Reading Retirement Board Supplemental Regulations

Subject:

Regulation:

MEMBERSHIP:

 

 

August 16, 2004:  Anyone employed by the Town of Reading or the Reading Housing Authority, whose combined total service equals or exceeds 1,690 hours per year shall be enrolled in the Reading Retirement System.

March 4, 1991: Anyone employed by the Town of Reading or the Reading Housing Authority on or after July 1, 1991, as a part-time, provisional, part-time temporary, temporary provisional, seasonal or intermittent employee, shall not be eligible to the Reading Retirement System.

CREDITABLE SERVICE:

March 24, 2000: An employee who was initially enrolled as a member of the Reading Retirement System based upon employment in a full-time capacity and who subsequently takes a part-time position shall have the part-time service pro-rated according to the following schedule:

March 14, 2007: Pro-Ration Table

Hours per week:                                             Creditable Service:
Over 14.0                                                       5 months
Over 16.5                                                       6 months
Over 19.0                                                       7 months
Over 21.5                                                       8 months
Over 24.5                                                       9 months
Over 27.0                                                       10 months
Over 29.5                                                       11 months
32.5+                                                              12 months

If a member’s average weekly hours are based on a 52-week calendar year are over the amounts in the pro-ration table, the member will be credited with the service as listed.

For example, if a member works 22 hours per week for 15 years and then takes a full-time position for 10 additional years, the member would receive a total of 20 years of creditable service. The member would receive 8 months of creditable service for each of the 15 years that he/she worked 22 hours per week based on the above schedule. This amounts to 120 months or 10 years of creditable service. The member would also receive 10 years of creditable service for the ten years of full-time employment for a total of 20 years. Since the member’s retirement allowance is calculated utilizing his/her highest three-year average annual rate of regular compensation (i.e., the full-time salary), the loss of creditable service upon conversion from part-time to full-time employment is offset by the increase in the rate of compensation used to calculate the amount of the retirement allowance.

June 19, 2003:  All eligible members must determine within 180 days of notification by the Reading Retirement Board whether or not to purchase their military service as creditable service.  If choosing to purchase this military service, the member has the option of paying for this purchase at any time from the completion of his/her first year of membership until reaching his/her 10th year of membership.  If the member has not begun the payback by his/her 10th year as a member, then he/she must begin payroll deductions, make a lump-sum payment, or notify the Reading Retirement Board, in writing, of his/her decision to opt out of the program.

March 7, 1996: Buybacks: The Retirement Board will not allow members to buy back previous employment with the Town of Reading on or after July 1, 1991, when the Town was required to withhold and match Social Security deductions. By allowing buybacks the Board would be requiring the Town to fund two retirements for the same period of employment. If, however, the employee had not contributed to Social Security, but opted for the ICMA deferral instead, the employee will be allowed to buy back time, as the Town does not match those deductions.

REGULAR COMPENSATION:

 

MISCELLANEOUS:

July 24, 2009:  Recovery of Amounts in Excess of the Limitations Set Forth in G.L. c. 3, s. 91A

Any disability retiree from the Reading Retirement System who submits a statement of earnings to the Public Employee Retirement Administration Commission reflecting earnings in excess of the limits set out in G.L. c. 32, § 9lA shall repay to the Board the amount of his/her retirement allowance equal to such excess earnings either in a lump sum or over an installment period not to exceed twelve months. Where a member elects to repay the amount owed to the Board in installment payments, the Board secretary will calculate a repayment schedule to recoup the amount owed within the installment period. If any such repayment schedule requires withholding of the entire amount of a retiree’s allowance, he/she may need to arrange to pay the percentage of premiums for health and life insurance which would otherwise be deducted from his/her monthly allowance in order to maintain insurance coverage.

June 22, 1994:
  The Reading Retirement System has adopted the Town of Reading personnel polices for their staff members that are equal to the benefits of the Town of Reading employees.