The Commonwealth of Massachusetts
PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION COMMISSION
5 Middlesex Avenue, 3rd Floor
Somerville, MA 02145
POLICY NO: 09 - 001
Beginning with the filing cycle for calendar year 2009 (filings due by April 15, 2010), any disability retiree who has had excess earnings in an amount that results in the repayment of his or her entire allowance for three or more consecutive years will be reviewed and the member’s retirement allowance will be modified prospectively pursuant to G.L. c. 32, § 8(3).
If the retiree’s earnings when added to his retirement allowance exceed the 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 plus $5,000 (increased annually by the cost of living increases granted pursuant to G.L. c. 32, § 102) his or her allowance will be modified going forward.
When a determination is made that a retirement allowance shall be modified, the retiree and the appropriate Retirement Board will be notified, and the retiree will be given the opportunity to be heard by the Commission or its designee. When the determination is final, the retiree and the appropriate Retirement Board will be advised. The retiree may appeal the Commission’s determination to the Contributory Retirement Appeal Board.
If a retiree’s allowance is modified pursuant to this provision, the modification shall remain in effect until the retiree establishes that he or she no longer has potential earnings. A retiree can establish his or her loss of potential earnings by way of an examination by a regional medical panel or by such other evidence acceptable to the Commission.
The applicable Retirement Board may pay over to a health insurance carrier that portion of the allowance to maintain the disability retiree’s health insurance coverage. A retiree whose allowance is modified pursuant to this process will continue to be considered as a disability retiree for purposes of G.L.c. 32A, § 10.
A retiree whose allowance is modified pursuant to this section will continue to be considered a disability retiree for purposes of G.L. c. 41, § 100B.
The procedure for this Policy can be found at www.mass.gov/perac/91AEarnedincome.htm
Adopted at Commission meeting dated February 24, 2009.
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