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Chelsea Retirement Board Supplemental Regulations

Regulations accepted by the board and approved by PERAC

Membership:

January 15, 2021:

Any individual who is permanently employed twenty (20) or more hours per week by a single member unit of the Chelsea Retirement System and who is employed in a position with a salary of at least Five Thousand Dollars ($5,000) annually in regular compensation wages as defined in M.G.L. c. 32, § 1  and 840 CMR 15.03 shall become a member of the Chelsea Retirement System.

Once an individual meets the requirements of membership in the Chelsea Retirement System, the individual shall remain a member, as long as remaining continuously employed by the same employer, even if no longer working at least twenty (20) hours per week.

For the purpose of this supplemental regulation, "permanently employed twenty (20) or more hours per week" shall mean that the employee is guaranteed, at minimum, twenty (20) hours of weekly regular compensation each and every week.

The minimum twenty (20) hours per week schedule must be permanent, which means regularly scheduled, guaranteeing the employee a minimum of twenty (20) hours per week, every week throughout the year. Employees of the School Department, must receive at least twenty (20) hours per week of regular compensation each and every week throughout the school year.

School Department employees, whose full-time employment requires them to work on an approximately ten (10) month annual schedule, including, but not limited to, bakers, food service workers, clerks, security personnel, secretarial staff, paraprofessionals, teacher's assistants and teaching professionals, and therapists, shall receive one (1) month of creditable service for each full month equivalent the employee is receiving regular compensation, with ten (10) months being the equivalent of one (1) year of creditable service. Ten (10) months of service shall represent 1500 hours annually.

School Department employees who are employed in a permanent 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, administrators, 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. Twelve (12) months of service shall represent at least 1800 hours annually for which the member receives regular compensation.

Any member in service, whose status is changed so that they are employed less than twenty (20) hours per week, but who continues in a position with an annual salary of at least Five Thousand Dollars ($5,000) in regular compensation per year, shall receive prorated credit based on the full-time equivalency of the position held, or, if none, then based upon at least 150 hours being the equivalent of one (1) month of service. Regular compensation as used in this regulation is defined in M.G.L. c. 32, § 1 and 840 CMR 15.03. All such prorations shall be effective as of the date upon which the member was no longer permanently employed at least twenty (20) hours per week. Any member who returns to being permanently employed at least twenty (20) hours per week shall receive all eligible credit.

In accordance with M.G.L. c. 32, § 4(1)(o), the service of a member employed, or elected, in a position receiving compensation of less than Five Thousand Dollars ($5,000) annually, which service occurs on or after July 1, 2009, shall not constitute creditable service, however, the member must still remit contributions to the retirement system in accordance with M.G. L. c. 32, § 22(l)(b).

Any elected official who is elected to a position with a salary of at least Five Thousand Dollars ($5,000) in annual eligible wages may, pursuant to M.G.L. c. 32, § 3(2)(a)(vi), elect to become a member of the System by submitting a request, in writing, to the Chelsea Retirement System within ninety (90) days after the date of assuming office. An elected official who fails to elect to become a member within the initial ninety (90) days of assuming office must wait until the start of a new term, and then file a written request with the Chelsea Retirement System within ninety (90) days of the new term, in order to become a member. Any person elected by popular vote to a state, county or municipal office or position who files with the board on a prescribed form a written application for membership within ninety days after the date of assuming office provided, that a member becoming an elected official shall retain his membership and an elected official who is a member shall remain a member upon his re-election or upon his election or appointment to any other position which would otherwise entitle him to membership.

Individuals holding intermittent, reserve or call positions are not eligible for membership in the Chelsea Retirement System as they do not work a regular, guaranteed schedule of twenty (20) or more hours per week.

An individual who temporarily works, or averages twenty (20) hours per week, does not meet the membership requirements. An individual who is assigned a twenty (20) hour per week schedule, but, who is not guaranteed to receive regular compensation at least twenty (20) hours per week, every week, is not eligible for membership.

An individual assigned to a position classified as temporary, seasonal or provisional is not eligible for membership even if they are working more than twenty (20) hours per week.

A member whose employment is terminated and whose funds are eligible to remain, and, in fact do remain in the Chelsea Retirement System, will become a member inactive.

If a member inactive subsequently returns to public employment in the retirement system, the member will become an active member again only if their new position meets the membership requirements. A member who is not terminated from employment but is reassigned to a position with the same employer that is less than twenty (20) hours per week will continue to be an active member of the retirement system

September 14, 2010

Permanent full-time employees of the City of Chelsea will be admitted to membership in the Chelsea Retirement System subject to the following conditions:

  • The Department Head shall supply the Retirement Board with a list of all employees, their annual salaries, and the date of their original appointment to said office.
  • The deduction to be withheld from the salary of each member who became an employee after July 1, 1996 must be 9% plus an additional 2% of compensation in excess of $30,000.
  • Employees may request, in writing, permission to make-up payments for their previous employment with the City of Chelsea or any agency which has been accepted as a member of the retirement system.  The amount to be repaid for the make-up period only shall be based on the percentage in effect on the original date of the employee’s employment.
  • The make-up payment of those deductions that would have been made had the employee become a member of the Chelsea Retirement System on the original date of employment shall be the percentage in effect on said date, plus interest to the completion of the make-up payment.  For the period beginning July 1, 1996 and thereafter, the percentage withheld is 9%.  Plus an additional 2% of compensation in excess of $30,000.
  • Each employee requesting permission to make up payments for their previous employment shall provide the Retirement Board with a verified list of salaries earned by them, by calendar year, not including overtime or bonuses so that a make-up payment can be calculated.
  • Any member who has been previously employed by the Commonwealth of Massachusetts or any political subdivision thereof, and a member of its retirement system must inform the retirement board so that an inquiry can be made as to the disposition of said employee’s accumulated deductions.
  • Each employee seeking to become a member of the Chelsea Retirement System must complete an enrollment form, which must be accompanied by a copy of said employee’s birth certificate and, if a veteran, a copy of their military discharge papers, Form DD-214, or other official documentation.

December 1, 2004

In order to be eligible for membership in the Chelsea Contributory Retirement System, permanent part-time or permanent full time employees must be hired to work at least twenty (20) hours per week in a calendar year.  A permanent part-time or permanent full time employee is defined as any employee who is hired to work at least twenty (20) hours per week in a calendar year, or if employed in more than one position, such that when the hours of employment are added together those hours shall equal at least 20 hours per week in a calendar year.  Any additional time worked on a temporary or employee elected basis, such as additional shifts filling in for vacation or sick time, do not count towards the twenty-hour minimum requirement for membership.

February 13, 1998

Military Service Credit - Any member seeking military service credit in accordance with the provisions of C. 71 of the Acts of 1996, who is eligible for such credit as of September 19, 1997, must submit an application for such service on or before March 16, 1998.

Members, who become eligible for military service credit after September 19, 1997, shall be notified of their eligibility by the Retirement Board and must submit an application for such credit within 180 days of receipt of notification.  The Retirement Board will review each application to determine the member’s eligibility, and will notify each eligible applicant in writing of the amount of service which may be purchased, and of the amount of the required payment.  The member must then remit the full-required payment in one lump sum to the Retirement Board on or before the forty fifth day following the member’s receipt of notification of eligibility, or on or before the date immediately preceding the member’s date of retirement, whichever date first occurs.

Permanent full-time employees of the City of Chelsea will be admitted to membership in the Chelsea Retirement System subject to the following conditions:

  • The Department Head shall supply the Retirement Board with a list of all employees, their annual salaries, and the date of their original appointment to said office.
  • The deduction to be withheld from the salary of each member who became an employee after July 1, 1996 must be 9% plus an additional 2% of compensation in excess of $30,000.
  • Employees may request, in writing, permission to make-up payments for their previous employment with the City of Chelsea or any agency which has been accepted as a member of the retirement system.  The amount to be repaid for the make-up period only shall be based on the percentage in effect on the original date of the employee’s employment.
  • The make-up payment of those deductions that would have been made had the employee become a member of the Chelsea Retirement System on the original date of employment shall be the percentage in effect on said date, plus interest to the completion of the make-up payment.  For the period beginning July 1, 1996 and thereafter, the percentage withheld is 9%. Plus an additional 2% of compensation in excess of $30,000.
  • Each employee requesting permission to make up payments for their previous employment shall provide the Retirement Board with a verified list of salaries earned by them, by calendar year, not including overtime or bonuses so that a make-up payment can be calculated.
  • Any member who has been previously employed by the Commonwealth of Massachusetts or any political subdivision thereof, and a member of its retirement system must inform the retirement board so that an inquiry can be made as to the disposition of said employee’s accumulated deductions.
  • Each employee seeking to become a member of the Chelsea Retirement System must complete an enrollment form, which must be accompanied by a copy of said employee’s birth certificate and, if a veteran, a copy of their military discharge papers, Form DD-214, or other official documentation.

December 28, 1984
All new members must file proof of their date of birth with their application for membership.

Creditable Service:

January 15, 2021

A member in service who is employed in a full-time capacity will receive one month of creditable service for each full month for which the employee receives regular compensation and remits the appropriate contributions to the Chelsea Retirement System. Total service shall not exceed one (1) year of creditable service in any calendar year. No member can ever earn more than one (1) month of service in any month, and, no member can earn more than one (1) year of service in any calendar year. A full month is calculated upon the total amount of hours deemed to represent full time for the specific position held by the member.

A member in service who is employed in a part-time capacity throughout the member's entire career will receive one (1) month of creditable service for each full-time monthly equivalent for which the employee receives regular compensation and remits the appropriate contributions to the Chelsea Retirement System. Such service shall not exceed one (1) year of creditable service in any calendar year.

Creditable service is required to be awarded on a monthly basis, the calculation is based upon the monthly total of eligible hours. A full month's credit is calculated upon the total amount of hours deemed to represent, and equal, the monthly hours required for the full-time position held by the member.

A member who has rendered membership service in the Chelsea Retirement System in both a full-time and part-time capacity shall receive full credit for all full-time service and prorated credit for part-time service based on the full-time equivalency of the particular position held. If no full-time equivalent position exists, then the member's prorated monthly credit shall be calculated based upon at least one hundred and fifty (150) hours representing the equivalent of one (1) month of service. (At least 1800 hours annually for 12 month employees / or at least 1500 hours annually based upon the 10 month school year for 10 month employees).

Members of the System may only purchase  and receive credit for past service rendered in a member unit of the System, or, if the past service was rendered under the jurisdiction of another retirement system, such service may only be purchased if rendered in a temporary, provisional or substitute capacity, provided that the individual was excluded from membership in the other retirement system. The Chelsea Retirement Board shall be furnished with such information as it shall require to determine  the amount to be paid and the credit to be allowed under this Supplemental Regulation and other related governing provisions. Prior to awarding the Member credit, the Chelsea Retirement Board will first request written notice that the other System will not accept liability, however, failure to acquire such notice shall not bar the member from thereafter purchasing eligible credit. All eligible prior non-membership service shall be calculated with at least 150 hours being the equivalent of one (1) month of creditable service.

Members of the Chelsea Retirement System shall receive creditable service, in whole month increments, consistent with all statutory, and regulatory governing provisions, including, but not limited to, this supplemental regulation

October 23, 2020

Purchase of Prior Membership Creditable Service

Any member, authorized by law to purchase prior creditable service, may purchase such service by paying an amount equal to the accumulated regular deductions withdrawn by the member, together with interest thereon. In the ordinary course, the member shall make a lump sum payment with good funds payable to the Retirement System and thereafter the member shall be awarded with the creditable service representing the time reflected in said payment.

If permissible, under law, or regulation, and upon the member’s written application to the Board, then, if the Board determines that the member cannot make said payment in a lump sum fashion, then, upon terms and conditions set by the Board, and agreed to by the member, the member may be allowed to enter into an installment plan over a period not exceeding five years.

Under extremely limited circumstances, and with documented proof of financial hardship, the Board, upon written findings, may permit the repayment of the purchase of creditable service to exceed five years.

December 28, 1984

Upon granting membership to permanent intermittent employees of the school cafeteria, it was determined that these employees shall be granted credit for that proportion of the number of hours worked as it bears to the number of hours a regularly employed full-time cafeteria employee is required to work during a school year, to obtain a full year of creditable service, 1400 hours.

Regular Compensation:

Miscellaneous:

July 22, 1988

  • Form: Approval of disability retirement Form A which provides: “The applicant is required to submit with his/her application for disability retirement benefits all medical records and or reports relating to the applicant’s claim for disability benefits.”

December 28, 1984

  • Access to Medical Information: No medical information contained in an employee file or in a medical panel report will be dispensed to anyone without the written permission of the member concerned, whether retired or not - provided that authorized individuals such as representatives of the Division of Public Employee Retirement and the Retirement Board may still be granted access.

December 28, 1984

  • Disability Waiver:  Any waivers of a physical condition that may have been signed by an employee in order to obtain their positions with the City, must be sent to the Retirement Board at once. Any future such waivers that may be signed must be forwarded to the Retirement board immediately.

Contact   for Chelsea Retirement Board Supplemental Regulations

Fax

617-466-4234

Address

Chelsea Retirement Board
90 Everett Ave, Suite 5, Chelsea, MA 02150

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