Code of Massachusetts Regulations
610 CMR - BOARD OF HIGHER EDUCATION
Title 610 CMR 11.00 - Optional Retirement Program
Section 11.05 - Definitions
For the purpose of 610 CMR 11.00, the following terms will mean:
Annuity Contracts. An amount of money payable periodically to an Optional Retirement Program participant.
Bank or Financial Institution. An establishment for the custody, loan, exchange, or issue of money, for the extension of credit, and for facilitating the transmission of funds by drafts or bills of exchange.
Beneficiaries. Any person entitled to any present or potential benefits on account of membership of a person other than himself or herself, under the provisions of M.G.L. c. 32, §§ 1 through 28.
Board. Board of Higher Education.
Board Administrative Account. An account established into which a portion of the employer contribution is deposited to pay for the direct costs to establish and operate the Optional Retirement Program.
Board Employee Deduction Escrow Account. An account established to hold in escrow employee retirement deductions until such time as the employee elects to participate in the Optional Retirement Program.
Board of Higher Education. The agency established pursuant to the provisions of M.G.L.c. 15A, §4.
Board Optional Retirement Program Trust Fund. An account established into which the employer contribution is deposited.
Certificate. A written assurance or official representation of some fact.
Certificate of Authority. Document issued by the Secretary of the Commonwealth's Office on application of foreign corporation granting such corporation the right to do business in the Commonwealth.
Chancellors. The name given to the chief executive officer of the campuses of the University of Massachusetts at Amherst, Boston, Dartmouth, Lowell, and Worcester.
Commissioner of the Board or Commissioner. The chief executive and administrative officer of the Department of Higher Education and Board of Higher Education, pursuant to M.G.L. c. 15A, § 6.
Comptroller. The Comptroller of the Commonwealth of Massachusetts.
Continuously Employed. As defined in M.G.L. c. 32.
Contracts Providing Retirement and Death Benefits. A term describing any account or annuity provided under Section 401(a), 403(a), 403(b), or 401(f) of the Internal Revenue Code.
Contributions. As defined in M.G.L. c. 32, the amount of a member's payroll deducted on behalf of the employee to the Optional Retirement Program, 8% up to $30,000 of regular compensation and an additional 2% for amounts over $30,000 of regular compensation. These contributions may be made as employer contributions under Section 403(b) or 414(h) of the Internal Revenue Code.
Council. The name given to a group of persons responsible to operate the Optional Retirement Program on behalf of the Board of Higher Education.
Coverage. In insurance, the amount and extent of risk covered by insurer.
Creditable Service. All membership service, prior service, and other service for which credit is allowable to any member under the provisions of M.G.L. c. 32, §§ 1 through 28.
Custodial Accounts. Accounts described in Section 403(b)(7) of the Internal Revenue Code.
Death Benefits. As defined in M.G.L. c. 32.
Direct Costs. The amount of payroll, expense, and capital equipment directly relating to administrating the Optional Retirement Program.
Effective Date of Appointment. The date of hire.
Elect to Participate. A 90 day period during which an eligible member may elect to participate in the Optional Retirement Program.
Eligible Members. Participation in the Optional Retirement Program is limited to persons who are otherwise eligible for membership in the State Employee's Retirement System as established under M.G.L. c. 32 for:
(a) Faculty Members;
(b) Chancellors of the campuses of the University of Massachusetts at Amherst, Boston, Dartmouth, Lowell, and Worcester;
(c) Commissioner of the Board; and
(d) Presidents of Public Institutions of Higher Education.
Employee Account. The Account established for each employee which can be funded by Custodial Accounts or Contracts providing Retirement and Death Benefits.
Faculty Members. The body of persons who are entrusted with the instruction at the Public Institutions of Higher Education.
Fiduciary Standards. As defined in M.G.L. c. 32, § 23(3).
Fixed. Prices are fixed when they are mutually agreed upon.
Group Annuity. Type of pension plan for employees under a master plan or contract in which employer each year buys a deferred annuity for each qualified employee.
Guarantees. An agreement by a person or party to another person or party that promises to make the other secure.
Insurer. An entity which provides life, death, and disability benefits to Optional Retirement Program participants.
Internal Revenue Code. As published by the Internal Revenue Service of the Department of the Treasury of the United States of America, that body of law which codifies all federal tax laws. Such laws comprised Title 26 of U.S. Code, and are implemented by Treasury Regulations and Revenue Rulings.
Irrevocable. That which cannot be revoked or recalled.
Licensed Insurers. One who or that which insures as licensed by the Commonwealth of Massachusetts.
Life and Health Insurance Guarantee Association. For insurance companies, as defined by the Division of Insurance.
Life Benefits. As defined in M.G.L. c. 32.
Life Insurance Company. An entity which issues a contract of insurance based upon the life of a person.
Minimum Required Capital and Surplus. For Life Insurance companies, as defined by the Division of Insurance.
Minimum Values. For Life Insurance companies, as defined by the Division of Insurance.
Monthly Fees. A term to describe the monthly amount of direct costs to be paid to operate the Optional Retirement Program.
New Employee. Any eligible employee who is initially appointed on or after the effective date of the Optional Retirement Program may elect in writing to participate in the Optional Retirement Program within 90 days of the effective date of the appointment.
Optional Retirement Program. A program established pursuant to M.G.L. c. 15A, § 40 which requires the Board of Higher Education to establish an Optional Retirement Program.
Participants. Eligible employees of the system of Public Institutions of Higher Education who elect to participate in the Optional Retirement Program.
Pay Period. As defined by the Commonwealth's payroll system.
Presidents. The chief executive officers of the Public Institutions of Higher Education for the State Universities, the Community Colleges, and the University of Massachusetts.
Providers. An entity providing tax-sheltered annuities or custodial accounts for Optional Retirement Program participants.
Public Institutions of Higher Education. The University of Massachusetts, the State Universities, and the Community Colleges as defined in M.G.L. c. 15A(g)(5).
Regular Compensation. As defined in M.G.L. c. 32, the salary, wages or other compensation in whatever form, lawfully determined for the individual service of the employee by the employing authority, not including bonus, overtime, severance pay, for any and all unused sick leave, early retirement incentives, or any other payments made as a result of giving notice of retirement, but including evaluated maintenance as provided for in M.G.L. c. 32, 22(1)(c), and including any part of such salary, wage, or other compensation derived from federal grants except as provided in M.G.L. c. 32, § 3(2)(a)(xi); provided that salary, wages, or other compensation payable in the form of cost of living bonuses and cost of living pay adjustments shall be included in such term. Regular compensation shall also include all premiums paid by any governmental unit for the purchase of an individual or group annuity contract as authorized by M.G.L. c. 15, § 18A or M.G.L. c. 71, § 37B. Regular compensation shall also mean compensation received by any member having made the election provided for in M.G.L. c. 32, § 90GV2 and serving having attained age 70 pursuant to M.G.L. c. 32 90F or 90G.
Retirement Benefits. As defined in M.G.L. c. 32.
State Employees' Retirement System. As defined in M.G.L. c. 32.
Taxation. The process of taxing or imposing Federal and Commonwealth of Massachusetts taxes.
Tax-Sheltered Annuity. An annuity eligible for tax-sheltered treatment.
Transfer of Funds. The movement of employee and employer contributions moneys.
Transfer of Previously Accumulated Total Deductions. Member contributions of incumbent Board of Higher Education employees, who are members of any retirement system as defined in M.G.L. c. 32, who elected to participate in the Optional Retirement Program and whose State Employees' Retirement System Annuity Savings Fund amount is transferred to the Optional Retirement Program.
Trustee to Trustee Transfer. As described in 26 U.S.C. c. 1.
Variable. Fluctuating.
Withdraw. To remove funds from the Optional Retirement Program.
