Audit  Audit of the Public Employee Retirement Administration Commission

In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of the Public Employee Retirement Administration Commission (PERAC) for the period July 1, 2019 through June 30, 2021.

In this performance audit, we determined whether PERAC approved members’ applications for accidental and ordinary disability retirement¹ within 30 days in accordance with Section 21(1)(d) of Chapter 32 of the General Laws. We also determined whether PERAC calculated the correct amount of retirement benefits for excess earners² in accordance with Section 91A of Chapter 32 of the General Laws.

Our audit revealed no significant instances of noncompliance by PERAC that must be reported under generally accepted government auditing standards.

1.    Accidental disability retirement is when an employee retires because of an injury or illness they sustained at work while performing their job duties. Ordinary disability retirement is when an employee retires because of an injury or illness they sustained outside of their job duties.

2.    Excess earners are members whose earnings were greater than their regular compensation, had they continued employment in the grade they held at the time they were approved for disability retirement, plus $15,000.