Worcester Retirement Board Supplemental Regulations

Supplemental Regulations

Membership:

August 23, 2017
BOARD MEMBERSHIP
Any individual who is permanently employed thirty (30) or more hours per week for twelve (12) months per year by any member unit of the Worcester Retirement System, ("System") or the Worcester Retirement Board and whois scheduled to receive at least $5,000 in wages annually as defined in M.G.L. c. 32, § 1 and 840 CMR 15.03 shall become a member of the System. For the purpose of this regulation, the term "permanent" shall mean guaranteed employment for more than 12 consecutive weeks. Notwithstanding the foregoing, any Worcester Public School employee is only required to work 30 hours or more per week for one hundred and eighty-three (183) days or the full school year.  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 whose annual compensation is set at least $5,000 may elect to become a member of the System within 90 days of assuming office.

March 29, 1993
All part-time, provisional, temporary or intermittent employees who are regularly scheduled to work twenty (20) or more hours per week are required to become members of the Worcester Retirement System and to make weekly contributions to the system pursuant to G.L. c. 32, §22 (1)(b).  Those employees who are not regularly scheduled to work at least twenty (20) hours per week will not be allowed membership in the Worcester Retirement System.

Creditable Service:

Regular Compensation:

April 17, 2018
Members of the Worcester 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, with full-time being defined as permanently employed at least thirty (30) hours a week for twelve (12) months a year, 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 Worcester Retirement System ("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 prior to the effective date of this regulation 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 prior to the effective date of this regulation, the member shall receive full credit for all service rendered prior to the effective date of this regulation, and the member shall receive full credit for full-time service and prorated credit for part-time service subsequent to the effective date of this regulation. Proration of part-time service shall be based on the full-time equivalency of 173 hours being the equivalent of one (1) month of service for all employees

1. In the case of School Department employees whose full-time employment requires them to work from on or about September 1st to June 30th, including but not limited to cafeteria workers, clerical and secretarial staff, teacher's assistants 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 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 System as set forth in this regulation.

• The Board recognizes that certain School Department employees, including but not limited to custodians, administrative secretaries and administrative staff 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.
   
• 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 service rendered in a member unit of the System as a reserve or permanent-intermittent or police officer or as a reserve, permanent-intermittent or call firefighter pursuant to Section 4(2)(b), 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 consistent with the proration formula in the preceding paragraphs.
   
• 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 works in a position for which the compensation was set at least $5,000 annually.

Miscellaneous:

October 12, 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, 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  will  be  determined  by  including an interest assessment on the amount owed based on the 10-year Treasury rate for that particular year based on the rate in effect on January 1st of each calendar year.

February 22, 1999:
Effective September 1, 1998 all retirement payments made by the Worcester Retirement System [may] be made by electronic funds transfer.  This will be a direct deposit system and [may] apply to all amounts payable to Worcester Retirement System's members and beneficiaries.  This provision is not mandatory for any member or beneficiary of the Worcester Retirement System.  The Worcester Retirement Boards will provide electric fund transfer notices to retirees when they first enroll in the program; any time there is a change in their monthly amount and at year-end (12/31).

July 27, 1998:
Effective September 1, 1998, all retirement payments made by the Worcester Retirement System shall be made by electronic funds transfer.  This will be a direct deposit system and shall apply to all amounts payable to the Worcester Retirement System's members and beneficiaries. (Amended February 22, 1999).

February 17, 1998:
Recovery of earnings in excess of limitations set forth in M.G.L. c. 32, s. 91A.
Disabled members of the Worcester Retirement System whose calendar year earnings exceed an amount which when added to the member’s retirement allowance is greater than the amount of regular compensation which would have been payable to such member if such member had continued in service in the grade held by him at the time he was retired plus the sum of five thousand dollars, must refund to the Worcester Retirement System the amount of said overearnings in either a lump-sum or, in the alternative, if the member can demonstrate that a lump-sum payment would result in financial hardship, a monthly payment schedule of not more than six months, provided the member amply demonstrates financial hardship to the Board’s satisfaction.

August 16, 1990:
Election Rules:
Any active, inactive or retired member may qualify as a candidate by filing with the retirement board nomination papers containing the signatures and addresses of at least fifty (50) members of the Retirement System. Regulation in effect for the 1990 Retirement Board Election only.