TO:                  All Retirement Boards

FROM:            Joseph E. Connarton, Executive Director

RE:                  Amendment to Chapter 21 of the Acts of 2009
                       Accidental Disability Retirement Allowance Calculation

DATE:             December 8, 2009

As you know, Chapter 21 of the Acts of 2009 changed the amount of regular compensation for purposes of calculating an accidental disability retirement allowance.  Section 19 of Chapter 166 of the Acts of 2009 has again changed the regular compensation to be used in the calculation.  Section 45 of Chapter 166 of the Acts of 2009 has made this change effective on July 1, 2009.  All accidental disability retirement allowances with an effective date on or after July 1, 2009 that were calculated under the now-repealed language on G.L. c. 32, § 7(2)(a)(ii) will need to be recalculated and submitted for review.

After the recent legislative action, G.L. c. 32, § 7(2)(a)(ii) reads as follows:

  1. A yearly amount of pension equal to 72 per cent of the annual rate of his regular compensation on the date such injury was sustained or such hazard was undergone, or equal to 72 per cent of the average annual rate of his regular compensation for the 12-month period for which he last received regular compensation immediately preceding the date his retirement allowance becomes effective, whichever is greater; provided, however, that if an individual was in a temporary or acting position on the date such injury was sustained or hazard undergone, the amount to be provided under this paragraph shall be based on the annual rate of regular compensation in his permanent position on the date such injury was sustained or such hazard was undergone, or the average annual rate of his regular compensation in his permanent position for the 12-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 1, 1988 or who has not been continuously a member in service since that date, the total yearly amount of the sum of such pension and the annuity as determined in accordance with clause (i) shall not exceed 75 per cent of the annual rate of regular compensation as determined in this paragraph; and provided further, that no individual who was a member in service on January 1, 1988, whose allowance is limited by the 75 per cent limitation as established in this paragraph, shall receive an amount of pension that is less than 72 per cent of such individual’s regular compensation on January 1, 1988;

Attached is a form that must accompany all calculations for accidental disability retirement that are submitted for review.  In addition, all calculations for members who retired with an effective date on or after July 1, 2009 until the date of this Memorandum must be recalculated and resubmitted.  Also attached are examples of calculations pursuant to G.L. c. 32, § 7(2)(a)(ii) as amended by Chapter 166 of the Acts of 2009.

If you have questions, please contact this office.

Related links:

Checklist for Accidental Disability Retirement  pdf format of Checklist for Accidental Disability Retirement

Examples of calculations pursuant to Chapter 166 of the Acts of 2009