Natick Retirement Board Supplemental Regulations

Regulations accepted by the board and approved by PERAC

Membership:

August 29, 1990: The Board considers a part-time, provisional, temporary provisional, seasonal or intermittent employee, eligible for membership in the retirement system IF he/she has been regularly employed for an average of at least 20 hours per week, minimum of 520 hours per year and has completed six calendar months of service.

A part-time, provisional, temporary provisional, seasonal or intermittent employee receiving weekly or monthly salaries or wages for prescribed periods of employment will be given creditable service as described below.  In the case of any employee whose work is found to be seasonal in its nature, the Board shall credit as the equivalent of one year of service actual full-time service of not less than seven months during any one calendar year.

Definitions:
For school cafeteria personnel, a day is to be based on a seven-hour period of employment in a 35 hour week

For clerical personnel, a day is to be based on a seven and one-half hour period of employment in a thirty-seven and one-half hour week.

For all other employees a day is to be based upon an eight-hour period of employment in a 40-hour week.

Any school lunch or cafeteria personnel who works 7 hours or more per day will be considered by the board a full-time employee and eligible for membership in the retirement system.

December 19, 1984: Part-time, provisional, temporary provisional, seasonal or intermittent employees who are regularly employed for an average of at least 20 hours per week, minimum of 520 hours and have completed six calendar months of service must become members of the system.

A part-time, provisional, temporary provisional, seasonal or intermittent employee receiving weekly or monthly salaries or wages for prescribed periods of employment will be given creditable service based on actual service rendered.  In the case of any employee whose work is found to be seasonal in its nature, the Board shall credit as the equivalent of one year of service actual full-time service of not less than seven months during any one calendar year.

Definitions:
For school cafeteria personnel, a day is to be based on a seven hour period of employment in a 35 hour week

For clerical personnel, a day is to be based on a seven and one-half hour period of employment in a thirty-seven and one-half hour week.

For all other employees a day is to be based upon an 8-hour period of employment in a 40-hour week.

Any school lunch or cafeteria personnel who works 7 hours or more per day will be considered by the board a full-time employee and must become members of the system. (Amended by supplementary rule approved 8/29/90)

Creditable Service:

February 11, 2025: Members of the Natick 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 capacity, 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.
• For a member in service who is employed in a part-time capacity throughout his/her entire career, 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.
• For a member who has rendered membership service in the System in both a full-time and part-time capacity, the member shall receive full credit for all full-time service and prorated credit for part-time service based on the full-time equivalency of 35 hours per week.
• For a member who is employed in a part-time capacity throughout his/her career but who purchases past System refunded service, the member’s part-time service shall be prorated based on the full-time equivalency of 35 hours per week.  A member’s transferred service or a purchase of past refunded service from another retirement system will not impact the calculation of System creditable service.
• In the case of School Department employees whose full-time employment requires them to work from on or about September 1st to 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.  School Department employees who are employed in a part-time capacity shall have their creditable service prorated in the same manner as all members of the Natick Retirement System as set forth in this regulation.
• 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 for 10-month employees shall be based on 1540 hours being the equivalent of 1 year, whereas creditable service for 12-month employees shall be based on 1820 hours per year.
• Members of the System may only purchase and receive credit for past non-membership service rendered in a member unit of the System consistent with the provisions of M.G.L. c. 32, § 4(2)(c), or if the past service was rendered under the jurisdiction of another retirement system, such service may only be purchased pursuant to Section 3(5) if rendered in a temporary, provisional or substitute capacity, provided that the individual was excluded from membership in the other retirement system.  All prior non-membership service shall be calculated with 152 hours being the equivalent of one (1) month of creditable service.  Past non-membership service may be purchased consistent with this supplemental regulation.  In addition, for all service rendered on or after July 1, 2009, no creditable service will be granted unless the individual was employed in a position for which the rate of annual compensation was fixed at least at $5,000.  Notwithstanding the foregoing, pursuant to Section 25 of Chapter 21 of the Acts of 2009, creditable service shall be granted for the service of any member of the System serving in a paid position earning less than $5,000 after July 1, 2009, if such service is subject to a specified term as a result of an election, appointment or contract, and the election, appointment or contract occurred or was executed prior to July 1, 2009, and if the service is otherwise eligible for creditable service pursuant to Sections 4(2)(c) and 3(5); and provided further, that such creditable service shall be granted until the expiration of the term, appointment or contract or July 1, 2012, whichever first occurred.

August 29, 1990: No credit shall be allowed for a fraction of a month less than one-half month, but if the fraction is one-half month or more, a full month’s credit shall be allowed. Service credit determination for the following classifications:

1. For employees of the FIRE DEPARTMENT, one year's credit for every 12 months of service
2. For employees of the POLICE DEPARTMENT, one year's credit for every 12 months of service
3. Creditable service for reserve patrolmen governed by G.L. c. 32, § 4(2)(b).
4. **For school crossing guards, one year’s credit for the school year of service.
5. **For school cafeteria employees, upon the completion of the six-month wait for membership, one year’s credit for the school year of service.

**(This applies only to current members of the system.)

1. For Teacher Aides, one year’s credit for the school year of service.
2. For school year secretaries, one year’s credit for the school year of service.
3. Creditable service for call fire fighters governed by G.L. c. 32, § 4(2)(b).

December 19, 1984: No credit shall be allowed for a fraction of a month, but if the fraction is one-half month or more, a full month’s credit shall be allowed.

The following formulas were arrived at on the basis of 48 weeks per year, four weeks allowance having been made for vacation and sick time:

1. For clerical employees, one month’s service shall be allowed for every 150 hours of employment.
2. For employees of the fire department, one year's credit for every 12 months of service
3. For school lunch employees, one month’s service shall be allowed for every 140 hours of employment.
4. For all other employees, one month’s service credit shall be allowed for every 160 hours of employment.
5. For school crossing guards, four month's service credit shall be allowed for every year of employment. (Amended by supplementary rule approved 8/29/90).

Regular Compensation:

Miscellaneous:

February 24, 2025

CREDIT CARD USE REGULATION

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:

1. To facilitate a streamlined method of purchasing items thereby reducing paperwork and processing time;
2. To eliminate the need for several “store” issued credit cards and to consolidate purchases on one credit card;
3. To provide a method of purchasing items via the Internet, thereby taking advantage of more competitive pricing for certain goods; and
4. 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 and the Board Chair 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 in 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 VII: EFFECTIVE DATE:

This regulation shall become effective upon PERAC approval.

February 18, 2025

CORRECTION OF ERRORS SUPPLEMENTAL REGULATION

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)(2) 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 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 regular interest, as that term is defined in M.G.L. c. 32, § 1, shall be included in any amount owed to or recouped from a member or beneficiary.