MEMORANDUM #17, 2007

Commonwealth of Massachusetts | Public Employee Retirement Administration Commission
Five Middlesex Avenue, Third Floor, Somerville, MA 02145
Ph 617 666 4446 | Fax 617 628 4002 | TTY 617 591 8917 |
Domenic J. F. Russo, Chairman | A. Joseph DeNucci, Vice Chairman
Henry G. Brauer | Kenneth J. Donnelly | James M. Machado | Donald R. Marquis | Thomas Trimarco
Joseph E. Connarton, Executive Director


TO:             All Retirement Boards

FROM:       Joseph E. Connarton, Executive Director

RE:             Proposed Lump-Sum Settlements

DATE:        February 12, 2007

Due to the tentative nature of proposed lump-sum settlements, it is not the common
practice of the Commission to issue letters detailing the potential offsets to disability
allowances when members are considering lump-sum settlements to their workers’
compensation claims.  In a few rare instances, though, the Commission has issued such

However, due to the large number of recent requests for potential offsets of proposed
lump-sum settlements and the corresponding requests for offsets to the finalized lump-
sum settlements (which show the same figures as the proposed settlements), the
Commission will begin enforcing the practice of not issuing letters on the potential
offsets to proposed lump-sum settlements.  This change will take effect immediately.

Please note that while PERAC will no longer be reviewing proposed lump-sum
settlements, we will continue to review and issue letters detailing the offsets of
settlements that have been approved by the Industrial Accidents Board.

Please notify any and all interested parties of this change.  Thank your for your
attention to this matter.

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