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Audit Audit of the Public Employee Retirement Administration Commission

Audit examines PERAC practices related to disability retirement benefits for public employees. It looked at the period of July 1, 2015 through June 30, 2017.

Binder organization: Office of the State Auditor
Date published: June 28, 2018

Executive Summary

In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted an audit of certain activities of the Public Employee Retirement Administration Commission (PERAC) for the period July 1, 2015 through June 30, 2017. This audit was undertaken to determine whether PERAC effectively administered various aspects of the disability retirement process for public employees and conducted its oversight activities in compliance with applicable laws and regulations.

Below is a summary of our finding and recommendations, with links to each page listed.

Finding 1

PERAC did not always approve disability retirement benefits calculated by retirement boards.

Recommendations
 

  1. PERAC should perform reviews to identify all disability retirement benefits for which benefit calculations have not been approved.
  2. PERAC should develop and implement monitoring controls to ensure that retirement boards follow its existing regulations. These controls should ensure that all required disability retirement benefit calculations and necessary documentation are submitted to PERAC for approval before the board makes the first payment to the applicant. The controls could include communication between PERAC’s Legal and Actuarial Units to ensure that the Actuarial Unit stays informed of newly approved retirement cases for which a benefit calculation will need to be approved.

 

A PDF copy of the audit of the Public Employee Retirement Administration Commission is available here.

Post-Audit Action

After our audit ended, PERAC’s general counsel and deputy director informed us that PERAC had begun the process of contacting retirement boards as necessary to request that the calculations identified in the audit be submitted for review and approval.

Contact

Phone

Fax

(617) 727-3014

Address

Massachusetts State House
Room 230
Boston, MA 02133

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