Code of Massachusetts Regulations
840 CMR - PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION COMMISSION
Title 840 CMR 9.00 - Applicability Of $30,000 Salary Cap
Section 9.03 - Benefit Calculations
Current through Register 1531, September 27, 2024
(1) Except as provided by 840 CMR 9.03(2), all benefit calculations for retirement allowances granted under the provisions of M.G.L. c. 32 shall be forwarded to the Commission for approval in accordance with 840 CMR 9.02.
(2) Any retirement board may perform benefit calculations on an automated system approved by the Commission. Except as provided by 840 CMR 9.03(8), individual benefit calculations performed on an automated system approved for performing such calculations shall be considered approved and need not be forwarded to the Commission for approval.
(3) Any board may apply for approval of an automated benefit calculation system by submitting a letter describing the system together with the documentation for all system computer programs, a copy of system procedures and samples of all categories of calculations to be performed on the system. Upon receipt of a request for approval of an automated benefit calculation system, the Commission shall inform the retirement board of the protocol necessary to approve such system. No automated benefit calculation system shall be considered approved unless the board has performed the established protocol. No change shall be made in an approved automated system without the approval of the Commission.
(4) Automated benefit calculation systems, and changes in approved systems, will generally be approved if:
name;
social security number;
sex;
creditable service;
final average salary;
date of birth;
date of retirement;
retirement type and option;
group;
beneficiary information (name, birthdate and relationship);
veteran status;
retirement allowance amount;
pension amount;
annuity amount;
dependency allowance;
worker's compensation information (if any).
The following text is effective 09/29/00
(5) The Commission may approve automated benefit calculation systems for all benefit calculations or limit approval to specific categories of calculations. If system approval is limited to specific categories of benefit calculations, all other calculations shall be forwarded to the Commission for approval in accordance with 840 CMR 9.03(1).
(6) Every retirement board using an automated benefit calculation system, shall biannually submit, based on a schedule determined by the Commission, a summary report, including a representative sample of at least 5% of all benefit calculations, but not less than two calculations, performed on the system during the preceding six months, and describing any system changes under consideration by the board.
(7) The Commission shall, from time to time, audit the performance of each Approved automated benefit calculation system to determine the accuracy of calculations and whether the system meets requirements for continued system approval. For this purpose the Commission shall have access to all system records and may examine all calculations or a representative sample of calculations performed on the system.
(8) If the Commission determines at any time that an approved automated benefit calculation system is performing inaccurate calculations or otherwise fails to meet requirements for continued system approval, or if a retirement board fails to comply with any of the requirements of 940 CMR 9.03, the Commission may suspend or revoke approval of the automated benefit calculation system in whole or in part. In this event all benefit calculations with respect to which approval is suspended or revoked shall be performed manually and shall be forwarded to the Commission for approval in accordance with 840 CMR 9.03(1) until such time as the automated system is again approved by the Commission.
