840 CMR: PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION COMMISSION

840 CMR 2.00: RETIREMENT BOARD TRAVEL

2.13 Payments or Reimbursements for Expenses by Third Parties


1. Providing to or receipt by a Board Member or staff member of anything of
substantial value from any person, firm, partnership or other entity which may be
reasonably expected to seek to do business with or is seeking to do business with
or presently is doing business with a Retirement Board or any person, firm or
other entity that solicits or makes referrals or which may be reasonably expected
to solicit or make referrals of any client on behalf of such a person, firm,
partnership or other entity is strictly prohibited. Providing to and the receipt of
anything of substantial value from such a person, firm, partnership or other entity
indirectly through any person, firm, association, organization or other entity is
strictly prohibited.

2. In instances where a Retirement Board Member or Board staff member
participates in a legitimate speaking engagement, the Board shall pay all costs and
expenses related to such speaking engagement, provided, that the Board Member
or Board staff member complies with all of the Board’s travel regulations. The
Board may accept reimbursement for such travel related expenses of a Board
Member or a member of the Board’s staff from the third party, only under the
following limited circumstances:

      a) A Board Member or a Board staff member may participate in legitimate
      speaking engagements in connection with their positions on the Retirement
      Board or as a member of the Board’s staff and the Board may accept
      reimbursements from third parties necessary to cover travel related costs for
      such engagements.

      b) Acceptance of an honorarium or any other form of compensation is strictly
      prohibited.

      c) To be considered a legitimate speaking engagement, the presentation must be
      formally scheduled on the agenda of a convention or conference.

      d) The speaking engagement must be scheduled in advance of the Board
      Member’s or Board staff member’s arrival at the event.

      e) The presentation must be before an organization that would normally have
      outside speakers address them at such an event.

      f) The presentation cannot be perfunctory, but should significantly contribute to
      the event, taking onto account such factors as the length of the speech or
      presentation, the size of the audience, and the extent to which the speaker is
      providing substantive or unique information or viewpoints.

      g) The Retirement Board can be reimbursed by a third party for expenses only to
      the extent necessary for making the speech or presentation.

      h) Under no circumstances can a Board Member or Board staff member receive
      reimbursement or any other payment or compensation from a third party.

3. In instances where a Retirement Board Member or Board staff member
participates in a non-profit professional organization related to public pension or
public retirement, the Retirement Board may be reimbursed by the organization
for the expenses related to such participation. The travel or participation must be
approved by the Board in advance of any expenditures, and the minutes of the
Board must note this action. No organization, association or group of any sort
that is comprised of or supported by any person, firm, partnership or other entity
which may be reasonably expected to seek to do business with or is seeking to do
business with or presently is doing business with a Retirement Board shall
reimburse a Retirement Board for any expenses of a Board Member or Board staff
member to participate in any activities of that organization. Likewise, no
organization, association or group of any sort that is comprised of or supported by
any person, firm or other entity that solicits or makes referrals or which may be
reasonably expected to solicit or make referrals to a Retirement Board of any
client on behalf of such a person, firm, partnership or other entity shall reimburse
a Retirement Board for any expenses of a Board Member or Board staff member
to participate in any activities of that organization.

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