Membership:
June 18, 2020
Any individual who is permanently employed twenty (20) or more hours per week by any member unit of the Melrose Retirement System ("System") or the Melrose Retirement Board and who is scheduled to annually receive at least $5,000 in regular compensation as defined in M.G.L. c. 32, § 1 and 840 CMR 15.03 shall become a member of the System. Upon becoming a member of the System, a member will continue to be a member in service until employment is terminated or the member's death.
Any elected official who is scheduled to annually receive at least $5,000 in regular compensation may elect to become a member of the System within 90 days of assuming office.
July 1, 1985:
Employees working less than 20 hours per week are ineligible for membership.
Creditable Service:
March 30, 2020
Members of the Melrose Retirement System ("System") shall receive creditable membership service, in whole month increments, consistent with this regulation in the following manner:
- For a member in service who is employed in a full-time or part-time capacity and is working 20 hours or more per week, he/she will receive one (1) month of creditable service for each full month for which the employee receives regular compensation and remits the appropriate contributions to the System, with said service not to exceed one (1) year of creditable service in any calendar year.
- In the case of School Department employees whose full-time employment requires them to work from on or about September 1st on or about June 30th, including but not limited to cafeteria workers, clerical and secretarial staff, teacher's assistant and teaching professionals, such as therapists, said employees shall receive one month of creditable service for each full month the employee is receiving regular compensation, with ten (10) months being the equivalent of one (1) year of creditable service.
- The Board recognizes that certain School Department employees, including but not limited to custodians and secretaries, are required to work the entire calendar year, and in such a situation, said employee's creditable service will be calculated based on a twelve (12) month year.
CREDITABLE SERVICE PURCHASE - INSTALLMENT POLICY:
Members of the Melrose Retirement System ("System") who previously rendered service in the City of Melrose, in a member unit of the System or as an employee of the Melrose Retirement Board ("Board") and who were not eligible to participate in the System at the time the service was rendered, shall be eligible to purchase such past service rendered, in monthly increments, consistent with the provisions of M.G.L. c. 32, § 4(2)(c) and the Board's regulation regarding the calculation of creditable service. Members of the System who previously rendered service in another governmental unit in the Commonwealth of Massachusetts and who were not eligible to participate in the retirement system which has jurisdiction over said governmental unit shall be eligible to purchase such past service rendered provided that said service was rendered in a temporary, provisional or substitute position, in monthly increments, consistent with the provisions of M.G.L. c. 32, § 3(5) and this regulation. Creditable service shall be calculated with 174 hours being the equivalent of one (1) month's service.
May 10, 2011:
Members of the Melrose Retirement Board (sic) will be allowed to purchase up to four years of military service, creditable service for certain periods of non-membership employment (service) for a MA governmental unit in which deductions were NOT taken, and creditable service for previous service with a MA governmenta1 unit in which they received a refund of contributions consistent with the provisions of MA General Law Chapter 32 and PERAC 840 CMR Regulation 15.02.
It the policy of the Melrose Retirement Board to require that any request to purchase applicable creditable service will be paid in either 1 lump sum payment in full OR based on a signed, written (weekly or monthly) installment payment plan submitted by the Member, subject to Board approval, that will pay the necessary amount, including interest, within a maximum 12 month or 52 week period. The Member shall make the payments on a weekly or monthly basis to the Melrose Retirement Board. A Member who sustains or endures a hardship may petition the Board for a period of payment in excess of 12 months or 52 weeks.
If a Member becomes inactive or a non- member (resign, termination, sick etc...) during the installment payment period without making the final payment(s), the creditable service granted will be prorated based on the payments received and the creditable service being purchased. No refunds are allowed after purchasing this creditable service except by a refund of ALL accumulated deductions.
The purchased service time will only be 100% credited upon successful receipt of all installments.
Members may NOT purchase any entire military, buyback, or make-up of creditable service or a portion(s) of creditable service with more than ONE 12 month written (weekly or monthly) installment payment plan.
March 28, 2011:
NON-MEMBER CREDITABLE SERVICE PURCHASE POLICY:
Members of the Melrose Retirement Board will be allowed to purchase creditable service for periods of non-membership employment (service) for a governmental unit in which deductions were NOT taken, consistent with the provisions of MA General Law Chapter 32 and PERAC 840 CMR Regulation 15.02.
For full time Non-Member service, the employee will receive 12 months of creditable service for each year of service purchased.
For part time Non-Member service, it is the policy of the Melrose Retirement Board to calculate the purchased part time creditable service using actual hours worked on a proportional basis of a 40 hour work week, consistent with the Creditable Service and Membership Supplemental Regulations.
November 15, 1985:
Part time employees credit will be granted depending on the work history of the employee. Two categories of employment are considered as follows:
A. Employees in this category will have worked on a less than full time basis throughout their years of service. For this category of employee, credit will be granted on the basis of one year of credit for each year of service. The pension thus computed will be on an equitable basis as a full time employee. The deciding factor in the computation of the pension will be the three-year average earnings.
B. Employees in this category will have worked on both a full time and part time capacity during their years of service. In this category, credit for service will be computed on an individual basis. For the full time service, the employee will receive one year of credit for each year of service. For the part time service, the employee will receive one year of credit for 2 years of part time service. An alternative computation of creditable service will be made by using actual hours worked. This computation will be made using a ratio the dividend of which will represent the hours to be worked. The percentage thus computed will be that portion of a year’s credit for the part time work. Any interpretation of this paragraph shall be done on an individual basis by the Board.
July 1, 1985: Permanent employees working for at least 20 hours per week and less than 35 shall be granted creditable service prated on the basis of a 40- hour week. If employed for at least 20 hours per week, and if this comprises the full time prescribed for the position, said part time employees shall be credited with 12 months membership service (i.e., Traffic Supervisors and School Lunch Employees).
All regular permanent employees who work at least 35 or more hours per week shall be granted creditable service of 12 months for each year of employment.
Regular Compensation:
Miscellaneous:
July 16, 2024
CREDIT CARD USE
SECTION I. PURPOSE:
The purpose of this regulation is to establish guidelines and procedures for the use of Board issued credit cards for purchases of goods and services, as well as for Board approved educational travel and costs associated therewith.
SECTION II. AUTHORITY:
The Board is adopting this regulation consistent with 840 CMR 15.05.
SECTION III. OBJECTIVES:
The primary objective of the credit card regulation is to establish guidelines for the Board to purchase goods and/or services as necessary to administer the retirement system and/or for Board member and staff travel related expenses incurred while attending educational conferences and/or seminars. Specifically:
- To facilitate a streamlined method of purchasing items thereby reducing paperwork and processing time;
- To eliminate the need for several “store” issued credit cards and to consolidate purchases on one credit card;
- To provide a method of purchasing items via the Internet, thereby taking advantage of more competitive pricing for certain goods; and
- To eliminate the need for Board staff to utilize their own personal funds and/or credit cards to procure goods and/or services for the Board and the retirement system’s effective and efficient operation.
SECTION IV. SCOPE:
The Board will oversee the issuance of the credit cards in accordance with this regulation, and only the Executive Director/Director/Administrator shall be authorized to use the card consistent with this regulation. The overall credit limit for the Board shall not exceed $25,000. Each good and service purchase shall be preceded by a competitive procurement process by which the Board or the Executive Director/Director/Administrator seeks bids/pricing from reputable and established vendors who are in the business of providing the good or service. The process undertaken to procure a good or service that is not otherwise covered by M.G.L. c. 32, § 23B shall be memorialized and become part of the permanent file that is maintained consistent with this regulation, as must any documentation the vendor submits as part of the procurement process.
SECTION V. CREDIT CARD USE:
The credit card is to be used for Board and retirement system purchases only. Use of the credit card for personal purchases or expenses with the intention of reimbursing the Board is strictly prohibited. Cash advances through bank tellers or automated teller machines, obtaining bank or traveler’s checks or electronic cash transfers are strictly prohibited.
The Executive Director/Director/Administrator shall be responsible for purchases within established credit limits and shall maintain a file that is solely for the use of retaining receipts (electronic, paper or otherwise) for each purchase or credit card use. The receipts must be provided to the Board within 10 business days of the monthly statement date. If a receipt for the purchase of a good or service or pertaining to education/travel is not provided, the authorized user must reimburse the Board for the cost of the good, service or education-related expense. The Board shall be responsible for ensuring that any purchases with a Board credit card are consistent with this regulation. The Board shall review the credit card statement monthly at its regularly scheduled meeting to ensure that all credit card use is consistent with this regulation. Purchases for a good or service that exceeds $1,000 requires prior Board approval, or if the purchase is time sensitive, the Chair’s or Vice Chair’s prior approval.
If a return or exchange is required, the Executive Director/Director/Administrator shall verify that proper credit was received from the vendor and submit the appropriate paperwork to the Board for its review at a regularly scheduled monthly meeting. In no case shall the Executive Director/Director/Administrator accept cash I exchange for a returned item.
It is the responsibility of the Executive Director/Director/Administrator to notify the Board, the financial institution that issued the card and the Public Employee Retirement Administration Commission (“PERAC”) immediately if there is any suspected fraudulent activity on the credit card. It is essential that time frames and documentation requirements established by the credit card issuer be followed to protect the Board’s rights in a dispute.
The credit card bill shall be paid in full and on or before the due date so as not to incur any interest charges.
SECTION VI: COMPLIANCE/CANCELLATION OF CREDIT CARD:
Continued or repeated non-conformance to this regulation will result in the cancellation of the credit card account and such other actions as appropriate.
SECTION VI: EFFECTIVE DATE:
This regulation shall become effective upon PERAC approval.
March 13, 2017:
CORRECTION OF ERRORS
In all cases in which a benefit calculation error occurs that results in an underpayment or non-payment of a pension or benefit to a member or beneficiary, or in the event of any overpayment as the result of an error to a member or beneficiary, the Board shall, consistent with the provisions of M.G.L. c. 32, § 20(5)(c) pay to or collect from the member or beneficiary, as the case may be, the actuarial equivalent of the benefit paid or received in error. Pursuant to the Supreme Judicial Court's decision in Herrick v. Essex Regional Retirement Board, 465 Mass. 801 (2013) and PERAC Memorandum #32/2013, the Board has determined that the actuarial equivalent requires that the interest to be applied will be at the rate annually determined by the Public Employee Retirement Administration Commission pursuant to G.L. c. 32 § 22(6)(b).