Code of Massachusetts Regulations › 610 CMR - BOARD OF HIGHER EDUCATION › Title 610 CMR 11.00 - Optional Retirement Program › Section 11.05 - Definitions

Current through Register 1525, July 5, 2024
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.