CATEGORIES
OF PENSION FRAUD |
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| The
Public Employee Retirement Administration Commission
(PERAC) was created for and is dedicated to the oversight,
guidance, monitoring, and regulation of the Massachusetts
public pension systems. Part of the Commission's efforts
is focused on the identification and prevention of public
pension fraud. Fraud can be defined as "deception
deliberately practiced in order to secure unfair or
unlawful gain." |
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| Public
pension fraud falls largely into four categories: |
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| Submission
of Falsified Records |
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| Anyone
who knowingly submits falsified records to a public
employee retirement board or PERAC for the purpose of
gaining benefits will be investigated for fraud. Such
records may include, but are not limited to, falsified
birth certificates, marriage certificates, adoption
records, divorce decrees, medical records, and accident
reports. |
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| Submission
of Falsified Affidavits |
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| Each
year, every public pension retiree and the surviving
beneficiaries of such deceased retirees, receive affidavits
from their retirement board. The purpose of this affidavit
is to verify that the retiree/beneficiary is living
and to update other key information such as his/her
current address. Confirmation of a beneficiary's dependency
status is also sought where it is relevant to continued
receipt of benefits. Any retiree/beneficiary who knowingly
makes false responses on this affidavit will be investigated
for fraud. Anyone who signs an affidavit who is other
than the retiree, his/her beneficiary, or an individual
with a valid power of attorney will be investigated
for fraud. |
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| Disability
Retirees Working in Excess of the Limitations in the
Private Sector |
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| G.L.
c. 32, § 91A provides that if the amount of a disability
retiree's annual retirement allowance, when added to
his/her post retirement earnings, is in excess of the
regular compensation the retiree would have received
if he/she continued in service at the grade held at
retirement plus $5,000, his/her retirement allowance
may be reduced or suspended. Each disability retiree
is required to file an Annual Statement of Earned Income
with PERAC on or before April 15th of each year, certifying
the amount, if any, of his/her earnings from earned
income during the preceding year. Disability Retirees
who do not report or under-report earned income will
be investigated for fraud. |
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| Retirees
Working in Excess of the Limitations in the Massachusetts
Public Sector |
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| Pursuant
to G.L. c. 32, § 91(b) a retiree (accidental,ordinary,
or superannuation) can be employed in the service of
the commonwealth, county, city, town, district or authority
for not more than nine hundred and sixty hours in the
aggregate, in any calendar year; provided that the earnings
therefrom, when added to any pension or retirement allowance
he/she is receiving, do not exceed the salary that is
being paid for the position from which he/she was retired.
Retirees who fail to report their status as public retirees
to prospective public employers will be investigated
for fraud. |
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