authorize the retiring authority paying such pension or retirement allowance to withhold each month such amount as he may designate for the payment of subscriber premiums applicable to any hospitalization, medical or surgical insurance in effect with a non-profit hospital and medical service corporation or insurance company at the time of his retirement.
Any member retired under this chapter may by assignment made in writing authorize the retirement board paying such pension or retirement allowance to withhold each month such amount as he may designate for the payment of income taxes levied under the Internal Revenue Code of the United States and the amount designated shall be transmitted and paid quarterly by the treasurer-custodian of any system to the government of the United States.
Any member retired under this chapter may by assignment made in writing authorize the retirement board paying such pension or retirement allowance to withhold each month such amount as he may designate for the payment of a child support order, issued under chapter 208, 209, 209A, 209C or 273, or received, entered, or registered pursuant to chapter 209D, and the amount designated shall be transmitted and paid monthly by the treasurer or custodian of any system to the IV-D agency. Nothing in this section shall preclude the IV-D agency from executing an order to withhold income from a member’s retirement allowance, pursuant to section 12 of chapter 119A.
certification of eligible members; death; payment of benefits Section 19B. (1) The state treasurer shall withhold from the monthly pension, annuity, or retirement allowance of every member of the teachers’ retirement system or surviving spouse, unless such member or surviving spouse specifically elects to prohibit such withholding, an amount equal to the premium payable to the treasurer of the governmental unit for benefits provided under the provisions of chapter thirty-two B. Said withholding shall be in accordance with a schedule submitted by the teachers’ retirement board based on premium information supplied to said retirement board by the treasurer of the governmental unit to which the group policy under which such member or spouse is insured was issued. The amount withheld shall be paid quarterly by the state treasurer to the treasurer of each governmental unit.
(2) The treasurer of the governmental unit shall file with said retirement board no later than May first of each year a list of the names, social security numbers, and costs of the premiums to be paid by such member or surviving spouse for the next fiscal year. In the event that such premium amount is changed during the course of said fiscal year, the treasurer of the governmental unit shall file an amended list with the retirement board within thirty days of the date that said treasurer is first notified of the change.
(3) Said retirement board shall certify to the treasurer of each governmental unit the names of those members or eligible surviving spouses from whom premiums shall be withheld. Such certification shall authorize said treasurer to include such member or survivor within the group policy in effect for said governmental unit and to advance any such payments that may be necessary prior to the receipt of said withholding from the state treasurer.
(4) Said retirement board shall, upon notification of the death of a member or surviving spouse covered under the provisions of this section, notify the treasurer of the governmental unit of the death of said member or surviving spouse. Upon receipt of such notification, the treasurer shall discontinue said member or surviving spouse’s coverage under the group policy in effect for said governmental unit unless said member is survived by a spouse who remains eligible for continued coverage in which case said retirement board shall continue withholding in accordance with the provisions of this section.
In the event that said policy entitled the member to life insurance benefits, said benefits shall be paid in accordance with the terms of the policy; provided, however, that the treasurer of the governmental unit shall notify said retirement board of the death of the member or surviving spouse at the same time or prior to the notification of the group life insurance carrier of such death.
(5) The retirement board shall promulgate such rules and regulations as it may deem necessary from time to time to effectuate the purposes of this section. Said regulations shall be exempt from the requirements of paragraph (4) of section twenty-one of this chapter and of clause (b) of section fifty of chapter seven.
(6) This section shall not apply to those retired members or surviving spouses covered under the provisions of section twelve of chapter thirty-two A.
child support obligations; payments to IV–D agency Section 19C. The annuity, retirement allowance, pension, return of accumulated total deductions or payment to any person pursuant to the provisions of this chapter or similar annuity, retirement allowance, pension, return of accumulated total deductions or payment to any person pursuant to the provisions of any general or special law shall be subject to any liens, attachments or income withholding orders issued in accordance with section 6 or 12 of chapter 119A to apply such payment to satisfy an obligation to provide child support.
Upon receipt of notice from the IV-D agency that any person receiving or entitled to receive an annuity, pension, retirement allowance, return of accumulated total deductions or payment pursuant to the provisions of this chapter or similar annuity, pension, retirement allowance, return of accumulated total deductions or payment pursuant to the provisions of any general or special law is subject to a lien under section 6 of chapter 119A, subject to an income withholding order pursuant to section 12 of chapter 119A, or subject to any direct income withholding notice received, entered or registered pursuant to chapter 209D, the board shall comply with said lien, notice or order and shall continue to comply until the board receives notice from the IV-D agency that the lien, notice or order has terminated and all arrears have been paid.
Prior to making a payment to an eligible spouse or beneficiary the board shall provide to the IV-D agency the name, date of birth, address, and social security number of the eligible spouse or beneficiary; provided, however, that within 15 days of receipt of such information the IV-D agency shall notify the board if such eligible spouse or beneficiary owes child support arrears. If due to unforeseen circumstances the IV-D agency is unable to provide such notice within 15 days, said IV-D agency shall notify the board of such unforeseen circumstances and the anticipated date by which the IV-D agency will provide such notice. Upon receipt of a notice from the IV-D agency that an eligible spouse or beneficiary is subject to a lien under section 6 of chapter 119A, subject to a withholding order pursuant to section 12 of chapter 119A, or subject to a direct income withholding notice received, entered or registered pursuant to chapter 209D, the board shall comply with said lien, order or notice and shall continue to comply until the board receives notice from the IV-D agency that the lien, order or notice has terminated and all arrears have been paid.
The retirement system and the members of the board of a retirement system which make a payment to the IV-D agency pursuant to the provisions of this chapter or chapter 119A shall be discharged from any obligation or liability to the member, eligible spouse, beneficiary or any other person arising from said payment notwithstanding the provisions of this chapter or any general or special law.
Information used to ascertain whether a member, a surviving spouse or any beneficiary is subject to a child support lien may only be used for the purpose of assisting the IV-D agency in collecting child support.
Notwithstanding the provisions of any general or special law to the contrary, proceedings pursuant to section 24 and the penalties established thereunder shall be the exclusive remedy relating to compliance on the part of the retirement board with the duties resulting from this section and restrictions on use of information described herein.
Section 2. The state employees’ retirement system, the teachers’ retirement system and all county, city and town contributory retirement systems, established under the provisions of this chapter, as existing on December thirty-first, nineteen hundred and forty-five, shall, subject to the provisions of sections one to twenty-eight inclusive, continue in operation with all the rights, properties, privileges and powers and subject to all the duties and liabilities accrued or potential now existing or hereafter created or granted. Subject to said sections, all rights and interests of any employee, beneficiary or member in any such system or in the assets thereof or in or to any annuity, pension or retirement allowance in effect on December thirty-first, nineteen hundred and forty-five, are hereby continued in full force. Each such system shall comprise the members, beneficiaries, officers, employees and, subject to said sections, properties which now or hereafter from time to time belong to it, and shall have all the powers necessary to effectuate the provisions of said sections. Subject to said sections, an employee of the commonwealth or the metropolitan district commission, the Massachusetts State College Building Authority, the University of Lowell Building Authority, the Massachusetts Parking Authority, the Old Colony Planning Council or the Boston Arena Authority shall be included in the state employees’ retirement system, except that a register of probate shall be included in the system of the county in which he is elected, a teacher, as defined in section one, shall be included in the teachers’ retirement system, an employee of a county or of a hospital district, an employee of a mosquito control district or a mosquito control project located within a county shall be included in the system of such county, an employee of a city or town other than a teacher as defined in section one shall be included in the system of or which pertains to the municipality by which he is employed, an employee of the Massachusetts Turnpike Authority shall be included in the Massachusetts Turnpike Authority employees’ retirement system, an employee of the police department of the Massachusetts Bay Transportation Authority shall be included in the Massachusetts Bay Transportation Authority police retirement system, an employee of the Massachusetts Housing Finance Agency shall be included in the Massachusetts Housing Finance Agency employees’ retirement system, an employee of the Massachusetts Port Authority shall be included in the Massachusetts Port Authority employees’ retirement system, an employee of the Greater Lawrence Sanitary District shall be included in the Greater Lawrence Sanitary District employees’ retirement system, an employee of the Blue Hills Regional Vocational School system shall be included in the Blue Hills Regional Vocational School employees’ retirement system, and an employee of the Minuteman Regional Vocational Technical School District shall be included in the Minuteman Regional Vocational Technical School District employees’ retirement system, and an employee of a district shall be included in a system as provided for in subdivision (4) of section twenty-eight, except that in the case of a district which comprises cities and towns located in more than one county, or in the case of a district in which the cities and towns comprising such district may vary from time to time, the employees of such district may become members of the state employees’ retirement system, subject to the provisions of subdivision (4) of section twenty-eight. Sections one to twenty-eight inclusive, to the fullest extent conformable to the terms thereof, shall be construed as a continuation of and amendment of sections one to thirty-eight A inclusive, sixty-eight A, sixty-eight B and sixty-eight C of chapter thirty-two, as in effect on December thirty-first, nineteen hundred and forty-five, and not as a new enactment. All orders, rules and regulations of any retirement board of any such system in force and effect on December thirty-first, nineteen hundred and forty-five, shall, except so far as inconsistent with said sections one to twenty-eight inclusive, remain in force until revoked or repealed.
No provision of this section shall operate so as to provide membership in any system established under this chapter for any employees of any district which is included in any agreement providing social security coverage for the employees of such district under the provisions of chapter one hundred and eighteen C.
Section 20. (1) State Employees’ Retirement System. — (a) The contributory retirement system for state employees shall be known as the “state employees’ retirement system” and all of its business shall be transacted under such name.
(b) The state employees’ retirement system shall be managed by the state board of retirement provided for in section eighteen of chapter ten. Said board shall have the general powers and duties set forth in subdivision (5) of this section.
(2) Teachers’ Retirement System. — (a) The contributory retirement system for teachers shall be known as the “teachers’ retirement system” and all of its business shall be transacted under such name.
(b) The teachers’ retirement system shall be managed by the teachers’ retirement board provided for in section sixteen of chapter fifteen. Such board shall have the general powers and duties set forth in subdivision (5) of this section.
(c) Whenever, after July first, nineteen hundred and fourteen, any city or town retires a teacher who is not eligible for a pension payable by the teachers’ retirement system under the provisions of sections one to twenty-eight, inclusive, or under corresponding provisions of earlier laws, and pays to such teacher a pension in accordance with the provisions of section forty-three, or chapter five hundred and eighty-nine of the acts of nineteen hundred and eight and acts in amendment thereof, or chapter five hundred and twenty-one of the acts of nineteen hundred and twenty-two and acts in amendment thereof, or under the State–Boston retirement system, and the chairman or secretary of the school committee of such city or town, or the chairman or executive officer of the Boston retirement board, certifies under oath to the teachers’ retirement board the amount of such pension paid during any period prior to the immediately preceding July first for which reimbursement has not been made and furnishes such other information as the latter board may require, such city or town shall be reimbursed therefor by the commonwealth; provided, that no such reimbursement shall be granted unless such retirement has been approved by the latter board; and provided, that the amount of such reimbursement shall in no event be in excess of the amount, as determined by the latter board, to which such teacher would have been entitled as a pension had he been a member of the teachers’ retirement system. In its annual report the teachers’ retirement board shall include a statement of the amount expended prior to the immediately preceding July first by each city and town in the payment of pensions under this paragraph, for which such cities and towns have not received and should receive reimbursement. On the basis of such statement, the general court may make an appropriation for the reimbursement of such cities and towns up to such preceding July first.
(3) Systems for Counties. — (a) The contributory retirement system established in any county under the provisions of sections one to twenty-eight inclusive, or under corresponding provisions of earlier laws, shall be known and all of its business shall be transacted under a name which shall be designated by the board of such system and which shall include in its designation the name of such county.
(b) Each such county system shall be managed by a retirement board which shall have the general powers and duties set forth in subdivision (5). Said board shall consist of five members as follows: the county treasurer, but if there is no county treasurer the director of finance, who shall be a member ex officio and serve as chairman; a second member appointed by the county commissioners; two members hereinafter referred to as the elected members; and one member of the county retirement board advisory council who shall be elected by a majority of those present and voting at a public meeting of said council, properly posted, called specifically for such election pursuant to paragraph (g). The election of the elected member shall be conducted in accordance with the provisions of paragraph (h).
The elected member shall be an active or retired member of the county retirement system or one whose retirement is being reimbursed by that system in accordance with the provisions of paragraph (c) of subdivision (8) of section three. Each member of the board shall continue to serve in office until the expiration of his term, and the qualification of his successor. Upon the expiration of the term of office of any elected or appointed member, or in the event of a vacancy in either of said offices, his successor shall be elected as aforesaid for a term of three years, or for the unexpired portion thereof, as the case may be.
(c) The members of the board of any such county system shall serve without compensation, but they shall be reimbursed for any expense or loss of salary or wages which they may incur through service on such board from the expense fund of the system. Nothing in this paragraph shall prevent any county treasurer from being compensated for services rendered in the active administration of the system, in his capacity as county treasurer but not as a member of the board, provided, that such compensation shall not exceed fifteen hundred dollars per annum.
(d) The retirement board chairman shall employ such clerical and other assistants as may be required to transact the business of the county retirement system. All such clerical and other assistants, whether permanent or temporary employees, shall be removed from office only upon the two thirds vote of the county retirement board. The county retirement board shall classify and approve its employees in accordance with the general personnel guidelines and pay scales adopted for county personnel. All permanent employees employed pursuant to this paragraph shall be members of the county retirement system, but shall not be eligible to be a member or candidate for election to the county retirement board.
(e) Any such county retirement board may employ an attorney from time to time as required, but such attorney shall not be a member in service of the system or a member of the retirement board.
(f) The board of any such county system and the treasurer of the county in which it is established shall respectively be and act as the board and treasurer-custodian of such system with respect to the employees of any town or district who become members of such system as provided for in paragraph (3) (b), (3) (c) or (4) (b) of section twenty-eight, or who have become members thereof under corresponding provisions of earlier laws. The treasurer or other disbursing officer of any such town or district, as the case may be, shall act as a liaison officer between the employees thereof and the board of such system.
(g) There shall be a county retirement board advisory council, in this subdivision called the council, consisting of all the treasurers, elected or appointed, of each town, unit or district belonging to the county retirement system and the county treasurer. A chairman shall be elected from among the members. The council shall meet at the call of the chairman, but in no event less than twice in each year. The council shall supervise and certify the procedures involved in the election of the elected member of the county retirement board, as provided in paragraphs (b) and (h). Upon certification by the county retirement board and the council, the actuary of the division of insurance shall be furnished with an estimate of the expenses and costs of administration of the system for the ensuing year. The actuary shall, on or before December fifteenth in each year, specify by written notice to the council and the board the amounts so required to be paid from the pension fund, the annuity reserve fund, the military service fund, and the administration fund, as provided in subdivision (7) of section twenty-two. The actuary shall also advise and determine the amounts to be allocated to each governmental unit for the aforementioned amounts.
The county retirement board advisory council, at a meeting called specifically for that purpose, shall elect one of its members as a member of the county retirement board at the expiration of the current appointed member’s term, as provided in paragraph (b).
(h) The election of the elected member shall be supervised by the county retirement board advisory council, which shall serve as the election board. The council shall make available nomination papers to any member in or retired from service so requesting and shall require that such nomination papers be signed by the candidate, and returned to the office of the county retirement board for safekeeping until the election board shall meet. The county treasurer or his agent shall give a duplicate receipt for such nomination papers to each candidate. Completed nomination papers shall contain the signatures and addresses of at least five active or retired members of said retirement system. The election board shall determine whether each candidate has filed nomination papers containing the signatures and addresses of at least five active or retired members of said system. If, after investigation, the election board determines that a candidate has filed nomination papers containing less than five signatures as required, the election board shall declare said nomination papers invalid and shall notify said candidate of such determination. If, after investigation, the election board determines that only one candidate has filed the requisite number of signatures, the election board shall declare said candidate to be the elected member of the county retirement board. If, after investigation, the election board determines that more than one candidate has obtained the requisite number of valid signatures, the election board shall notify said candidates of such determination and shall immediately prepare election ballots, and set the date for the election, which shall be held within forty days.
The election board shall mail ballots to all members of the retirement system, whether active or retired. The election board shall instruct each member to place an appropriate marking on the face of the printed ballot next to the name of one candidate, insert said ballot into a ballot envelope and said ballot envelope into the prestamped envelope, seal said prestamped envelope and mail said envelope to the election board in care of the county retirement board, within twenty days after they were mailed. Any envelope postmarked later than twenty days after such mailing shall not be used to determine the elected member. The election board shall notify each candidate of the time and location of the tabulation of the ballots and shall permit all such candidates to be present at said tabulation. At the specified time for tabulation, the election board shall assemble all envelopes and inspect said envelopes. Any envelope which has been opened prior to said date, or which has not been signed on the rear by the appropriate addressee shall be invalidated and shall not be used to determine the elected member. The election board shall assemble all properly signed, unopened envelopes and shall open each envelope and separate the enclosed ballot from said envelope. The election board shall assemble all ballots and shall tabulate the vote for each candidate. Any ballot which contains a marking for more than the number of vacancies shall be declared invalid.
The election board shall notify each candidate in writing of the results of said election. All envelopes and ballots received by the election board, including those determined to be invalid, shall be preserved by the election board for two years. The costs incurred by the election board in administering the election shall be paid from the county retirement system administration fund.
(4) Systems for cities and towns. — (a) The contributory retirement system established in any city or town under the provisions of sections one to twenty-eight, inclusive, or under corresponding provisions of earlier laws, shall be known and all of its business shall be transacted under a name which shall be designated by the board of such system and which shall include in its designation the name of such city or town, as the case may be.
(b) Each such city or town system shall be managed by a retirement board which shall have the general powers and duties set forth in subdivision (5). Such board shall consist of five members and shall be chosen in the following manner, except as provided in paragraph (c), the city auditor or town accountant or other officer having similar powers and duties who shall be a member ex officio, a second member appointed by the board of selectmen in a town, the mayor in a city, the city manager in a city having a Plan D or Plan E form of government, a third and fourth member who shall be elected by the members in or retired from service of such system from among their number in such manner and for such term, not exceeding three years, as the mayor in a city or the board of selectmen in a town shall determine, and a fifth member who shall not be an employee, a retiree, or official of the governmental unit and shall be chosen by the other four for a term of three years. If the fifth member is not chosen by the other four members within thirty days after the expiration of the term of the fifth member, said member shall be appointed in a city by the mayor, subject to confirmation by the city council, or in a town by the board of selectmen. Future elections of the third and fourth members shall be held under the supervision of such retirement board and the term of the third and fourth member shall be so arranged as not to expire in the year of expiration of the term of the fifth member.
(c) In any city or town exercising the local option contained in this subsection shall upon the recommendation of the city manager with the approval of the city council or the board of aldermen in a Plan D or Plan E city, or the mayor with the approval of the city council or the board of aldermen in any other city, or board of selectmen with the approval of town meeting in a town may adopt the following method for selection of the members of the retirement board. Such board shall consist of five members and shall be chosen as follows:The city manager in a Plan D or Plan E city, the mayor in any other city, the board of selectmen in a town shall appoint two members for a period of three years, a third and fourth member who shall be elected by the members in or retired from service of such system from among their number in such manner and for such term, not exceeding three years, as mayor in a city, or city manager in a Plan D or Plan E city, or town council or board of selectmen in a town shall determine. The fifth member shall be appointed by the public employee retirement administration commission after being nominated by the other four members provided, however, in the event said four members cannot agree on such nominee to submit to the commission within ten days, then each member shall within five days submit a list of three names of individuals ready and willing to serve, and the commission shall then appoint the fifth member from such list who shall be a resident of such community and who shall not be a current or former member of the retirement system under this chapter or an official of the governmental unit. Each member of the city or town retirement board provided for in paragraphs (b) and (c) shall continue to hold office until the expiration of his term and until the qualification of his successor. Upon the expiration of the term of office of any elected or appointed member or in case of a vacancy in either of said offices, his successor shall be elected or appointed as aforesaid for a three-year term or for the unexpired portion thereof, as the case may be, except that in no event shall the term of the third and fourth member expire in the same year as the term of the fifth member. The mayor of a city, the board of selectmen of a town under the manager of a municipality having a town council form of government shall notify in writing all heads of departments of such city or town of any such vacancy in said board to be filled by election, and a notice of such vacancy and election shall be posted in a conspicuous place in such city or town.
(d) The members of the board of any such city or town system shall serve without compensation, but they shall be reimbursed from the expense fund of such system for any expense or loss of salary or wages which they may incur through service on such board. Nothing in this paragraph shall prevent any city auditor, town accountant or other officer having similar powers and duties, or any other person who serves in the active administration of the system in lieu of the city auditor, town accountant or other officer having similar powers and duties, from being compensated for services rendered in the active administration of the system; provided, that the compensation for such services shall be not less than two hundred nor more than fifteen hundred dollars per annum, and shall be payable from the expense fund of the system.
(d1/2) Notwithstanding the provisions of paragraph (d), in any city or town which accepts the provisions of this paragraph, nothing shall prevent the city auditor, town accountant or other officer having similar powers and duties or any other person who serves in the active administration of the system in lieu of the city auditor, town accountant or other officer having similar powers and duties being compensated for services rendered in the active administration of the system; provided, that the compensation for such services shall be not less than two hundred nor more than three thousand dollars per annum, and shall be payable from the expense fund of the system.
(e) Each such board by majority vote shall elect one of its members to serve as chairman until the election of his successor and shall appoint a secretary who may be, but need not be, one of its members. The board shall employ such clerical and other assistants as may be required to transact the business of such system.
(f) The city solicitor or town counsel, or other officer having similar powers and duties, shall be the legal adviser of such board, except in such cases as such board deems necessary, it may employ a private attorney whose fees shall be paid from the expense fund of such board. In case there is no town counsel in a town, such board may employ an attorney from time to time as required.
(g) A city or town treasurer, may be compensated for services rendered as custodian of the funds of the retirement system; provided, that the compensation for such services shall be not more than fifteen hundred dollars per annum, and shall be payable from the expense fund of the system.
(h) Notwithstanding the provisions of paragraph (g), in any city or town which accepts the provisions of this paragraph, nothing shall prevent a city or town treasurer from being compensated for services rendered as custodian of the funds of the retirement system; provided, that the compensation for such services shall not be more than three thousand dollars per annum, and shall be payable from the expense fund of the system.
(41/4) (a) The contributory retirement system established for the Massachusetts Housing Finance Agency under the provisions of sections one to twenty-eight, inclusive, shall be known as, and all of its business shall be transacted under the name of, the “Massachusetts Housing Finance Agency Employees’ Retirement System”.
(b) Said system shall be managed by an retirement board which shall have the general powers and duties set forth in subdivision (5). Said board shall consist of five members as follows: the treasurer of the agency who shall be a member ex officio, a second member appointed by the appointing authority of the agency, a third and fourth member who shall be elected by the members in or retired from service of such system from among their number in such manner and for such term, not exceeding three years, as the chairman of the agency shall determine, and a fifth member who shall not be an employee, retiree, or official of the governmental unit and shall be appointed by the other four members for a term of three years. Future elections of the third and fourth members shall be held under the supervision of such retirement board and the term of the third and fourth members shall be so arranged so as not to expire in the year of expiration of the term of the fifth member. Each member of such retirement board shall continue to hold office until the expiration of his term and until the qualification of his successor. Upon the expiration of the term of office of any elected or appointed member or in case of a vacancy in either of said offices, his successor shall be elected or appointed as aforesaid for a three year term or for the unexpired portion thereof, as the case may be, except that in no event shall the term of the third and fourth member expire in the same year as the term of the fifth member.
(c) The members of the board shall serve without compensation, but they shall be reimbursed from the expense fund of the system for any expense or loss of salary or wages which they may incur through service on such board. Nothing in this paragraph shall prevent the treasurer, or any other person who serves in the active administration of the system in lieu of the treasurer, from being compensated for services rendered in the active administration of the system; provided, that the compensation for such services shall be not less than two hundred nor more than fifteen hundred dollars per annum, and shall be payable from the expense fund of the system.
(d) The board by majority vote shall elect one of its members to serve as chairman until the election of his successor and shall appoint a secretary who may be, but need not be, one of its members. The board shall employ such clerical and other assistants as may be required to transact the business of the system.
(e) The resident counsel of the agency shall be the legal advisor of the board.
(f) The treasurer may be compensated for services rendered as custodian of the funds of the retirement system, provided that the compensation for such services shall not be more than fifteen hundred dollars per annum and shall be payable from the expense fund of the system.
(41/2) (a) The contributory retirement system established for the Massachusetts Turnpike Authority under the provisions of sections one to twenty-eight, inclusive, shall be known as, and all of its business shall be transacted under the name of, the “Massachusetts Turnpike Authority Employees’ Retirement System”.
(b) Said system shall be managed by an retirement board which shall have the general powers and duties set forth in subdivision (5). Said board shall consist of five members as follows: the chief financial officer of the authority who shall be a member ex officio, a second member appointed by the appointing authority of the authority, a third and fourth member who shall be elected by the members in or retired from service of such system from among their number in such manner and for such term, not exceeding three years, as the chairman of the authority shall determine, and a fifth member who shall not be an employee, retiree, or official of the governmental unit and who shall be appointed by the other four members for a term of three years. Future elections of the third and fourth members shall be held under the supervision of such retirement board and the term of the third and fourth members shall be so arranged so as not to expire in the year of expiration of the term of the fifth member. Each member of such retirement board shall continue to hold office until the expiration of his term and until the qualification of his successor. Upon the expiration of the term of office of any elected or appointed member or in case of a vacancy in either of said offices, his successor shall be elected or appointed as aforesaid for a three year term or for the unexpired portion thereof, as the case may be, except that in no event shall the term of the third and fourth member expire in the same year as the term of the fifth member.
(c) The members of the board shall serve without compensation, but they shall be reimbursed from the expense fund of the system for any expense or loss of salary or wages which they may incur through service on such board. Nothing in this paragraph shall prevent the chief financial officer, or any other person who serves in the active administration of the system in lieu of said chief financial officer, from being compensated for services rendered in the active administration of the system; provided, however, that the compensation for such services shall not be less than two hundred nor more than fifteen hundred dollars per annum, and shall be payable from the expense fund of the system.
(d) The board by majority vote shall elect one of its members to serve as chairman until the election of his successor and shall appoint a secretary who may be, but need not be, one of its members. The board shall employ such clerical and other assistants as may be required to transact the business of the system.
(e) The general counsel of the authority shall be the legal adviser of the board.
(f) The chief financial officer may be compensated for services rendered as custodian of the funds of the retirement system, provided that the compensation for such services shall not be more than fifteen hundred dollars per annum and shall be payable from the expense fund of the system.
(g) Notwithstanding the provisions of section nineteen, the treasurer-custodian of the Massachusetts Turnpike Authority Employees’ Retirement System may deduct from the pension or retirement allowance of a retired employee of the Massachusetts Turnpike Authority such sum as such retired employee may specify in writing and shall transmit the same to the Turnpike Credit Union for deposit in the account of such retired employee.
(43/4) (a) The contributory retirement system established for the Massachusetts Bay Transportation Authority police under the provisions of section one to twenty-eight, inclusive, shall be known as, and all of its business shall be transacted under the name of, the Massachusetts Bay Transportation Authority police retirement system.
(b) Said system shall be managed by an retirement board which shall have the general powers and duties set forth in subdivision (5). Said board shall consist of five members as follows: the treasurer of the authority who shall be a member ex officio, a second member appointed by the appointing authority of the authority, a third and fourth member who shall be elected by the members in or retired from service of such system from among their number in such manner and for such term, not exceeding three years, as the chairman of the authority shall determine, and a fifth member who shall not be an employee, retiree, or official of the governmental unit and who shall be appointed by the other four members for a term of three years. Future elections of the third and fourth members shall be held under the supervision of such retirement board and the term of the third and fourth members shall be so arranged so as not to expire in the year of expiration of the term of the fifth member. Each member of such retirement board shall continue to hold office until the expiration of his term and until the qualification of his successor. Upon the expiration of the term of office of any elected or appointed member or in case of a vacancy in either of said offices, his successor shall be elected or appointed as aforesaid for a three year term or for the unexpired portion thereof, as the case may be, except that in no event shall the term of the third and fourth member expire in the same year as the term of the fifth member.
(c) The members of the board shall serve without compensation, but they shall be reimbursed from the expense fund of the system for any expense or loss of salary or wages which they may incur through service on such board. Nothing in this paragraph shall prevent the treasurer or any other person who serves in the active administration of the system from receiving compensation; provided, that the compensation for such services shall be not less than two hundred nor more than fifteen hundred dollars per annum, and shall be payable from the expense fund of the system.
(d) The board by majority vote shall elect one of its members to serve as chairman until the election of his successor and shall appoint a secretary who may be, but need not be, one of its members. The board shall employ such clerical and other assistants as may be required to transact the business of the system.
(e) The resident counsel of the authority shall be the legal advisor of the board.
(f) The treasurer may be compensated for services rendered as custodian of the funds of the retirement system provided that the compensation for such services shall be not more than fifteen hundred dollars per annum and shall be payable from the expense fund of the system.
(47/8) (a) The contributory retirement system established for the Massachusetts Port Authority under the provisions of sections one to twenty-eight, inclusive, shall be known as, and all of its business shall be transacted under the name of, the “Massachusetts Port Authority Employees’ Retirement System”.
(b) Said system shall be managed by an retirement board which shall have the general powers and duties set forth in subdivision (5). Said board shall consist of five members as follows: the secretary-treasurer of the authority who shall be a member ex officio, a second member appointed by the appointing authority of the authority, a third and fourth member who shall be elected by the members in or retired from service of such system from among their number in such manner and for such term, not exceeding three years, as the chairman of the authority shall determine, and a fifth member who shall not be an employee, retiree or official of the governmental unit and who shall be appointed by the other four members for a term of three years. Future elections of the third and fourth members shall be held under the supervision of such retirement board and the term of the third and fourth members shall be so arranged so as not to expire in the year of expiration of the term of the fifth member. If a fifth member is not chosen by the other four members within thirty days after the expiration of the term of the fifth member, the authority board shall appoint a fifth member for a term of three years. Each member of such retirement board shall continue to hold office until the expiration of his term and until the qualification of his successor. Upon the expiration of the term of office of any elected or appointed member or in case of a vacancy in either of said offices, his successor shall be elected or appointed as aforesaid for a three year term or for the unexpired portion thereof, as the case may be, except that in no event shall the term of the third and fourth member expire in the same year as the term of the fifth member.
(c) The members of the board shall serve without compensation, but they shall be reimbursed from the expense fund of the system for any expense or loss of salary or wages which they may incur through service on said board. Nothing in this paragraph shall prevent the secretary-treasurer, or any other person who serves in the active administration of the system in lieu of the secretary-treasurer, from being compensated for services rendered in the active administration of the system; provided, that the compensation for such services shall not be less than two hundred nor more than fifteen hundred dollars per annum, and shall be payable from the expense fund of the system.
(d) The board by majority vote shall elect one of its members to serve as chairman until the election of his successor and shall appoint a secretary who may be, but need not be, one of its members. The board shall employ such clerical and other assistants as may be required to transact the business of the system.
(e) The chief legal counsel of the Authority shall be the legal advisor of the board; provided, that in such cases as the board deems necessary it may employ other counsel whose fees shall be paid from the expense fund of the system.
(f) The secretary-treasurer may be compensated for services rendered as custodian of the funds of the retirement system, provided that the compensation for such services shall not be more than fifteen hundred dollars per annum and shall be payable from the expense fund of the system.
(47/8A) (a) The contributory retirement system established for the Greater Lawrence Sanitary District under the provisions of sections one to twenty-eight, inclusive, shall be known as, and all of its business shall be transacted under the name of, the “Greater Lawrence Sanitary District Employees Retirement System”.
(b) Said system shall be managed by an retirement board which shall have the general powers and duties set forth in subdivision (5). Said board shall consist of five members as follows: The treasurer of the district who shall be a member ex officio, a second member appointed by the appointing authority of the districts, a third and fourth member who shall be elected by the members in or retired from service of such system from among their number in such manner and for such term, not exceeding three years, as the director of the district shall determine, and a fifth member who shall not be an employee, retiree, or official of the governmental unit who shall be chosen by the other four for a term of three years. Future elections of the third and fourth members shall be held under the supervision of such retirement board and the term of the third and fourth members shall be so arranged so as not to expire in the year of expiration of the term of the fifth member. If a fifth member is not chosen by the other four members within thirty days after the expiration of the term of the fifth member, the district commission shall appoint a fifth member for a term of three years. Each member of such retirement board shall continue to hold office until the expiration of his term and until the qualification of his successor. Upon the expiration of the term of office of any elected or appointed member or in case of a vacancy in either of said offices, his successor shall be elected or appointed as aforesaid for a three year term or for the unexpired portion thereof, as the case may be, except that in no event shall the term of the third and fourth member expire in the same year as the term of the fifth member.
(c) The members of the board shall serve without compensation, but they shall be reimbursed from the expense fund of the system for any expense or loss of salary or wages which they may incur through service on said board. Nothing in this paragraph shall prevent the secretary-treasurer, or any other person who serves in the active administration of the system in lieu of the secretary-treasurer, from being compensated for services rendered in the active administration of the system; provided, that the compensation for such services shall not be less than two hundred nor more than fifteen hundred dollars per annum, and shall be payable from the expense fund of the system.
(d) The board by majority vote shall elect one of its members to serve as chairman until the election of his successor and shall appoint a secretary who may be, but need not be, one of its members. The board shall employ such clerical and other assistants as may be required to transact the business of the system.
(e) The legal counsel of the district shall be the legal advisor of the board; provided, that in such cases as the board deems necessary it may employ other counsel whose fees shall be paid from the expense fund of the system.
(f) The treasurer may be compensated for services rendered as custodian of the funds of the retirement system, provided that the compensation for such services shall not be more than fifteen hundred dollars per annum and shall be payable from the expense fund of the system.
(47/8B) (a) The contributory retirement system established for the Blue Hills Regional Vocational School under the provisions of section one to twenty-eight, inclusive, shall be known as, and all of its business shall be transacted under the name of, the “Blue Hills Regional Vocational School retirement system”.
(b) Said system shall be managed by an retirement board which shall have the general powers and duties set forth in subdivision (5). Said board shall consist of five members as follows: The treasurer of the school system who shall be a member ex officio, a second member appointed by the appointing authority of the system, a third and fourth member who shall be elected by the members in or retired from service of such system from among their number in such manner and for such term, not exceeding three years, as the superintendent-director of the school system shall determine, and a fifth member who shall not be an employee, retiree, or official of the governmental unit who shall be chosen by the other four for a term of three years. Future elections of the third and fourth members shall be held under the supervision of such retirement board and the term of the third and fourth members shall be so arranged so as not to expire in the year of expiration of the term of the fifth member. If a fifth member is not chosen by the other four members within thirty days after the expiration of the term of the fifth member, the school system board shall appoint a fifth member for a term of three years. Each member of such retirement board shall continue to hold office until the expiration of his term and until the qualification of his successor. Upon the expiration of the term of office of any elected or appointed member or in case of a vacancy in either of said offices, his successor shall be elected or appointed as aforesaid for a three year term or for the unexpired portion thereof, as the case may be, except that in no event shall the term of the third and fourth member expire in the same year as the term of the fifth member.
(c) The members of the board shall serve without compensation, but they shall be reimbursed from the expense fund of the System for any expense or loss of salary or wages which they may incur through service on such board. Nothing in this paragraph shall prevent the treasurer, or any other person who serves in the active administration of the system in lieu of the treasurer, from being compensated for services rendered in the active administration of the system provided that the compensation for such services shall be not less than two hundred nor more than fifteen hundred dollars per annum, and shall be payable from the expense fund of the system;(d) The board by majority vote shall elect one of its members to serve as chairman until the election of his successor and shall appoint a secretary who may be, but need not be, one of its members. The board shall employ such clerical and other assistants as may be required to transact the business of the system;(e) In such cases as the board deems necessary it may employ counsel whose fees shall be paid from the expense fund of the system;(f) The treasurer may be compensated for services rendered as custodian of the funds of the retirement system, provided that the compensation for such services shall not be more than fifteen hundred dollars per annum and shall be payable from the expense fund of the system.
(47/8C) (a) The contributory retirement system established for the Minuteman Regional Vocational Technical School District under the provisions of sections one to twenty-eight, inclusive, shall be known as, and all of its business shall be transacted under the name of, the “Minuteman Regional Vocational Technical School District Employees’ Retirement System”.
(b) Said system shall be managed by an retirement board which shall have the general powers and duties set forth in subdivision (5). Said board shall consist of five members as follows: The treasurer of the district who shall be a member ex officio, a second member appointed by the appointing authority of the district, a third and fourth member who shall be elected by the members in or retired from service of such system from among their number in such manner and for such term, not exceeding three years, as the superintendent-director of the district shall determine, and a fifth member who shall not be an employee, retiree, or official of the governmental unit who shall be chosen by the other four for a term of three years. Future elections of the third and fourth members shall be held under the supervision of such retirement board and the term of the third and fourth members shall be so arranged so as not to expire in the year of expiration of the term of the fifth member. If a fifth member is not chosen by the other four members within thirty days after the expiration of the term of the fifth member, the district school committee shall appoint a fifth member for a term of three years. Each member of such retirement board shall continue to hold office until the expiration of his term and until the qualification of his successor. Upon the expiration of the term of office of any elected or appointed member or in case of a vacancy in either of said offices, his successor shall be elected or appointed as aforesaid for a three year term or for the unexpired portion thereof, as the case may be, except that in no event shall the term of the third and fourth member expire in the same year as the term of the fifth member.
(c) The members of the board shall serve without compensation, but they shall be reimbursed from the expense fund of the system for any expense or loss of salary or wages which they may incur through service on said board. Nothing in this paragraph shall prevent the treasurer, or any other person who serves in the active administration of the system in lieu of the treasurer, from being compensated for services rendered in the active administration of the system; provided, however, that the compensation for such services shall not be less than two hundred nor more than fifteen hundred dollars per annum, and shall be payable from the expense fund of the system.
(d) The board, by majority vote, shall elect one of its members to serve as chairman until the election of his successor and shall appoint a secretary who may be, but need not be, one of its members. The board shall employ such clerical and other assistants as may be required to transact the business of the system.
(e) The legal counsel of the district shall be the legal advisor of the board; provided, however, that, in such cases as the board deems necessary, it may employ other counsel whose fees shall be paid from the expense fund of the system.
(f) The treasurer may be compensated for services rendered as custodian of the funds of the retirement system, provided that the compensation for such services shall not be more than fifteen hundred dollars per annum and shall be payable from the expense fund of the system.
(5) General Powers and Duties of Boards. — (a) The board of any system established under the provisions of sections one to twenty-eight inclusive, or under corresponding provisions of earlier laws, shall meet at least once in each month for the transaction of such business as may properly come before it. It shall keep a record of all of its proceedings.
(b) Any such board may adopt by-laws and make rules and regulations consistent with law, which shall be subject to approval as provided for in subdivision (4) of section twenty-one. It shall provide for the payment of retirement allowances and other benefits and for all other necessary expenditures under the applicable provisions of sections one to twenty-eight inclusive, or under corresponding provisions of earlier laws or of any special law, and shall have such other powers and shall perform such other duties and functions as are necessary to comply with such provisions. The head of any department upon request from the board shall promptly furnish it with such information as shall be required to effectuate the provisions of sections one to twenty-eight inclusive. Any such board shall have the power to take evidence, subpoena witnesses, administer oaths and examine such parts of the books and records of the parties to a proceeding as relate to questions in dispute. Fees for such witnesses shall be the same as for witnesses before the courts in civil actions, and shall be paid from the expense fund of such system.
(c)(1) Whenever any such board shall find it impossible or impracticable to consult an original record to determine the date of birth, length of service, amount of regular compensation or other pertinent fact with regard to any member, it may, subject to the approval of the actuary, use estimates thereof on any basis which in its judgment is fair and just. The board, upon discovery of any error in any record of the system, shall, as far as practicable, correct such record.
(2) When an error exists in the records maintained by the system or an error is made in computing a benefit and, as a result, a member or beneficiary receives from the system more or less than the member or beneficiary would have been entitled to receive had the records been correct or had the error not been made, the records or error shall be corrected and as far as practicable, and future payments shall be adjusted so that the actuarial equivalent of the pension or benefit to which the member or beneficiary was correctly entitled shall be paid. If it is determined that a member has contributed an incorrect amount to the retirement system, the member shall be required to contribute an amount sufficient to correct such error or the board shall pay an amount to the member to correct such error, as the case may be.
(3) At the request of a member or beneficiary who has been determined to have been paid amounts in excess of those to which he is entitled or at the request of a member who has been determined to owe funds to the retirement system, the board may waive repayment or recovery of such amounts provided that:(i) the error in any benefit payment or amount contributed to the system persisted for a period in excess of one year;(ii) the error was not the result of erroneous information provided by the member or beneficiary; and(iii) the member or beneficiary did not have knowledge of the error or did not have reason to believe that the benefit amount or contribution rate was in error.
(4) This paragraph shall apply to any demand made after January 1, 1995 for repayment of excess payment or amounts owed to a retirement system made by a retirement board.
(d) Any such board may designate a neutral medical doctor or doctors with training or experience in the particular field of medicine applicable to the disability to advise the board in the determination of applications for ordinary disability retirement, accidental disability retirement, or in the case of an application for accidental death benefit.
(e) The board of each system shall keep a record of the date of birth of each member of the system, and also shall keep a record of the date of birth of each other employee who entered or re-entered the service of the governmental unit to which such system pertains after attaining age sixty and after the date when the system became operative therein. It shall be the duty of such board to notify each such member or employee, the head of his department and the treasurer or other disbursing officer responsible for paying his compensation, of the date when such member or employee will attain the maximum age for his group, and such member or employee shall not be employed in any governmental unit after such date except as otherwise provided for in sections one to twenty-eight, inclusive. Such notification shall be made in writing not less than thirty days nor more than four months prior to such date.
(f) The board of each such system shall annually submit to the appropriate authority an estimate of the expense of administration and the cost of operation of the system for the fiscal year for which an appropriation for the system is to be made as provided for in subdivision (7) of section twenty-two.
(g) Each board of each system shall keep in convenient form such data as is required under section fifty of chapter seven and section twenty-one of this chapter, by the public employee retirement administration commission, for the purpose of valuing the assets, determining the liabilities of the system, making actuarial investigation of the experience of the system, and for promulgating rules and regulations governing the administrative procedures for maximizing the assets of such systems. Such data shall be submitted to the office of the public employee retirement administration commission within such time as he may specify. If the commission determines that there has been unreasonable delay in the filing of any such required data, the commission shall so notify such board in writing. If within thirty days thereafter the commission has not received such required data, he shall so notify the board and the chief executive officer for the governmental unit or units to which the system pertains. The commission may petition the superior court to compel compliance with this paragraph. To ensure the maintenance of accurate and current membership records and payment information, the commission may, for any system which fails to submit the requested information within sixty days of the second board notification, send his agent or agents to examine the records and accounts of the system and to direct such actions by the board or its employees as may be required to comply with acceptable recordkeeping and accounting standards.
(h) Each board shall annually, on or before May first, file in the office of the public employee retirement administration commission the financial statement of the system which is required by the provisions of paragraph (c) of subdivision (1) or paragraph (e) of subdivision (2) of section twenty-three. Investments of the system shall be carried at values determined by the commissioner in accordance with the requirements of paragraph (b) of subdivision (1) of section twenty-one.
(i) Each board shall prepare annually a report which shows the financial condition of the system as of December thirty-first of the previous year in a manner which can be easily understood by the members of said system. Such report shall contain information showing the financial transactions of the previous year, statistical information with reference to the membership of the system, a summary of the findings of any timely audit reports, a summary of the board’s investment policy, a summary of the system’s investment portfolio as of December thirty-first of the previous year, and information with regard to the system’s most recent actuarial valuation including the unfunded actuarial liability as of the valuation date. Each board shall file a copy of its report with the governmental unit in which the system is established. A copy of the report or a summary thereof shall be made available upon request to each member of the system and to other interested persons. Each board shall annually, on or before July first, furnish to each member of the system an annual statement for the previous calendar year relative to the status of the member’s account. Such statement shall show either the total contribution since the member entered the retirement system, the total amount of interest which has accrued, and the combined total in the account as of the end of the previous calendar year, or the regular deductions for the previous calendar year, additional deductions, if any, for the previous calendar year, regular interest credited for the previous calendar year, and accumulated total deductions as of the close of the previous calendar year. The state retirement board shall file a copy of its report with the governor, and with the state treasurer for publication in his annual report. The teachers’ retirement board shall file a copy of its report with the governor and with the state treasurer, and with the commissioner of education for publication in the annual report of the department of education. The retirement board of each county, city or town system shall file a copy of its report with the county commissioners, the mayor or the board of selectmen, for publication in the annual report of the county, city or town, as the case may be. The retirement board of the Massachusetts Turnpike Authority employees’ retirement system shall file a copy of its report with the authority for publication in the authority’s annual report to the governor and to the general court. The retirement board of the Massachusetts Bay Transportation Authority police retirement system shall file a copy of its report with the authority for publication in the authority’s annual report to the governor and to the general court. The retirement board of the Massachusetts Housing Finance Agency employees’ retirement system shall file a copy of its report with the agency for publication in the agency’s annual report to the governor, to the general court and to the comptroller. The retirement board of the Massachusetts Port Authority employees’ retirement system shall file a copy of its report with the Authority for publication in the Authority’s annual report to the governor and to the general court. The retirement board of the Greater Lawrence Sanitary District employees’ retirement system shall file a copy of its report with the district commission for publication in the district’s annual report. The retirement board of the Blue Hills Regional Vocational school system shall file a copy of its report with the school system for publication in the authority’s annual report to the governor and to the general court. The retirement board of the Minuteman Regional Vocational Technical School District shall file a copy of its report with the district for publication in the district’s annual report. Copies of the reports of the retirement board shall be furnished upon request to members of the system and to other interested persons. Each board shall annually, on or before July first, furnish to each member of the system an annual statement for the previous calendar year relative to the status of the member’s account. Such statement shall show either the total contribution since the member entered the retirement system, the total amount of interest which has accrued, and the combined total in the account as of the end of the previous calendar year, or the regular deductions for the previous calendar year, additional deductions, if any, for the previous calendar year, regular interest credited for the previous calendar year, and accumulated total deductions as of the close of the previous calendar year.
(j) Each board shall, at the time of the retirement of any member, or at the time of the determination of the allowance for the beneficiary of a deceased member, give to such member or beneficiary in writing the following notice:— “The pension or retirement allowance hereafter payable under the contributory retirement law shall not be a bar to the receipt of old age assistance or public welfare, except in so far as it shall be treated as an available resource under such laws.
”(k) Upon the written request of any member or his authorized representative, each board shall provide such member or representative, within thirty days of receipt of such request, a written notice of the benefits to which such member is or may be entitled under the provisions of this chapter, including the dates on which such member will become eligible to receive such benefits, and the effect of such benefits, if any, on any benefits such member may be eligible to receive pursuant to the federal social security act. Such notice shall be on a form prescribed by the public employee retirement administration commission.
(l) Each board shall file the reports required by section 14 of chapter 119A which shall include the filing of a report on or before March 1 with the IV–D agency providing the name, address, date of birth, status and social security number of all members of the system as of December 31 of the previous year. The IV–D agency shall use such information solely for the purposes outlined in chapter 119A and the use of such information shall be subject to the limitations set forth in said chapter 119A.
(6) Retirement Board Members Compensation. — (a) The elected and appointed members of any city, town, county, district or authority retirement board upon the acceptance of the appropriate legislative body shall receive a stipend of three thousand dollars per annum; provided, however, that said stipend shall be paid from such funds under the control of said board as shall be determined by the public employee retirement administration; and, provided further, that the ex-officio member of any city, town, county, district or authority retirement board upon the acceptance of the appropriate legislative body shall receive a stipend of not more than three thousand dollars per annum in the aggregate for services rendered in the active administration of the retirement system.
[There is no paragraph (b).
] damages; indemnification Section 20A. In any city, town or other entity which accepts the provisions of this section, in a city, by a vote of the city council with the approval of the mayor; in a town, by a vote of the town meeting; in a municipality having a town council form of government, by a vote of the town council; and in any other entity having a retirement board subject to the provisions of this chapter, by a vote of the governing board of such entity, any civil action brought against a member of a retirement board, the defense or settlement of which action is made by an attorney employed by the retirement board, such member shall be indemnified for all expenses incurred in the defense thereof and shall be indemnified for damages to the same extent as provided for public employees in chapter two hundred and fifty-eight; provided, however, that the claim arose out of acts performed by such member or members while acting within the scope of his official duties; and provided, further, that no member of a retirement board shall be indemnified for expenses incurred in the defense of an action, or damages awarded in such action, in which there is shown to be a breach of fiduciary duty, an act of willful dishonesty or an intentional violation of law by such member.
Section 20B. Indemnification.
—In any civil action brought against a member, employee or the investment committee of the state retirement board, the teachers’ retirement board, or any member or employee of the pension reserves investment management board the defense or settlement of which is made by the attorney general or by an attorney employed by said board, such member, committeeman or employee shall be indemnified for all expenses incurred in the defense thereof and shall be indemnified for damages to the same extent as provided for public employees in chapter two hundred and fifty-eight; provided, however, that the claim arose out of acts performed by such member, committeeman or employee while acting within the scope of his official duties; and provided, further, that no member, committeeman or employee shall be indemnified for expenses in an action or damages awarded in such action, in which there is shown to be a breach of fiduciary duty, an act of willful dishonesty or an intentional violation of law by such member, committeeman or employee.
administration commission Section 21. (1) Duties of public employee retirement administration commission. — (a) The public employee retirement administration commission shall prescribe and supervise methods of accounting and recordkeeping for each system maintained under the provisions of this chapter. To ensure the maintenance of accurate and current membership records and payment information, the commission, for any board which fails to submit the requested information upon notice as prescribed in subdivision (5) of section twenty, may send his agents to examine the records and accounts of the board and to direct such action by the board or its employees as may be required to comply with acceptable recordkeeping and accounting standards. The commission shall require each board to keep in convenient form such data as is required for the purpose of valuing the assets, determining the liabilities of the system, making actuarial investigation of the experience of the system, and for promulgating rules and regulations governing the administrative procedures and for maximizing the assets of such system. Such data shall be submitted to the office of the public employee retirement administration commission within such time as he may specify. The commission or his agent shall conduct an in-depth field examination of each board at intervals not exceeding three years to ascertain its 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. Whenever the board of any system causes an examination of its financial condition to be made by a certified public accountant or a public accountant selected by said board, the board shall immediately, upon the employment of such person, file his name and address with the commission, and such person shall, within ten days after making the report of such examination to the board of such system, file a certified copy thereof with the commission. Any certified public accountant selected by said board shall conduct such examination in accordance with such procedures as the commission shall establish. The commission may, in his discretion, accept the examination so made, or cause an examination to be made pursuant to this paragraph. An examination conducted by a certified public accountant or a public accountant selected by said board, which is accepted by the commission, shall be deemed to be the examination required by this paragraph.
(b) Each such system, except any system appropriating funds pursuant to a funding schedule adopted in accordance with the provisions of section twenty-two C or twenty-two D as the case may be, shall be credited in its financial accounts with its investments having a fixed term and rate, if amply secured in the judgment of the public employee retirement administration commission and not in default as to principal or interest, as follows: if purchased at par, with the par value; if purchased above or below par, with an amortized value so determined as to yield approximately the effective rate of interest at which the purchase was made and to bring the value to par at the date of maturity or at the date the security is first callable at par if prior thereto; provided, however, that the purchase price of any such security shall not be taken at a higher value than its actual market value when purchased; and provided, further, that the value of any security on the date of any valuation thereof shall not be taken at a higher value than its callable value, if any, on such date. The public employee retirement administration commission shall have full power and discretion in determining the methods of calculating values according to the foregoing rules, and the values found by him in accordance with such methods shall be final and binding; provided, however, that any investments in United States savings bonds purchased on a discount basis may be credited at their redemption value or at their amortized value, as the board shall determine. The public employee retirement administration commission shall also have full power and discretion in determining the method of calculating the values of any other investments of any system; provided, however, that the calculation of such values shall be consistent with methods prescribed by the Government Accounting Standards Board or methods allowed by the Employee Retirement Income Security Act, so-called.
(c) The public employee retirement administration commission or his agent shall, for the purpose of carrying out the provisions of this section, have access to all the securities, books and papers of any such system and may summon and administer oath to and examine any person relative to the financial affairs, transactions and condition of the system. The commission shall preserve in a permanent form a full record of the proceedings of each examination of a system and the results thereof. Upon the completion of such examination, verification and valuation, the commission shall make a report in writing of his findings to the board, and shall send a copy thereof to the governor and state treasurer, the county commissioners, the mayor, the board of selectmen, the Massachusetts Turnpike Authority, the Massachusetts Bay Transportation Authority, the Massachusetts Housing Finance Agency, the Massachusetts Port Authority, the Blue Hills Regional Vocational school system, the Greater Lawrence Sanitary District or the Minuteman Regional Vocational Technical School District as the case may be.
(d) The public employee retirement administration commission may review all accidental and ordinary disability pensions, and termination retirement allowances under section 10, granted by the retirement boards. The commission may remand the matter with written instructions to the retirement board for further proceedings if he finds that the decision of the board is (1) made upon unlawful procedure, (2) unsupported by substantial evidence, (3) arbitrary and capricious, or (4) a result of fraud or misrepresentation. The commission shall take such action within thirty days of the date when he is notified by a retirement board of the granting of such pension. If within such time period, the commission takes no action, the determination of the retirement board shall be considered to have been approved by the commission. The commission shall make a written decision, include a statement of the reasons therefor, and send copies thereof to the board and to the applicant.
(2) Assessment of Expenses of Supervision. — Any expenses incurred under the provisions of this section in connection with the supervision of any system shall be paid primarily by the commonwealth except for any expenses incurred in connection with a certified public accountant or a public accountant selected by the board of any system pursuant to the provisions of paragraph (a) of subdivision (1), which expenses shall be paid primarily by the applicable system. Each county which maintains a system shall reimburse the commonwealth for such proportion of such expenses attributable to such counties as shall be determined just and proper by the commission and assessed thereon by the state treasurer. The state treasurer shall issue his warrant requiring the assessors of the cities and towns concerned to assess a tax to the amount of such expenses attributable to such cities and towns as determined by the public employee retirement administration commission, and such amount shall be collected and paid to the state treasurer as provided by section twenty of chapter fifty-nine. The Massachusetts Turnpike Authority shall reimburse the commonwealth for such proportion of such expenses attributable to its retirement system as shall be determined just and proper by the commission, which sum shall be paid to the state treasurer upon notice from the commission. The Massachusetts Bay Transportation Authority shall reimburse the commonwealth for such proportion of such expenses attributable to its police retirement system as shall be determined just and proper by the commission, which sum shall be paid to the state treasurer upon notice from the public employee retirement administration commission. The Massachusetts Housing Finance Agency shall reimburse the commonwealth for such proportion of such expenses attributable to its retirement system as shall be determined just and proper by the commission, which sum shall be paid to the state treasurer upon notice from the commission. The Massachusetts Port Authority shall reimburse the commonwealth for such proportion of such expenses attributable to its retirement system as shall be determined just and proper by the commission, which sum shall be paid to the state treasurer upon notice from the commission. The Blue Hills Regional Vocational School system shall reimburse the commonwealth for such proportion of such expenses attributable to its retirement system as shall be determined just and proper by the commission, which sum shall be paid to the state treasurer upon notice from the commission. The Greater Lawrence Sanitary District employees’ retirement system shall reimburse the commonwealth for such proportion of such expenses attributable to its retirement system as shall be determined just and proper by the commission, which sum shall be paid to the state treasurer upon notice from the commission. The Minuteman Regional Vocational Technical School District shall reimburse the commonwealth for such proportion of such expenses attributable to its retirement system as shall be determined just and proper by the commission, which sum shall be paid to the state treasurer upon notice from the commission.
(3) Duties of the Actuary. — The commission or his actuary or other agent with his approval shall be the technical advisor of the board of each such system in matters relating to the applicable provisions of this chapter, and in matters relating to the operation of the system, and shall perform such actuarial duties as are required in connection therewith, including, but not limited to:—(a) the approval of the amount of allowances under the provisions of said chapters, provided, however, that in the case of any system which calculates allowances with an automated system, the actuary shall instead review and approve said automated system, and any allowances calculated by an approved automated system shall be deemed to have been approved by the actuary; provided, further, that for any such system which calculates such allowances with an automated system, the commission may require from time to time and the system shall provide any additional information relative to the use of such automated system that the commission may deem appropriate; and provided, further, that any system failing to submit any such allowances for review shall be subject to such intervention and supervision as the commission deems necessary pursuant to the provisions of subdivision (1);(b) the review of all actuarial valuation reports prepared pursuant to the provision of paragraph (k) of subdivision (5) of section twenty or the provisions of section twenty A of chapter ten;(c) the preparation of an actuarial valuation report for each system;(d) the periodic review of the mortality and experience of each system; and(e) such other investigations as the commission shall deem necessary.
(f) the preparation and filing with the general court, of a report, annually, in the month of January, on the computation of any increase in the United States Consumer Price Index and the percentage thereof in the previous year by the Commissioner of Social Security, including a statement that such increase in said Consumer Price Index during the last previous year requires a cost of living increase in the retirement allowances, pensions or annuities of eligible members, as defined in sections 102 and 103, equal to the percentage increase in the Consumer Price Index or 3 per cent, whichever is less.
The commissioner of administration shall require the preparation of triennial actuarial valuation reports, with the first one to be completed as of January first, nineteen hundred and eighty-eight and experience investigations every six years in such manner as he deems most appropriate.
(i) The periodic experience investigation required shall accompany every other actuarial valuation report and shall cover the six-year period ending as of the end of the year preceding the date for which the actuarial valuation report is filed. For the initial filing pursuant to this chapter, the experience investigation shall be made for the six-year period ending as of the end of the plan year occurring on or after December thirty-first, nineteen hundred and eighty-seven and before December thirty-first, nineteen hundred and eighty-eight. The experience investigation shall be filed with the commissioner of administration, the public employee retirement administration commission, and the clerks of the house and senate.
(ii) The actuarial valuation report and experience investigation required shall be prepared under the supervision and at the direction of the commissioner of administration, and said commissioner shall also be responsible for the filing of the documents. The actuarial valuation report and experience investigation shall be signed by said commissioner indicating that to the extent of his understanding and knowledge, the report or investigation represents a true and accurate portrayal of the actuarial, financial and demographic condition of the retirement systems.
(iii) Each actuarial valuation report and experience investigation is a public record. The commissioner of administration shall take whatever steps are deemed necessary to insure that the information contained in the actuarial valuation report or experience investigation is made available to active members or benefit recipients of the retirement systems.
(iv) The actuarial valuation report shall contain actuarial exhibits, financial exhibits and demographic exhibits. The actuarial exhibits shall be prepared and certified by an enrolled actuary. The remaining exhibits may be prepared by a qualified person other than an enrolled actuary. The financial and demographic exhibits shall be prepared as of the year ending immediately prior to the valuation date.
(v) For each retirement system, all applicable actuarial exhibits shall be prepared in accordance with the entry age normal actuarial cost method with entry age established as the actual entry age for all plan members unless there are compelling reasons of an actuarial nature for the use of an alternative actuarial cost method.
(vi) The actuarial cost method shall be used to value all aspects of each retirement system, unless there are compelling reasons of an actuarial nature for the use of approximation techniques other than the actuarial cost method for aspects of the retirement system other than the retirement benefit.
(vii) The actuarial exhibits shall use actuarial assumptions which are, in the judgment of the actuary and the commissioner of administration, the best available estimate of future occurrences in the case of each assumption in the aggregate. With respect to economic actuarial assumptions, which shall include estimates of rates of future occurrences concerning, but not necessarily limited to, increases in salary, growth in state revenues, post retirement adjustments, investment earnings, asset appreciation or depreciation and procedures to determine the actuarial value of assets used in the preparation of actuarial valuations of the retirement system and other actuarial calculations, documentation explaining and justifying the choice of assumptions shall accompany the report. The actuarial exhibits shall measure all aspects of the retirement system in accordance with modifications in the statutory benefits, if any, and salaries which as of the valuation date are known or can reasonably be expected to be in force during the ensuing calendar year.
(g) In consultation with the teachers’ retirement board, review and analysis of information required under subdivision (4) of section 5 and the valuation of the annual costs and actuarial liabilities attributable to the additional benefits payable under said subdivision (4). The analysis shall focus on the contributions made by members and the normal cost of benefits, plus any other liabilities determined by the actuary to be a result of such benefit changes under said subdivision (4). The analysis shall also compare the total costs and actuarial liabilities attributable to those members who retire under the provisions of said subdivision (4) with the members classified in Group 1 of paragraph (g) of subdivision (2) of section 3 who do not retire under the provisions of said subdivision (4). Beginning January 1, 2002, and every year thereafter, the actuary shall forward such analysis to the teachers’ retirement board, the clerks of the house of representatives and the senate, the house and senate committees on ways and means and the joint committee on public service.
(4) Promulgation and Approval of Rules and Regulations. — The public employee retirement administration commission shall promulgate such rules and regulations as he may deem necessary from time to time to effectuate the purposes of this chapter, and he or his agent shall approve any by-laws, rules, regulations, prescribed forms or determinations of any board in order to effectuate such purposes.
(5) Rehabilitation Programs for Disabled Employees. — (a) The public employee retirement administration commission shall develop in cooperation with the personnel administrator and the industrial accident rehabilitation board a program for the rehabilitation of persons who have been disabled and shall make available technical advice to other governmental units concerning such programs. He shall make said program available to any disabled employee seeking rehabilitation.
(b) The commission shall in conjunction with the industrial accident department establish a list of medical and vocational rehabilitation facilities, both public and private, and physicians as are available to render competent medical rehabilitation services for disabled persons. Medical rehabilitation services shall include medical, surgical, hospital, prosthesis, and physical restoration services. No medical rehabilitation facility shall be considered as qualified unless it is established to provide rehabilitation services for persons suffering from some specialized or general type of disability within the field of employment injury, and unless such facility is operated under the supervision of a licensed physician or licensed physical therapist qualified to render rehabilitation services and is staffed with trained and qualified technicians. No physician or physical therapist shall be considered as qualified unless he has had experience for a reasonable term of years in a qualified rehabilitation facility.
(c) The commission shall make available to every board the list of qualified physicians and medical and vocational rehabilitation facilities. The commission shall also review proposed rehabilitation programs not contained in such lists which may be submitted to the commission by boards from time to time for approval. If the commission finds that such proposed rehabilitation programs meet equivalent standards as those qualified facilities on the list, the commission shall approve such programs. The commission shall monitor the quality of rehabilitation programs and facilities and the utilization of rehabilitation programs by each board, including the successful completion of such programs and the effect of such programs on the finances of the public employee retirement system.
(d) As soon as practicable following notice of the retirement of a member for disability under section six, seven, or twenty-six, the commission shall conduct an evaluation to determine whether such member might benefit from a medical or vocational rehabilitation program listed in paragraph (b) or otherwise approved by the commission. To assist in this determination the commission may require any such member to be examined by a physician qualified to render rehabilitation services or by a vocational counselor selected by the commission, or both, for a recommendation as to the need and nature of any such rehabilitation program. If the commission determines that such member might benefit from any such program, he shall so notify such member and the retirement board which shall select a public or private rehabilitation agency having a rehabilitation program suitable for such member. Such member shall meet with the agency selected and shall cooperate with the agency in the design of a suitable rehabilitation program. If the board determines that such retired member may benefit from such rehabilitation program, and that the program is reasonable in its terms and cost, the board shall approve and offer to provide and pay for such program as provided in section eight. If the commission approves the rehabilitation program offered by the board, said commission shall reimburse the board for the costs of such program. No member shall be required to participate in any such rehabilitation program. Notwithstanding the provisions of sections eight and ninety-one A there shall be no reduction in the retirement allowance of any member participating in a rehabilitation program approved by the commission on account of actual or potential earnings arising out of such rehabilitation program. Any such member who, in the determination of the commission, might benefit from any such program may, if denied access to such a program by the board, appeal such denial to the commission. If, upon such appeal, the commission determines that such member might benefit from such rehabilitation program, he shall approve and offer to provide and pay for such program.
(e) The commission shall keep a record of all disabled members subject to or receiving rehabilitation and shall provide that record to the retirement boards.
(6) Public Employee Retirement and Disability Data System. — The public employee retirement administration commission shall establish and maintain a comprehensive system of data relative to the contributory retirement and disability systems. The data system shall include sufficient information:—(a) to produce accurate and up-to-date actuarial valuations, reports, and projections for each retirement system;(b) in each of the areas of (1) disability retirement pursuant to sections six and seven, (2) disability after retirement pursuant to section five, (3) compensation pursuant to chapter one hundred and fifty-two, and (4) leave without loss of pay pursuant to section one hundred and eleven F of chapter forty-one, to review the status of each disabled individual as well as to review and report disability rates, types of disability, types of occupational injuries, effects of particular risk factors, effects of wellness and rehabilitation programs, and costs of disability programs, and to compare employment statistics by occupation with disability statistics;(c) to produce an annual report of the investment portfolio, return on investment, and management performance of each retirement system;(d) to index the decisions of the contributory retirement appeal board and other interpretations of retirement and disability law; and(e) to calculate and record assessments on each retirement system by the division of public employee retirement administration.
Each board shall provide the commission with such information as the commission deems necessary to establish and maintain the data system. The executive head of each governmental unit of the head of each department shall provide the commission each year with such employment and occupational information as he deems necessary to establish and maintain the data system, in such form as he requires.
The commission shall make any information or data collected pursuant to this section available to the retirement law commission upon request of said commission.
Section 22. All the assets of each system as they exist at the commencement of business on January first, nineteen hundred and forty-six, and all the assets of each system received, acquired or held on or after such date shall, subject to the provisions of sections one to twenty-eight, inclusive, be credited according to the purposes for which they are received, acquired or held to one of the seven following funds in the system: the Annuity Savings Fund, the Annuity Reserve Fund, the Pension Fund, the Special Fund for Military Service Credit, the Expense Fund, the Pension Reserve Fund, and the Commonwealth’s Pension Liability Fund. As provided in subdivision (8), all of the assets of the state employees’ and teachers’ retirement systems and of any other participating system shall be held in the PRIT Fund, as well as such assets of purchasing systems as shall be transferred to the PRIT Fund upon the purchase of shares therein.
(1) Annuity Savings Fund. — (a) The annuity savings fund of each system shall be the fund provided for the accumulation of the regular deductions and additional deductions of the members of the system and into which such deductions shall be paid as they are made and to which regular interest shall be transferred to be credited to the accounts of such members as provided for in subdivision (6) of this section.
(b) The treasurer or other disbursing officer in charge of payroll in any governmental unit to which a system pertains, and the treasurer or other disbursing officer in charge of payrolls in any free public library the employees of which are eligible for membership in a system, shall, upon written notice from the board:(i) withhold on each pay day 5 per cent of the regular compensation of each employee who is a member in service of the system, which is received on the day by the member on account of service rendered to him on or after January 1, 1946, and not later than the date of his attaining the maximum age for his group, in the case of an employee who entered the service of the commonwealth or a political subdivision thereof before January 1, 1975;(ii) withhold on each pay day 7 per cent of the regular compensation of each employee who is a member in service of the system, which is received on the day by the member on account of service rendered by him on or after January 1, 1975, and not later than the date of his attaining the maximum age for his group, in the case of an employee who entered the service of the commonwealth or a political subdivision thereof on or after January 1, 1975, but before January 1, 1984;(iii) withhold on each pay day 8 per cent of the regular compensation of each employee who is a member in service of the system, which is received on the day by the member on account of service rendered by him on or after January 1, 1984, and not later than the date of his attaining the maximum age for his group in the case of an employee who entered the service of the commonwealth or a political subdivision thereof on or after January 1, 1984, but before July 1, 1996;(iv) withhold on each pay day 9 per cent of the regular compensation of each employee who is a member in service of the system, which is received on the day by the member on account of service rendered by him on or after July 1, 1996, and not later than the date of his attaining the maximum age for his group in the case of an employee who entered the service of the commonwealth or a political subdivision thereof on or after July 1, 1996;(v) withhold on each pay day 12 per cent of the regular compensation of each employee who is a member of the state police appointed pursuant to section 10 of chapter 22C, and is a member in service of the system, which is received on the day by the member on account of service rendered by him on or after July 1, 1996, and not later than the date of his attaining the maximum age for his group in the case of an employee who entered the service of the state police on or after July 1, 1996; and(vi) withhold on each pay day 11 per cent of the regular compensation of each employee who participates in the alternative superannuation retirement benefit program established under subdivision (4) of section 5 on account of such service rendered by him on or after July 1, 2001.
In the case of any teacher the withholding shall be made upon written notice from the school committee or board of trustees or other employing authority, to the treasurer or other disbursing officer of the political subdivision by which such teacher is employed.
(b1/2) The provisions of section fifty of chapter three hundred and sixty-seven of the acts of nineteen hundred and seventy-eight shall not apply to any member of the state employees’ and state teachers’ retirement system, or systems electing to accept the provisions of this paragraph. Any system may accept the provisions of this paragraph by majority vote of the board of each such system, subject to the approval of the legislative body. For purposes of this paragraph “legislative body” shall mean a town meeting in a town, the city council in a city, the county retirement board advisory council in a county, and the district members in a district. Acceptance shall be deemed to have occurred upon the filing of a certification of such votes with the commission. Any system electing to accept the provisions of this paragraph shall be required to annually appropriate to the Pension Reserve Fund, in addition to such other amount as might be required by this chapter, an amount equal to the employer’s normal cost of removing the restriction provided by said section fifty of said chapter three hundred and sixty-seven, plus such amount as is required to amortize over thirty years the liability created by such removal for such of those employees who entered service on or after January first, nineteen hundred and seventy-nine and prior to January first, nineteen hundred and eighty-eight. For any member of any system accepting the provisions of this paragraph who entered the service of the commonwealth or a political subdivision thereof on or after January first, nineteen hundred and seventy-nine, the treasurer or other disbursing officer in charge of payroll in any governmental unit to which a system pertains, shall withhold on each pay day, in addition to the amounts withheld pursuant to paragraph (b) an additional two per cent of such member’s regular compensation over thirty thousand dollars. In any system filing a certificate of acceptance with the commission on or before July first, nineteen hundred and eighty-eight, the treasurer or other disbursing officer in charge of payroll in any governmental unit to which a system pertains shall withhold, from the regular compensation of such member subject to the additional amounts provided for by this paragraph, in such installments as the retirement board shall direct, an amount equal to the additional amount which would have been withheld from such member’s regular compensation pursuant to this paragraph between January first, nineteen hundred and eighty-eight and the date the certificate of acceptance is filed. In any system filing a certification of acceptance with the commission after July first, nineteen hundred and eighty-eight, the additional deduction shall start as of the date of filing said application and no deductions shall be made from any regular compensation received between January first, nineteen hundred and eighty-eight and the date said certification is filed; provided, however, that the liability created by removing the restriction provided by said section fifty for the payroll period from January first, nineteen hundred and eighty-eight and the date said certification is filed shall be added to the amount to be amortized over thirty years through the annual appropriation as required by this paragraph; and provided, further, that all service in such system after January first, nineteen hundred and eighty-eight shall be credited as non-section fifty restricted service. Notwithstanding any other provision of this chapter, the calculation of the retirement allowance of any member who entered service after January first, nineteen hundred and seventy-nine where such member has both section fifty restricted service and non-section fifty restricted service, shall be calculated based upon the years of creditable service subject to the restriction and the years of non-section fifty service, as the actuary shall determine. In the state employees’ retirement system and the state teachers’ system, and in any other system accepting the provisions of this paragraph, the allowance payable to any member, or eligible beneficiary thereof, who entered the service of the commonwealth or a political subdivision thereof on or after January first, nineteen hundred and seventy-nine and who retired from said system prior to the date on which such system accepted this paragraph, shall be recalculated as of the date of such acceptance, and as of said date the provisions of said section fifty of said chapter three hundred and sixty-seven shall not apply to such allowance; provided, however, that the provisions of this sentence shall not be deemed to require any additional contributions to be made by any such member or eligible beneficiary thereof. The state employees’ and state teachers’ retirement systems shall be deemed to have accepted the provisions of this paragraph as of January first, nineteen hundred and eighty-eight. The additional contributions required under this paragraph shall not apply to any employee who participates in the alternative superannuation retirement benefit program established in subdivision (4) of section 5.
(c) Any such treasurer or other disbursing officer in charge of payrolls, for the purpose of determining the regular compensation and regular deductions of any member in service who is receiving a non-cash maintenance allowance in the form of full or partial boarding and housing, shall add to the amount of the cash payment for the regular services of such member an amount at a rate which shall be determined by the personnel administrator if such member is a member of the state employee’s retirement system or of the teachers’ retirement system, by the county personnel board if such member is a member of any county system, and by the retirement board if such member is a member of a city or town system. The sum of such amount and the amount of such cash payment shall be the regular compensation upon which regular deductions shall be made on and after January first, nineteen hundred and forty-six. The regular compensation of any such member for any period, for purposes of computing retirement allowances, shall include not only the amount of the cash payment for his regular services but also the amount of any non-cash maintenance allowance at the rate in effect for him for such period under the provisions of this paragraph or under corresponding provisions of earlier laws.
(d) Any member in service of any system, whose regular deductions during any period of his employment were made at a lower rate, or on the basis of a lower maximum limit, than that in effect during such period for a majority of the members of such system, may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the system in one sum, or in instalments over a period not exceeding five years, upon such terms and conditions as the board may prescribe, an amount equal to the difference between the aggregate of the regular deductions which would have been credited to his account in such annuity savings fund had they been made at the rate, and subject to the maximum limit, in effect for a majority of the members of such system during such period and the aggregate of the regular deductions actually credited to his account therein. In addition to the payment of such sum or instalments thereof, such member shall also pay into the annuity savings fund an amount of interest such that at the date of completion of such payments the total value of his regular deductions actually made, including such payments, together with regular interest on all such deductions and payments to such date, shall be equal to the value of what his regular deductions would have been, together with regular interest thereon to such date, had they been made at the rate, and subject to the maximum limit, in effect for a majority of the members of such system throughout the whole period of his employment.
(e) In addition to the regular deductions referred to in paragraphs (b) and (c) of this subdivision, any such treasurer or other disbursing officer in charge of payrolls shall, upon written notice to him by the board, deduct from the regular compensation of any member in service such sums as the board shall designate and upon such terms and conditions as it shall prescribe, as may be required for the purpose of carrying out the provisions of paragraph (d) of this subdivision, or the provisions of subdivision (3), (4), (5), (6) or (8) of section three or of paragraph (2) (c) of section four, or other corresponding applicable provisions of sections one to twenty-eight inclusive. The board may permit a reduction, suspension or termination of any such deductions being made under the provisions of this paragraph if such member shall so request in writing and if it finds that he is unable to continue them without undue hardship, but no withdrawal of the same shall be made except in the manner provided for the withdrawal of other accumulated regular deductions.
(f) The deductions provided for under this subdivision shall be made notwithstanding that the minimum compensation provided by law for any member may be reduced thereby. Each member shall be deemed to consent and agree to the deductions provided for in this subdivision and shall receipt for his full salary or compensation. The payment of his full salary or compensation less such deductions shall be considered a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by him during the period covered by such payment, except as to any benefits in the nature of an annuity, pension, retirement allowance or return of accumulated total deductions as provided for in sections one to twenty-eight inclusive.
(g) Any member in service or any member inactive on authorized leave of absence, may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the system in one sum, or in instalments over a period of years, for the purpose of providing an additional annuity, such amount as he shall designate, subject to the limitation hereinafter specified in this paragraph and subject to such terms and conditions as the board may prescribe. Any such member may authorize the board in writing to instruct the treasurer or other disbursing officer in charge of payrolls to withhold for such purpose on each pay day from the regular compensation of such member such amount as he shall designate, subject to such limitation and subject to such terms and conditions as the board may prescribe. All amounts so paid or so withheld shall be considered as additional deductions as defined in section one. The total additional deductions for any such member as of any date shall be so limited that such total, together with regular interest on such additional deductions to such date, shall not exceed the portion of his accumulated regular deductions on such date which is derived from that part of his annual regular compensation not in excess of thirty-six hundred dollars in any year. Such accumulated additional deductions shall be used upon his retirement to provide an additional annuity for him in accordance with the provisions of subdivision (2) of section twelve, or shall be paid as provided for in section eleven upon his prior death or withdrawal from the system. The board shall permit a reduction, suspension or termination of such additional deductions if such member shall so request in writing.
(h) The various amounts withheld under the provisions of this subdivision for deposit in the Annuity Savings Fund of any system shall, subject to the provisions of paragraphs (i), (j) and (k), be transferred forthwith to such system by the treasurer or other disbursing officer in charge of payrolls, accompanied on a prescribed form by a statement or voucher for such deductions. Such amounts shall be credited by the board to the accounts of the respective members for whom such deductions have been made, and shall be paid into and become a part of the Annuity Savings Fund of such system.
(i) In the case of teachers who are members of the teachers’ retirement system, the various amounts withheld for any month for deposit in the annuity savings fund of such system shall, together with proper vouchers therefor, be transmitted by the disbursing authorities to the secretary of the teachers’ retirement board on or before the tenth day of the next succeeding month. The secretary shall thereupon credit the accounts of such members with their respective deductions and pay all such sums received to the state treasurer for deposit in the annuity savings fund of such system.
(j) In the case of each member of any county system whose regular compensation is paid by the commonwealth, the state treasurer shall make the withholdings for any month required by the provisions of this subdivision and shall transmit them, together with proper vouchers therefor, on or before the tenth day of the next succeeding month to the county treasurer for deposit in the annuity savings fund of such system to the credit of the respective accounts of each such member.
(k) The treasurer or other disbursing officer in charge of payrolls in any free public library the employees of which are eligible for membership in a system, shall transmit forthwith to the city or town treasurer of the city or town in which such library is located, the amounts which he has withheld from the members as provided for in this subdivision, together with proper vouchers therefor. Such city or town treasurer shall thereupon transfer such amounts for deposit in the annuity savings fund of such system to the credit of the respective accounts of such members as provided for in paragraph (h) of this subdivision in the case of other members thereof.
(l) The amount of the accumulated total deductions of any member paid or withdrawn under the provisions of sections one to twenty-eight inclusive, shall be paid from the annuity savings fund of the system and charged to his account therein. Upon the retirement of any member, the amount of his accumulated total deductions shall be transferred from his account in the annuity savings fund of the system to the annuity reserve fund thereof. Amounts shall be transferred to the annuity savings fund from the annuity reserve fund as provided for in paragraph (2) (b) of this section and from the annuity savings fund to the pension fund as provided for in paragraph (6) (d) of this section.
(2) Annuity Reserve Fund. — (a) The annuity reserve fund of each system shall be the fund to which the accumulated total deductions of a member shall be transferred from his account in the annuity savings fund of the system when a retirement allowance becomes effective for him, and to which also shall be transferred at such time from the special fund for military service credit any amounts then standing to the credit of his account therein. The total amounts so transferred on account of any member shall thereby establish the initial annuity reserve for the annuity provided for him under the provisions of subdivision (2) of section twelve. Interest at the annual rate set forth in the definition of actuarial equivalent appearing in section one shall be transferred to the annuity reserve fund as provided for in subdivision (6) of this section. All annuities and all benefits for which such initial annuity reserve was established shall be paid from the annuity reserve fund.
(b) If any member who has been retired for disability is later restored upon recovery to active service before attaining the age sixty-five as provided for in paragraph (b) of subdivision (2) of section eight, an amount equal to the annuity reserve at the date of his restoration with respect to his annuity shall be transferred from the Annuity Reserve Fund of the system to the credit of his account in the Annuity Savings Fund thereof.
(c) If the balance remaining in the annuity reserve fund of any system at the close of business on December thirty-first of any year after the transfer of interest thereto as provided for in clause (ii) of paragraph (a) of subdivision (6), is in excess of the total amount of the annuity reserve determined for such system as of such date in accordance with the provisions of paragraph (b) of subdivision (3) of section twenty-one, the amount of such excess shall be transferred as of the next following September thirtieth from the Annuity Reserve Fund to the Pension Reserve or Commonwealth’s Pension Liability Fund of such system. If such balance is less than the total amount of such annuity reserve, an amount equal to such deficiency shall, to the extent not included in any deficiency being made up under the provisions of this paragraph, be similarly transferred as of such next following September thirtieth from the Pension Fund to the Annuity Reserve Fund.
(3) Pension Fund. — (a) The Pension Fund of each system shall be the fund to which shall be credited all amounts appropriated by the governmental unit or transferred from the Pension Reserve Fund or Commonwealth’s Pension Liability Fund pursuant to a funding schedule established pursuant to section twenty-two C or twenty-two D for the purpose of providing for the cost of operation of the system exclusive of the expenses of administration, except such amounts as may be appropriated for the special fund for military service credit under the provisions of subdivision (4). Any balance remaining in the investment income account of the system at the close of business on December thirty-first of any year shall be transferred to the Pension Reserve Fund or the Commonwealth’s Pension Liability Fund, and any deficit in such account at such time shall be made up by transfer from the pension fund to such account of an amount equal to such deficit as provided for in clause (iii) of paragraph (a) of subdivision (6).
(b) All pensions to members or to beneficiaries and all pensions paid under the provisions of paragraph (c) of subdivision (8) of section three or paragraph (b) of subdivision (4) of section seven shall be paid from the pension fund of the system, and all amounts received under said provisions shall be credited to such fund. Amounts shall be transferred between the Pension Fund or the Commonwealth’s Pension Liability Fund, as applicable, and the annuity reserve fund as provided for in paragraph (c) of subdivision (2) and shall be transferred to the Pension Fund or the Commonwealth’s Pension Liability Fund, as applicable, from the annuity savings fund as provided for in paragraph (d) of subdivision (6) and from the special fund for military service credit as provided for in paragraph (c) of subdivision (4). Amounts shall also be paid from the Pension Fund or the Commonwealth’s Pension Liability Fund, as applicable, of one system and transferred to the special fund for military service credit of a second system as provided for in paragraph (d) of said subdivision (4). The board shall, with the approval of the actuary, make any other transfer between the Pension Fund or the Commonwealth’s Pension Liability Fund, as applicable, and any other fund of the system which may be necessary to effectuate the purposes of sections one to twenty-eight, inclusive; provided, however, that no such transfers shall be made from the Commonwealth’s Pension Liability Fund except pursuant to schedules submitted in advance by the commissioner of administration to the house and senate committees on ways and means.
(c) Any profit realized on the sale or maturity of any investment of any system, due to the amount received therefor being in excess of its book value on the date of its sale or maturity, shall be credited to the Pension Reserve Fund of the system or recognized over a period of years as prescribed by the commissioner of public employee retirement. Any loss sustained on the sale or maturity of any investment, due to the amount received therefor being less than its book value on the date of its sale or maturity, shall be charged to said Pension Reserve Fund or amortized over a period of years as prescribed by said commissioner. Any investment which is required to be valued at its market value under the provisions of paragraph (b) of subdivision (1) of section twenty-one, shall be included in the assets of the system on the date of any valuation thereof at its market value on such date as determined in accordance with said provisions. Any excess of such market value over the value at which such investment was included in the assets of the system on the date of the last previous valuation thereof, shall be credited forthwith to said Pension Reserve Fund or recognized over a period of years as prescribed by said commissioner, and any amount by which such market value is less than the value at which such investment was included in such assets, shall be charged forthwith to such fund or amortized over a period of years as prescribed by said commissioner.
In prescribing the period of years for amortization of gains and losses the public employee retirement administration commission shall act in a manner consistent with the periods prescribed by the government accounting standards board or allowed by the Employee Retirement Income Security Act.
Notwithstanding the foregoing provisions or any other general or special law to the contrary, the commonwealth shall assume the cost to any retirement system participating in the Pension Reserves Investment Trust Fund for the charge to the pension fund of such system for the amortization of any loss sustained on the transfer of such system’s assets to the Pension Reserves Investment Trust Fund due to the value of the units in said fund upon such transfer being less than the book value of the system assets transferred to said fund on the date of transfer; provided, however, that the commonwealth shall assume only the cost of such system for a loss in an amount equal to or less than twenty per cent of the book value of the system’s total portfolio on said date of transfer; provided, further, that the commonwealth shall assume only the costs for such losses to participating systems transferring their assets to the Pension Reserves Investment Trust Fund on or before July first, nineteen hundred and eighty-six; and provided further, that such assumable losses shall not be included in the determination of required appropriations set forth in subparagraph (iii) of paragraph (d). Such losses incurred by participating systems upon the transfer of their assets to the Pension Reserves Investment Fund shall be amortized over the average time to maturity of the entering system’s fixed income securities transferred or ten years, whichever is less.
(d) The amount to be appropriated for any fiscal year for the pension fund of any system, as provided for in subdivision (7) of this section, shall be equal to the excess of the sum of the charges in clauses (i) to (iv) inclusive of this paragraph over the sum of the credits in clauses (v) to (vii), inclusive:Charges. — (i) The total amount, as estimated by the actuary from data furnished by the board, of the pension payments to be paid from the pension fund of the system during the fiscal year for which such appropriation is being made;(ii) The amount of that part of the deficiency, if any, in the annuity reserve fund of the system as of January first, nineteen hundred and forty-six, to be made up during such fiscal year under the provisions of paragraph (2) (c) of this section;(iii) The amount of the deficiency, if any, in the pension fund at the close of business on the September thirtieth immediately preceding such fiscal year, after the transfers provided for in paragraph (2) (d) of this section have been made as of such date and after the credits and charges to such fund have been made as of such date following the valuation provided for in paragraph (c) of this subdivision; and(iv) The amount, if any, by which the total yearly amount of the pensions payable from the system with respect to all retired members and beneficiaries who are receiving pensions therefrom at the close of business on the September thirtieth immediately preceding such fiscal year, exceed any balance in the pension fund remaining at the close of business on such date after the transfers, credits and charges referred to in clause (iii) of this paragraph applicable for such fiscal year have been made; provided, that the amount of the charge to be made under the provision of this clause shall not be greater than twenty per cent of such total.
Credits. — (v) The sum of the amounts, if any, received and credited to the pension fund under the provisions of paragraph (8) (c) of section three and paragraph (4) (b) of section seven during the twelve-month period ending on the September thirtieth immediately preceding such fiscal year, and the amounts, if any, transferred from the special fund for military service credit to the pension fund under the provisions of paragraph (4) (c) of this section during such period; provided, that the amount of the credit to be allowed under the provisions of this clause shall not be greater than the amount by which any balance in the pension fund remaining at the close of business on such date after the transfers, credits and charges referred to in clause (iii) of this paragraph applicable for such fiscal year have been made, exceeds five per cent of the ledger assets of the system as of such date after the valuation referred to in said clause (iii) has been made, nor greater than the amount by which such balance exceeds the total yearly amount of the pensions payable from the system with respect to all retired members and beneficiaries who are receiving pensions therefrom at the close of business on such date; and(vi) The amount, if any, by which the charge determined under the provisions of clause (i) of this paragraph applicable for such fiscal year, exceeds the largest of the corresponding charges included in such appropriations for the system for the first three full fiscal years of its operation after December thirty-first, nineteen hundred and forty-five; provided, that the amount of the credit to be allowed under the provisions of this clause shall not be greater than twenty per cent of such charge for such fiscal year, nor greater than the amount by which any balance in the pension fund remaining at the close of business on the September thirtieth immediately preceding such fiscal year after the transfers, credits and charges referred to in clause (iii) of this paragraph applicable for such fiscal year have been made, exceeds the sum of the amount of any credits allowed under the provisions of clause (v) of this paragraph applicable for such fiscal year and five per cent of the ledger assets of the system as of such date after the valuation referred to in said clause (iii) has been made, nor greater than the amount by which such balance exceeds the sum of the amount of any credits allowed under the provisions of clause (v) of this paragraph applicable for such fiscal year and the total yearly amount of the pensions payable from the system with respect to all retired members and beneficiaries who are receiving pensions therefrom at the close of business on such date.
(vii) The amount, if any, transferred to such pension fund from the pension reserve fund of the system pursuant to subdivision (6A).
(4) Special Fund for Military Service Credit. — (a) The special fund for military service credit shall be the fund provided in each system under the provisions of sections nine and nine A of chapter seven hundred and eight of the acts of nineteen hundred and forty-one, as amended by chapter four hundred and nineteen of the acts of nineteen hundred and forty-three and as may be further amended, to which shall be credited the amount appropriated for any fiscal year, as provided for in subdivision (7) of this section, for the purpose of establishing the amounts which would have been paid into such system as regular deductions by members thereof on military leave of absence from the governmental unit by which they were employed had such members remained in the active service of such governmental unit. Regular interest shall be transferred to the special fund for military service credit as provided for in subdivision (6) of this section.
If a city or town notifies the teachers’ retirement board that all teachers referred to in section one of chapter seven hundred and eight of the acts of nineteen hundred and forty-one, as amended, have either returned to the public school service of Massachusetts, or that the period has expired during which they were permitted to return and have military assessments credited to their accounts, and that there are no other members who were formerly employed by the city or town who will be entitled to have military assessments credited to their accounts, the said board shall, during the month of January following the receipt of such notice, refund to the city or town any amount standing to its credit in the special fund for military service credit provided for in this section.
(b) In the event of the retirement of any member, or in the event a member-survivor benefit under the provisions of option (d) of subdivision (2) of section twelve becomes effective on account of any member whose last discharge or release from military service as set forth in said chapter seven hundred and eight of the acts of nineteen hundred and forty-one, as amended, and as may be further amended, was under honorable conditions as defined in defense department regulations, for whom a liability has been established in the special fund for military service credit, an amount equal to the value of the regular deductions credited to his account under the provisions of sections nine and nine A of said chapter seven hundred and eight for the period of his military leave of absence, together with regular interest thereon to the date his retirement allowance becomes effective, shall be transferred from his account in such fund to the annuity reserve fund of such system and shall be added to and merged with the amount of his accumulated regular deductions being transferred as of such date from the annuity savings fund of such system to the annuity reserve fund thereof. The total of such amounts transferred on his account shall be used in determining the amount of the regular annuity provided for him under the provisions of subdivision (2) of section twelve, and the aggregate of his regular deductions, including the amount thereof transferred from the special fund for military service credit, shall be used in determining the normal yearly amount of his retirement allowance to the extent such allowance is dependent upon the amount of his regular deductions.
(c) In the event of the withdrawal from the system of any member, whose last discharge or release from military service as set forth in said chapter seven hundred and eight, as amended, and as may be further amended, was under honorable conditions as defined in defense department regulations, for whom a liability has been established in the special fund for military service credit, or in the event of his death before any retirement allowance becomes effective for him, and without a member-survivor benefit under the provisions of option (d) of subdivision (2) of section twelve or payment of allowances under the provisions of section twelve B becoming effective on account of the death of such member, any amount being held to the credit of his account in the special fund for military service credit shall be released and shall be used to reduce the amount of the next appropriation for the pension fund of the governmental unit or units which paid to establish the military service credit for him, in the proportions originally paid by each unit for that purpose; provided, that if such member shall later be reinstated in the system or become a member of another retirement system, and shall deposit in full the amount he withdrew with accumulated interest, said governmental unit or units shall add the amount of such reduction, with regular interest, to the amount of its or their next appropriation for the special fund for military service credit; and further provided, that if the person is a member of the teachers’ retirement system, the whole or portion of the said amount, as the case may be, which was paid by a city or town shall be returned to the city or town with accumulated interest, and the portion, if any, of the said amount which was paid by the commonwealth shall be transferred to the pension fund of said system. If a former member of said system, on whose account such an adjustment has been made, is later reinstated a member of said system, and returns in full the amount he withdrew with accumulated interest, the city or town which received the refund as provided above shall be notified, and it shall pay to the special fund for military service credit of said system the amount it received from said fund, with accumulated interest at three per cent to the date of payment to said fund, and the portion, if any, which was transferred to the pension fund of said system shall be transferred from said pension fund with three per cent accumulated interest to the said special fund for military service credit, and these amounts shall again be held for the credit of the member, to be used only for retirement purposes.
(d) If any member, whose last discharge or release from military service as set forth in said chapter seven hundred and eight, as amended, and as may be further amended, was under honorable conditions as defined in defense department regulations, for whom a liability had previously been established in the special fund for military service credit of one system for any period of his military leave of absence while a member of such system, is retired while a member of a second system, or in the event a member survivor benefit under the provisions of option (d) of subdivision (2) of section twelve, or payment of allowances under the provisions of section twelve B becomes effective on account of his death while a member of a second system, an amount equal to the value of the regular deductions with which he was credited under the provisions of sections nine and nine A of said chapter seven hundred and eight for such period of his military leave of absence, together with regular interest thereon to the date his retirement allowance, member survivor benefit, or allowances provided for under the provisions of section twelve B becomes effective, shall be paid from the pension fund of the first system at the date on which said retirement, member survivor benefit, or allowances under the provisions of section twelve B becomes effective and transferred to the special fund for military service credit of the second system to be credited to his account therein, and thereafter such account shall be handled in the manner set forth in paragraph (b) of this subdivision; provided, that such transfer shall be made and credit for such period of his military leave of absence allowed only if he has transferred his membership from the first system to the second system as provided for in paragraph (8) (a) of section three, or only if and only to the extent he has re-established credit for his former membership by paying into the annuity savings fund of the second system the make-up payments provided for in paragraph (8) (b) of such section.
(5) Expense Fund. — The expense fund of each system shall be the fund to which shall be credited the amount appropriated for any fiscal year, as provided for in subdivision (7) of this section, for the purpose of providing for the payment of all expenses of administration of the system for such year, and from which all such expenses shall be paid; provided, however, that each retirement board shall adopt an annual budget and supplemental budgets as deemed necessary by said board. Said budgets shall be funded solely from the investment income account of each system and without any further appropriation from the municipality, county or other governmental unit the current or former employees of which are served by said board. Notwithstanding the foregoing, at least thirty days prior to the adoption of said budgets, the boards shall file said budgets with the appropriate legislative body of the governmental unit the current or former employees of which are served by said board. Said governmental unit at its option may, but shall not be required to, appropriate additional monies for use by the retirement board in carrying out the purposes of section five B.
(6) Investment Income Account and Regular Interest. — (a) All income in each system derived from the interest and dividends earned on the invested funds of the system during any calendar year shall be credited to an investment income account. Upon the payment or transfer of funds from any member’s account during any year, the amount of any regular interest to be credited for such year to his account in the annuity savings fund of the system upon his withdrawal, death or retirement, and the amount of any regular interest to be credited for such year to his account, if any, in the special fund for military service credit upon his retirement, shall be transferred to such accounts from such investment income account. Any balance remaining in such investment income account at the close of business on December thirty-first of such year shall be transferred to the several funds of the system as follows:(i) Amounts equal to the amounts of regular interest to be credited for such year to the accounts in the annuity savings fund and in the special fund for military service credit of all members for whom accounts exist therein as of the end of such year, shall be transferred to such funds and credited to the accounts of such members;(ii) An amount of interest computed at the annual rate set forth in the definition of actuarial equivalent appearing in section one shall be determined on the basis of the average of the balances outstanding in the annuity reserve fund on the first day of each month during such year and shall be transferred to such fund; and(iii) Any balance remaining in the investment income account after the transfers heretofore provided for in this paragraph have been made, shall be transferred to the Pension Reserve Fund, and any amount by which such balance is insufficient to carry out the preceding provisions of this paragraph shall be charged to the pension fund and credited to the investment income account for the purpose of making up the deficit.
(iv) Prior to making the transfers provided for in clause (iii) the state employees’ retirement system shall transfer from its investment income account to the General Fund an amount equal to the amount set forth in the state budget for the administration of said system and the state teachers’ retirement system shall transfer from its investment income account to the General Fund an amount equal to the amount set forth in the state budget for the administration of said system.
(v) Prior to making the transfers provided for in clause (iii) the state employees’ retirement system shall transfer to the General Fund an amount equal to the estimated amount, as certified to the secretary of administration and finance by the office of the treasurer, for those retirement-related costs incurred by the office of the treasurer on behalf of the state employees’ retirement system; and the state teachers’ retirement system shall transfer to the General Fund an amount equal to the estimated amount, as certified to the secretary of administration and finance by the office of the treasurer, for those retirement-related costs incurred by the office of the treasurer on behalf of the state teachers’ retirement system.
(b) The phrase “regular interest” as used in sections one to twenty-eight, inclusive, shall mean the interest credited to any member’s account in the Annuity Savings Fund of any system during the period of his membership therein or to his account in the special fund for military service credit during such period. As applied to such interest for any period prior to January first, nineteen hundred and forty-six, “regular interest” shall mean interest at the rate in effect and allowed in such system from time to time during such period. As applied to such interest on balances outstanding in any such accounts as of the commencement of business on January first, nineteen hundred and forty-six, or as applied to such interest credited on regular deductions made on or after such date in the nature of make-up payments, or otherwise, on account of service rendered by any member prior to such date, “regular interest” shall mean interest credited at the rate of three per cent per annum. As applied to such interest credited on all other regular deductions and on all additional deductions made on or after January first, nineteen hundred and forty-six, and on all amounts thereafter transferred from any member’s account in the Annuity Savings Fund or from his account in the special fund for military service credit in any contributory retirement system established under the provisions of a special law to his account in the corresponding fund of a system maintained under the provisions of sections one to twenty-eight, inclusive, “regular interest” for the calendar years nineteen hundred and forty-six and nineteen hundred and forty-seven shall mean interest credited at the rate of three per cent per annum. For any calendar year subsequent to nineteen hundred and forty-seven and prior to nineteen hundred and eighty-four, “regular interest” shall mean interest credited at the average earned rate which shall be determined by the actuary from the investment earnings of all systems maintained under the provisions of said sections and which shall be calculated on the basis of data contained in the annual statements of such latter systems filed in the office of the commissioner of insurance for the second calendar year preceding that for which such rate is to be applied. Such average earned rate shall be taken to the nearest tenth of one per cent and shall be obtained from the ratio which the total income derived from the interest and dividends earned on the invested funds of all such systems during the calendar year covered by such annual statements bears to the mean of the total ledger assets of all such systems at the beginning and end of such year. For any calendar year beginning subsequent to December thirty-first, nineteen hundred and eighty-three, “regular interest” shall mean interest credited at a rate established by the commission, in consultation with the commissioner of banks. The rate established by the commission shall be taken to the nearest tenth of one per cent and shall be obtained from the average rates paid on individual savings accounts by a representative sample of financial institutions; provided, that said commission shall sample no less than ten such financial institutions.
(c) Regular interest credited on or after January first, nineteen hundred and forty-six, shall be compounded annually on December thirty-first of each year, and subject to the provisions of paragraph (d) of this subdivision shall be allowed upon the balance outstanding in each member’s account as of the immediately preceding December thirty-first. No interest shall be allowed on regular deductions or on additional deductions for the year in which they are made; except, that in the case of any make-up payment of regular deductions paid in full in one sum for deposit in any member’s account in the annuity savings fund of any system, or in the case of any amount transferred from his account in the annuity savings fund or in the special fund for military service credit of one system for deposit in his account in the corresponding fund of another system, regular interest shall be allowed upon such sum or amount from the date of deposit if such date is the first day of a month, otherwise regular interest shall be allowed from the first day of the month immediately following such date of deposit. Upon the payment or transfer during any year of funds from any member’s account in the annuity savings fund of any system, or upon the transfer during any year of funds from his account in the special fund for military service credit, regular interest shall, subject to the provisions of paragraph (d) of this subdivision, be allowed upon the balance outstanding in his account as of the immediately preceding December thirty-first, and also upon any deposit made for him during any year under the provisions set forth in the exception appearing in the preceding sentence of this paragraph, for the number of completed months which have elapsed between such December thirty-first or the date of such deposit, as the case may be, and the date of the payment or transfer of the funds from his account.
(d) Anything in this subdivision to the contrary notwithstanding, regular interest in the case of any member inactive whose service was terminated prior to January first, nineteen hundred and forty-six, shall be allowed upon any balance outstanding in his account on such date only in accordance with and to the extent permitted under the provisions of the law applicable to him and in effect on the date of his termination of service. In the case of any member whose service is terminated on or after January first, nineteen hundred and forty-six, regular interest shall continue to accrue on any balance in his account, but no regular interest shall be included in the amount of any accumulated total deductions which are to be paid to the member under the provisions of subdivision (1) of section eleven for any period after the expiration of two years from the end of the month immediately preceding the date of his termination of service. Upon the payment to the member of the amount of his accumulated total deductions, any regular interest already credited to his account which is not to be included in such amount under the provisions of this paragraph, shall thereupon be transferred from his account in the annuity savings fund of the system to the pension fund thereof.
(6A) Pension Reserve Fund. — (a) The Pension Reserve Fund of each system shall be credited all amounts set aside by a system for the purpose of establishing a reserve to meet future pension liabilities, including such amounts as may be set aside pursuant to a funding schedule established in accordance with section twenty-two C or twenty-two D. Such amounts shall include without limitation the annual balance in the investment income account as provided for in clause (iii) of paragraph (a) of subdivision (6) the undistributed accumulated total deductions as provided for in section eleven and all monies recovered for the cost of fringe benefits from federal grants. From time to time, a system may credit to the Pension Reserve Fund other amounts appropriated to it or otherwise made available by the governmental unit. The Pension Reserve Fund for the state employees’ and teachers’ retirement systems shall be the Commonwealth’s Pension Liability Fund.
(b) Amounts may be transferred to the Pension Fund for the purpose of meeting present pension liabilities in accordance with a schedule developed by the board of each system and approved by the actuary to amortize unfunded pension liabilities. Such schedule of payments shall be designed to maintain a funding schedule which pays the normal cost of benefits for the system and amortizes any unfunded actuarial liability either as a fixed ratio of payroll or in accordance with the funding schedules provided for in section twenty-two C or twenty-two D, as applicable; provided, however, that any such amounts transferred from the Pension Reserve Funds of the state employees’ and state teachers’ systems shall be detailed by the commissioner of administration in a written report submitted in advance to the house and senate committees on ways and means. Such schedule shall be adjusted in accordance with any state contributions provided from the PRIT Fund to meet the unfunded pension liability of the system.
(7) Appropriations. — In order to effectuate the provisions of sections one to twenty-eight, inclusive, and to provide for each system the amounts required for the Commonwealth’s Pension Liability Fund, the Pension Fund, the special fund for military service credit and the expense fund described in subdivisions (3), (4), (5), and (8), respectively, of this section, the following provisions are hereby made:(a) Expense Funds of the State Employees’ Retirement System and the Teachers’ Retirement System. — The state board of retirement and the teachers’ retirement board shall each adopt annual budgets and supplemental budgets as deemed necessary by the boards. Said budgets shall include all salaries for personnel employed by the state board of retirement and the teachers’ retirement board and said budgets shall be funded from the investment income of each system without further appropriation. Said budgets shall not exceed 103 per cent of the prior year operating expenditures; provided, however, that for fiscal year 1998 said budgets shall not exceed 134 per cent of the fiscal year 1997 operating expenditures. In the event that said boards determine that said 103 per cent is not sufficient to fund said operations, said boards shall submit spending plans detailing all expenditures to the house and senate committees on ways and means for review 45 days prior to adopting a budget in excess of 103 per cent of the prior year expenditure. At least thirty days prior to the adoption of said budgets the boards shall file said budgets with the house and senate committees on ways and means and the joint committee on public service.
(b) Pension funds of the state employees’ retirement system and the teachers’ retirement system. — The state board of retirement and the teachers’ retirement board, on or before October fifteenth in each year, shall furnish the actuary with such information as he may require to enable him to determine the amount to be distributed from the Commonwealth’s Pension Liability Fund to the pension funds of said systems, for the fiscal year commencing on the next following July first. The actuary shall, on or before December fifteenth immediately preceding such fiscal year, determine such amount and specify in a written notice to said boards the amounts so required. Upon the receipt of such notice, said board shall certify forthwith to the PRIM board the amounts necessary to be distributed and paid for such fiscal year for the Pension Fund and the special fund for military service credit of the respective system. The amounts necessary to be appropriated and paid for such fiscal year by the commonwealth for said Commonwealth’s Pension Liability Fund shall be determined in accordance with the funding schedule adopted by the commissioner of administration pursuant to section twenty-two C, and items of appropriation for such amounts shall be included in the appropriations for such fiscal year for the PRIM board or such department as the commissioner of administration shall determine to be allocated to the Commonwealth’s Pension Liability Fund.
(c) Systems for Counties, Cities and Towns. — (i) The retirement board of each county, city or town contributory retirement system maintained under the provisions of sections one to twenty-eight inclusive, shall, on or before October fifteenth in each year, furnish the actuary with such information as he may require to enable him to determine the amount to be paid for the pension fund thereof for the fiscal year commencing on the next following July first. The actuary shall, on or before the December fifteenth immediately preceding such fiscal year, determine such amount and specify in a written notice to said board the amount so required to be paid; provided, however, that any community which has a valid and current actuarial report shall only appropriate the amount specified in their actuarial report and the actuary shall not require a larger amount to be appropriated. The amounts to be paid for the three aforesaid funds of any such system for any such fiscal year, shall be allocated to each governmental unit the employees of which are members of any such system, in the proportion that the aggregate of the annual rates of regular compensation of all members in service of such system who are employees of any such government unit at the close of business on the September thirtieth immediately preceding such fiscal year, bears to the total of such aggregates for all members in service of such system on such date.
(ii) The board of each such county contributory retirement system shall, on or before the January first next following the receipt of such notice from the actuary, certify to the county commissioners of any such county the amounts necessary to be paid for such fiscal year for the three aforesaid funds of any such system by each governmental unit the employees of which are members thereof. Items of appropriation providing for any such amounts allocated to such county shall be included in the appropriations for such fiscal year for such county for the several funds of such system. Any such amounts allocated to any hospital district the employees of which are members of such system, shall be assessed by such county commissioners in the following May, with the assessments for maintenance of such hospital district made in accordance with section eighty-five of chapter one hundred and eleven, and shall be collected in the same manner as therein provided and paid to the treasurer-custodian of such system to be credited to the several funds thereof. Such county commissioners shall, upon the receipt of such certification from such county retirement board, certify forthwith to the board of selectmen of each town and to the treasurer or other disbursing officer of each district the employees of which in either case are members of such system, the amounts which have been allocated to such town or district and the amounts so certified shall be appropriated and paid thereby to the treasurer-custodian of such system to be credited to the several funds thereof. Payments by towns and districts hereunder shall be made one half on the first day of July next following and the remainder on the first day of the following January.
(iii) The board of each such city or town contributory retirement system shall, on or before the January first next following the receipt of such notice from the actuary, certify to the mayor in a city or to the board of selectmen in a town, as the case may be, and to the treasurer or other disbursing officer of each district the employees of which are members of any such system, the amounts necessary to be paid for such fiscal year for the three aforesaid funds of such system which have been allocated to such city, town or district, and the amounts so certified shall be appropriated and paid thereby to the treasurer-custodian of such system to be credited to the several funds thereof. Such amounts as the actuary deems necessary to cover the requirements of any such system for the period prior to the date when the first regular annual appropriation is due from any governmental unit the employees of which become eligible for membership in such system, shall be paid into the several funds thereof by special appropriations of such governmental unit.
(iv) If any governmental unit fails to include any amounts so certified in its appropriations for such fiscal year, the assessors or other taxing authorities shall nevertheless include such amounts in the next tax levy. All amounts so certified shall be a legal obligation of any such governmental unit and may be recovered in an action of contract by the retirement board of any such contributory retirement system.
(d) Such amounts as are necessary to cover the requirements or meet any deficiencies of any fund of any system prior to the date when an appropriation or assessment is available, shall be paid from any available funds in the treasury of the governmental unit obligated by law to support such system and charged against the next regular appropriation or assessment, as the case may be.
(e) Massachusetts Turnpike Authority Employees’ Retirement System. — The retirement board of the Massachusetts Turnpike Authority employees’ retirement system shall, on or before October fifteenth in each year, furnish the actuary with such information as he may require to enable him to determine the amount to be paid for the pension fund of such system by the authority for the fiscal year commencing on the next following January first. The actuary shall, on or before the December fifteenth immediately preceding such fiscal year, determine such amount and specify in a written notice to said board the amount so required to be paid. The board shall, at least ten days before the January first next following the receipt of such notice from the actuary, certify to the authority the amounts necessary to be paid for such fiscal year for the three aforesaid funds of such system and the amounts so certified shall be included by appropriate items in the authority’s budgets for such fiscal year and shall be paid by the authority to the treasurer-custodian of such system to be credited to the several funds thereof. Such amounts as the actuary deems necessary to cover the requirements of the retirement system for the period prior to the date when the first regular annual payment is due from the authority shall be paid into the several funds thereof by special payments of the authority.
(f) Massachusetts Bay Transportation Authority Police Retirement System. — The retirement board of the Massachusetts Bay Transportation Authority police retirement system shall on or before October fifteenth in each year, furnish the actuary with such information as he may require to enable him to determine the amount to be paid for the pension fund of such system by the authority for the fiscal year commencing on the next following January first. The actuary shall, on or before the December fifteenth immediately preceding such fiscal year, determine such amount and specify in a written notice to said board the amount so required to be paid. The board shall, at least ten days before the January first next following the receipt of such notice from the actuary, certify to the authority the amounts necessary to be paid for such fiscal year for the three aforesaid funds of such system and the amounts so certified shall be included by appropriate terms in the authority’s budget for such fiscal year and shall be paid by the authority to the treasurer-custodian of such system to be credited to the several funds thereof. Such amounts as the actuary deems necessary to cover the requirements of the retirement system for the period prior to the date when the first regular annual payment is due from the authority shall be paid into the several funds thereof by special payments of the authority.
(g) Massachusetts Housing Finance Agency Employees’ Retirement System. — The retirement board of the Massachusetts Housing Finance Agency employees’ retirement system shall, on or before October fifteenth in each year, furnish the actuary with such information as he may require to enable him to determine the amount to be paid for the pension fund of such system by the agency for the fiscal year commencing on the next following January first. The actuary shall, on or before the December fifteenth immediately preceding such fiscal year, determine such amount and specify in a written notice to said board the amount so required to be paid. The board shall, at least ten days before the January first next following the receipt of such notice from the actuary, certify to the agency the amounts necessary to be paid for such fiscal year for the three aforesaid funds of such system and the amounts so certified shall be included by appropriate items in the agency’s budgets for such fiscal year and shall be paid by the agency to the treasurer-custodian of such system to be credited to the several funds thereof. Such amounts as the actuary deems necessary to cover the requirements of the retirement system for the period prior to the date when the first regular annual payment is due from the agency shall be paid into the several funds thereof by special payments of the agency.
(h) The retirement board of the Massachusetts Port Authority employees’ retirement system shall, on or before October fifteenth in each year, furnish the actuary with such information as he may require to enable him to determine the amount to be paid for the pension fund of said system by the Authority for the fiscal year commencing on the next following July first. The actuary shall, on or before the December fifteenth immediately preceding such fiscal year, determine such amount and specify in a written notice to said board the amount so required to be paid. The board shall, at least ten days before the January first next following the receipt of such notice from the actuary, certify to the Authority the amount necessary to be paid for such fiscal year for the three aforesaid funds of said system and the amount so certified shall be included by appropriate items in the Authority’s budgets for such fiscal year and shall be paid by the Authority to the treasurer-custodian of said system in twelve equal monthly installments to be credited to the several funds thereof. Such amounts as the actuary deems necessary to cover the requirements of the retirement system for the fiscal year prior to the beginning of the next fiscal year after this section shall become effective shall be paid into the several funds thereof in equal monthly installments by special payments of the Authority.
(i) The retirement board of the Greater Lawrence Sanitary District employees’ retirement system shall, on or before October fifteenth in each year, furnish the actuary with such information as he may require to enable him to determine the amount to be paid for the pension fund of said system by the Greater Lawrence Sanitary District for the fiscal year commencing on the next following January first. The actuary shall, on or before the December fifteenth immediately preceding such fiscal year, determine such amount and specify in a written notice to said board the amount so required to be paid. The board shall, at least ten days before the January first next following the receipt of such notice from the actuary, certify to the district the amount necessary to be paid for such fiscal year for the three aforesaid funds of said system and the amount so certified shall be included by appropriate items in the district budgets for such fiscal year and shall be paid by the district to the treasurer-custodian of said system in twelve equal monthly installments to be credited to the several funds thereof. Such amounts as the actuary deems necessary to cover the requirements of the retirement system for the fiscal year prior to the beginning of the next fiscal year after this section shall become effective shall be paid into the several funds thereof in equal monthly installments by special payments of the Authority.
(j) The Blue Hills Regional Vocational School employees’ retirement system. The retirement board of the Blue Hills Regional Vocational School employees’ retirement system shall, on or before October fifteenth in each year, furnish the actuary with such information as he may require to enable him to determine the amount to be paid for the pension fund of such system by the Authority for the fiscal year commencing on the next following July first. The actuary shall, on or before the December fifteenth immediately preceding such fiscal year, determine such amount and specify in a written notice to said board the amount so required to be paid. The Board shall, at least ten days before the January first next following the receipt of such notice from the actuary, certify to the Authority the amount necessary to be paid for such fiscal year for the three aforesaid funds of such System and the amount so specified shall be included by appropriate items in the Authority’s budgets for such fiscal year and shall be paid by the school system to the treasurer-custodian of such system in twelve equal monthly installments to be credited to the several funds thereof. Such amounts as the actuary deems necessary to cover the requirements of the retirement system for the fiscal year prior to the beginning of the next fiscal year after this section shall become effective shall be paid into the several funds thereof in equal monthly installments by special payments of the school system.
(k) The retirement board of the Minuteman Regional Vocational Technical School District employees’ retirement system shall, on or before October fifteenth in each year, furnish the actuary with such information as he may require to enable him to determine the amount to be paid for the pension fund of said system by the school district for the fiscal year commencing on the next following July first. The actuary shall, on or before the December fifteenth immediately preceding such fiscal year, determine such amount and specify in a written notice to said board the amount so required to be paid. The board shall, at least ten days before the January first next following the receipt of such notice from the actuary, certify to the school district the amount necessary to be paid for such fiscal year for the three aforesaid funds of said system and the amount so certified shall be included by appropriate items in the school district’s budgets for such fiscal year and shall be paid by the school district to the treasurer-custodian of said system in twelve equal monthly installments to be credited to the several funds thereof. Such amounts as the actuary deems necessary to cover the requirements of the retirement system for the fiscal year prior to the beginning of the next fiscal year after this section shall become effective shall be paid into the several funds thereof in equal monthly installments by special payments of the school district.
(8) PRIT Fund — (a) There shall be a Pension Reserves Investment Trust Fund administered by the PRIM board established in section twenty-three for the purpose of depositing, investing and disbursing amounts set aside to meet further liabilities of the various systems. The assets of the state employees’ and teachers’ retirement systems shall be held in the PRIT Fund.
(b) All amounts which the state may appropriate each year subsequent to January first, nineteen hundred and eighty-four pursuant to section twenty-two B to meet unfunded pension liabilities shall be deposited in the PRIT Fund and credited to the account of the state employees’ retirement system, the teachers’ retirement system and other participating systems as follows: the amount determined for each system shall be proportionate to the amount of assets of each system participating in the PRIT Fund as of July first for each fiscal year beginning on such date; provided, however, that for the purposes of this paragraph the amount of the combined assets of the state employees’ and teachers’ retirement systems shall be deemed not to exceed eighty percent of the total amount of the assets in the PRIT Fund as of June thirtieth, nineteen hundred and eighty-seven; and provided further, that a system electing to participate in the PRIT Fund after January first, nineteen hundred and eighty-eight shall receive the greater of either the system’s share of the state appropriation pursuant to section twenty-two B or the amount the system would receive in an annual pension funding grant pursuant to section twenty-two D. Systems which elected to participate in the PRIT Fund on or before January first, nineteen hundred and eighty-eight and which are eligible to receive an annual pension funding grant from the commonwealth pursuant to section twenty-two D shall receive an amount equal to such system’s share of the state appropriation pursuant to section twenty-two B in addition to the amount such system would receive in an annual pension funding grant pursuant to section twenty-two D. The amounts so determined for each participating system and an amount equal to the regular interest on assets in the PRIT Fund shall be credited to the several retirement systems.
(c) Upon notification by the chief executive officer and legislative body of a governmental unit of a decision to participate, systems shall transfer ownership and control of all the assets of the system to the PRIM board. The PRIM board shall hold such assets in trust for the participating systems. The PRIM board shall credit assets and earnings on such assets to the individual systems. The PRIM board shall calculate regular interest as defined in subdivision (6) to allocate earnings among the various funds of each system. The board of each system shall continue to administer the system in accordance with sections one to twenty-eight, inclusive, including the maintenance of accounts in accordance with the funds provided for in this section. The PRIM board shall transfer monies to the various funds of the participating systems to allow them to carry out their duties under this chapter. The board of each participating system shall notify the PRIM board of the amounts needed for the various funds for the next fiscal year no later than ninety days before the start of the next fiscal year. The PRIM board shall develop a schedule of transfers to be made to said systems during the next fiscal year and notify the systems of that schedule no later than thirty days prior to the start of the next fiscal year. The PRIM board shall transfer such amounts in accordance with said schedule during the course of said fiscal year. From time to time such boards may make supplemental requests of the PRIM board if the initial request is found to be insufficient. Within thirty days of such request, the PRIM board shall approve or deny such request. Any denial of such a request must be accompanied by a written statement of the reasons therefor.
The procedure for determining participation shall occur as follows: on or before January first of each year, the PRIM board shall notify each system in writing of their option to participate in the PRIT Fund. Such notice shall be accompanied by a financial report and a description of the rights and duties of the PRIM board if a system elects to participate. The decision to participate shall be made by the board of each system, subject to the approval of the legislative body and the chief executive officer of each governmental unit. The decision of the board shall be deemed to have been approved unless the legislative body and the chief executive officer act to disapprove such decision by July first of the year in which the decision of such board is made. The board of each system shall notify the PRIM board and the appropriate legislative body and chief executive officer by May first of each year of its decision.
For any system which is receiving an annual pension funding grant from the commonwealth pursuant to the provisions of section twenty-two D in which the annualized time-weighed-rate of return is less than the assumption for investment rate of return approved by the actuary in the most recent actuarial valuation for the system, over any five year cycle, and said time-weighed-rate of return is less than the annualized time-weighed-rate of return for the pension reserve investment trust fund, over any five year cycle, the commission shall notify the PRIM board and the appropriate legislative body, chief executive officer, and the board of said system shall be deemed to have voted to participate.
After the decision of a board of a system to participate has been approved, the decision to participate may not be revoked for five years. Such revocation shall become effective six months after the PRIM board receives notification of such decision by such board. For purposes of this section, “legislative body” shall mean a town meeting in a town, the city council in a city, the county advisory board in a county, the district members in a district, and the members of an authority in an authority. For purposes of this section, “chief executive officer” shall mean the board of selectmen in a town, the mayor in a city, except in a city with plan D or plan E form of government it shall mean the city manager, municipality with a council form of government, the town manager and the county commissioners in a county. In a district or in an authority, “chief executive officer” shall mean the members of such district or authority. A system may purchase offerings of the PRIT Fund in accordance with paragraph (b) of subdivision (2) of section twenty-three without becoming a participating system for purposes of this section.
(d) The amounts in the PRIT Fund shall be invested and managed in accordance with the authority of the PRIM board as created in section twenty-three. Amounts in the PRIT Fund shall be transferred back to each system for withdrawal or payment to members as otherwise provided by sections one to twenty-eight, inclusive.
All other amounts shall be distributed to each system during such calendar years as the actuary shall determine pursuant to subdivision (6A). Such distributions shall be transferred to the pension fund of each system for such year. On March first, nineteen hundred and eighty-four and each subsequent calendar year, the public employee retirement administration commission shall publish a report of the projected schedule of distribution of amounts from the PRIT Fund, as developed by the actuary, and file such report with each system, with the commissioner of administration, and with the house and senate committees on ways and means.
(e) There shall be a Commonwealth’s Pension Liability Fund which shall be within the PRIT Fund and to which shall be credited all assets of the state employees’ and teachers’ retirement systems, other than assets credited to the systems’ Annuity Savings Funds, Annuity Reserve Funds and expense funds. Except for transfers to and from the Annuity Savings Funds, Annuity Reserve Funds and expense funds of such systems in accordance with the provisions of sections one to twenty-eight, inclusive, all transfers of funds to or from such systems shall be made to or from the Commonwealth’s Pension Liability Fund as provided herein. All amounts required by the pension funds and special funds for military service credit of such systems and all amounts required by the separate funds for such systems established by section 104, excluding any employee contributions paid into the fund established by paragraph (a) of section 104, shall be provided by distribution of such amounts from the Commonwealth’s Pension Liability Fund. Any such distribution shall be detailed in a written report by the commissioner of administration and filed in advance with the house and senate committees on ways and means. Except as otherwise provided in this subdivision or section 104, and subject to the provisions of the operating trust agreement adopted by the PRIM board pursuant to subdivision (2A) of section 23, any such distribution shall be made pursuant to sections 1 to 28, inclusive.
Amounts in the Commonwealth’s Pension Liability Fund shall include, but not be limited to, the following:(i) all amounts appropriated by the commonwealth to meet its pension liabilities, including amounts appropriated pursuant to clause (a) of the third paragraph of section twenty-one of chapter one hundred and thirty-eight, the state share of amounts appropriated pursuant to section twenty-two B and amounts appropriated pursuant to section twenty-two C; provided, however, that the state treasurer may act as agent of the PRIM board to disburse benefit payments pursuant to any such appropriation;(ii) all monies recovered for the cost of pension fringe benefits from federal grant funds pursuant to section six B of chapter twenty-nine;(iii) all monies recovered from federal grant funds pursuant to section five D of chapter forty for the cost of teachers’ pension benefits;(iv) all monies transferred from the Annuity Reserve Funds of the state employees’ and teachers’ retirement systems pursuant to paragraph (d) of subdivision (2) or from the investment accounts of such systems pursuant to clause (iii) of paragraph (a) of subdivision (6);(v) all undistributed accumulated total deductions for the state employees’ and teachers’ retirement systems transferred pursuant to subdivision (3) of section eleven; and(vi) all assets of the state employees’ and teachers’ retirement systems except assets credited to such systems’ expense funds, Annuity Savings Funds and Annuity Reserve Funds.
(9) In order to offset the anticipated costs for funding a county contributory retirement system, any governmental unit participating in the system may appropriate in any year an amount not exceeding five per cent of the amount raised in the preceding year by assessment under clause (i) of paragraph (c) of subdivision (7). Any interest shall be added to and become part of such special fund.
Such special fund shall be separate and distinct from any pension financing requirements of this chapter and all sums in such special fund shall be appropriated and used only for the purpose of offsetting the anticipated future cost of funding the contributory retirement system.
The treasurer of the governmental unit making the appropriation shall be the custodian of all funds deposited pursuant to this subdivision. Such funds may be invested in the same manner as retirement system funds pursuant to subdivision (2) of section twenty-three.
Such funds may be utilized in accordance with the provisions of subdivision (6A), or, subject to the approval of the actuary, in accordance with the provisions of paragraph (c) of subdivision (7), or subdivision (3) of section twenty-two D.
(10) Each governmental unit to which a system pertains and any free public library the employees of which are eligible for membership in a system, pursuant to the provisions of section four hundred and fourteen (h) (2) of the United States Internal Revenue Code, shall assume and pay the contributions which would be payable by the employees as members under paragraph (b) of subdivision (1). Such contributions, although designated as employee contributions, will be paid by the applicable governmental unit or free public library employing the employee in lieu of contributions by the employee. No employee will have the option of choosing to receive such contributed amounts directly instead of having them paid by the employing governmental unit or free public library to the applicable system. The contributions so assumed shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code. The contributions so assumed shall be treated and identified, without limitation, as member contributions for all purposes of the retirement system, except as specifically provided to the contrary in this subdivision, and for all purposes of chapter sixty-two.
Employee contributions assumed pursuant to this subdivision shall be paid from the same source of funds used for the payment of compensation to an employee. A deduction shall be made from an employee’s compensation equal to the amounts of the employee’s contributions assumed by the employer. This deduction, however, shall not reduce the employee’s compensation for purposes of computing benefits under the retirement system pursuant to this chapter or for purposes of determining any other employee benefits. Assumed contributions shall be transferred to the retirement system of which the employee is a member in accordance with the provisions of paragraph (h) of subdivision (1) and shall be credited to a separate fund within the employee’s account in the Annuity Savings Fund of such system in order that the amounts contributed prior to the effective date for the assumption of employee contributions may be distinguished from the amounts contributed on or after the date on which the governmental employer is required by law to assume the employee’s contributions.
Section 22B. In each fiscal year, the governor shall recommend to the general court an appropriation to be set aside in the PRIT Fund to reduce the unfunded pension liability of retirement systems participating in said fund pursuant to section twenty-two. Such recommendation shall be equal to or greater than one point three per cent of the total amount appropriated for the salaries of permanent and temporary state employees in subsidiary accounts “01” and “02”, so called, in such fiscal year.
funding schedules; appropriations Section 22C. (1) In each fiscal year, there shall be transferred from the General Fund by the comptroller, without further appropriation, to the Commonwealth’s Pension Liability Fund the amount necessary to fully fund the system as determined by the schedule set forth in this section, including, without limitation, the amounts required under section 104. The comptroller may make such transfer in increments during the fiscal year as he deems appropriate to meet the cash flow needs of the commonwealth. The first such funding schedule shall be filed by the commissioner not later than March 1, 1988 and subsequent schedules shall be prepared pursuant to this section relating to the establishment of funding schedules and filed triennially on or before January 15. Said funding schedule shall be established and updated from time to time by said commissioner after reviewing the periodic actuarial valuation reports required by section twenty-one and such other reports as may be prepared pursuant to section thirty-five H of chapter ten; provided, however, that the house and senate committees on ways and means shall have reviewed and approved in advance the actuarial, economic, and demographic assumptions upon which said actuarial valuation reports and such other reports are based, and the manner and methodology used in the development of the actuarial reports and recommendations, prior to the consideration of said actuarial valuation, reports, and schedules by the general court. Said commissioner shall establish said schedule such that the increase in the amortization component of the appropriations or transfers required by this section from year to year shall not exceed seven and one-half per cent.
Said funding schedule, and any future updates thereto, shall be designed to reduce the unfunded actuarial liability attributable to the commonwealth’s pension liability as of January first, nineteen hundred and eighty-seven to zero as of June thirtieth, two thousand and 23 and to meet the normal cost of all future benefits for which the commonwealth is obligated, and to meet any other component of the commonwealth’s pension liability, as defined in section one. Updates of the funding schedule required by changes in the projected unfunded actuarial liability as determined by any periodic actuarial valuation report pursuant to section twenty-one, may reflect the further amortization time periods authorized by said section twenty-one; provided, however, that the senate committee on ways and means shall have reviewed and that the house committee on ways and means shall have approved in advance the actuarial, economic, and demographic assumptions upon which said actuarial valuation reports and such other reports are based, and the manner and methodology used in the development of the actuarial reports and recommendations, prior to the consideration of said actuarial valuation, reports, and schedules by the general court. The first such funding schedule shall be filed by said commissioner not later than March first, nineteen hundred and eighty-eight and subsequent schedules shall be prepared pursuant to the provisions of this section relating to the establishment of funding schedules and filed triennially on March first. If, within forty-five days of such filing, the house committee on ways and means has taken no action to approve or disapprove any such schedule, such schedule shall be deemed to have been approved. If said schedule is not so approved such payments or transfers shall be made in accordance with the most recent three year actuarial valuation which was so approved; provided, that such payments shall be an amount which is not less than the then previous year’s appropriations, or transfers.
Notwithstanding any general or special law to the contrary, appropriations or transfers made to the commonwealth’s pension liability fund in fiscal years 2005 to 2007, inclusive, shall be made in accordance with the following funding schedule: $1,216,936,000 in fiscal year 2005, $1,274,675,000 in fiscal year 2006 and $1,335,176,000 in fiscal year 2007.
(2) In addition to the annual appropriation required to meet the commonwealth funding schedule established pursuant to subdivision (1), the governor shall recommend an additional appropriation to the Commonwealth’s Pension Liability Fund to further reduce the commonwealth’s unfunded pension liability. Such additional appropriation shall be determined to be the amount which when added to the appropriation required pursuant to said subdivision (1) is equal to the sum of all retirement benefits paid by the commonwealth pursuant to this chapter for the state employees’ and teachers’ retirement systems, reimbursements to local retirement systems for pension obligations which the commonwealth has assumed on behalf of such systems, and the employer normal cost as determined in the most recent actuarial valuation report pursuant to section twenty-one for the state employees’ and teachers’ retirement systems. If the governor determines that funds are not available to allow recommendation of all of the additional appropriation required by this subdivision, the governor shall file a statement with the clerks of the senate and house of representatives supporting such determination. In such event, the governor shall determine the amount of available funds and shall recommend an additional appropriation as equal as possible to the amount required by this subdivision. Amounts required to fund the commonwealth’s pension liability pursuant to this subdivision shall be subject to appropriation and shall not be subject to the provisions of section twenty-five.
(3) In addition to the funding schedule updates filed triennially beginning on March first, nineteen hundred and ninety, the commissioner of administration shall file also an advanced funding schedule which, notwithstanding the provisions of the definition of the commonwealth’s funding schedule as appearing in section one, or the provisions of subdivision (1) of section twenty-one or of this section, shall not include in the calculation of the annual appropriations required to meet said schedule the amounts, if any, which have been appropriated to the Commonwealth’s Pension Liability Fund pursuant to subdivision (2) as additional appropriations to reduce the unfunded pension liability, nor the amounts, if any, by which the actual investment return on the assets of the state employees’ retirement system, the teachers’ retirement system, and the Commonwealth’s Pension Liability Fund exceed the return which would have been realized under the interest assumption utilized in the actuarial evaluation used to establish the most recently approved commonwealth funding schedule; provided, however, that any such amounts may be included in establishing a funding schedule pursuant to this section in any year in which the required actuarial valuation indicates that there is no remaining unfunded commonwealth pension liability.
(4) In each fiscal year, the governor shall recommend to the general court in addition to the appropriation pursuant to subdivision (1), such additional amount as may be required to meet the advanced funding schedule established pursuant to subdivision (3). Amounts required to fund the commonwealth’s pension liability pursuant to this subdivision shall be subject to appropriation and shall not be subject to the provisions of section twenty-five.
establishment; annual pension funding grants Section 22D. (1) Systems other than the state employees’ retirement system and the teachers’ retirement system, upon notification by the legislative body of a governmental unit of a decision to accept the provisions of this section, shall establish a retirement system funding schedule, subject to the approval of the actuary, which shall provide for an increase in the amortization component of the appropriations required by such schedule from year to year that shall not exceed four and one-half per cent; provided, however, that no such funding schedule shall be adopted which would reduce the value of the pension reserve fund as of January first, nineteen hundred and eighty-eight, increased annually by an amount equal to the actuarial assumption of the rate of investment return approved by the actuary in the most recent three year valuation for the system in any of said schedules first six years. In each fiscal year the governmental units within such a retirement system shall appropriate to the Pension Fund and Pension Reserve Fund of such system and, if applicable, to 1 or both of the separate funds described in section 104 the amount necessary to fully fund the system, including, without limitation, any amounts required by section 104, pursuant to that schedule. The funding schedule shall be reviewed from time to time by the actuary after reviewing periodic actuarial valuation reports required by section 21 and such other reports as may be prepared pursuant to section 35H of chapter 10 and other provisions of law. Said funding schedule, and any future updates thereto, shall be designed to reduce the unfunded actuarial liability of each system accepting the provisions of this section as of January 1, 1983 to zero as of June 30, 2028; provided, however, that in the event that a system has accepted the provisions of section 102, the funding schedule, and any updates thereto, shall be designed to reduce the unfunded actuarial liability of said system to zero as of such year as the commission shall approve. Updates of the funding schedule required by changes in the projected unfunded actuarial liability as determined by any periodic actuarial valuation report pursuant to section 21 or resulting from the acceptance by a system of the provisions of section 103, may reflect the further amortization time periods authorized by said section 21 and said section 103 but shall not contravene the provisions of this section which relate to the establishment of total annual payments and the reduction in value of the pension reserve fund.
The procedure for determining whether a system has accepted this section shall occur as follows: On or before January first of each year prior to nineteen hundred and ninety-five the commission shall notify the legislative body of each governmental unit in writing of its option to accept. For purposes of this section, “legislative body” shall mean a town meeting in a town, the city council in a city, the district members in a district, and the members of an authority in an authority. In a county, for the purposes of this section, “legislative body” shall mean the town meeting of every town which is a member of the county system, the county commissioners on behalf of the county, and the district as provided in subdivision (4) of section twenty-eight, with the vote of each governmental unit the employees of which are members of any such system weighted in the proportion that the aggregate of the annual rates of regular compensation of all members in service of such system who are employees of any such governmental unit at the end of business on the September thirtieth immediately preceding the date on which any such vote is taken bears to the total of all such aggregates for all members in service of such system on such date.
The notice from the commission shall be accompanied by a description of the rights and duties of the governmental unit if it elects to accept this section and become a funding system. The decision to become a funding system shall be made by the legislative body of each governmental unit. A majority vote of the city council, town meeting, district or authority members shall enroll a city, town, district or authority retirement system. In counties, the department of revenue after consultation with the Massachusetts Municipal Association, shall review the commissioner’s report within sixty days and make a recommendation for the consideration of town meetings of the town and the district meetings of the districts which are within each county retirement system, and of the county commissioners of each such system. A majority of the votes as weighted pursuant to this section shall constitute acceptance for a county retirement system.
Systems may accept this section between January first, nineteen hundred and eighty-eight and June thirtieth, nineteen hundred and ninety-four. The clerk of the legislative body in a governmental unit within a city, town or district retirement system shall notify the retirement board and the commission, of a decision to accept. The clerk of each governmental unit within a county system shall notify the county retirement board and the commission of any action by such governmental unit.
A decision to accept this section may not be revoked.
(2) In any system accepting the provisions of this section, the governmental units comprising such system shall identify enterprise operations with independent revenue sources from which pension costs may be recovered through fees, rates or charges. Notwithstanding any provision of law to the contrary, such systems are authorized to recover such pension costs. Any costs so recovered shall be transferred to the pension reserve fund.
(3) In establishing the funding schedule pursuant to subdivision (1), any pension reserve fund or funds appropriated pursuant to section five D of chapter forty as of July first, nineteen hundred and eighty-six, and interest earned thereon, shall not be included as assets of the retirement system. Such funds and earned interest, shall remain to the credit of the system or in the case of funds appropriated pursuant to said section five D by any city, town or district which belongs to a county system, to the credit of such city, town or district, as applicable, to be utilized to defray such unit’s annual pension appropriation obligation pursuant to this chapter. Transfer of such pension reserve funds to defray pension appropriations shall be made only upon a schedule approved by the actuary pursuant to the provisions of this section which relate to the establishment of total annual benefit payments, and the reduction in value of the pension reserve fund which shall be designed to reduce the annual growth in such annual pension appropriation over the forty-year funding schedule.
(4)(a) Any city or town or county system for which a funding schedule has been adopted and approved pursuant to paragraphs (a) and (b) shall receive annual pension funding grants from the commonwealth until the sixteenth year after the first year of said schedule, so as to reduce the amount which the city or town or the member units of the county system would otherwise be required to appropriate pursuant to such funding schedule in every fiscal year beginning with the fiscal year ending on June thirtieth, nineteen hundred and ninety.
(b) The total pension funding allocation in any such fiscal year shall be equal to the increase in revenues in the net sum of; five per cent of the increase in revenues over the previous fiscal year in the net sums received under chapter sixty-two as taxes on income, interest thereon and penalties, including payments made on account thereof under chapter sixty-two B, plus five per cent of the increase in revenues over the previous fiscal year in the net sums received under sections thirty to fifty-one, inclusive, of chapter sixty-three, as excises, interest thereon or penalties, including payments made on account thereof under chapter sixty-three B, plus five per cent of the increase in revenues over the previous fiscal year in the net sums received under chapter sixty-four H and sixty-four I, as excises, upon the sale at retail of tangible personal property and upon the storage, use or other consumption of tangible personal property, interest thereon or penalties.
(c) The pension funding grant in any such fiscal year for each city or town or member unit of a county system will equal the total pension funding allocation determined pursuant to paragraph (b), multiplied by a fraction the numerator of which is the total funding contribution for the city or town for such fiscal year pursuant to paragraph (a) multiplied by itself and divided by one hundred two and one-half per cent of the city or town’s actual property tax levy for the then previous fiscal year and the denominator of which is the sum of the quotient so derived as the numerator for all cities and towns or member units of county systems; provided, however, that a system electing to participate in the Pension Reserve Investment Trust Fund after January thirtieth, nineteen hundred and eighty-eight, shall receive greater of either the systems share of the state appropriation pursuant to subdivision (8) of section twenty-two, or the amount the system would receive in an annual pension funding grant pursuant to this section. Systems which elected to participate in the pension reserve fund or before January first, nineteen hundred and eighty-eight, and which are receiving an annual pension funding grant from the commonwealth pursuant to the provision of this section, shall receive an amount equal to such system’s share of the state appropriation pursuant to said subdivision (8) in addition to the amount such system would receive in an annual pension funding grant pursuant to the provisions of this section. The total amount of the pension funding grant received by a city or town in a fiscal year shall be appropriated to the Pension Reserve Fund of such system.
(d) In each fiscal year the governmental units within each retirement system shall appropriate to the Pension Reserve Fund of the system the difference between the amount set forth for such fiscal year on a funding schedule adopted pursuant to paragraph (a) which pertains to the system and the amount of the pension funding grant appropriated to such Pension Reserve Fund for such fiscal year.
(5) Any system accepting any annual pension funding grant pursuant to this section shall transmit to each active and retired member, and to any other person actually receiving any benefit pursuant to this chapter, a copy of the annual report required by subdivision (5) of section twenty.
(6) Any system accepting any annual pension funding grant pursuant to this section shall be deemed to have accepted the ten year vesting provision provided for in subdivision (1) of section six.
(7) Any system accepting any annual pension funding grant pursuant to this section shall be deemed to have accepted the supplemental dependent allowance provided for in clause (iii) of paragraph (a) of subdivision (2) of section seven.
(8) Any system accepting any annual pension funding grant pursuant to this section shall be deemed to have accepted the provisions of section ninety G 1/2.
(9) Any system accepting any annual pension funding grant pursuant to this section shall be deemed to have accepted the fitness and wellness provisions of section sixty-one A of chapter thirty-one and section sixty-one B of chapter thirty-one, and of paragraph (e) of subdivision (3) of section five and section five A.
(10) Any system accepting any annual pension funding grant pursuant to this section shall be deemed to have accepted the provisions relative to the application of section fifty of chapter three hundred and sixty-seven of the acts of nineteen hundred and seventy-eight provided for in paragraph (b 1/2) of section twenty-two.
(11) Notwithstanding any other provision of this section or of any other general or special law, any system accepting the provisions of this section shall not be required to appropriate the normal cost of any benefits accepted under subdivision (6), (7), (8), (9) or (10) for any year prior to the fiscal year in which the first annual pension assistance grant is payable to such system; provided, further, that annual pension assistance grants shall be payable only to systems which received their first annual pension assistance grants prior to July first, nineteen hundred and ninety-one.
Section 23. (1) The funds of the state employees’ and teachers’ retirement systems shall be held in the PRIT Fund. The board of each such system shall annually, on or before May first, file in the office of the commissioner, on a form prescribed by the commissioner, a sworn statement of the financial condition of such system as of December thirty-first of the previous year and of all the financial transactions thereof during the previous year. The commissioner may, for cause shown, extend the time for filing any such statement.
(2) Systems for Counties, Cities and Towns. — (a) The county, city or town treasurer, the secretary-treasurer of the Massachusetts Turnpike Authority, the treasurer of the Massachusetts Bay Transportation Authority, the treasurer of the Massachusetts Housing Finance Agency, the secretary-treasurer of the Massachusetts Port Authority, the treasurer of the Blue Hills Regional Vocational School system, the treasurer of the Greater Lawrence Sanitary District, and the treasurer of the Minuteman Regional Vocational Technical School District shall be the treasurer-custodian of the system established under the provisions of sections one to twenty-eight, inclusive, or under corresponding provisions of earlier laws, in any county, city or town, the Massachusetts Turnpike Authority, the Massachusetts Bay Transportation Authority, the Massachusetts Housing Finance Agency, the Massachusetts Port Authority, the Blue Hills Regional Vocational School system, the Greater Lawrence Sanitary District, or the Minuteman Regional Vocational Technical School District, as the case may be, and shall have the custody of the funds of any such system. Payments from such funds shall be made by him only upon vouchers signed by two persons designated by the board of any such system by a vote a duly attested copy of which, bearing upon its face specimen signatures of such persons, shall be filed with the treasurer-custodian as his authority for making payments upon vouchers so signed. No voucher shall be drawn unless it shall have been previously authorized by vote of the board.
(b) The board of each such system shall invest and reinvest the funds of such system, to the extent not required for current disbursements, in the PRIT Fund pursuant to subdivision (8) of section twenty-two, in the PRIT Fund by purchasing shares of said fund, as provided for in the trust agreement adopted by the PRIM board pursuant to subdivision (2A) or as follows:(i) In securities, other than mortgages or collateral loans, which are legal for the investment of funds of savings banks under the laws of the commonwealth; provided that:—(A) Not more than twenty per cent of the assets of any such system shall be invested in railroad obligations, nor shall more than two per cent of said assets be invested in the obligations of any one operating railroad corporation, including its direct and assumed obligations and including the obligations of lessor railroad corporations which derive seventy-five per cent or more of their income from leases of their railroads to said operating railroad corporation.
(B) Not more than thirty-five per cent of the assets of any such system shall be invested in the bonds of the telephone companies, nor shall more than three and one-half per cent of such assets be invested in the bonds of any one telephone company.
(C) Not more than fifty per cent of the assets of any such system shall be invested in the bonds of public service companies, nor shall more than four per cent of such assets be invested in the bonds of any one such corporation.
(D) Not more than fifteen per cent of the assets of any such system shall be invested in obligations made eligible for investments under the provisions of section fifteen B of chapter one hundred and sixty-seven and section forty-nine of chapter one hundred and sixty-eight, in effect on June thirtieth, nineteen hundred and eighty-three and included on the list of investments pursuant to section fifteen A of chapter one hundred and sixty-seven, nor shall more than one per cent of such assets be invested in the obligations of any one obligor so made eligible for investment.
(E) Not more than twenty-five per cent of the assets of any such system shall be invested in bank stocks, bank holding company stocks, and insurance companies stocks, nor shall more than two and one-half per cent of such assets be invested in the stock of any one bank or insurance company.
(ii) In deposits in the savings funds of savings banks organized under the laws of the commonwealth; and(iii) In paid-up shares and accounts of and in co-operative banks.
(iv) In share accounts of federal savings and loan associations located in the commonwealth.
(v) In mortgage pass-through securities and mortgage-backed bonds which are rated Aa or better by Standard and Poor’s or any other independent rating service designated by the investment committee and issued by a mortgage lender, as herein defined, or issued through a conduit pooling of loans of such mortgage lenders. Any corporate trust, as defined in section one of chapter sixty-two, organized and operated exclusively for the purpose of acting as a conduit for pooling such loans under this clause or clause (v) of paragraph (d) of subdivision (1), or both, shall be exempt from taxation under chapter sixty-two.
Each mortgage pass-through security and mortgage-backed bond shall be secured or backed by mortgage loans made or acquired by a mortgage lender on residential real estate located in the commonwealth. Each such loan shall generally meet the standards expected of a reasonably prudent investor.
All proceeds received by a mortgage lender from the sale of mortgage pass-through securities and mortgage-backed bonds to the retirement systems shall be used solely for mortgage loans on real estate located in the commonwealth.
The word “mortgage lender” as used herein, shall mean any savings bank, co-operative bank, credit union, trust company, federal savings and loan association, national banking association or mortgage banking company which is incorporated or maintains an office in the commonwealth; and provided, however, that any savings bank or group of savings banks may participate in the issuance of mortgage pass-through securities and mortgage-backed bonds by the Depositors Insurance Fund, as defined in section one of chapter forty-four of the acts of nineteen hundred and thirty-two, and such pass-through securities and bonds shall otherwise satisfy the criteria prescribed in this clause, and shall represent obligations of said fund and not of any bank or group of banks; provided, further, that any co-operative bank or group of co-operative banks may participate in the issuance of mortgage pass-through securities and mortgage-backed bonds by The Co-operative Central Bank, as defined in section one of chapter forty-five of the acts of nineteen hundred and thirty-two and such pass-through securities and bonds shall otherwise satisfy the criteria prescribed in this clause and shall represent obligations of said central bank and not of any such bank or group of banks; and provided further that any credit union or group of credit unions may participate in the issuance of mortgage pass-through securities and mortgage-backed bonds by the Central Credit Union Fund, Inc.
, as defined in section one of chapter two hundred and sixteen of the acts of nineteen hundred and thirty-two, and such pass-through securities and bonds shall otherwise satisfy the criteria prescribed in this clause, and shall represent obligations of said fund and not of any such credit union or group of credit unions.
(vi) In group annuity contracts or other retirement plan funding agreements issued by a life insurance company authorized to transact business in the commonwealth.
(vii) in shares of one or more combined investment funds approved by the commissioner of banks which invest in accordance with the provisions of subdivision (3) in stocks, bonds, notes and other interest bearing obligations appearing on the list prepared by the commissioner of banks under section fifteen A of chapter one hundred and sixty-seven.
(c) The board of each such system shall designate one or more banks or trust companies, organized under the laws of the commonwealth or of the United States, in which the treasurer-custodian shall keep on deposit such sums as may be required for current disbursements; provided, that any such sum on deposit in any one bank or trust company shall not exceed ten per cent of the amount of the paid-up capital and surplus thereof. The board shall also designate one or more such banks or trust companies in which the securities of the system shall be kept under the name of the retirement system in one or more safe deposit boxes. The board, subject to rules promulgated by the commission, may deposit such securities in a securities depository registered with the Securities and Exchange Commission of the United States. Such securities may be kept under the joint custody of the treasurer-custodian and a member of the board other than the treasurer-custodian, who shall be designated by the board, or such securities may be kept by a custodian who shall be designated by the board, which custodian shall be a bank or trust company, organized under the laws of the commonwealth or of the United States. The board may cause any stock, bond or other security, or cash, of any such system to be registered and held, or deposited and held, in the name of one or more nominees appointed by him for the purpose of facilitating security trading, money management and certificate delivery. The board shall designate the members of any such nominee only from among the following individuals: the assistant treasurers of the respective county, city, or town; any employee of a custodian that is authorized pursuant to this paragraph to have custody of securities or cash of a system; and the treasurer-custodian himself. Each individual so designated shall be covered with respect to his service on behalf of any such nominee by a fidelity bond, in such form and amount as the public employee retirement administration commission may determine, which coverage may be by separate bond or by incorporation in a bond otherwise required by section three of chapter thirty-five, section thirty-five of chapter forty-one, section thirty-nine A of chapter forty-one or other applicable law or practice. Such custodian shall collect the interest and dividends on all securities deposited with it, shall collect all called and matured securities deposited with it, and shall deposit the same in a bank or trust company as directed by the board; shall advise the board of all such deposits, of all stock dividends, rights, calls and maturities of all securities deposited with it; shall purchase, sell, deliver, and receive securities on the order of the board; and shall prepare and deliver to the board a list, at such time as the board may require, of all securities held by it with their current market values. Such custodian may make a reasonable charge for such services.
(d) Any person who assists any board or member thereof in the purchase, sale, investment or reinvestment of the funds of any such system, without the written consent of the public employee retirement administration commission after notice in writing by him to such board or member to desist therefrom as provided for in subdivision (4) shall be punished as provided for in section twenty-four.
(e) The board of each such system shall annually, on or before May first, file in the office of the public employee retirement administration commission, on a form prescribed by him, a sworn statement of the financial condition of such system as of December thirty-first of the previous year and of all the financial transactions thereof during the previous year. The commission may for cause shown extend the time for filing any such statement.
(f) The board may employ any qualified bank, trust company, corporation, firm, or person to advise it on the investment of the fund and may pay for such advice.
(g) Clauses (i) to (vii), inclusive, of paragraph (b) shall not apply to the board of any local retirement system which upon application is determined by the commission to have a record of investment management which merits broader investment powers, provided that:—(i) no funds are to be invested directly in mortgages or in collateral loans;(ii) subsequent to the date of such determination no new investment of funds shall be made in any bank or financial institution which directly or through any subsidiary has outstanding loans to any individual corporation engaged in the manufacture, distribution or sale of firearms, munitions, including rubber or plastic bullets, tear gas, armored vehicles, or military aircraft for use or development in any activity in South Africa, and no new investment of funds shall be made in the stocks, securities or other obligations of any company so engaged; provided, however, that if the board elects to invest in banks, financial institutions or any companies doing business in South Africa, excluding the aforementioned, the board shall review the platform of guiding principles defined in subdivision (5) and monies shall be invested as much as reasonably possible in such banks, financial institutions or companies which have adopted said platform of guiding principles so long as such use is consistent with sound investment policy and no new investment of funds shall be made in stocks, securities or other obligations of any company which derives more than 15 per cent of its revenues from the sale of tobacco products;(iii) subsequent to the date of such determination no new investment of funds shall be made in any bank or financial institution which directly or through any subsidiary has outstanding loans to any individual corporation engaged in the manufacture, distribution or sale of firearms, munitions, including rubber or plastic bullets, tear gas, armored vehicles, or military aircraft for use or development in any activity in Northern Ireland, and no new investment of funds shall be made in the stocks, securities or other obligations of any company so engaged. In making such determination the commission shall consider the diversification of the risk of the investments of such board, the return on the investments of such board, the past performance of the investment portfolio of such board and the extent and quality of professional advice received by such board regarding the investment of funds. Any such board shall invest and reinvest consistent with sound investment policy and the requirements of subdivision (3).
(h) Clauses (i), (ii), and (iii) of paragraph (g) shall apply to any retirement system named in paragraph (a).
(2A) Pension Reserves Investment Management Board. — (a) There shall be an unpaid pension reserves investment management board which shall have general supervision of the investment and reinvestment of the PRIT Fund established under the provisions of subdivision (8) of section twenty-two.
Such board shall consist of nine members as follows: the governor, ex officio, or his designee, the state treasurer, ex officio, or his designee, who shall serve as chairman of the board, a private citizen experienced in the field of investment or financial management appointed by the state treasurer, an employee or retiree who is a member of the state teachers retirement system who shall be elected by the members in or retired from such a system for a term of three years in such a manner as the board shall determine, an employee or retiree who is a member of the state employees’ retirement system who shall be elected by the members in or retired from such system for a term of three years in such a manner as the board shall determine, the elected member of the state retirement board, one of the elected members of the teachers’ retirement board, who shall be chosen by the members of the teachers’ retirement board, a person who is not an employee or official of the commonwealth who shall be appointed by the governor, and a representative of a public safety union who shall be appointed by the governor. The appointed members shall serve for four years. Any vacancy among the appointed members that may occur before the expiration of a term shall be filled by an appointment by the treasurer, or the governor, whoever had the right of making the initial appointment. Any appointed member of the board, including members appointed to fill a vacancy shall be eligible for reappointment. Any appointed member may be removed from his appointment for cause by the treasurer or the governor, whoever had the right of making the original appointment.
(b) Five members of the board shall constitute a quorum. The members of the board shall not receive a salary but shall be reimbursed for actual and necessary expenses. The provisions of chapter two hundred and sixty-eight A shall apply to all members of the board; provided, however, that the board may make investments in which a member has an interest or involvement if, however, such interest or involvement is disclosed in advance to the other members of the board and contemporaneously recorded in the minutes of the board; and provided, further, that no member having such an interest or involvement may participate in any particular matter, as defined in section one of chapter two hundred and sixty-eight A, relating to such investment.
(c) The PRIM board may commingle moneys on deposit in the PRIT Fund for purposes of investment; provided, however, that the board shall maintain appropriate records to account for amounts credited to particular accounts or funds. The PRIM board may offer to purchasing systems, and may allocate to the state employees’ and teachers’ retirement systems, shares in the PRIT Fund which represent undivided interests in specified portions of the assets of the fund rather than undivided interests in the whole.
(d) The PRIM board shall annually on or before May first, file with the clerk of the house of representatives and with the secretary of the retirement board of each system which is a participant in said fund, on a form prescribed by the commission, a sworn statement of the financial condition of said fund as of December thirty-first the previous year. The commission may for cause shown extend the time for filing any such statement.
(e) The PRIM board shall:(i) act as trustees for each participating retirement system for which it invests or manages monies in accordance with the standard of care set forth in subdivision (3); provided, however, that the duties and obligations of the PRIM board and of participating or purchasing systems shall be set forth in a declaration of trust adopted by the PRIM board; and provided, further, that any declaration of trust and any amendments thereto adopted by said board shall be subject to the approval of the joint committee on public service; and provided, further, that if said committee takes no final action relative thereto within forty-five days of the date of the filing thereof with the clerk of the house of representatives and the senate, such declarations of trust and such amendments thereto shall be deemed to be approved;(ii) employ an executive director as provided in paragraph (f);(iii) employ investment advisors, legal counsel, and consultants as it deems necessary;(iv) establish a formula to measure the value of the shares in said fund purchased by or held by participating retirement systems and other purchasing retirement systems;(v) determine and allocate annually to participating and other purchasing retirement systems earnings on shares owned by said systems;(vi) adopt an annual budget and supplemental budgets as deemed necessary by the board subject to the approval of the house and senate committees on ways and means; provided, however, that if the said committees has taken no final action to disapprove any such budget, within sixty days of its being filed with said general court it shall be deemed to be approved; and provided, further, that if the general court disapproves any such budget within such sixty days, said board shall operate under the annualized budgetary level most recently approved pending the filing and subsequent approval of any other such annual or supplemental request;(vii) approve or ratify decisions of the executive director;(viii) formulate policies and procedures deemed necessary and appropriate to carry out its function;(ix) maintain a record of its proceedings;(x) undertake any other activities necessary to implement the duties and powers set forth herein.
(xi) File quarterly, on or before March first, June first, September first, and December first of each year, with the house and senate committee on ways and means and with the joint committee on public service a report detailing brokerage transactions, fees paid to investment consultants and managers, master trustee and custody fees, a detailed investment portfolio analysis describing all holdings in the PRIT Fund, and a budget status report detailing expenses by month; provided, however, that said analysis and said reports shall be made available on the first day of each month upon the request of the chairman of any said committees.
(xii) Assess fees to participating and other purchasing retirement systems for the reasonable and necessary expenses incurred by the board in managing the PRIT Fund, which shall be paid by the board from earnings of the PRIT Fund without appropriation and in conformance with the budgetary levels established pursuant to clause (vi).
(xiii) acts as treasurer–custodian of the PRIT Fund and shall have the custody of the funds and securities of said fund.
(xiv) put a mechanism in place to monitor current market conditions to detect and immediately notify the board of potential high–risk corporate investments, so that the board can take action, when possible, to prevent investment losses.
(f) The PRIM board shall select an executive director who shall serve at the pleasure of the board. The provisions of sections nine A, forty-five, forty-six and forty-six C of chapter thirty, chapter thirty-one, and chapter one hundred and fifty E shall not apply to the executive director or any other employees of the board.
(g) The executive director, shall with the approval of the board:(i) plan, direct, coordinate and execute administrative and investment functions in conformity with the policies and directives of the board;(ii) employ professional and clerical staff as necessary.
(iii) report to the board on all operations under his control and supervision;(iv) require state officials from any department or officials from any participating retirement system to produce and provide access to any financial documents the board deems necessary in the conduct of its investment activities;(v) undertake any other activities necessary to implement the powers and duties set forth herein.
(h) Subject to the approval or ratification of the PRIM board, the executive director shall invest and reinvest such funds held by such board to the extent not required for current disbursements, as much as reasonably possible to benefit and expand the economic climate within the commonwealth so long as such is consistent with sound investment policy and the other requirements of this section; provided, however, that no funds are to be invested directly in mortgages or in collateral loans; provided, further, that no no investment of funds shall be made in any bank or financial institution which directly or through any subsidiary has outstanding loans to any individual corporation engaged in the manufacture, distribution or sale of firearms, munitions, including rubber or plastic bullets, tear gas, armored vehicles, or military aircraft for use or development in any activity in South Africa, and no new investment of funds shall be made in the stocks, securities or other obligations of any company so engaged; provided, further, that if the board elects to invest in banks, financial institutions or any companies doing business in South Africa, excluding the aforementioned, the board shall review the platform of guiding principles defined in subdivision (5) and monies shall be invested as much as reasonably possible in such banks, financial institutions or companies which have adopted said platform of guiding principles so long as such use is consistent with sound investment policy; and provided, further, that no funds are to be invested in any bank or financial institution which directly or through any subsidiary has outstanding loans to any individual corporation engaged in the manufacture, distribution or sale of firearms, munitions, including rubber or plastic bullets, tear gas, armored vehicles, or military aircraft for use or deployment in any activity in Northern Ireland, and no assets shall be invested in the stocks, securities or other obligations of any such company so engaged. No public pension funds under this subdivision shall remain invested in the stocks, securities, or other obligations of any company which derives more than 15 per cent of its revenues from the sale of tobacco products; provided, however, that if sound investment policy so requires, the PRIM board may vote to spread the sale of such stocks, securities or other obligations of such company over no more than three years, so that no less than one-third the value of said investment is sold in any one year. So long as any funds remain invested in any stocks, securities, or other obligations of any such company, the PRIM board shall annually, on or before January 31, file with the clerk of the senate and the clerk of the house of representatives a report listing all such related investments held by the fund and their book value as of the preceding December first. The investment and fund management policies adopted by the PRIM board shall not be subject to any rules or regulations promulgated by the public employee retirement administration commission governing the investment of funds by the retirement boards.
(i) at least two members of the PRIT board shall be minority people, as set forth in the definition of “Minority” contained in section forty C of chapter seven of the General Laws, as added by section seven of chapter five hundred and seventy-nine of the acts of nineteen hundred and eighty.
(j) The PRIM board shall be subject to the provisions of sections thirty-nine A and sections forty (E) to forty (J), inclusive, of chapter seven.
(3) Fiduciary Standards. — A fiduciary as defined in section one shall discharge his duties for the exclusive purpose of providing benefits to members and their beneficiaries with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims and by diversifying the investments of the system so as to minimize the risk of large losses unless under the circumstances it is clearly prudent not to do so.
(4) Orders to protect the system. — If the commission determines after a hearing that the investment or recordkeeping practices of any board are not being conducted with reasonable care, skill, prudence or diligence, he may order such board to take or desist from any action that in his judgment is necessary to preserve the integrity of the system. If the commission has reason to believe that the investment and recordkeeping practices of any board are not being conducted with reasonable care, skill, prudence or diligence, he may issue a temporary order which shall remain in effect until an investigation, hearing and determination can be made. Violation of any such order shall be punished as provided for in section twenty-four.
(5) The platform of guiding principles for investment in South Africa shall mean, without limitation, the following standards of corporate activity:(a) Worker’s rights: companies should uphold worker’s rights including the recognition of representative unions and their rights to bargain collectively, to strike, to picket peacefully, the establishment of a policy that strike breakers will not be hired and that investment should enhance employment creation;(b) Equality of opportunity: companies should eliminate all discrimination on the basis of race, religion, sex, political opinion or physical handicap and implement affirmative action programs;(c) Environmental protection: investment should incorporate environmentally sound and clean practices and technology;(d) Training and education: investment should enhance the productive capacities of South Africans, and in particular, institute training and adult education programs for workers in consultation with the trade union movement;(e) Conditions of work and life: conditions of work and life offered by companies should compare favorably with the best conditions in the relevant sector domestically;(f) Security of employment: investment should contribute to the security of employment of South Africans;(g) Empower black business: companies should, where possible, adopt business practices which enhance the development of black business in South Africa.
(6) Confidentiality of certain records. Any documentary material or data made or received by a member of the PRIM board which consists of trade secrets or commercial or financial information that relates to the investment of public trust or retirement funds, shall not be disclosed to the public if disclosure is likely to impair the government’s ability to obtain such information in the future or is likely to cause substantial harm to the competitive position of the person or entity from whom the information was obtained. The provisions of the open meeting law shall not apply to the PRIM board when it is discussing the information described in this subdivision. This subdivision shall apply to any request for information covered by this subdivision for which no disclosure has been made by the effective date of this subdivision.
Section 24. (1) Enforcement of Provisions. — If the public employee retirement administration commission determines that any governmental unit, any officer or employee thereof, or the state board of retirement, the teachers’ retirement board, or any other board subject to the provisions of sections one to twenty-eight, inclusive, or any member or employee of any such board, has violated or neglected to comply with any provisions of such sections, or the rules and regulations established thereunder, he shall give notice thereof to the governor, county commissioners, the mayor, the board of selectmen, the Massachusetts Turnpike Authority, the Massachusetts Bay Transportation Authority, the Massachusetts Housing Finance Agency, the Massachusetts Port Authority, the Blue Hills Regional Vocational School System, the Greater Lawrence Sanitary District, or the Minuteman Regional Vocational Technical School District, as the case may be, and to the board and, thereafter, if such violation or neglect continues, shall forthwith present the facts to the attorney general who shall take appropriate action. The superior court shall have jurisdiction in equity upon petition of the public employee retirement administration commission or any interested party to compel the observance and to restrain the violation of any provision of sections one to twenty-eight, inclusive, and of the rules and regulations established thereunder.
(2) Penalties for Violations. — Any person who wilfully refuses or neglects to comply with any provision of sections one to twenty-eight inclusive, or any rule or regulation established thereunder, shall be punished by a fine of not more than one thousand dollars or imprisonment for not more than one year, or both.
mandamus Section 25. (1) Guarantee of Minimum Allowances. — (a) Any member in service who was a member on December thirty-first, nineteen hundred and forty-five, and who, having creditable service for a period prior thereto, is subsequently retired after the attainment of an age and the completion of a minimum period of creditable service which, under the provisions of this chapter as in effect and applicable on such date to the contributory retirement system of which he was then a member, would have entitled him to a yearly amount of retirement allowance not less than the minimum amount specified therefor in such provisions, shall receive a retirement allowance the normal yearly amount of which shall be at least equal to such minimum amount, plus any increase granted or authorized or which may be granted or authorized under any existing or future law granting an increase in the amount of the pension or of the retirement allowance of an employee who was retired prior to January first, nineteen hundred and forty-six, anything to the contrary in sections one to twenty-eight, inclusive, notwithstanding.
(b) Any employee of any governmental unit in which a contributory retirement system established under the provisions of a special law previously existed, who was a member of such system on the date when a new system, established under the provisions of sections one to twenty-eight inclusive, or under corresponding provisions of earlier laws, became operative therein, and who, having then or thereafter become a member of such new system with creditable service attributable to his membership in the previously existing system, is retired while a member in service and after the attainment of an age and the completion of a minimum period of creditable service which, under the provisions of such special law as in effect on the date such new system became operative, would have entitled him to a yearly amount of retirement allowance not less than the minimum amount specified therefor in the provisions of such special law, shall receive a retirement allowance the normal yearly amount of which shall be at least equal to such minimum amount, anything to the contrary in sections one to twenty-eight inclusive notwithstanding.
(2) Guarantee of Allowances at least Equal to Non-contributory Pensions. — Any member in service who, on the date of his becoming a member, was employed in a position to which he was appointed prior to July first, nineteen hundred and thirty-seven, and under which he had inchoate rights to any non-contributory pension under the provisions of this chapter or under corresponding provisions of earlier laws or of any other general or special law, and who is retired while still employed in the same position or in a similar position in the same governmental unit and after the attainment of an age and the completion of a minimum period of service which, under such provisions, would have entitled him to a non-contributory pension, shall receive a retirement allowance the normal yearly amount of which shall be at least equal to the amount of such non-contributory pension, whether or not he may have signed a waiver of his rights under such provisions upon becoming a member, anything to the contrary in sections one to twenty-eight inclusive notwithstanding.
(3) Rights of Veterans at Retirement. — (a) Any member in service classified as a veteran referred to in sections fifty-six to sixty A inclusive, who entered the employ of any governmental unit prior to July first, nineteen hundred and thirty-nine, shall have full and complete rights either under the system of which he is a member or under the provisions of sections fifty-six to sixty A inclusive, whether or not he may have signed a waiver of his rights under such sections upon becoming a member of such system, anything to the contrary in the provisions of this chapter or in similar provisions of earlier laws notwithstanding. Such rights shall be in the alternative and shall be exercised only at the time of his retirement. If a member is retired under the provisions of sections fifty-six to sixty A inclusive, he shall, upon his written application on a prescribed form filed with the board in which he waives all his rights under sections one to twenty-eight inclusive, be paid the amount of the accumulated total deductions credited to his account in the annuity savings fund of the system on the date of his retirement. If a member entitled to be retired under the provisions of section fifty-eight dies before making written application for such retirement, or, having exercised the option provided by section fifty-eight B, dies before the effective date of his retirement, his widow shall, in addition to the pension provided under said section fifty-eight B, be paid the amount of the accumulated deductions credited to the account of said member in the annuity savings fund of the system of which he was a member on the date of his death, unless said member has designated a beneficiary other than his widow under the provisions of paragraph (c) of subdivision (2) of section eleven in which case said accumulated deductions shall be paid to such designated beneficiary. Nothing contained in this subdivision shall permit the withdrawal of any such veteran from membership in such system except upon termination of his service. This paragraph shall apply only to such veterans who are employees of the commonwealth or metropolitan district commission, or who are employees of a governmental unit which has accepted sections fifty-six to sixty A, inclusive.
(b) The normal yearly amount of any retirement allowance of any member who is a veteran as defined in section one shall be subject to the provisions of chapter seven hundred and eight of the acts of nineteen hundred and forty-one, as amended by chapters one hundred and seventy-two, four hundred and nineteen, and five hundred and forty-eight of the acts of nineteen hundred and forty-three, and as may be further amended.
(4) The payment of all annuities, appropriations, pensions, retirement allowances and refunds of accumulated total deduction and of any other benefits or payments pursuant to the provisions of sections one to twenty-eight, inclusive, are hereby made obligations of the commonwealth in the case of any such payments to or from funds of the state employees’ retirement system, the teachers’ retirement system, or the Commonwealth’s Pension Liability Fund and obligations of the governmental unit in which the system is established in the case of payments from funds of any system established in any county, city or town or in the Massachusetts Turnpike Authority, the Massachusetts Bay Transportation Authority, the Massachusetts Housing Finance Agency, the Massachusetts Port Authority, the Blue Hills Regional Vocational School system, the Greater Lawrence Sanitary District or the Minuteman Regional Vocational Technical School District.
(5) Effect of Amendments or Repeal. — The provisions of sections one to twenty-eight, inclusive, and of corresponding provisions of earlier laws shall be deemed to establish and to have established membership in the retirement system as a contractual relationship under which members who are or may be retired for superannuation are entitled to contractual rights and benefits, and no amendments or alterations shall be made that will deprive any such member or any group of such members of their pension rights or benefits provided for thereunder, if such member or members have paid the stipulated contributions specified in said sections or corresponding provisions of earlier laws.
(6)(a) It is hereby declared that any actual or potential failure to comply with the applicable funding standard or schedule established by sections twenty-one, twenty-two, twenty-two C and twenty-two D of this chapter threaten serious injury to the members’ contractual pension rights and benefits and the retirement systems. By expressly authorizing the remedy of mandamus herein, the general court intends to assist all persons or entities with a special responsibility or duty in relation to the retirement systems in securing that compliance. In the event that any governmental unit other than the commonwealth fails to comply with its duty either to provide for in its budget, or to pay, the full amount of its obligation towards the retirement system as specified in this chapter, the failure may be remedied by an action for mandamus.
(b) The public employee retirement administration commission shall have standing to institute a legal proceeding for mandamus as provided for in this section. The attorney general, or the district attorney of the county in which a retirement system is located, in addition to any other powers and duties conferred on that office by law, shall also proceed in the name of the commonwealth, upon request of the commission or upon the person’s own motion, to institute a legal proceeding for mandamus as provided for in this section. Any mandamus pursuant to this section may compel the addition by such governmental unit other than the commonwealth to its current budget of any omitted amount of its pension obligation and the subsequent payment of any omitted amount of pension obligation with interest at the applicable compound rate, whichever is applicable.
police Section 26. (1) As used in this section, the following words shall, unless the context otherwise requires, have the following meanings:—“Department”, the department of state police.
“Officer”, an officer of the department of state police appointed thereto under section ten of chapter twenty-two C.
“Rating board”, a board having the powers and duties provided for in this section, and consisting of the state surgeon, the commissioner of public health, the colonel of state police, or a subordinate designated by any of them from time to time by a writing filed in the office of the state board of retirement.
(2) (a) Any member in service classified in Group 3 who is an officer of the department of state police shall be retired by the state board of retirement in case the rating board, after an examination of such officer by a registered physician appointed by it, shall report in writing to the state board of retirement that such officer is physically or mentally incapacitated for the performance of duty by reason of (i) illness incurred through no fault of his own in the actual performance of duty or (ii) an injury resulting from an accident occurring during the performance and within the scope of his duty and without contributory negligence on his part, and that such incapacity is likely to be permanent.
(b) Upon retirement under the provisions of this subdivision, a member shall receive a retirement allowance to become effective on the date of his retirement. Payments under such allowance shall be made as provided for in sections twelve and thirteen and the normal yearly amount thereof shall be equal to the sum of:(i) A yearly amount of annuity equal to the yearly amount of the regular life annuity specified in clause (i) of Option (a) of subdivision (2) of section twelve; and(ii) A yearly amount of pension equal to seventy-two percent of the annual rate of his regular compensation on the date such illness or injury was incurred, or equal to seventy-two percent of the average annual rate of his regular compensation on the date such illness or injury was incurred, or equal to seventy-two percent of the average annual rate of his regular compensation for the twelve month period for which he last received regular compensation immediately preceding the date his retirement allowance becomes effective, whichever is greater; provided, however, that for any employee who was not a member in service on or before January first, nineteen hundred and eighty-eight or has not been continuously a member in service since such date, the total yearly amount of the sum of such pension and the annuity as determined in accordance with the provision of subparagraph (i) shall not exceed seventy-five percent of the annual rate of regular compensation as determined in the subparagraph; and provided, further, that no individual who is a member in service on January first, nineteen hundred and eighty-eight whose allowance is limited by the seventy-five percent limitation as established in this subparagraph, shall receive an amount of pension that is less than seventy-two percent of such individual’s regular compensation on said January first, nineteen hundred and eighty-eight; and(iii) A yearly amount of additional pension determined at the rate fixed by the actuary as hereinafter provided, for each surviving unmarried child of such member who is under the age of 18, or, if over that age and under age 22, who is a full-time student at an accredited educational institution, or who was over said age and physically or mentally incapacitated from earning on the date of such member’s retirement. Such additional pension on account of any child shall be paid only so long as such child survives, remains unmarried and is under the age of eighteen or, if over such age remains physically or mentally incapacitated from earning or, if over said age and under the age of 22, is a full-time student at an accredited educational institution offering full-time courses of study equivalent to or higher than secondary school study. The words “accredited educational institution” shall mean any school, college, or university that is licensed, approved, or accredited, as the case may be, in the state in which it is located. Beginning July first, nineteen hundred and eighty-eight such additional pension shall be fixed at a rate of four hundred and fifty dollars for each eligible child. Beginning July first, nineteen hundred and eighty-nine, such rate shall be increased by an amount equal to the percentage increase in the cost of living determined by the general court for such year pursuant to section one hundred and two.
(3) (a) Any member in service classified in Group 3 shall be retired by the state board of retirement upon his attaining age fifty-five; provided that any such member in Group 3 who has performed service in the department of state police for not less than twenty years and who has not attained the age of fifty-five may elect to retire pursuant to the provisions of this subdivision.
(b) Any member in service classified in Group 3 who has performed service in the department of state police for not less than twenty years and who has not attained age fifty-five shall be retired by the state board of retirement if the rating board, after an examination of such member by a registered physician appointed by it, shall report in writing to the state board of retirement that he is physically or mentally incapacitated for the performance of duty and that such incapacity is likely to be permanent.
(c) Upon retirement under the provisions of this subdivision, a member shall receive a retirement allowance to become effective on the date of his retirement. Payments under such retirement allowance shall be made as provided for in sections twelve and thirteen and the normal yearly amount thereof shall be equal to sixty percent of the average annual rate of his regular compensation during the twelve-month period of his creditable service immediately preceding the date his retirement allowance becomes effective; provided, that the total amount of the allowance shall be increased by one-twelfth of three percent for each full month of service in excess of twenty years of service and prior to the last day of the month in which such member will reach the age of fifty-five; provided, further, that such retirement allowance shall in no case exceed seventy-five percent of such regular compensation; and provided, further, that if a member shall reach his fifty-fifth birthday and shall not have completed such twenty years of service, the amount of his retirement allowance shall be calculated by subtracting from such normal yearly amount one-twelfth of three percent for each full month of service that his service is less than twenty years. Any member retired under the provision of this subdivision who is a veteran as defined in section one shall receive an additional yearly retirement allowance of fifteen dollars for each year of creditable service or fraction thereof; provided, that the total amount of said additional retirement allowance shall not exceed three hundred dollars in any case.
(4) Sections five, six, and subdivisions (1) to (3), inclusive, of section ten shall not apply to any member so classified in Group 3. Section seven shall not apply to any member so classified to whom the provisions of subdivision (2) of this section are applicable. Notwithstanding any provisions to the contrary, sections five B, eight, and fifteen shall apply to any member so classified.
(5) (a) The commission shall require, after consultation with the rating board, any person retired for disability pursuant to the provisions of section 6, 7, or 26 who upon return to active service would so return in the position of a sworn member of the department of state police to participate in an evaluation to determine whether the member is able to perform the essential duties of the position from which he retired or a similar position within the department for which he is qualified without a medical or vocational rehabilitation program, or whether such member’s return to his position or similar position within the department would likely be expedited by participation in a medical or vocational rehabilitation program.
Such evaluation shall occur once per year during the first two-year period next succeeding the date of his retirement, once in each three-year period thereafter, and at any time upon the written request by any such member; provided, however, that an initial evaluation shall occur as soon as possible after October 1, 1996 for any member who has been retired for more than two years and has not participated previously in such an evaluation. Such evaluations shall occur not more frequently than once in any 12 month period; provided, however, that the commission may excuse a member from such evaluation based on its determination that such evaluation is unwarranted due to the catastrophic nature of the member’s illness or injury; and provided, further, that any member who has been retired for disability under the provisions of section 6, 7, or 26 for more than ten years and has during such time complied with the evaluation requirements under this paragraph shall not be required to participate in any further such evaluations.
Such evaluations shall include a medical examination for the purpose of assessing the total mental and physical condition of the member and one of the physicians to perform such medical examination shall be the state police surgeon.
If, following the evaluation, the commission determines that such retired member may benefit from such a rehabilitation program and that such a program is cost effective, the state board of retirement shall provide such rehabilitation program for such member and shall pay the costs of the program less any benefits payable under insurance policies of the member for such programs and less any scholarships or grants otherwise available for such programs. Such rehabilitation program shall include only such services as shall appear on a list of services approved by the commission. Any such member who is unreasonably denied access to such program may appeal such denial to the contributory retirement appeals board.
If the retired member fails to complete the program without good cause, said member’s rights in and to the pension provided for in section 6, 7 or 26 shall immediately be suspended. Said member may appeal his suspension to the contributory retirement appeals board.
Upon the completion of the rehabilitation program the rating board shall require the member to submit to a medical examination; provided, however, that if the board believes that an examination is unwarranted, the board shall file a statement of fact with the commission, stating the reasons why the examination is unwarranted. If the commission rejects this statement, the board shall conduct the examination.
The examination required pursuant to this section shall, at a minimum, determine the scope of the member’s physical capabilities in light of the completed rehabilitation program and whether the member is able to perform the essential duties of his position or the essential duties of a similar position within the department given the member’s condition. If such member shall fail to appear at any such required examination without good cause, all his rights in and to the retirement allowance provided for in section 6, 7 or 26 shall be terminated by the rating board; provided, however, that the member shall be given written notice and an opportunity to be heard prior to such termination. Said member may appeal such termination to the contributory retirement appeals board.
For the purpose of conducting a medical examination under this section, the commission may appoint either a single physician or a three-member panel to examine the retired member; provided, however, that the single physician shall be the state police surgeon or one of the three members of the medical panel to examine the member,(b) If not more than two years immediately following the date on which a member is retired for disability under section 6, 7, or 26 who, upon return to active service in the same position, would so return in the position of a sworn member of the department of state police, a medical panel, following an examination conducted in accordance with paragraph (a), determines that such retired member is able to perform the essential duties of the position from which he retired or a similar position within the department for which he is qualified, as determined by the colonel, or so finds following the completion of a rehabilitation program required under paragraph (a), the rating board shall notify the public employee retirement administration commission and the colonel shall, subject to the provisions of section 24A of chapter 22C, return the member to such position and his disability retirement shall be revoked.
If the position shall pay less than the position from which such member shall have retired, such member shall be granted an amount from the department equal to the difference between the regular compensation of the position to which the member is restored and the regular compensation the member would have received had he been restored to the position from which he retired.
If more than two years immediately following the date on which a member is retired for disability under section 6, 7, or 26 who, upon return to active service, would so return in the position of a sworn member of the department of state police, a medical panel, following an examination conducted in accordance with paragraph (a), determines that such retired member is able to perform the essential duties of any position within the department for which he is qualified, as determined by the colonel, or so finds following the completion of a rehabilitation program required under paragraph (a), the rating board shall notify the public employee retirement administration commission and the colonel and, subject to the provisions of section 24A of chapter 22C, the member shall be granted preference for the next available position for which he is so qualified and upon his return to active service his disability retirement shall be revoked.
If the position shall pay less than the position from which such member shall have retired, such member shall be granted an amount from the department equal to the difference between the regular compensation of the position to which the member is restored and the regular compensation the member would have received had he been restored to the position from which he retired.
(c) Upon return to active service, such member shall again become a member in service and regular deductions shall again be made from his regular compensation. Any creditable service in effect for him at the time of his retirement for disability shall thereupon be restored to full force and effect. In addition, the member shall receive creditable service for the period during which he was retired provided, however, that as a condition to receiving creditable service for any such period the member shall be required to make contributions as though he was an active member serving in the position from which he retired during that period.
If the member is subsequently retired for disability pursuant to subdivision (2) due to the same condition or an aggravation of the same condition for which he had previously retired within one year immediately following the date on which he was first permitted to perform the functions of his position following his return to active service under paragraph (b) or if a criminal history inquiry or screening for controlled substances, as defined under section 1 of chapter 94C, reveals a disqualifying condition that arose prior to such return to active service, the retirement allowance paid to the member as a result of such subsequent retirement shall not exceed the amount of the retirement allowance paid to the member as a result of his previous retirement.
If a retired member of the department files for reinstatement after three years of separation from the department, the colonel shall have discretion to determine the terms and conditions of such member’s eligibility for promotional examinations, seniority in rank, and longevity for purposes of promotion.
The colonel may promulgate rules and regulations to effectuate the purpose of this section.
(d) Nothing in this subdivision shall excuse an employer or a member returned to work under the provisions of this section from compliance with the provisions of section 103 of chapter 93.
(e) If as a result of a medical report by a medical panel convened pursuant to the provisions of paragraph (a), as a result of the submission of earnings information under section 91A, or as the result of the completion of a rehabilitation program as provided for under paragraph (a), or under subdivision (5) of section 21, the commission finds that such retired member is engaged or is able to engage in gainful occupation and that the annual rate of his actual or potential earnings is less than his regular compensation as defined in this subdivision, but is more than the difference between such regular compensation plus the sum of $5,000, and the normal yearly amount of his pension, then the yearly amount of his pension shall be reduced, and if his actual or potential earnings are more than such regular compensation, his pension shall be suspended.
Notwithstanding any other provisions of this section, if such member submits earnings information pursuant to section 91A, indicating earnings in excess of regular compensation, as herein described, such member’s pension shall be reduced as provided for in this paragraph and shall not be increased for a period of one year unless such medical report finds that the mental or physical condition of such member has deteriorated. If the annual rate of his earnings should later be changed, the yearly amount of his pension shall be further modified by reinstating, increasing, reducing, or suspending it, as the case may be.
For purposes of this paragraph, regular compensation means, subject to further definition by regulations of the public employee retirement administration commission, regular compensation which would have been payable during the preceding year had the member continued in service in the grade held by him at the time he was retired. The public employee retirement administration commission shall, subject to the provisions of section 50 of chapter 7, promulgate regulations establishing, and providing a system for annually adjusting for inflation and such other equitable factors as the commission deems relevant, the fair amount of outside income that may be earned by a member retired pursuant to section 6, 7, or 26 and shall promulgate regulations for the determination of the potential earnings of any such retired member based upon such member’s functional capacity, age, education, experience and, if applicable, the denial of placement under paragraph (b) and the reason therefor.
The member shall be given written notice and an opportunity to be heard prior to any such modification and any such modification may be appealed by the member to the contributory retirement appeals board.
Section 27. All the assets of each system as they exist at the commencement of business on January first, nineteen hundred and forty-six, shall, as of such date and as soon thereafter as is practicable, be credited by the board to one of the five funds of the system enumerated in section twenty-two in the manner hereinafter described in this section. The board shall, subject to the approval of the actuary, transfer as of such date such amounts from one fund to another within the system as may be necessary to effectuate the purposes of this section.
(1) Annuity Savings Fund. — (a) There shall be transferred from the previously existing annuity savings fund or annuity fund of each system, as the case may be, and credited to the annuity savings fund established for the corresponding system under the provisions of subdivision (1) of section twenty-two, an amount equal to the sum of the total accumulated regular deductions and the total accumulated additional deductions, if any, credited to the accounts of all members of the system as of the aforesaid date.
(b) Any amounts being held in the previously existing annuity savings fund of any system as of such date, remaining from sums appropriated by a governmental unit for the benefit of linemen under the provisions of paragraph (2)(g) of section twenty-nine of this chapter as in effect on December thirty-first, nineteen hundred and forty-five, shall be transferred and credited to the pension fund established for such system under the provisions of subdivision (3) of section twenty-two.
(c) Any amounts being held in the previously existing annuity savings fund or annuity fund of any system, as the case may be, as of such date, remaining from sums appropriated by a governmental unit for the benefit of veterans under the provisions of chapter seven hundred and eight of the acts of nineteen hundred and forty-one, as amended from time to time, shall be transferred and credited to the special fund for military service credit established for such system under the provisions of subdivision (4) of section twenty-two.
(d) Any amounts remaining in the previously existing annuity savings fund or annuity fund of any system, as the case may be, after the disposition of funds as provided for in paragraphs (a), (b) and (c) of this subdivision, and any surplus however described, shall be transferred and credited to the annuity reserve fund established for such system under the provisions of subdivision (2) of section twenty-two.
(2) Annuity Reserve Fund. — (a) All amounts being held in the previously existing annuity reserve fund of any system as of the aforesaid date, and all amounts specified in paragraph (1)(d) of this section belonging to such system, shall be transferred and credited to the annuity reserve fund established for such system under the provisions of subdivision (2) of section twenty-two.
(b) The board of each system shall, as of such date and as soon thereafter as is practicable, furnish to the actuary, on a form prescribed by him, a complete and accurate list of all retired members who are receiving annuity payments from the system, showing the sex, date of birth, amount of yearly annuity payment, form of annuity and interval of payment with respect to each such member, together with such other information as the actuary may request. Upon the receipt of such information, the actuary shall determine the total amount of the annuity reserve as of such date for each system and shall thereupon notify each board in writing of the amount thereof for the system over which the board has jurisdiction.
(c) If the total amount credited to the annuity reserve fund of any system as of such date as provided for in paragraph (a) of this subdivision is in excess of the total amount of the annuity reserve determined for such system under the provisions of paragraph (b) of this subdivision, the amount of such excess shall be transferred and credited to the pension fund established for such system under the provisions of subdivision (3) of section twenty-two. If the total amount so credited to the annuity reserve fund is less than the total amount of the annuity reserve so determined for such system, the deficiency shall be made up to the extent possible, by transferring from the pension fund of such system and crediting to the annuity reserve fund thereof an amount equal to such deficiency or such lesser amount, as determined by the actuary, as shall be available and not required for current pension payments.
(3) Other Funds. — (a) All amounts being held in the previously existing pension fund, pension accumulation fund or pension reserve fund of any system, as the case may be, as of the aforesaid date, and all amounts specified in paragraph (1)(b) of this section and the amount of any excess specified in the first sentence of paragraph (2)(c) of this section belonging to such system, shall be transferred and credited as soon as practicable to the pension fund established for such system under the provisions of subdivision (3) of section twenty-two. The amount of any deficiency specified in the second sentence of paragraph (2)(c) of this section, shall, to the extent available and not required for current pension payments, be transferred as soon as practicable from the pension fund to the annuity reserve fund of such system.
(b) All amounts being held as of the aforesaid date in the previously existing special fund for military service credit established in any system, and all amounts specified in paragraph (1)(c) of this section belonging to such system, shall be transferred and credited to the special fund for military service credit established for such system under the provisions of subdivision (4) of section twenty-two.
(c) All amounts being held in the previously existing expense fund of any system as of the aforesaid date, shall be transferred and credited to the expense fund established for such system under the provisions of subdivision (5) of section twenty-two.
Section 28. (1) Acceptance by Towns. — At the state election in nineteen hundred and forty-six and at each state election thereafter, sections one to twenty-eight inclusive shall be submitted for acceptance to the registered voters of each town which has not accepted for all of its employees except teachers the applicable provisions of such sections or corresponding provisions of earlier laws. Submission for acceptance by any such town shall be in the form of the following question which shall be printed upon the official ballot to be used at such state election—“Shall sections one to twenty-eight inclusive of chapter thirty-two of the General Laws, authorizing any city or town to establish a contributory retirement system for its employees, be accepted by this town as applicable to all of its employees except teachers who are eligible for membership in the teachers’ retirement system. ” If a majority of the voters voting on the question at such state election in such town shall vote in the affirmative, said sections shall take effect in such town as provided for in subdivision (3) of this section.
(2) Acceptance by Cities or Towns having a Contributory Retirement System Established under a Special Act. — (a) Sections one to twenty-eight, inclusive, may be accepted in any city or town which has established a contributory retirement system for its employees under the provisions of a special law but which has not accepted for such employees the applicable provisions of such sections or corresponding provisions of earlier laws; in a city by vote of the city council, approved by the mayor, and in a town by vote of the selectmen.
(b) In case sections one to twenty-eight inclusive are accepted in any city or town as provided for in paragraph (a) of this subdivision, the retirement board of the previously established retirement system shall continue in office, with the same powers and duties as formerly, until the board established under such sections commences to function thereunder. If any members of the previously existing retirement system shall not elect to become members of the system established under the provisions of such sections, or if there are any retired members or beneficiaries under such previously existing retirement system, the latter board thereafter shall continue to operate such previously existing retirement system in accordance with the provisions of the special law relative thereto in addition to operating the system established under the provisions of such sections, and the retirement board of such previously existing system shall cease to exist. The board established under the provisions of such sections may, subject to the written approval of the public employee retirement administration commission, merge similar funds under both systems in accordance with such regulations pertaining thereto as the commission may promulgate.
(c) The provisions of paragraph (2)(b) of section three shall be applicable to all employees, except teachers who are eligible for membership in the teachers’ retirement system, of any city or town which accepts sections one to twenty-eight inclusive as provided for in paragraph (a) of this subdivision, whether or not they are members of the previously existing retirement system. If any such employee who is a member of such previously existing retirement system elects not to become a member of the system established under the provisions of sections one to twenty-eight inclusive, he shall continue as a member of such previously existing retirement system. No employee shall become a member of the previously existing retirement system on or after the date the system established under the provisions of sections one to twenty-eight inclusive becomes operative in such city or town.
(d) Any employee of any such city or town who, having had the right to become a member of such previously existing retirement system failed to become or elected not to become such a member, may become a member of the system established under the provisions of sections one to twenty-eight inclusive, either by becoming a member as provided for in paragraph (c) of this subdivision or by becoming a member thereafter as provided for in clause (ii) of paragraph (2)(a) of section three; provided, that no such employee shall be entitled to credit for service rendered prior to the date of his becoming a member unless he shall pay into the annuity savings fund of such latter system the make-up payments provided for in subdivision (3) of section three, including therein make-up payments on account of the regular deductions which would have been withheld from his compensation had he joined such previously existing retirement system at his earliest opportunity.
(e) If any member of any such previously existing retirement system elects to become a member of the system established under the provisions of sections one to twenty-eight inclusive, amounts equal to his shares of all funds of such previously existing retirement system, as determined by the actuary, shall be transferred to the corresponding funds of the system established under the provisions of such sections.
(f) Any employee of a city or town who was specifically excluded from membership under the previously existing system, and who holds a position which would entitle him to membership under sections one to twenty-eight, inclusive, shall be entitled to prior service credit for service rendered prior to the acceptance of said sections.
(g) The words “employee” and “employees”, as appearing in sections one to twenty-eight, inclusive, so far as said words apply expressly or by implication to employees of the city of Boston, shall include teachers and the employees of the county of Suffolk.
(h) In the case of any such city or town, any provision of any such special law requiring that the appropriation for the accumulated liability contribution to the pension fund shall be three per cent greater in amount each year is hereby repealed, and the amount to be appropriated for such purpose shall be such sum as is approved by the public employee retirement administration commission in each year.
(3) Establishment of System in a City or Town. — (a) The town clerk of any town which accepts sections one to twenty-eight, inclusive, by vote at any state election, as provided for in subdivision (1) of this section, shall file in the office of the public employee retirement administration commission within thirty days after such vote a certificate thereof sworn to by the election commissioners or other officers corresponding thereto. The city or town clerk of any city or town which accepts said sections one to twenty-eight, inclusive, by vote of the city council, approved by the mayor, or of the selectmen, as the case may be, as provided for in subdivision (2) of this section, shall forthwith file in the office of said commission a certificate of such vote certified by the city or town clerk.
Said commission shall, within fifteen days after such filing, issue to the mayor or selectmen a certificate to the effect that the retirement system established by said sections shall become operative in such city or town on the first day of January or of July or of October, whichever occurs first, following the expiration of three months after the date of such certificate.
(b) When any town having a population less than ten thousand accepts sections one to twenty-eight inclusive, the eligible employees of such town shall become members of the county retirement system of the county wherein such town lies, in lieu of the establishment of a system within and for such town. Such employees shall have all rights and obligations in such county retirement system in the same manner as if such a system were established in such town.
(c) If the town of Nantucket accepts sections one to twenty-eight inclusive, the eligible employees of such town, the eligible employees of the county of Nantucket and the eligible employees of any district located in such county, shall, subject to the provisions of such sections, become members of the county of Barnstable retirement system in lieu of the establishment of a system within and for such town or within and for the county of Nantucket. Such employees who become members shall have all rights and obligations in the county of Barnstable retirement system in the same manner as if such system were established in the county of Nantucket. The provisions of paragraph (7)(c) of section twenty-two shall apply so far as may be necessary to enable the county of Barnstable retirement system to recover from the county or town of Nantucket, or from any district in the county of Nantucket, as the case may be, its or their portion of the cost of operation and the expenses of administration of such system. Items of appropriation providing for any amounts allocated to any such political subdivision shall be included in the appropriations for each fiscal year for such political subdivision.
(4) Acceptance by Districts. — (a) Any district, all or part of which lies within the territory of any city or town which maintains or has adopted a contributory retirement system for its employees under the applicable provisions of sections one to twenty-eight inclusive, or any district which is located in two or more cities or towns, at least one of which has accepted the applicable provisions of such sections or corresponding provisions of earlier laws, or any district the cities and towns of which are located in more than one county, may provide retirement benefits for its employees if such district by a vote duly recorded shall accept sections one to twenty-eight inclusive, as far as applicable, except that in a veterans’ services district the vote only of the district board shall be required to accept said provisions. A duly attested copy of such vote shall be filed by the clerk of the district, or other person performing like duties, in the office of the commission within thirty days after such vote. The public employee retirement administration commission shall, within fifteen days after the receipt of such attested copy, issue a certificate to be sent to such clerk or person in such district, to the effect that such sections shall become operative for the employees of such district on the first day of January or on the first day of July, whichever first occurs, next following the expiration of three months after the date of such certificate. The commission shall also notify the county commissioners, the mayor or the board of selectmen, and the retirement board of such county, city or town or the state board of retirement, as the case may be, within which such district lies, of the acceptance of such sections by the district and of the date as of which such sections shall become operative for its employees, except that in a mosquito control project or district the vote only of the district board of commissioners shall be required to accept said provisions; and except, that in the county cooperative extension service of the county of Suffolk the vote only of the trustees shall be required to accept said provisions. Any employee who becomes a member of a retirement system by the acceptance by a mosquito control project or district of this paragraph or by the acceptance by the county cooperative extension service of the county of Suffolk of this paragraph shall be credited with prior service in accordance with the provisions of sections one to twenty-eight, inclusive.
(b) On and after the date when sections one to twenty-eight inclusive become operative for the employees of any district as set forth in paragraph (a) of this subdivision, the eligible employees of such district shall become members of the system of the city or town within whose territory the district lies, or of the system of the largest of such cities or towns which maintains a system if the district lies within more than one city or town, or of the county system if the employees of such town have become members of such county system under the provisions of paragraph (b) of subdivision (3) of this section, in the same manner as if such a system were established in such district.
(c) Each district, the employees of which have become members of the state employees retirement system under the provisions of this subdivision, shall annually reimburse the state board of retirement for its pro rata share of any retirement allowance or pension paid by said board during the preceding calendar year which is based in whole or in part on service with such district. Notwithstanding any provisions of this paragraph to the contrary, educational collaboratives, as authorized by the provisions of section four E of chapter forty, shall annually reimburse the state board of retirement for the employer’s normal cost as determined by the actuary, of benefits earned during each year by such collaborative employees who are members of the state employees’ retirement systems. The actuary shall determine such cost as a percentage of the payroll of the collaborative for such employees based upon the most recent actuarial valuation of the state retirement system. Said reimbursed amount shall be deposited in the pension reserve fund of the state employees’ retirement system.
(5) Acceptance by Housing Authorities. — (a) Any housing authority established under the provisions of section five of chapter one hundred and twenty-one B, and any redevelopment authority established under the provisions of section four of said chapter, may provide retirement benefits for its employees if such authority by a vote duly recorded shall accept sections one to twenty-eight, inclusive, as far as applicable. A duly attested copy of such vote shall be filed by the clerk of the authority, or other person performing like duties, in the office of the public employee retirement administration commission within thirty days after such vote. The public employee retirement administration commission shall, within fifteen days after the receipt of such attested copy, issue a certificate to be sent to such clerk or person in such authority, to the effect that such sections shall become operative for the employees of such authority on the first day of January or on the first day of July, whichever first occurs, next following the expiration of three months after the date of such certificate; provided, however, that in the case of a redevelopment authority established in a city or town having a housing authority which has accepted the provisions of sections one to twenty-eight, inclusive, said certificate shall be to the effect that such sections shall become operative for the employees of such redevelopment authority upon the receipt of such certificate. The commission shall also notify the county commissioners, the mayor or the board of selectmen, and the retirement board of such county, city or town, as the case may be, within which such authority lies, of the acceptance of such sections by the authority and of the date as of which such sections will become operative for its employees.
(b) On and after the date when sections one to twenty-eight, inclusive, become operative for the employees of any authority as set forth in paragraph (a) of this subdivision, the eligible employees of such authority shall become members of the system of the city or town within whose territory the authority lies, or of the county system if the employees of such town have become members of such county system under the provisions of paragraph (b) of subdivision (3) of this section, in the same manner as if such a system were established for such authority.
(c) The provisions of section fourteen of this chapter and of section seventy-three of chapter one hundred and fifty-two shall apply as if compensation payable under said chapter one hundred and fifty-two by such housing or redevelopment authority or its insurer were payable under sections sixty-nine to seventy-nine, inclusive, of said chapter.
(6) Acceptance by the Massachusetts Turnpike Authority. — (a) The Massachusetts Turnpike Authority may provide retirement benefits for its employees if said authority by a vote duly recorded shall accept sections one to twenty-eight, inclusive, as far as applicable. A duly attested copy of such vote shall be filed by the secretary-treasurer of the authority in the office of the public employee retirement administration commission within thirty days after such vote. The public employee retirement administration commission shall, within fifteen days after the receipt of such attested copy, issue a certificate to be sent to said secretary-treasurer to the effect that such sections shall become operative for the employees of the authority on the first day of January or on the first day of July, whichever first occurs, next following the expiration of three months after the date of such certificate.
(b) On and after the date when sections one to twenty-eight, inclusive, become operative for the employees of the Massachusetts Turnpike Authority as set forth in paragraph (a) of this subdivision, the eligible employees of the authority shall become members of the Massachusetts Turnpike Authority employees’ retirement system; provided, however, that if any person was an employee of the authority on August fifteenth, nineteen hundred and sixty-seven and is otherwise eligible except that he is not so employed on the date when sections one to twenty-eight, inclusive, became operative for the employees of the Massachusetts Turnpike Authority, such person or his surviving spouse shall be entitled to all the rights and benefits provided under said sections to which he or his surviving spouse would have been entitled had he become a member of the Massachusetts Turnpike Authority employees’ retirement system on the date it became operative.
(7) Acceptance by the Massachusetts Bay Transportation Authority. — (a) The Massachusetts Bay Transportation Authority may provide retirement benefits for its police employees if said authority by a vote duly recorded shall accept sections one to twenty-eight, inclusive, as far as applicable. A duly attested copy of such vote shall be filed by the treasurer of the authority in the office of the public employee retirement administration commission within thirty days after such vote. The public employee retirement administration commission shall, within fifteen days after the receipt of such attested copy, issue a certificate to be sent to said treasurer to the effect that such sections shall become operative for the said police employees of the authority on the first day of January or on the first day of July, whichever first occurs, next following the expiration of three months after the date of such certificate.
(b) On and after the date when sections one to twenty-eight, inclusive, become operative for the Massachusetts Bay Transportation Authority police as set forth in paragraph (a) of this subdivision, the eligible police officers of the authority shall become members of the Massachusetts Bay Transportation Authority police retirement system; provided, however, that if any person was a police officer of the authority on June first, nineteen hundred and sixty-nine, and is otherwise eligible except that he is not employed on the date when sections one to twenty-eight, inclusive, became operative for the Massachusetts Bay Transportation Authority police, such person or his surviving spouse shall be entitled to all the rights and benefits provided under said sections to which he or his surviving spouse would have been entitled had he become a member of the Massachusetts Bay Transportation Authority police retirement system on the date it becomes operative.
(8) Acceptance by the Massachusetts Housing Finance Agency. — (a) The Massachusetts Housing Finance Agency may provide retirement benefits for its employees if said agency by a vote duly recorded shall accept sections one to twenty-eight, inclusive, as far as applicable. A duly attested copy of such vote shall be filed by the treasurer of the agency in the office of the public employee retirement administration commission within thirty days after such vote. The public employee retirement administration commission shall, within fifteen days after the receipt of such attested copy, issue a certificate to be sent to said treasurer to the effect that such sections shall become operative for said employees of the agency on the first day of January or on the first day of July, whichever first occurs, next following the expiration of three months after the date of such certificate.
(b) On and after the date when sections one to twenty-eight, inclusive, become operative for the employees of the Massachusetts Housing Finance Agency as set forth in paragraph (a) of this subdivision, the eligible employees of the agency shall become members of the Massachusetts Housing Finance Agency employees’ retirement system; provided, however, that if any person was an employee of the agency on September first, nineteen hundred and seventy-two and is otherwise eligible except that he is not so employed on the date when sections one to twenty-eight, inclusive, became operative for the employees of the Massachusetts Housing Finance Agency, such person or his surviving spouse shall be entitled to all the rights and benefits provided under said sections to which he or his surviving spouse would have been entitled had he become a member of the Massachusetts Housing Finance Agency employees’ retirement system on the date it became operative.
state police Section 28A. Any provision in sections one to twenty-eight, inclusive, to the contrary, notwithstanding, any officer of the department of state police appointed under section ten of chapter twenty-two C who has performed service in said department for not less than twenty years shall, at his own request, be retired by the state retirement board.
The retirement allowance under this section shall be the same as that provided for in paragraph (c) of subdivision (3) of section twenty-six.
commission; continuance as members of retirement system Section 28I. Notwithstanding any other provision of law, an employee of the commonwealth and a member of its retirement system selected to serve with an interstate commission on which the commonwealth is represented and to which the commonwealth contributes, shall, while serving with such interstate commission, continue in membership of the appropriate retirement system, and shall contribute each month to the retirement fund in an amount which he would have contributed had he remained in the service of the commonwealth, and shall be entitled to all the benefits and privileges of the retirement system, as though he continued to be paid from a state pay roll.
representative of employee organization; creditable service Section 28K. Any employee of the commonwealth or its political subdivisions who is a full-time representative of an employee organization, which has included in its membership employees of the commonwealth or its political subdivisions shall, while on leave of absence for the purpose of acting as a full-time representative of said employee organization, be considered on leave of absence, without pay, for the period of his assignment as a full-time representative of such employee organization. Such employee shall, however, be credited with creditable service, and shall contribute each month to the retirement fund in an amount which he would have contributed had he remained in the service of the commonwealth or its political subdivisions. Such employee of the commonwealth or its political subdivisions shall be entitled to all benefits and privileges, except the payment of salary as provided under this chapter and chapters thirty, thirty-one, and thirty-two during the leave of absence.
An employee who fulfills the requirements of the preceding paragraph shall be credited with creditable service for any period after January 1, 1975 and shall contribute to the retirement fund an amount which he would have contributed had such employee remained in the service of the commonwealth or a political subdivisions thereof, together with regular interest thereon, under the terms and conditions defined by the retirement system of which he is a member. This paragraph shall take effect for the members of a retirement system by majority vote of the board of such system, subject to the approval of the legislative body. For the purposes of this section, “legislative body” shall mean the town meeting for the purposes of a town system, the city council subject to the provisions of its charter in a city system, the district meeting in a district system, the county commissioners in a county system and the governing body of an authority in an authority system. Acceptance shall be deemed to have occurred upon the filing of a certificate of acceptance with the commission.
Section 28M. Notwithstanding the provisions of sections one to twenty-eight, inclusive, to the contrary, any employee of the department of correction, classified under Group 4, whose major responsibilities include the care and custody of prisoners, and any transportation officer working within the department of correction, who has performed services in the department of correction for not less than twenty years shall, at his own request, be retired by said retirement board. Upon retirement under the provisions of this section a member shall receive a retirement allowance to become effective on the date of his retirement. Payments under such allowance shall be made as provided for in section twelve and thirteen and the normal yearly amount thereof shall be equal to one-half of the annual average rate of his regular compensations during the twelve-month period of his creditable service immediately preceding the date his retirement allowance becomes effective; provided, however, that the total amount of the allowance shall be increased by one-twelfth of one percent for each full month of service in excess of twenty years’ service and prior to the last day of the month in which such member will attain the age of retirement. Any member retired under the provisions of this section who is a veteran as defined in section one shall receive an additional yearly retirement allowance of fifteen dollars for each year of creditable service or fraction thereof; provided, however, that the total amount of said additional retirement allowance shall not exceed three hundred dollars in any case.
sheriffs’ offices; retirement Section 28N. Notwithstanding the provisions of sections one to twenty-eight, inclusive, to the contrary, any correction or jail officer employed by county sheriffs’ offices who has performed services in said office for not less than twenty years shall, at his own request, be retired by said retirement board. Upon retirement under the provisions of this section a member shall receive a retirement allowance to become effective on the date of his retirement. Payments under such allowance shall be made as provided for in sections twelve and thirteen and the normal yearly amount thereof shall be equal to one-half of the annual average rate of his regular compensation during the twelve-month period of his creditable service immediately preceding the date his retirement allowance becomes effective; provided, however, that the total amount of the allowance shall be increased by one-twelfth of one percent for each full month of service in excess of twenty years service and prior to the last day of the month in which such member will attain the age of retirement. Any member retired under the provisions of this section who is a veteran as defined in section one shall receive an additional yearly retirement allowance of fifteen dollars for each year of creditable service or fraction thereof; provided, however, that the total amount of said additional retirement allowance shall not exceed three hundred dollars in any case.
Section 3. (1) Kind of Membership. — (a) Membership in a system shall consist of two kinds as follows:—(i) Member in Service.
— Any member who is regularly employed in the performance of his duties, except a member retired for disability who upon partial recovery is restored to active service as provided for in paragraph (2) (a) of section eight. Any member in service shall continue as such during any period of authorized leave of absence with pay or during any period of authorized leave of absence without pay if such leave is due to his mental or physical incapacity for duty or if such authorized leave of absence without pay is for not more than one year or is to permit such member to perform his duties as a member of a retirement board. In any event the status of a member in service shall continue as such until his death or until his prior separation from the service becomes effective by reason of his retirement, resignation, failure of re-election or reappointment, removal or discharge from his office or position, or by reason of an authorized leave of absence without pay other than as provided for in this clause. Any member in service shall have full voting powers in the system as provided for in section twenty of this chapter and in section sixteen of chapter fifteen.
(ii) Member Inactive. — Any member in service who has been retired and who is receiving a retirement allowance, any member in service whose employment has been terminated and who may be entitled to any present or potential retirement allowance or to a return of his accumulated total deductions under the provisions of sections one to twenty-eight inclusive, or any member in service who is on an authorized leave of absence without pay other than as provided for in clause (i) of this paragraph. Any member in-active shall have full voting rights as provided for in section twenty of this chapter and in section sixteen of chapter fifteen.
(b) A beneficiary shall not be deemed to be a member of the system nor shall he have any voting rights therein.
(c) No description of a person having any rights or privileges under the provisions of sections one to twenty-eight inclusive, such as member in service, member inactive, beneficiary or otherwise, shall serve to deprive him of any such rights or privileges. A member shall retain his membership in the system so long as he is living and entitled to any present or potential benefit therein.
(2) Eligibility for Membership. — (a) Membership in a system as a member in service as defined in clause (i) of paragraph (1) (a) of this section shall comprise the following persons:—(i) Any employee who is a present member in service, including any employee for whom regular deductions are being made whether or not he was classified as a member under provisions of earlier laws;(ii) Any employee in active service who is not now a member but who, while under the maximum age for the group in which he would be classified, hereafter files with the board on a prescribed form a written application for membership, subject to the provisions of sections one to twenty-eight inclusive; provided, that during his present period of service he had previously been eligible for membership;(iii) Any person who hereafter resigns, transfers or is promoted from a position in the service under which he had inchoate rights to a non-contributory pension under this chapter or under corresponding provisions of earlier laws or of any other general or special law, to accept a position subject to the provisions of sections one to twenty-eight inclusive, if at the time of such resignation, transfer or promotion he is under the maximum age for the group in which he would be classified;(iv) Any person, except as specifically otherwise provided for in sections one to twenty-eight, inclusive, who enters or re-enters the service as an employee of the commonwealth, a teacher as defined in section one, or an employee of any political subdivision of the commonwealth for which a system established under the provisions of such sections, or under corresponding provisions of earlier laws, is in operation on the date when he becomes an employee; provided, that any such person who becomes regularly employed, as determined by the board as provided for in paragraph (d) of this subdivision, on a part-time, provisional, temporary, temporary provisional, seasonal or intermittent basis, shall become a member in service, if he is to be classified in Group 1, upon the completion of six calendar months of service, and any other such person shall become a member in service upon his entry into service; and provided, further, that a physician or dentist who is employed as an intern in a municipal hospital shall not become a member unless he files a written application for membership within ninety days of his appointment.
(v) Any state official as defined in section one hereafter appointed to office who files with the board on a prescribed form a written application for membership within ninety days after the date of assuming the duties of his position; provided, that a member becoming a state official shall retain his membership and a state official who is a member shall remain a member upon his reappointment or upon his appointment or election to any other position which would otherwise entitle him to membership;(vi) Any person hereafter elected by popular vote to a state, county or municipal office or position who files with the board on a prescribed form a written application for membership within ninety days after the date of assuming office; provided, that a member becoming an elected official shall retain his membership and an elected official who is a member shall remain a member upon his re-election or upon his election or appointment to any other position which would otherwise entitle him to membership;[Clause (vii), paragraph (a), subdivision (2) effective until July 1, 2005. For text effective July 1, 2005, see below.
] (vii) Any person who hereafter is reinstated to or who re-enters the active service of the governmental unit in which he was formerly employed as provided for in subdivision (6) of this section; provided, that any such person who fails to pay into the annuity savings fund of the system the amount of the accumulated regular deductions, if any, withdrawn by him, or fails to make provision for payment thereof, under the terms set forth in such subdivision, shall be considered as a person first entering the employ of such governmental unit and shall become a member in service only under the conditions applicable to such person as set forth in this section;[Clause (vii), paragraph (a), subdivision (2) as amended by 2004, 279, Sec. 2 effective July 1, 2005. See 2004, 279, Sec. 4. For text effective until July 1, 2005, see above.
] (vii) Any person who hereafter is reinstated to or who re-enters the active service of the governmental unit in which he was formerly employed as provided for in subdivision (6) of this section; provided, that any such person who fails to pay into the annuity savings fund of the system the amount of the accumulated regular deductions, if any, withdrawn by him together with buyback interest to the date of reemployment, or fails to make provision for payment thereof, under the terms set forth in such subdivision, shall be considered as a person first entering the employ of such governmental unit and shall become a member in service only under the conditions applicable to such person as set forth in this section;(viii) Any employee who enters the active service of any governmental unit and who was a member of any system established under the provisions of sections one to twenty-eight inclusive, or under corresponding provisions of earlier laws or of any special law, and who hereafter transfers or re-establishes his membership as provided for in subdivision (8) of this section to or in the system which pertains to such governmental unit; provided, that any such employee who fails to transfer or re-establish his membership as so provided for shall be considered as a person first entering the employ of such governmental unit and shall become a member in service only under the conditions applicable to such person as set forth in this section; and(ix) Any member retired for disability who upon recovery hereafter is restored to full active service as provided for in paragraph (2) (b) of section eight.
(x) Any employee as defined in section one.
(xi) Any employee, any part or all of whose salary, wages or other compensation is derived from federal grants made to the commonwealth or to any political subdivision thereof, which federal grants are used by the commonwealth or political subdivision for the payment of salaries, and who as a result thereof is eligible for membership in the United States civil service retirement system, or who otherwise is eligible for such membership, and who also is eligible for membership in any retirement system established under this act, may have such portion of his salary, wages or other compensation as is derived from federal grants included in his regular compensation as defined by section one, but as a condition precedent to membership, he shall file an affidavit with the retirement board certifying that he is not a member of the United States civil service retirement system, eligible to make contributions thereto based upon his current salary. If the employee certifies that he is a member of the United States civil service retirement system, eligible to make contributions thereto based upon his current salary, he thereby waives all rights to membership in any retirement system established under this chapter, and no deductions shall be made from his compensation for any retirement system established under this chapter. If, when becoming a member of a retirement system established under this chapter, he is not a member of the United States civil service retirement system, eligible to make contributions thereto based upon his current salary, but later at any time before retirement becomes a member of the United States civil service retirement system, except after resignation or discharge from the service which makes him eligible to membership in a retirement system established under this chapter, he shall cease to be a member of any retirement system established under this chapter, and his accumulated deductions shall be returned to him. When he or any beneficiary of his becomes eligible to receive any benefit under this chapter, he or his beneficiary, as a condition precedent to the receipt of such benefit, shall file an affidavit stating that the member is not or was not at his death a member of or eligible to receive any benefits under the United States civil service retirement system. Eligibility for membership in a retirement system established under this chapter and the right to receive a retirement allowance or benefit thereunder shall not be affected by the receipt of a federal pension or retirement allowance by a “veteran” for federal service, as defined in section one, or by any potential right thereto. Any employee who on January first, nineteen hundred and fifty-two was a member of the United States civil service retirement system and also a member of a retirement system established under this chapter, and any employee who was a member of the United States civil service retirement system and thereafter ceased to be a federal employee and became eligible for membership in a retirement system established under this chapter, and any employee who was a member under this chapter and thereafter resigned or was discharged and became a federal employee, may continue his membership in both systems on the condition that he shall at his retirement, or his beneficiary shall at his death, present to the retirement board established under this chapter proof of the amount of the retirement or survivorship allowance to be received from the United States civil service retirement system, and the retirement or survivorship allowance from the system established under this chapter shall be fixed at an amount which shall not exceed the difference between the annual federal retirement or survivorship allowance and the largest annual salary received by the employee during a calendar year of the employment which made him eligible for membership in the retirement system established under this chapter.
[There are no clauses (xii) and (xiii).
] (xiv) Any person who is appointed as a member of the judiciary on or after January second, nineteen hundred and seventy-five, shall become a member subject to the provisions of section sixty-five D.
(b) Any person who is an employee of any governmental unit on the date when a system established under the provisions of sections one to twenty-eight, inclusive, or under corresponding provisions of earlier laws, hereafter becomes operative therein, shall become a member in service as of such date unless within ninety days thereafter he shall file with the board on a prescribed form a notice of his election not to become a member and a duly executed waiver of all present and prospective benefits which might otherwise accrue to him if he became a member. No other pension or retirement law of the commonwealth whether general or special shall be applicable to any such member on or after the date such system becomes operative in such governmental unit, except as otherwise provided for in subdivision (7) of this section or in section twenty-five. In so far as practicable and not later than sixty days after the date such a system becomes operative in such governmental unit, the board shall notify each such employee in writing, or through meetings duly announced or by other means, of his rights and duties if he becomes a member and shall furnish him with a prescribed form to be filed with the board upon which he may give notice of his election to become a member in service or not to become a member, as he may elect.
(c) Any employee otherwise eligible for membership, who has elected not to become a member in service, may thereafter apply for and be admitted to membership upon the terms and conditions set forth in subdivision (3) or (8) of this section if on the date of application he is under the maximum age for his group.
(d) In all cases involving part-time, provisional, temporary, temporary provisional, seasonal or intermittent employment or service of any employee in any governmental unit, including such employment or service of any state official, the board shall have and exercise full jurisdiction to determine such employee’s eligibility for membership; provided, that any person holding a position for which the annual compensation is fixed in an amount of two hundred dollars or less shall not be eligible for membership except by vote of the board; and provided further, that any teacher employed in the school department of the city of Boston on a provisional, temporary, temporary provisional or similar basis shall, upon the completion of a school year of service in the public schools of said city, become a member in service of the State–Boston retirement system. For the purposes of this paragraph, a school year of service shall be deemed to have been completed upon the termination of a school year in which the teacher, while holding a certificate granted by the board of education under section thirty-eight G of chapter seventy-one or while exempt from the provisions of said section because of employment as a teacher in the service of said city prior to the effective date of said section thirty-eight G, has actually performed teaching duties on more than one hundred and twenty school days, whether or not consecutive, in such school year.
[There is no paragraph (e).
] (f) Any employee who was not eligible for membership because of originally entering the service of any governmental unit after attaining age 60 but before attaining age 65, may apply for and be admitted upon the terms and conditions set forth in subdivisions (3) and (3A).
(g) Department heads shall furnish to the board within thirty days after employing any new personnel or after the receipt of a written request therefor, a statement giving the name, address, title, rate of regular compensation, duties, date of birth and length and class of service of each employee in his department, and shall notify the board within thirty days of any change in the title, address, rate of compensation, duties or service of any employee in his department. Thereupon the board shall classify each member in one of the following groups:Group 1. — Officials and general employees including clerical, administrative and technical workers, laborers, mechanics and all others not otherwise classified.
Group 2. — Public works building police; permanent watershed guards and permanent park police; University of Massachusetts police; employees of the Massachusetts Port Authority, comprising guards, guard sergeants, head guard and chief of waterfront police; officials and employees of the department of public safety having police powers; employees of a municipal department who are employed as fire or police signal operators or signal maintenance repairmen; ambulance attendants of a municipal department who are required to respond to fires and perform duties assigned to them; employees of a city or town who are employed as licensed electricians and elevator maintenance men employed by a county; employees of Cushing hospital; employees of the trial court of the commonwealth who hold the position of chief probation officer, assistant chief probation officer, probation officer in charge or probation officer, chief court officer, assistant chief court officer or court officer; officers and employees of the general court having police powers; employees of the commonwealth or of any county, regardless of any official classification, except the sheriff, superintendent, deputy superintendent, assistant deputy superintendent and correction officers of county correctional facilities, whose regular and major duties require them to have the care, custody, instruction or other supervision of prisoners; and employees of the commonwealth or of any county whose regular and major duties require them to have the care, custody, instruction or other supervision of parolees or persons who are mentally ill or mentally defective or defective delinquents or wayward children and employees of Cushing hospital.
Group 3. — Officers and inspectors of the department of state police referred to in section twenty-six, who shall be retired and receive retirement allowances as provided for in said section and in sections six and seven, anything in sections one to twenty-eight, inclusive, to the contrary notwithstanding.
Group 4. — Division of law enforcement of the department of fisheries, wildlife and recreational vehicles; conservation officer of the city of Haverhill having duties similar to a law enforcement officer of the department of fisheries, wildlife and recreational vehicles; employees of the Massachusetts Port Authority at the General Edward Lawrence Logan International Airport, comprising permanent crash crewmen, fire control men, assistant fire control men; members of police and fire departments not classified in Group 1; any police officer of the Massachusetts Bay Transportation Authority; employees whose regular compensation is paid by the United States from funds allocated to the Massachusetts National Guard and who are regularly and permanently employed under the control of the military department of the commonwealth and whose duties in such employment require substantially all normal working hours and whose continued employment is based upon federal recognition in the Massachusetts National Guard; employees of a municipal gas or electric generating or distribution plant who are employed as linemen, electric switchboard operators, electric maintenance men, steam engineers, boiler operators, firemen, oilers, mechanical maintenance men, and supervisors of said employees who shall include managers and assistant managers; employees of the Massachusetts Port Authority who are employed as licensed electricians, utility technicians, steam engineers, watch engineers, boiler operators, or steam firemen, and supervisors of said employees, at an electrical generating or distribution plant; employees of the department of correction who are employed at any correctional institution or prison camp under the control of said department and who hold the position of correction officer, female correction officer, industrial instructor, recreation officer, assistant industrial shop manager, industrial shop manager, assistant to the supervisor of industries, supervisor of industries, senior correction officer, senior female correction officer, supervising correction officer, supervising female correction officer, prison camp officer, senior prison camp officer, supervising prison camp officer, assistant deputy superintendent; employees of the parole board who hold the position of parole officer or parole supervisor; chief of security for the University of Massachusetts medical school or supervising identification agent; employees who hold the position of state hospital steward in the department of correction; the sheriff, superintendent, assistant superintendent, assistant deputy superintendent and correction officers of county correctional facilities; district attorneys, assistant district attorneys who have been employed in such capacity for ten years or more; the chief fire warden and the district fire wardens in the executive office of environmental affairs and the fire marshal of the department of fire services in the executive office of public safety; but the fire marshal shall have been a member of group 4 for ten years or have had ten years or more employment at the department of fire services or its predecessor agencies, the division of fire prevention and the Massachusetts firefighting academy, before being eligible for benefits under this section.
(h) Nothing contained in this section shall be construed to impair the rights of any member whose office or position is subject to chapter thirty-one or to the rules and regulations made under authority thereof.
[Subdivision (3) effective until July 1, 2005. For text effective July 1, 2005, see below.
] (3) Late Entry into Membership. — Notwithstanding his filing of notice and waiver under paragraph (b) of subdivision (2) of this section, any employee who, having or having had the right to become a member, failed to become or elected not to become a member, may apply for and be admitted to membership if under the maximum age for his group on the date of his application; provided, that during his present period of service he had previously been eligible for membership; and any employee who, having had the right to become a member of any retirement system established under the provisions of this chapter, or under corresponding provisions of earlier laws or any special law, failed to become or elected not to become a member, may apply for and be admitted to membership if under the maximum age for his group on the date of his application. No employee shall otherwise be admitted to membership except by vote of the retirement board of the system for which application is made, and then only if that board finds that his failure to become or his election not to become a member was caused by circumstances other than those generally applicable to employees. No such member shall be entitled to full credit for service rendered prior to the date of his becoming a member, unless before the date any retirement allowance becomes effective for him he shall have paid into the annuity savings fund of the system in one sum, or in instalments, upon such terms and conditions as the board may prescribe, make-up payments of an amount equal to that which would have been withheld as regular deductions from his regular compensation had he joined the system at his earliest opportunity, together with regular interest. Upon the completion of such make-up payments such member shall be entitled to all creditable service to which he would have been entitled had he joined the system when first eligible to become a member. In the event any retirement allowance becomes effective for him before the completion of such make-up payments, such member shall, in addition to credit for his actual membership service, be entitled to credit for that proportion of his service rendered prior to the date of his becoming a member which the total amount of his make-up payments actually made, together with regular interest thereon to the date his retirement allowance becomes effective, bears to the total amount of what his make-up payments, together with regular interest thereon to such latter date, would have been had he made payment thereof in one sum on such latter date.
[Subdivision (3) as amended by 2004, 279, Sec. 3 effective July 1, 2005. See 2004, 279, Sec. 4. For text effective until July 1, 2005, see above.
] (3) Late Entry into Membership. — Notwithstanding his filing of notice and waiver under paragraph (b) of subdivision (2) of this section, any employee who, having or having had the right to become a member, failed to become or elected not to become a member, may apply for and be admitted to membership if under the maximum age for his group on the date of his application; provided, that during his present period of service he had previously been eligible for membership; and any employee who, having had the right to become a member of any retirement system established under the provisions of this chapter, or under corresponding provisions of earlier laws or any special law, failed to become or elected not to become a member, may apply for and be admitted to membership if under the maximum age for his group on the date of his application. No employee shall otherwise be admitted to membership except by vote of the retirement board of the system for which application is made, and then only if that board finds that his failure to become or his election not to become a member was caused by circumstances other than those generally applicable to employees. No such member shall be entitled to full credit for service rendered prior to the date of his becoming a member, unless before the date any retirement allowance becomes effective for him he shall have paid into the annuity savings fund of the system in one sum, or in instalments, upon such terms and conditions as the board may prescribe, make-up payments of an amount equal to that which would have been withheld as regular deductions from his regular compensation had he joined the system at his earliest opportunity, together with buyback interest. Upon the completion of such make-up payments such member shall be entitled to all creditable service to which he would have been entitled had he joined the system when first eligible to become a member. In the event any retirement allowance becomes effective for him before the completion of such make-up payments, such member shall, in addition to credit for his actual membership service, be entitled to credit for that proportion of his service rendered prior to the date of his becoming a member which the total amount of his make-up payments actually made, together with buyback interest thereon to the date his retirement allowance becomes effective, bears to the total amount of what his make-up payments, together with buyback interest thereon to such latter date, would have been had he made payment thereof in one sum on such latter date.
(3A) Equal Privileges For Certain Members. — An employee who is a member of a retirement system or who is entitled to become a member and who fulfills all the conditions required for a member during the period commencing July first, nineteen hundred and thirty-seven, and ending January first, nineteen hundred and forty-six, may pay into the annuity saving fund of the system in one sum, or in instalments, upon such terms and conditions as the board may prescribe, make-up payments of an amount not to exceed that which would have been withheld as regular deductions from his regular compensation had the deductions been based on his total earnings rather than the prescribed limit or limits in force during this period, together with interest on such make-up payments. Upon the completion of payment of such make-up payments, together with interest thereon, such member shall be entitled to such additional retirement allowance as said additional contributions would entitle him. In the event such member retires before the completion of payment of such make-up payments and interest thereon, such member shall, in addition to the retirement allowance provided by his regular contribution, be entitled to credit for that proportion of his additional contribution made prior to the time of his retirement.
[First paragraph of subdivision (4) effective until July 1, 2005. For text effective July 1, 2005, see below.
] (4) Credit for Teachers for Out-of-State Service. — Any member in service, or any member inactive on authorized leave of absence of the teachers’ retirement system, or any member in service, or any member inactive on authorized leave of absence of any other contributory retirement system who is employed in a teaching position or as a principal, supervisor or president in a school or college, or employed in the department of education as supervisor of teachers or of educational methods, who had rendered service in any other state for any previous period as a teacher, principal, supervisor or superintendent in the public day schools or other day school under exclusive public control and supervision, or in a public academy, or as a teacher, principal, supervisor or president in a state normal school, state teachers college or like institution, or other college under exclusive public control and supervision, or in a public academy, or who was employed in a state department of education as supervisor of teachers or of educational methods, may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the system in one sum, or in instalments, upon such terms and conditions as the board may prescribe, an amount equal to that which would have been withheld as regular deductions from his regular compensation for such previous period, or most recent portion thereof, as he may elect, had such service been rendered in a public school of the commonwealth and had he been a member of the teachers’ retirement system during the period the service was rendered; provided, that for such service which was rendered prior to July first, nineteen hundred and fourteen, payment shall be made equal to the regular deductions which would have been withheld from his regular compensation if the teachers’ retirement system, as established by chapter eight hundred and thirty-two of the acts of nineteen hundred and thirteen, had been in effect during the period the service was rendered, and the interest to July first, nineteen hundred and fourteen, shall be computed at the rate of three per cent. Payment shall not be made and no credit shall be allowed for service in other states in excess of the total Massachusetts service to which the member would be entitled to receive credit if he remained in service to age sixty-five, with a maximum credit for service in other states not to exceed ten years; provided, that no credit shall be allowed and no payment shall be accepted for any service for which the member shall be entitled to receive a retirement allowance from any other state. In addition to the payment of such sum or instalments thereof, such member shall also pay into the annuity savings fund an amount of interest such that at the completion of such payments the value of his accumulated payments, together with regular interest thereon, actually made on account of such previous out-of-state service, shall equal the value of his accumulated regular deductions which would have resulted if regular deductions had been made when regular compensation for such service was actually received. Upon the completion of such payments, such member shall receive the same credit for such period of his previous out-of-state service, or portion thereof elected, as would have been allowed if such service had been rendered by him in a public school of the commonwealth. Such member shall furnish the board with such information as it shall require to determine the amount to be paid and the credit to be allowed under this subdivision. At the time a retirement allowance becomes due to a member or to a beneficiary under option (d) of subdivision (2) of section twelve, if the Massachusetts service on the date either retirement allowance becomes effective, or on the date the member attained age sixty-five, whichever first occurs, is less than the service in other states for which the member has paid, credit shall be allowed only for the most recent service rendered in other states equal to such Massachusetts service, and the amount paid for additional service shall be refunded with accumulated interest, refund to be made only when the retirement allowance becomes due to the member or to the beneficiary under option (d) of subdivision (2) of section twelve, and if it is found that payment has been accepted for any service for which the member is entitled to a retirement allowance from any other state, the amount paid for such service with accumulated interest shall also be refunded with no retirement credit allowed.
[First paragraph of subdivision (4) as amended by 2004, 279, Sec. 3 and 2004, 280, Sec. 2 effective July 1, 2005. See 2004, 279, Sec. 4 and 2004, 280, Sec. 3. For text effective until July 1, 2005, see above.
] (4) Credit for Teachers for Out-of-State Service. — Any member in service, or any member inactive on authorized leave of absence of the teachers’ retirement system, or any member in service, or any member inactive on authorized leave of absence of any other contributory retirement system who is employed in a teaching position or as a principal, supervisor or president in a school or college, or employed in the department of education as supervisor of teachers or of educational methods, who had rendered service in any other state for any previous period as a teacher, principal, supervisor or superintendent in the public day schools or other day school under exclusive public control and supervision, or in a public academy, or as a teacher, principal, supervisor or president in a state normal school, state teachers college or like institution, or other college under exclusive public control and supervision, or in a public academy, or who was employed in a state department of education as supervisor of teachers or of educational methods, may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the system in one sum, or in instalments, upon such terms and conditions as the board may prescribe, an amount equal to that which would have been withheld as regular deductions from his regular compensation for such previous period, or most recent portion thereof, as he may elect, had such service been rendered in a public school of the commonwealth and had he been a member of the teachers’ retirement system during the period the service was rendered; provided, that for such service which was rendered prior to July first, nineteen hundred and fourteen, payment shall be made equal to the regular deductions which would have been withheld from his regular compensation if the teachers’ retirement system, as established by chapter eight hundred and thirty-two of the acts of nineteen hundred and thirteen, had been in effect during the period the service was rendered, and the interest to July first, nineteen hundred and fourteen, shall be computed at the rate of three per cent. Payment shall not be made and no credit shall be allowed for service in other states in excess of the total Massachusetts service to which the member would be entitled to receive credit if he remained in service to age sixty-five, with a maximum credit for service in other states not to exceed ten years; provided, that no credit shall be allowed and no payment shall be accepted for any service for which the member shall be entitled to receive a retirement allowance from any other state. In addition to the payment of such sum or instalments thereof, such member shall also pay into the annuity savings fund an amount of interest such that at the completion of such payments the value of his accumulated payments, together with buyback interest thereon, actually made on account of such previous out-of-state service, shall equal the value of his accumulated buyback deductions which would have resulted if regular deductions had been made when regular compensation for such service was actually received. Upon the completion of such payments, such member shall receive the same credit for such period of his previous out-of-state service, or portion thereof elected, as would have been allowed if such service had been rendered by him in a public school of the commonwealth. Such member shall furnish the board with such information as it shall require to determine the amount to be paid and the credit to be allowed under this subdivision. At the time a retirement allowance becomes due to a member or to a beneficiary under option (d) of subdivision (2) of section twelve, if the Massachusetts service on the date either retirement allowance becomes effective, or on the date the member attained age sixty-five, whichever first occurs, is less than the service in other states for which the member has paid, credit shall be allowed only for the most recent service rendered in other states equal to such Massachusetts service, and the amount paid for additional service shall be refunded with accumulated interest, refund to be made only when the retirement allowance becomes due to the member or to the beneficiary under option (d) of subdivision (2) of section twelve, and if it is found that payment has been accepted for any service for which the member is entitled to a retirement allowance from any other state, the amount paid for such service with accumulated interest shall also be refunded with no retirement credit allowed.
For the purposes of this subdivision the words “service in any other state for any previous period as a teacher, principal, supervisor or superintendent in the public day schools or other day school under exclusive public control and supervision” shall be deemed to include service rendered in an overseas dependent school conducted under the supervision of the department of defense of the government of the United States, and service rendered in the public schools of the Commonwealth of Puerto Rico; provided, that any credit to be allowed shall not exceed five years of the maximum credit of ten years allowable for service in other states as provided in this section.
[Subdivision (4A) effective until July 1, 2005. For text effective July 1, 2005, see below.
] (4A) Credit for Teachers for Nonpublic School Service. — Any member in service, or any member inactive on authorized leave of absence of the teachers’ retirement system or the state retirement system or the State—Boston retirement system, who holds a certificate issued by the department of education or is exempted from the requirement of certification or any member who is employed in a public institution of higher education as a faculty member or professional employee not under the jurisdiction of the human resources division within the executive office for administration and finance classification system and who was previously engaged in teaching pupils or as an administrator in a nonpublic school prior to January first, nineteen hundred and seventy-three may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the appropriate system in one sum, or in installments, upon such terms and conditions as the board may prescribe, an amount equal to that which would have been withheld as regular deductions from his regular compensation for such previous period, or most recent portion thereof, as he may elect, had such service been rendered in a public school of the commonwealth or public institution of higher education and had he been a member of the teachers’ retirement system or the state retirement system during the period such service was rendered. Payment shall not be made and no credit shall be allowed for service in nonpublic schools in excess of the total Massachusetts service to which the member would be entitled to receive credit if he remained in service to age sixty-five, with a maximum credit for service in nonpublic schools not to exceed ten years; provided that no credit shall be allowed and no payment shall be accepted for any service on account of which the member shall be entitled to receive a retirement allowance or other similar payment from the nonpublic school system, the federal government or any other source. In addition to the payment of such sum, or installments thereof, such member shall also pay into the appropriate annuity savings fund an amount of interest such that at the completion of such payments the value of his accumulated payments, together with regular interest thereon, actually made on account of such previous nonpublic school service, shall equal the value of his accumulated regular deductions which would have resulted if regular deductions had been made when regular compensation for such service was actually received. Upon the completion of such payments, such member shall receive the same credit for such period of his previous nonpublic school service, or portion thereof elected, as would have been allowed if such service had been rendered by him in a public school of the commonwealth or public institution of higher education. Such member shall furnish the appropriate board with such information as it shall require to determine the amount, to be paid and the credit to be allowed under this subdivision. At the time a retirement allowance becomes due to a member or to a beneficiary under option (d) of subdivision (2) of section twelve, if the Massachusetts service on the date either retirement allowance becomes effective, or on the date the member attained the age of sixty-five, whichever first occurs, is less than the service in nonpublic schools for which the member has paid, credit shall be allowed only for the most recent service rendered in nonpublic schools equal to such Massachusetts service, and the amount paid for additional service shall be refunded with accumulated interest, refund only to be made when the retirement allowance becomes due to the member or to the beneficiary under option (d) of subdivision (2) of section twelve, and if it is found that payment has been accepted for any service for which the member is entitled to a retirement allowance from any nonpublic school system, the amount paid for such service with accumulated interest shall also be refunded with no retirement credit allowed.
[Subdivision (4A) as amended by 2004, 279, Sec. 3 and 2004, 280, Sec. 2 effective July 1, 2005. See 2004, 279, Sec. 4 and 2004, 280, Sec. 3. For text effective until July 1, 2005, see above.
] (4A) Credit for Teachers for Nonpublic School Service. — Any member in service, or any member inactive on authorized leave of absence of the teachers’ retirement system or the state retirement system or the State—Boston retirement system, who holds a certificate issued by the department of education or is exempted from the requirement of certification or any member who is employed in a public institution of higher education as a faculty member or professional employee not under the jurisdiction of the human resources division within the executive office for administration and finance classification system and who was previously engaged in teaching pupils or as an administrator in a nonpublic school prior to January first, nineteen hundred and seventy-three may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the appropriate system in one sum, or in installments, upon such terms and conditions as the board may prescribe, an amount equal to that which would have been withheld as regular deductions from his regular compensation for such previous period, or most recent portion thereof, as he may elect, had such service been rendered in a public school of the commonwealth or public institution of higher education and had he been a member of the teachers’ retirement system or the state retirement system during the period such service was rendered. Payment shall not be made and no credit shall be allowed for service in nonpublic schools in excess of the total Massachusetts service to which the member would be entitled to receive credit if he remained in service to age sixty-five, with a maximum credit for service in nonpublic schools not to exceed ten years; provided that no credit shall be allowed and no payment shall be accepted for any service on account of which the member shall be entitled to receive a retirement allowance or other similar payment from the nonpublic school system, the federal government or any other source. In addition to the payment of such sum, or installments thereof, such member shall also pay into the appropriate annuity savings fund an amount of interest such that at the completion of such payments the value of his accumulated payments, together with buyback interest thereon, actually made on account of such previous nonpublic school service, shall equal the value of his accumulated buyback deductions which would have resulted if regular deductions had been made when regular compensation for such service was actually received. Upon the completion of such payments, such member shall receive the same credit for such period of his previous nonpublic school service, or portion thereof elected, as would have been allowed if such service had been rendered by him in a public school of the commonwealth or public institution of higher education. Such member shall furnish the appropriate board with such information as it shall require to determine the amount, to be paid and the credit to be allowed under this subdivision. At the time a retirement allowance becomes due to a member or to a beneficiary under option (d) of subdivision (2) of section twelve, if the Massachusetts service on the date either retirement allowance becomes effective, or on the date the member attained the age of sixty-five, whichever first occurs, is less than the service in nonpublic schools for which the member has paid, credit shall be allowed only for the most recent service rendered in nonpublic schools equal to such Massachusetts service, and the amount paid for additional service shall be refunded with accumulated interest, refund only to be made when the retirement allowance becomes due to the member or to the beneficiary under option (d) of subdivision (2) of section twelve, and if it is found that payment has been accepted for any service for which the member is entitled to a retirement allowance from any nonpublic school system, the amount paid for such service with accumulated interest shall also be refunded with no retirement credit allowed.
[Introductory paragraph of subdivision (5) effective until July 1, 2005. For text effective July 1, 2005, see below.
] (5) Credit for Members for Intra–State Service in Governmental Units Where No System Existed. — Any member of any system who had rendered service as an employee of any governmental unit other than that by which he is presently employed, for any previous period during which the first governmental unit had no contributory retirement system or during which he had inchoate rights to a non-contributory pension or in a position which was not subject to an existing retirement system, or which was specifically excluded therefrom but which would be covered under the law now in effect, or any member who during any period of service for the governmental unit by which he is presently employed had such inchoate rights or was so excluded from membership, or any member of any retirement system who had rendered service as an employee in the governmental unit by which he is presently employed and who separated from such service and who had a right to become a member of the existing retirement system pertaining thereto, but who did not exercise such right before separation from such service, or any member who had a right to become a member of an existing system in any other governmental unit and who did not exercise such right, and who, when he left the service of such other governmental unit, had such right, or any member of any system who rendered service in any governmental unit other than that by which he is presently employed, in a temporary, provisional, or substitute position and who was excluded from membership by the rules of any board, may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the system in one sum, or in instalments, upon such terms as the board may prescribe, an amount equal to that which would have been withheld as regular deductions from his regular compensation for such previous period, or most recent portion thereof, as he may elect, in no event aggregating more than twenty years, had such service been rendered in the governmental unit by which he is presently employed and in a position subject to the provisions of this chapter, or to corresponding provisions of earlier laws. In addition to the payment of such sum or instalments thereof, such member shall also pay into the annuity savings fund an amount of interest such that at the completion of such payments the value of his accumulated payments, together with regular interest thereon, actually made on account of such previous intrastate service shall equal the value of his accumulated regular deductions which would have resulted if regular deductions had been made when regular compensation for such service was actually received. Upon the completion of such payments such member shall receive the same credit for such period of his previous intrastate service or portion thereof elected as would have been allowed if such service had been rendered by him in the governmental unit by which he is presently employed. Such member shall furnish the board with such information as it shall require to determine the amount to be paid and the credit to be allowed under this subdivision.
[Introductory paragraph of subdivision (5) as amended by 2004, 279, Sec. 3 and 2004, 280, Sec. 2 effective July 1, 2005. See 2004, 279, Sec. 4 and 2004, 280, Sec. 3. For text effective until July 1, 2005, see above.
] (5) Credit for Members for Intra–State Service in Governmental Units Where No System Existed. — Any member of any system who had rendered service as an employee of any governmental unit other than that by which he is presently employed, for any previous period during which the first governmental unit had no contributory retirement system or during which he had inchoate rights to a non-contributory pension or in a position which was not subject to an existing retirement system, or which was specifically excluded therefrom but which would be covered under the law now in effect, or any member who during any period of service for the governmental unit by which he is presently employed had such inchoate rights or was so excluded from membership, or any member of any retirement system who had rendered service as an employee in the governmental unit by which he is presently employed and who separated from such service and who had a right to become a member of the existing retirement system pertaining thereto, but who did not exercise such right before separation from such service, or any member who had a right to become a member of an existing system in any other governmental unit and who did not exercise such right, and who, when he left the service of such other governmental unit, had such right, or any member of any system who rendered service in any governmental unit other than that by which he is presently employed, in a temporary, provisional, or substitute position and who was excluded from membership by the rules of any board, may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the system in one sum, or in instalments, upon such terms as the board may prescribe, an amount equal to that which would have been withheld as regular deductions from his regular compensation for such previous period, or most recent portion thereof, as he may elect, in no event aggregating more than twenty years, had such service been rendered in the governmental unit by which he is presently employed and in a position subject to the provisions of this chapter, or to corresponding provisions of earlier laws. In addition to the payment of such sum or instalments thereof, such member shall also pay into the annuity savings fund an amount of interest such that at the completion of such payments the value of his accumulated payments, together with buyback interest thereon, actually made on account of such previous intrastate service shall equal the value of his accumulated buyback deductions which would have resulted if regular deductions had been made when regular compensation for such service was actually received. Upon the completion of such payments such member shall receive the same credit for such period of his previous intrastate service or portion thereof elected as would have been allowed if such service had been rendered by him in the governmental unit by which he is presently employed. Such member shall furnish the board with such information as it shall require to determine the amount to be paid and the credit to be allowed under this subdivision.
(a) Any person who is now a member or who becomes a member of a system applicable to any governmental unit shall be given credit in such system for any service rendered as a constitutional officer or as a member of the general court by depositing in the annuity savings fund of such system such sums and under such conditions as are set forth under said sections.
[There is no paragraph (b).
] (6) Leave of Absence and Reinstatement to or Re-entry into Active Service. — (a) Leaves and periods of absence of any member duly authorized with full regular compensation shall not be deemed an interruption of membership or service and shall be counted as full creditable service. Leaves and periods of absence of any member duly authorized without regular compensation or with partial regular compensation, while not to be deemed a termination of membership or service, shall not be counted as creditable service except as specifically otherwise provided for in section four. The board shall have full power to make such rules, regulations and findings as it may deem necessary, consistent with the provisions of sections one to twenty-eight inclusive, relating to leaves and periods of absence and the rights and duties of any member during the same as will effectuate the purposes of such sections.
(b) Any member inactive whose service has been terminated otherwise than by retirement but whose membership has been retained by failure to withdraw his accumulated total deductions, shall become a member in service upon his reinstatement to or re-entry into the active service of his former employer in a position which is subject to the provisions of sections one to twenty-eight inclusive.
[Paragraph (c) of subdivision 6 effective until July 1, 2005. For text effective July 1, 2005, see below.
] (c) Any former member who is reinstated to or who re-enters the active service of the governmental unit in which he was formerly employed to serve in a position which is subject to the provisions of this chapter, within two years from the date of his separation therefrom, may again become a member in service and may pay into the annuity savings fund of the system in one make-up sum, or in installments upon such terms and conditions as the board may prescribe, an amount equal to the accumulated regular deduction withdrawn by him, together with the regular interest to the date of reemployment. No such member shall be eligible for any disability benefit under the provisions of this chapter, until such member makes a repayment of accumulated regular deductions and regular interest, to said respective retirement system. Upon making such make-up payment such member shall be entitled to all creditable service resulting from such previous employment.
[Paragraph (c) of subdivision (6) as amended by 2004, 279, Sec. 3 effective July 1, 2005. See 2004, 279, Sec. 4. For text effective until July 1, 2005, see above.
] (c) Any former member who is reinstated to or who re-enters the active service of the governmental unit in which he was formerly employed to serve in a position which is subject to the provisions of this chapter, within two years from the date of his separation therefrom, may again become a member in service and may pay into the annuity savings fund of the system in one make-up sum, or in installments upon such terms and conditions as the board may prescribe, an amount equal to the accumulated regular deduction withdrawn by him, together with the buyback interest to the date of reemployment. No such member shall be eligible for any disability benefit under the provisions of this chapter, until such member makes a repayment of accumulated regular deductions and buyback interest, to said respective retirement system. Upon making such make-up payment such member shall be entitled to all creditable service resulting from such previous employment.
[Paragraph (d) of subdivision (6) effective until July 1, 2005. For text effective July 1, 2005, see below.
] (d) Any former member who is reinstated to or who re-enters the active service of the governmental unit in which he was formerly employed to serve in a position which is subject to the provision of this chapter, more than two years after the date of his last separation therefrom may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the system in one sum, or in instalments, upon such terms and conditions as the board may prescribe, make-up payments of an amount equal to the accumulated regular deductions withdrawn by him, together with regular interest. Upon such re-employment and upon making such payment in one sum or upon making provision for payment thereof in instalments, as the case may be, such former member shall again become a member. A member who did not, at the earliest opportunity, either return in one sum the permitted make-up payment, or provide for such repayment in instalments, and whose membership was contingent on such payment either in one sum or his making provision for the payment thereof in instalments, may, during the period permitted for such payment, also pay as an additional make-up payment the deductions omitted from the date when the make-up payment for previous membership could first have been paid, with regular interest. Upon the completion of such make-up payments such member shall be entitled to all creditable service resulting from his previous employment. In the event any retirement allowance becomes effective for him before the completion of such make-up payments, such member shall, in addition to credit for his actual membership service rendered since the date of his last becoming a member, be entitled to credit for that proportion of his previous creditable service rendered prior to such date which the total amount of his make-up payments actually made, together with regular interest thereon to the date his retirement allowance becomes effective, bears to the total amount of what his make-up payments, together with regular interest thereon to such latter date, would have been had he made payment thereof in one sum on such latter date.
[Paragraph (d) of subdivision (6) as amended by 2004, 279, Sec. 3 effective July 1, 2005. See 2004, 279, Sec. 4. For text effective until July 1, 2005, see above.
] (d) Any former member who is reinstated to or who re-enters the active service of the governmental unit in which he was formerly employed to serve in a position which is subject to the provision of this chapter, more than two years after the date of his last separation therefrom may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the system in one sum, or in instalments, upon such terms and conditions as the board may prescribe, make-up payments of an amount equal to the accumulated regular deductions withdrawn by him, together with buyback interest. Upon such re-employment and upon making such payment in one sum or upon making provision for payment thereof in instalments, as the case may be, such former member shall again become a member. A member who did not, at the earliest opportunity, either return in one sum the permitted make-up payment, or provide for such repayment in instalments, and whose membership was contingent on such payment either in one sum or his making provision for the payment thereof in instalments, may, during the period permitted for such payment, also pay as an additional make-up payment the deductions omitted from the date when the make-up payment for previous membership could first have been paid, with buyback interest. Upon the completion of such make-up payments such member shall be entitled to all creditable service resulting from his previous employment. In the event any retirement allowance becomes effective for him before the completion of such make-up payments, such member shall, in addition to credit for his actual membership service rendered since the date of his last becoming a member, be entitled to credit for that proportion of his previous creditable service rendered prior to such date which the total amount of his make-up payments actually made, together with buyback interest thereon to the date his retirement allowance becomes effective, bears to the total amount of what his make-up payments, together with buyback interest thereon to such latter date, would have been had he made payment thereof in one sum on such latter date.
(e) Anything in sections one to twenty-eight inclusive to the contrary notwithstanding, no person who becomes a member under subdivision (3) of this section, and no member who is reinstated to or who re-enters active service as provided for in paragraph (b), (c) or (d) of this subdivision, or who transfers or re-establishes his membership as provided for in subdivision (8) of this section, shall be eligible to receive a superannuation retirement allowance, an ordinary disability retirement allowance or a termination retirement allowance unless and until he shall have been in active service for at least two consecutive years, including any period or periods of leave of absence credited as membership service, subsequent to the date of commencement of his new employment, or unless, in the case of any member who is reinstated to or who re-enters active service as provided for in paragraph (b) of this subdivision or who transfers his membership as provided for in paragraph (8) (a) of this section, he was eligible to receive a retirement allowance under the provisions of section ten at the time of his last separation from service; provided that, in the case of a member whose account is transferred under said paragraph (8) (a), this paragraph shall not apply after the member has rendered service or attained an age so that he would have been eligible to retire if he had continued to be a member of the retirement system from which his account was transferred.
(f) Any employee who last terminated his service in any political subdivision of the commonwealth before a contributory retirement system established under the provisions of this chapter, or under corresponding provisions of earlier laws or under any special law, became operative in such political subdivision and who is reinstated to or who re-enters the active service of such political subdivision after such a system becomes operative therein shall become a member upon his re-employment in a position which is subject to the provisions of such retirement system. Upon becoming a member he shall be entitled to all creditable service resulting from his previous employment in such political subdivision. In no event shall any such member be eligible to receive a superannuation retirement allowance or a termination retirement allowance unless and until he shall have been in active service for at least five years, including any period or periods of leave of absence credited as membership service, subsequent to the date of commencement of his new employment.
(7) Dual Membership. — (a) Any person employed by two or more governmental units which have established contributory retirement systems under the provisions of sections one to twenty-eight inclusive, or under corresponding provisions of earlier laws, shall, subject to the provisions of such sections, become a member in service of each such system to which he is eligible by reason of his employment in such governmental units and shall receive pensions, retirement allowances or other benefits from each such system according to the applicable provisions of such sections. If any such person is or becomes a member of two or more such systems on or after January first, nineteen hundred and forty-six, the treasurer of each such governmental unit shall withhold five per cent of the regular compensation due such member on each pay day from such governmental unit for deposit to the credit of such member in the annuity savings fund of the appropriate system.
(b) In no event shall the total benefits received by such member from all such systems be greater than he would have received had his total regular compensation been received from a single governmental unit. The amount of any pension, retirement allowance or other benefit to be paid on account of any person who is a member of two or more such systems shall be computed and paid in such proportions as may be ordered by the actuary. No pension or retirement allowance shall become effective on account of any such person’s membership in one system until the date the member terminates his service in any other governmental unit. Any board may conduct separate medical examinations for any member who is a member of two or more systems; provided, however, that the commission may suspend or otherwise limit such examination upon recommendation of the regional medical panel if it determines such second examination would be unnecessary based on the evidence of the first examination. Any such person so jointly employed shall have all the rights and be subject to the liabilities under the provisions of sections one to twenty-eight, inclusive, as a member of each such system, and his liability for regular deductions and his right to benefits from each system shall be based upon his regular compensation received from the governmental unit to which such system pertains.
(c) Any person who is a member of two or more systems and who on or after January first, nineteen hundred and forty-six, receives regular compensation paid jointly by two or more governmental units, shall, subject to the provisions of sections one to twenty-eight inclusive, while continuing in such joint employment, be allowed creditable service in each system for all such employment in the governmental unit to which each system pertains. In no event shall any such person during such joint employment be allowed creditable service in any one system for a total period of service longer than he would have been credited with had he been a full-time employee of the governmental unit to which such system pertains. In all cases of joint employment involving membership in two or more such systems, the amount of creditable service allowed to any such person shall be subject to the approval of the actuary.
(d) If any person who is a member of two or more systems terminates his service in one governmental unit other than by retirement but continues in service in one or more other governmental units, his membership in the system pertaining to the former governmental unit shall thereupon be transferred to the system of the governmental unit to which he is devoting the major portion of his employment and the provisions of subdivision (8) of this section shall be applicable; provided, however, that an individual awarded a disability pension from the system pertaining to the former governmental unit who continues his service in one or more other governmental units shall waive receipt of the disability retirement allowance during the period of such continued service, and provided further, that the membership of such individual awarded a disability pension shall not thereupon be transferred to the system of the governmental unit to which he is donating the major portion of his employment. In no event shall any member be eligible to receive a retirement allowance from one system while continuing in service in any governmental unit, except as provided for in section ninety-one, or in section twenty-six of chapter six hundred and seventy of the acts of nineteen hundred and forty-one, or in chapter sixteen of the acts of nineteen hundred and forty-two as amended. In no event shall any member who terminates his service in one governmental unit be entitled to withdraw his accumulated total deductions from the system pertaining to such governmental unit while still retaining his membership in any other system, except for the purpose of transfer thereof to such other system.
(e) Any person who is a member of one or more contributory retirement systems established under the provisions of sections one to twenty-eight inclusive, or under corresponding provisions of earlier laws, and who is also a member of a contributory retirement system established and operative under any special law, shall be subject to the provisions of this subdivision to the extent such provisions are not inconsistent with those of the special law. In all such cases the amount of creditable service allowed to any such person and the amount of any pension, retirement allowance or other benefit to be paid on his account shall be computed by the actuary.
(f) The provisions of paragraphs (a) to (e) inclusive of this subdivision shall not apply to any person employed by Suffolk County whose regular compensation received from the county at the time of his employment was more than one half of his combined regular compensation from all governmental units.
(g) Any person retired under the provisions of this chapter, or under corresponding provisions of earlier laws or of any other general or special law, shall receive only such benefits as are allowed or granted by the particular provisions of the law under which he is retired.
(8) Transfer or Re-establishment of Membership. — (a) Any member of any contributory retirement system established under the provisions of sections one to twenty-eight inclusive, or under corresponding provisions of earlier laws or of any special law, who, while still a member and before the date any retirement allowance becomes effective for him, becomes employed in a position in any other governmental unit in which such a system is operative, shall thereupon have his membership transferred to the second system, or if a teacher as defined in section one shall retain his membership in the teachers’ retirement system, and shall be entitled to all creditable service resulting from his previous employment; provided, that such position is subject to the provisions of the law pertaining to the second system or to the teachers’ retirement system, as the case may be. Such transfer of membership, if required, shall be effectuated by transferring within ninety days after the date of commencement of his new employment the amount of the accumulated total deductions credited to his account in the annuity savings fund of the system from which he is being separated to the annuity savings fund of the second system.
[Paragraph (b) of subdivision (8) effective until July 1, 2005. For text effective July 1, 2005, see below.
] (b) Any former member of any contributory retirement system established under the provisions of this chapter, or under corresponding provisions of earlier laws or of any special law, who subsequently becomes employed in a position in any other governmental unit in which such a system is operative, may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the system pertaining to his new employment in one sum, or in instalments, upon such terms and conditions as the board may prescribe, make-up payments of an amount equal to the accumulated regular deductions withdrawn by him from the system from which he last became separated, together with regular interest; provided, that such position is subject to the provisions of the law relating to the system pertaining to his new employment. Upon commencing such employment and upon making such payment in one sum, or upon making provision for payment thereof in instalments, as the case may be, such former member shall become a member of the system pertaining to his new employment. A member who did not, at the earliest opportunity, either return in one sum the permitted make-up payment, or provide for such repayment in instalments, and whose membership was contingent on such payment either in one sum or his making provision for the payment thereof in instalments, may, during the period permitted for such payment, also pay as an additional make-up payment the deductions omitted from the date when the make-up payment for previous membership could first have been paid, with regular interest. Upon the completion of such make-up payments such member shall be entitled to all creditable service resulting from his previous employment. In the event any retirement allowance becomes effective for him before the completion of such make-up payments, such member shall, in addition to credit for his actual membership service rendered since the date of his becoming a member of the system pertaining to his new employment, be entitled to credit for that proportion of his previous creditable service attributable to his former membership in the system from which he last became separated which the total amount of his make-up payments actually made, together with regular interest thereon to the date his retirement allowance becomes effective, bears to the total amount of what his make-up payments, together with regular interest thereon to such latter date, would have been had he made payment thereof in one sum on such latter date.
[Paragraph (b) of subdivision (8) as amended by 2004, 279, Sec. 3 effective July 1, 2005. See 2004, 279, Sec. 4. For text effective until July 1, 2005, see above.
] (b) Any former member of any contributory retirement system established under the provisions of this chapter, or under corresponding provisions of earlier laws or of any special law, who subsequently becomes employed in a position in any other governmental unit in which such a system is operative, may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the system pertaining to his new employment in one sum, or in instalments, upon such terms and conditions as the board may prescribe, make-up payments of an amount equal to the accumulated regular deductions withdrawn by him from the system from which he last became separated, together with buyback interest; provided, that such position is subject to the provisions of the law relating to the system pertaining to his new employment. Upon commencing such employment and upon making such payment in one sum, or upon making provision for payment thereof in instalments, as the case may be, such former member shall become a member of the system pertaining to his new employment. A member who did not, at the earliest opportunity, either return in one sum the permitted make-up payment, or provide for such repayment in instalments, and whose membership was contingent on such payment either in one sum or his making provision for the payment thereof in instalments, may, during the period permitted for such payment, also pay as an additional make-up payment the deductions omitted from the date when the make-up payment for previous membership could first have been paid, with buyback interest. Upon the completion of such make-up payments such member shall be entitled to all creditable service resulting from his previous employment. In the event any retirement allowance becomes effective for him before the completion of such make-up payments, such member shall, in addition to credit for his actual membership service rendered since the date of his becoming a member of the system pertaining to his new employment, be entitled to credit for that proportion of his previous creditable service attributable to his former membership in the system from which he last became separated which the total amount of his make-up payments actually made, together with buyback interest thereon to the date his retirement allowance becomes effective, bears to the total amount of what his make-up payments, together with buyback interest thereon to such latter date, would have been had he made payment thereof in one sum on such latter date.
(c) Whenever any retired member or beneficiary receives a pension or survivor’s allowance from a system pertaining to one governmental unit in a case where a portion of such pension or survivor’s allowance is attributable to service in a second governmental unit to which another system pertains, the first governmental unit shall be reimbursed in full, in accordance with the provisions of this paragraph, by the second governmental unit for such portion of the pension as shall be computed by the actuary. The actuary shall consider length of service and whether the respective systems have elected to accept the provisions of paragraph (b1/2) of subdivision (1) of section twenty-two when computing such portions. No system which has not accepted the provisions of said paragraph shall be assessed any costs for service in any other system which has accepted the provisions of said paragraph. In any case where creditable service is allowed for any period served in the armed forces, where a member became employed in a position in a governmental unit other than the governmental unit wherein he was employed prior to entering such military service, the cost of any pension attributable to such creditable service shall be divided equally between the two retirement systems involved, and the actuary shall, on the same basis, determine the amount to be transferred from the special fund for military service credit, established under the provisions of subdivision (4) of section twenty-two, of the system of the governmental unit by which the member was employed prior to entering such military service to the special fund for military service credit in the second retirement system. The treasurer of the first governmental unit shall annually, on or before January fifteenth, upon the certification of the board of the system from which such disbursements have been made, notify the treasurer of the second governmental unit of the amount of reimbursement due therefrom for the previous fiscal year and such latter treasurer shall forthwith take such steps as may be necessary to insure prompt payment of such amount. All such payments due under the provisions of this paragraph from the second governmental unit shall be charged to the pension fund of the system pertaining thereto and as received they shall be credited to or appropriated for the pension fund of the system pertaining to the first governmental unit. In default of any such payment, the first governmental unit may maintain an action of contract to recover the same; provided, that there shall be no such reimbursement if the two systems involved are the state employees’ retirement system and the teachers’ retirement system.
(d) The pertinent provisions of this subdivision shall apply to the extent not inconsistent therewith to any person otherwise subject thereto who has transferred his employment from one governmental unit to another prior to January first, nineteen hundred and forty-six, as well as to any such person who so transfers his employment on or after such date. The provisions of paragraph (6) (e) of this section shall be applicable to any member whose membership is transferred or re-established as provided for in this subdivision.
Chapter 32: Section 39. Association for providing pensions Section 39. Employees, officers and agents of any person and the person by whom they are employed may form an association for the purpose of providing annuities, pensions or endowments for employees retiring from their employment on account of age, under a system by which the participating employees contribute to the funds of the association a percentage or portion of their salaries or wages as fixed by the by-laws of the association, to be deducted by the employer and paid to the association, and the employer contributes to the funds of the association in the manner and to the extent fixed in said by-laws. The funds so provided shall be held by trustees independently of other funds of the employer, for the purchase or payment of annuities, pensions or endowments to participating employees upon their retirement from service on account of age, for the payments to the representatives or appointees of any participator dying before reaching the age of retirement, for the payment to any participator retiring from service before becoming entitled to a pension or annuity and for the payment of the expenses of the administration. An association formed under the authority of this section shall not be subject to chapter one hundred and seventy-five or to such other provisions of law as relate to insurance companies or associations, except as provided by this and the following section. Such an association may include employees, officers and agents of a group of two or more corporations engaged in the same or directly related fields of enterprise and under the same or substantially the same management.
program Section 3A. Notwithstanding the provisions of any general or special law to the contrary, a person receiving compensation from the commonwealth for services performed for the commonwealth who is not eligible for membership in the state retirement system shall be subject to the provisions of section sixty-four of chapter twenty-nine.
Section 4. (1) Qualifications for Credit for Service. — (a) Any member in service shall, subject to the provisions and limitations of sections one to twenty-eight inclusive, be credited with all service rendered by him as an employee in any governmental unit after becoming a member of the system pertaining thereto; provided, that he shall be credited with a year of creditable service for each calendar year during which he served as an elected official; and provided, further, that in no event shall he be credited with more than one year of creditable service for all such membership service rendered during any one calendar year.
(b) Periods of service in any governmental unit prior to the date a system becomes operative therein rendered by any employee who becomes a member when such system first becomes operative in such governmental unit, or who becomes a member as otherwise provided for in paragraph (6) (f) of section three, shall, subject to the provisions and limitations of sections one to twenty-eight inclusive, be counted as creditable prior service; provided, that in no event shall any such person be credited with more than one year of creditable service for all such prior service rendered during any one calendar year.
(c) Creditable service in the case of any member shall include any period of his continuous absence with full regular compensation, or in the event of his absence with partial regular compensation such period or portion thereof, if any, as the board shall determine. Creditable service in the case of any member may be allowed by the board for any period of his continuous absence without regular compensation which is not in excess of one month. Any portion of any leave or period of continuous absence of any member without regular compensation which is in excess of one month shall not be counted as creditable service except as specifically otherwise provided for in this section, but no duly authorized leave or period of absence shall be deemed to be a termination of membership or service.
(d) Any person who became or becomes an employee by reason of the taking over by the commonwealth, or by the metropolitan district commission or by any district, of any institution, or of any public or quasi-public enterprise, controlled and operated by a political subdivision of the commonwealth or by a corporation, except such a person employed by the metropolitan district water supply commission who has not elected or does not elect to become a member of the state employees’ retirement system, shall be credited with such service as would have been creditable service had it been rendered by him under the provisions of sections one to twenty-eight inclusive, or under corresponding provisions of earlier laws.
(e) This section shall not apply to any employee who was eligible to and did not join a contributory retirement system established under the provisions of sections one to twenty-eight inclusive, or under corresponding provisions of earlier laws or of any special law, or to any such employee who was formerly a member of any such system, to the extent applicable to his service prior to his last becoming a member, unless and until he shall pay into the annuity savings fund of the system the makeup payments, if any, required by subdivision (3), (6) or (8), as the case may be, of section three.
(f) Creditable service for periods of out-of-state service in the case of any member who has acquired the right to credit for such service as a member of the teachers’ retirement system, or creditable service for periods of intra-state service in other governmental units where no system existed in the case of any employee who is a member of any system, shall be allowed as provided for in subdivision (4) or (5) respectively, of section three, or as provided for under corresponding provisions of earlier laws to the extent that such credit had been established prior to January first, nineteen hundred and forty-six.
(f1/2) Creditable service for periods of nonpublic school service in the case of any member who has acquired the right to credit for such service as a member of the teachers’ retirement system, shall be allowed as provided for in subdivision (4A) of section three; provided that such nonpublic school service was rendered prior to January first, nineteen hundred and seventy-three.
(g) Any person who is a member of one or more systems and who has received or shall receive regular compensation paid jointly by two or more governmental units, shall, subject to the provisions of subdivision (7) of s
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