Suspension of Benefits

  • Are there any circumstances under which retirement benefits may be suspended or terminated?

Payments to an accidental or ordinary disability retiree who is incarcerated following conviction of a felony committed on or after July 1, 1996 must cease for the period of the retiree's incarceration.

Annual Statement of Earned Income
Disabled retirees who fail to comply with reporting requirements about earned income may also be subject to termination of benefits for the period of non-compliance. In accordance with section 91A of Chapter 32, if a disabled retiree fails to submit an Annual Statement of Earned Income, and the tax forms required by PERAC, and does not show good cause for this failure, the retiree's rights to a disability retirement allowance will terminate until the retiree has complied with the reporting requirement. A member whose allowance is terminated is not entitled to receive payments for the period of time that the allowance is terminated for failure to file the required documents. Prior to any termination of benefits, a disabled retiree must be given notice and an opportunity to be heard by his or her retirement board.

Disability retirees who have been retired for 20 years or more and have not reported earnings for the 10 prior years may be determined by PERAC to be eligible for a waiver and exempted from filing an Annual Statement of Earned Income.

Date published: July 1, 2015

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