Membership:
July 21, 1993:
Buy-backs: In order to purchase prior service, a person must have been or be a member of the Peabody Retirement System.
July 23, 1991:
Membership: To become a member of the Peabody Retirement System, a member must be employed in a permanent position with a normal work week of twenty (20) hours per week.
Creditable Service:
February 13, 2025
BOARD POLICY REGARDING MILITARY SERVICE CREDIT PURCHASE
Peabody Retirement System members in service who are eligible to purchase past military service rendered pursuant to M.G.L. c. 32, § 4(1)(h), and consistent with the provisions of Section 18, 52, and 53 of Chapter 178 of the Acts of 2024, the so-called “HERO Act,” who have properly applied to purchase this past military service, may do so in either a lump-sum payment or through a five (5) year payroll installment plan. Members in service must remit the lump-sum payment or enter into the installment plan on or before their last day of eligibility to purchase their military service. No interest will be charged on any such purchase. If a member enters the installment plan and does not complete the purchase prior to retirement, or voluntarily terminates the installment plan terms, the military service credit shall be prorated based on the amount of the funds paid to the retirement system for the purchase.
Effective August 8, 2025, the Peabody Retirement Board will allow a payment plan, up to five years if the requesting member is within their first five years of membership. In all other situations, the purchase shall be made by lump-sum payment.
September 9, 2023
CREDITABLE SERVICE REGULATION – PRORATED SERVICE
Any member in service, whose status is changed so that they are employed less than 20 hours per week, but who continue in a position with an annual salary of at least $5,000.00 as defined in M.G.L. Chapter 32, Section 1 and 840 CMR 15.03, shall receive prorated credit based on the full-time equivalency of 140 hours being the equivalent of one (1) month of service. Such proration shall be effective as of the date upon which the member was no longer permanently employed at least 20 hours per week. Any member who returns to being permanently employed at least 20 hours per week shall receive service credit pursuant to the creditable service regulation of the retirement system.
January 31, 2019:
Members of the Peabody Retirement System shall receive creditable 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 Peabody Retirement System ("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 may purchase part-time service based on the full-time equivalency of a minimum of 20 hours per week and four (4) weeks being the equivalent of one (1) month of creditable service. Part-time employees who are employed in a part-time capacity throughout his/her career and are not members in the System do not accrue 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 who work 42 weeks per year 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. Paraprofessionals working 38 weeks per year receive one month of creditable service for each full month the employee is receiving regular compensation, with nine (9) 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 for 9-month employees shall be based on a minimum of 760 hours being the equivalent of 1 year. Creditable service for 10-month employees shall be based on a minimum of 867 hours being the equivalent of 1 year. Creditable service for 12-month employees shall be based on minimum of 1,040 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 a minimum of 20 hours per week and four (4) weeks being equivalent to 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 with an annual salary of at least $5,000.
Regular Compensation:
Miscellaneous:
August 26, 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 Pension Administrator shall be authorized to use the card consistent with this regulation. The overall credit limit for the Board shall not exceed $7,500. Each good and service purchase shall be preceded by a competitive procurement process by which the Board or the Pension 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 Pension 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 Ex-Officio prior approval.
If a return or exchange is required, the Pension 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 Pension Administrator accept cash in exchange for a returned item.
It is the responsibility of the Pension 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.
November 22, 2016:
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 of the Peabody Retirement Board, 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 calculated for each calendar year based on the 10-year Treasury rate in effect on January 1st of each year.
The Peabody Retirement Board's policy is to make a onetime lump sum payment of the amount of the corrected benefit, together with the interest on the benefit owed computed from the date the error occurred to the date the error is corrected.
In a circumstance in which the Peabody Retirement Board is owed funds by a member or beneficiary to correct an error, the Board shall in its sole discretion withhold an amount it deems appropriate from the member's or beneficiary's monthly benefit, avoiding privation as best as practicable, until such time as the debt is fully recovered. In a circumstance in which the Board is owed funds by a member or beneficiary to correct an error, and the member or beneficiary is no longer entitled to receive a monthly benefit, or the individual is an active System member, the Board will seek to recover any amount owed in the most prudent and practical manner possible, and reserves the right to maintain an action in contract to recovery any amount due from the member, beneficiary or the member's or beneficiary's estate.
July 20, 2004:
Any purchase of military service time [pursuant to Chapter 468 of the Acts of 2002] may be paid over a five-year period. These payments may be made in one lump sum or by payroll deductions and must be paid in full within the five-year period from the date of returned application and before retirement or employment termination.