Code of Massachusetts Regulations › 840 CMR - PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION COMMISSION › Title 840 CMR 10.00 - Standard Rules for Disability Retirement › Section 10.16 - Annual Statement of Earnings; Definition of Earnings from Earned Income; Refunds and Modifications Based on Earnings Information

Current through Register 1525, July 5, 2024
(1) The retirement board shall provide such
			 information as PERAC shall require to assist it in performing its
			 responsibilities pursuant to M.G.L. c. 32, §§ 91A and 91B.
(2) Upon receipt of notice from PERAC that a
			 disability retiree has failed to file the Annual Statement of Earnings required
			 by M.G.L. 32, § 91A, the retirement board shall review all information
			 received and shall suspend the member's rights in and to the disability
			 retirement allowance until the member has complied with the reporting
			 requirements under M.G.L. 32, § 91A. Prior to any suspension of benefits,
			 the member shall be given a written notice and an opportunity to be heard by
			 the retirement board and, upon such termination or reduction of benefits, shall
			 have the right to appeal such action to the Contributory Retirement Appeal
			 Board.
(3) Upon receipt of notice
			 from PERAC that a disability retiree has had earnings in excess of the amount
			 allowed by M.G.L. 32, § 91A, the board shall request the member to refund
			 the retirement allowance for that year or a portion thereof equal to such
			 excess, as the case may be. Initial notice of a request for refund shall
			 include the calculation on which the request is based and shall state that the
			 member may, within 15 days, file a written request for a hearing to show cause
			 why the disability retirement allowances should not be suspended or terminated
			 or why no refund is due. If a retiree files a request for hearing, such hearing
			 shall be held within 90 days of such request for hearing. The board shall
			 notify the member of its decision, including a final request for refund, if
			 any, within 30 days of the hearing. If the member is to be required to refund
			 an amount to the board, the notice of the board's decision shall include
			 notification that the member's allowance shall be withheld until the refund is
			 made. The member shall also be notified that if the refund is not made, payment
			 of the retirement allowance shall be resumed only when the amounts withheld are
			 sufficient to pay the amount of the refund. A copy of M.G.L. c. 32, §
			 16(4) shall be included with the notice of decision and, upon request, the
			 retirement board shall advise and assist the applicant or retired member, as
			 the case may be, in the filing of an appeal.
(4) The term "earnings from earned income" as
			 used in M.G.L. c. 32, § 91A shall mean income that implies some labor,
			 management or supervision in the production thereof, not income derived from
			 ownership of property. For purposes of M.G.L. c. 32, § 91A, if an
			 individual operates a business for profit, individually or through an agent,
			 that individual does not have the option of classifying such income as
			 dividends as opposed to wages. Profits derived from the operation of a business
			 through some labor, management or supervision of such profits are earned
			 income, regardless of how a retiree categorized such income for income tax or
			 other purposes.
(5) PERAC may waive
			 the requirement that all disability retires must file an Annual Statement of
			 Earnings if a retiree shall have been retired for more than 20 years, has not
			 reported any earnings for the prior ten years and signs an affidavit under the
			 pains and penalties of perjury indicating that should the member realize any
			 earned income in the future the member will forthwith notify PERAC of that fact
			 and again report an Annual Statement of Earnings.