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:
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:
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.