9.03: Benefit Calculations

(1) Except as provided by 840 CMR 9.03(2), all benefit calculations for
retirement allowances granted under the provisions of M.G.L. c. 32 shall be
forwarded to the Commission for approval in accordance with 840 CMR

(2) Any retirement board may perform benefit calculations on an automated
system approved by the Commission. Except as provided by 840 CMR
9.03(8), individual benefit calculations performed on an automated system
approved for performing such calculations shall be considered approved and
need not be forwarded to the Commission for approval.

(3) Any board may apply for approval of an automated benefit calculation
system by submitting a letter describing the system together with the
documentation for all system computer programs, a copy of system
procedures and samples of all categories of calculations to be performed on
the system. Upon receipt of a request for approval of an automated benefit
calculation system, the Commission shall inform the retirement board of the
protocol necessary to approve such system. No automated benefit
calculation system shall be considered approved unless the board has
performed the established protocol. No change shall be made in an approved
automated system without the approval of the Commission.

(4) Automated benefit calculation systems, and changes in approved
systems, will generally be approved if:
(a) System computer programs have the capability of performing benefit
calculations and storing, retrieving and printing both detailed and
summary information for all calculations performed including, for each
calculation, the member's:
social security number;
creditable service;
final average salary;
date of birth;
date of retirement;
retirement type and option;
beneficiary information (name, birthdate and relationship);
veteran status;
retirement allowance amount;
pension amount;
annuity amount;
dependency allowance;
worker's compensation information (if any).
(b) System procedures, including training and support of system
operators, are designed to minimize the risk of error and loss of data.
(c) System and non-system categories of benefit calculations are clearly
identified and provision is made for submitting any non-system
categories of calculations to the Commission in accordance with 840
CMR 9.03(1).

The following text is effective 09/29/00

(5) The Commission may approve automated benefit calculation
systems for all benefit calculations or limit approval to
specific categories of calculations. If system approval is
limited to specific categories of benefit calculations, all
other calculations shall be forwarded to the Commission for
approval in accordance with 840 CMR 9.03(1).

(6) Every retirement board using an automated benefit
calculation system, shall biannually submit, based on a
schedule determined by the Commission, a summary report,
including a representative sample of at least 5% of all
benefit calculations, but not less than two calculations,
performed on the system during the preceding six months, and
describing any system changes under consideration by the

(7) The Commission shall, from time to time, audit the
performance of each Approved automated benefit calculation
system to determine the accuracy of calculations and whether
the system meets requirements for continued system approval.
For this purpose the Commission shall have access to all
system records and may examine all calculations or a
representative sample of calculations performed on the system.

(8) If the Commission determines at any time that an approved
automated benefit calculation system is performing inaccurate
calculations or otherwise fails to meet requirements for
continued system approval, or if a retirement board fails to
comply with any of the requirements of 940 CMR 9.03, the
Commission may suspend or revoke approval of the automated
benefit calculation system in whole or in part. In this event
all benefit calculations with respect to which approval is
suspended or revoked shall be performed manually and shall be
forwarded to the Commission for approval in accordance with
840 CMR 9.03(1) until such time as the automated system is
again approved by the Commission.


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