Franklin Regional Retirement Board Travel Regulations

Regulations accepted by the board and approved by PERAC

Franklin Regional Retirement Board
Travel Regulations

Regulations accepted by the board and approved by PERAC

Approved 07/09/2025

Travel Reimbursement

1. Introduction:

In order to ensure an orderly procedure to comply with G.L. Chapter 32 section 20(5)(b) to provide for the payment of Board members and Board Staff expenses for travel and other related expenditures and to meet, comply with and maintain the fiduciary responsibilities and standards of the Board members and Board staff and, further recognizing that the continuing education and training of the Board members and Board staff are essential to meet these fiduciary responsibilities and obligations, the Board hereby adopts the following regulation policy governing travel and related expenditures.

2. Procedure for Approval of Expenditures:

In the event a retirement Board member or Board staff wishes to be reimbursed for any expenses for travel or related expenditures such as meals, mileage, tolls, air fare, taxis, registration fees, hotel charges or loss of wages for attendance at any meeting, seminar, conference or similar function, the Board member or Board staff must request, at least thirty days prior to the meeting, seminar or conference at a Board meeting, to be paid or reimbursed for said expenses or wages. This request shall be accompanied by a meeting, seminar, or conference agenda, if available.

Travel not exceeding one day by Board members or Board staff via automobile to and from a relevant retirement Board function will not require prior Board approval. Reimbursement shall be limited to mileage, parking, tolls and, for travel taking more than 4 hours, one meal (with foodservice gratuity not to exceed 20%).

Where advance notice and approval of attendance at a meeting, seminar or conference may be impractical due to the Board's scheduled meeting date, notice shall be provided to the Executive Director and to the Board members as soon as possible. In such case, the Board grants the Executive Director or Chairman the power to approve attendance at a meeting, seminar, or conference if prior approval at a Board meeting is impractical. At the next scheduled meeting thereafter, the Board members shall vote on the member's or staff’s request. For all requests, the Board shall vote in an open meeting and the minutes shall reflect the Board's action and the extent of the authorization.

Within thirty days following the conclusion of the conference, meeting, seminar or similar function, the Board member or Board staff shall complete and submit to the Executive Director a travel reimbursement form. The Board member or Board staff shall list and certify under the penalties of perjury on said form all expenditures for which reimbursement is sought and include as attachments all original receipts for all expenses incurred and for which reimbursement is sought. Any travel expenses for which receipts are unavailable such as gratuities must be fully described and reimbursed based on the Board members certification that the expenses were necessary and incidental to the approved travel. Reimbursement may be made only to the person who made payment for the expense.

3. Standards:

If a majority of the Board present and voting determines at a duly called meeting that the attendance at the meeting, seminar or conference by the Board member or Board staff is a necessary expenditure in service on or to the Board, the Board shall authorize the payment or reimbursement of the necessary and/or lost wages related to attendance at the meeting, seminar or conference in accordance with this policy. Board members and Board Staff are responsible for all expenses related to family members when they join on a business trip. The Board has determined that payment of the following expenses shall be administered as follows:

1.   Automobile mileage of a personal automobile when used to travel to and from conferences and all other retirement business shall be reimbursed at the IRS allowed rate. Parking fees and tolls are also reimbursable expenses. The starting address in determining mileage for employees will be the address of the retirement office; Board members should use their resident address as the starting point.
   1.   Hotel Accommodations shall be charged at the conference rate. If unavailable, government or business rates shall be used. If a Board member or Board staff upgrades hotel accommodations, the cost of said upgrade shall be the responsibility of the Board member or Board staff. Necessary and reasonable expenses for hotel accommodations shall be considered to be room charges, related taxes, hotel parking, meals (up to one hundred dollars ($100) per day not including gratuities) and foodservice gratuity (not to exceed 20%). Incidental charges such as gift shop charges, in room movies, or alcoholic beverages shall not be reimbursable expenses.
   2.   Spouses, partners, or children of Board members or Board staff may accompany a Board member or Board staff when attending conferences and may occupy the same hotel room. If such double occupancy results in an increase in the cost of the room charge above the rate which would have been charged to the member of a single occupancy room, said additional cost shall be the responsibility of the Board member or Board staff member.
   3.   The Executive Director shall be responsible for making travel arrangements and for assisting Board members in completing the reimbursement forms and in complying with this regulation.
   4.   An extended stay of the Retirement Board member or Board staff may be authorized if the net cost to the Board of the travel costs is lower. For example, if airline fare is lowered by staying an extra day and the cost of accommodations and meals for that extra day results in net savings to the Board, an extended stay may be authorized by the Retirement Board.
   5.   All travel should be at the lowest fare available. The source of rental cars shall be a national rental agency. The rental rate shall be negotiated by the Executive Director or Board member responsible for arranging travel. It is the Board member's or Board staffs responsibility to verify that the rate charged is the rate negotiated. The Board member or Board staff must accept optional insurance coverage for rental cars.
   6.   Airline club memberships shall not be a reimbursable travel expense.
   7.   Any motor vehicle accidents which occur while using a rental car while on Board approved travel shall be reported as soon as practicable, in writing to the appropriate authorities, with copies of all such reports provided to the Board.
   8.   The Board member or Board staff is personally responsible for the payment of fines or other expenses incurred as a result of traffic violations while on Board approved travel. These payments shall not be considered reimbursable expenses.
   9. In the event a Board member or Board staff seeks reimbursement for business meetings involving meals for others while on Board authorized travel a Board member shall provide in writing, the name of each participant, their affiliation and the nature and matters discussed at the meeting. Reimbursement for these expenses shall only be made for meetings that are for a legitimate Retirement Board business purpose.
   10. If conference, seminar, or meeting registration fees include lodging and meals, reimbursement may be made only for the lodging or meals (with foodservice gratuity not to exceed 20%) not included in the registration fees.
   11. No cash advances for Board travel expenses will be made to a Board member or Board staff.
   12. The Executive Director and any Board Member/employee so designated by the Board may be provided a company credit card which may be used for the payment of approved travel-related expenses such as transportation, lodging, and meals. Credit card billings shall be issued to the Board office and the user(s) shall be required to provide receipts for all expenses included in the statement. The Executive Director or his/her designee, or authorized Board Member may make reservations regarding Board related transportation and lodging. Personal use of the credit card is strictly prohibited including personal expenses.
   13. Board members and Board Staff are responsible for all expenses related to family members when they join a business trip.
   14. Overnight stays will be limited to circumstances where the location is in excess of 30 miles from the participant's home, and the start of the event is earlier than 8:00 am, or the conclusion of the event, not including parties or social gatherings, is later than 8:00 pm. Overnight stays are not limited to multiple-day events. Other conditions including weather issues can be acceptable reasons for overnight stays with Board approval. Exceptions may be granted on a case-by-case basis by Board approval.
2. Vendor Sponsored Events:

Expenses for travel and lodging for Board members or Board staff while attending vendor-sponsored events shall be processed in accordance with the above sections. When attending a vendor-sponsored event, Board members or Board staff shall not accept direct or indirect payments or reimbursements from vendors for travel and lodging, nor allow payments by vendors on behalf of a Board member for same. If a Board member or Board staff participates in a legitimate speaking engagement, the Board shall pay all costs and expenses related to such speaking engagement, provided, that the Board member or Board staff complies with all of the Board's travel regulations. The Board may accept reimbursement for such travel related expenses of a Board member or Board staff from the third party, only under the following limited circumstances:

1. A Board Member or Board staff may participate in legitimate speaking engagements in connection with their positions on the Retirement Board or as a member of the Board's staff and the Board may accept reimbursements from third parties necessary to cover travel related costs - for such engagements.
2. Acceptance of an honorarium or any other form of compensation is strictly prohibited.
3. To be considered a legitimate speaking engagement, the presentation must be formally scheduled on the agenda of a convention or conference.
4. The speaking engagement must be scheduled in advance of the Board member's or Board staffs arrival at the event.
5. The presentation must be before an organization that would normally have outside speakers address them at such an event.
6. The presentation cannot be perfunctory, but should significantly contribute to the event, taking onto account such factors as the length of the speech or presentation, the size of the audience, and the extent to which the speaker is providing substantive or unique information or viewpoints.
7. The Board can be reimbursed by a third party for expenses only to the extent necessary for making the speech or presentation.
8. Under no circumstances can a Board member or Board staff receive reimbursement or any other payment or compensation from a third party.
9. Payments or Reimbursements for Expenses by Third Parties:

A Board member or Board staff may not provide or receive anything of substantial value from any person, firm, partnership or other entity which may be reasonably expected to seek to do business with or is seeking to do business with or presently is doing business with the Board or any person, firm or other entity that solicits or makes referrals or which may be reasonably expected to solicit or make referrals of any client on behalf of such a person, firm, partnership or other entity. The Board's members or staff may not provide to or receive anything of substantial value from such a person, firm, partnership, or other entity indirectly through any person, firm, association, organization, or other entity.

6. Violation of Travel Policy Regulation or PERAC Guidelines:

Any person or entity that violates PERAC Guidelines or Board regulations approved by the Commission shall be deemed to have violated the provisions of 840 CMR 17.00 and shall be subject to removal as a qualified investment manager or consultant pursuant to 840 CMR 17.04(10). In the event of such a violation, the Board will not seek an exemption from PERAC.

In no event shall these regulations prevent a member of the Board or Board staff from attending any meetings, seminars, or conferences at his or her own expense.