Summer by cli12236

VIEWS: 8 PAGES: 4

									                                                                                  Summer 2009 Volume 4, Issue 3
                 T H E       C O M M O N W E A LT H                        O F    M A S S A C H U S E T T S

                 State Board of Retirement
                 O N E     A S H B U R T O N            P L A C E ,     B O S T O N ,      M A          0 2 1 0 8 - 1 6 0 7


N             E            W               S             L             E         T           T                E                 R
                            Welcome to the Summer 2009 edition of the                               STATE BOARD
                                                                                                    OF RETIREMENT
                            Ac t i v e M e m b e r Ne w s l e t t e r
                              In this issue, we provide you with an overview of the         MEMBERS OF THE BOARD
                            recently enacted “Pension Reform Act”. Highlights which                   Chairman
                                                                                               Treasurer Timothy P. Cahill
                            most affect state employees are listed on the last page.
                                                                                                  Elected Members
                                                                                                      Ralph White
                          We have also made some updates to our website.                        Theresa McGoldrick, Esq.
                       Visit the Retirement Board website at mass.gov/re-
                                                                                                   Appointed Member
                       tirement if you need general information about your                         Peter Koutoujian, Sr.
                       retirement benefits or need to download the latest
  Timothy P. Cahill                                                                                  Chosen Member
                       forms. Take a few moments now to learn more about                              Chris S. Condon
                       your retirement benefits so that you can be better
                                                                                                   Executive Director
 prepared to make informed decisions about your future.
                                                                                                   Nicola Favorito, Esq.

   Finally, I would like to congratulate Theresa McGoldrick for her re-election                    MAIN OFFICE
 to the Board. She has been an asset to the Board since she was first elected                          Address:
                                                                                             One Ashburton Place, Room 1219
 and we look forward to working with her.
                                                                                                Boston, MA 02108-1607
                                                                                                     Office Hours:
   Should you have any questions, suggestions or contributions for future                       8:00 a.m.– 5:00 p.m. M–F
 newsletters, please do not hesitate to contact us. On behalf of the State                       Phone: (617) 367-7770
 Board of Retirement, thank you for your service to the Commonwealth.                             Fax: (617) 723-1438
 Have a safe summer.                                                                           REGIONAL OFFICE
                                                                                                         Address:
                                                                                             436 Dwight Street, Room 109A
                                                                                                 Springfield, MA 01103
                                                                                                     Office Hours:
                                                                                                8:00 a.m.– 5:00 p.m. M–F
 Timothy P. Cahill                                                                               Phone: (413) 730-6135
                                                                                                   Fax: (413) 730-6139
 Treasurer and Receiver General
 The Commonwealth of Massachusetts                                                             PHONE TOLL-FREE
                                                                                              1-800-392-6014 (Mass. only)
                                                                                              Automated Phone Options
                                                                                              Retirement Counselor . . . . 1
In This Issue                                                                                 Disability . . . . . . . . . . . . . 2
                                                                                              Survivor Benefits . . . . . . . 5
1.   Treasurer’s Message                       3.   PRIM Board Update                         Buyback . . . . . . . . . . . . . 6
                                                                                              Withdrawal/Refund . . . . . 7
                                                    Working After Retirement                  Direct Deposit . . . . . . . . . 8
2.   Reminders                                 4.   Pension Reform -
                                                                                                          EMAIL
     Website Updates                                What Does it Mean to You?                    SRB@tre.state.ma.us
     Election Results                                                                                   WEB SITE
                                                                                               www.mass.gov/retirement




w w w. m a s s . g o v / r e t i r e m e n t    Tr e a s u r e r T i m o t h y P. C a h i l l , C h a i r m a n                 1
The Commonwealth of Massachusetts State Board of Retirement



  Reminders                                                                             Election Results
       Please notify your Human Resources coordinator
                   of any change of address.
                                                                                          Your Vote Counts:
                                                                                      Theresa McGoldrick Reelected
                 Important Dates to Remember:
                                     July
                        Thursday, July 30 | Board Meeting

                                   August
                      Thursday, August 27 | Board Meeting

                                September
                Monday, September 7 | Labor Day, offices closed
                  Thursday, September 24 | Board Meeting


Website Update: Retirement Made Easy                                                  Theresa McGoldrick, Esq. was reelected to
                                                                                      the State Retirement Board with 13,200
Most of the forms on our website are now fillable. If you need to submit a            votes. The votes were tallied as follows:
form to the Board, we strongly recommend that you go to our website and
fill out the form on your computer before printing and mailing to us. All you              Theresa F. McGoldrick, Esq. (I)
need in order to be able to fill out the form is Adobe Reader which is available           (13,200 votes)
as a free download at adobe.com. A link to the website is available from our               Paul Donohue (5,075 votes)
forms page.                                                                                David McKenna (1,198 votes)
                                                                                           Stephen Rawlinson (1,772 votes)
Submitting forms that were filled out on computer will help to reduce human                William J. Barabino (5,698 votes)
error when inputting the data. Should you have any questions on the pro-
cess, feel free to give us a call and we’ll be happy to assist you.                   This was the first year that internet voting
                                                                                      was offered as an option to members.
When filling out forms, please pay close attention to any instructions that may       Of all the votes received, 21% were cast
accompany the form. Some forms require a witness who cannot be anyone                 online and 79% were mail-in ballots.
listed on the form, such as a beneficiary. Incorrectly completed forms will be        Overall voter turnout was just over 20%.
returned.                                                                             Thank you for your participation in this
                                                                                      past election.
We have also added an archive of all of our newsletters. If you want to catch
up on past retirement news, go to the forms and publications section of our           Ms. McGoldrick’s term will expire at the
website and click on newsletter archive. Both our active member and retiree           end of April 2012. She is an attorney for
newsletters have been posted to the website.                                          the Department of Revenue Child Support
                                                                                      Enforcement Division and serves as
Visit us online at www.mass.gov/retirement for more retirement information.           President of SEIU/NAGE Local 207, Unit 6.

                                                                                      Other members of the Board are State
                                                                                      Treasurer Tim Cahill, Peter Koutoujian, Sr.,
                                       Look for this icon on our                      Ralph White, and Chris Condon. The
                                    website to calculate an estimate                  Board meets the last Thursday of every
                                       of your pension benefits                       month unless otherwise noted.




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                                                                                      Summer 2009 Volume 4, Issue 3


PRIM Board Update: May 2009
The Pension Reserves Investment Trust                                                            PRIT Core Fund as of 5/31/09
(PRIT) Fund is a pooled investment               *Pension Reserves Investment            10
                                                                                                5.6% 6.0%

fund established to invest the assets of           Trust (PRIT) FUND ASSETS:              5                 3.1%
                                                                                                                   5.2%
                                                                                                                                                        3.7%
                                                                                                                                                               4.6%   4.5%
                                                                                                                                                                             3.8%


                                                         $38,102,860,000                  0
the Massachusetts State Teachers’ and                                                                                                           -1.1%
                                                                                                                                        -3.2%

Employees’ Retirement Systems, and the           *State Employees’ Retirement            -5

                                                    System (SERS) ASSETS:               -10
assets of county, authority, district, and              $15,543,910,155                 -15
municipal retirement systems that choose                                                -20
to invest in the Fund. The PRIT Fund was     To get more detailed information           -25
                                                                                                                               -22.7%



created by the Legislature in December       on the Pension Reserves Investment         -30
                                                                                                                          -27.1%

                                                                                                month        cytd           1 yr          3 yr            5 yr         10 yr
                                             Management (PRIM) Board you can
1983. The nine-member PRIM Board is                                                                           Prit Core (gross)                                  Benchmark
                                             always go to the PRIM website to view
responsible for the management of the
                                             their complete quarterly updates at
PRIT Fund. The Treasurer and Receiver        www.mapension.com.                        Market Recap – May                                          31,           2009
General of the Commonwealth is a                                                       Domestic Equity Markets:
member ex officio and serves as the chair.   Due to limited space, we can only          Index                              Month                 CYTD
The State Employees’ Retirement System       provide a condensed version of their       S&P 500 (ex-tob.)                  6.12%                 3.97%
also has two representatives on the Board:   fund updates. For more information         DOW                                4.52%                 -1.61%
                                             about the PRIM Board, please visit
the members of that Retirement System                                                   NASDAQ % Chg                       3.32%                 12.51%
                                             their website at www.mapension.com
elect one and one is an Elected Member of                                               Russell 2000                       3.01%                 1.15%
the State Retirement Board.                                        *As of 5/31/2009     Russell 3000                       5.34%                 3.84%




Pension Reform & Retirees
                                             One of the provisions in the new           comes first. Prior to June 16, 2009 this was
                                             Pension Reform Act addressed the           limited to those retirees who were directly
                                             issue of working after retirement. In      employed by public entities in the
                                             our Spring 2009 issue we provided an       Commonwealth. The Pension Reform
                                             overview of the regulations surrounding    Act now adds independent contractors
                                             working in the public sector while         and consultants to the list of positions
                                             receiving a pension. The Pension           or employment in which earnings and
                                             Reform legislation signed into law on      hours of employment after retirement
                                             June 16, 2009 gave some additional         are limited.
                                             guidelines that retirees must follow in
                                             order to be in compliance with post        If you retire and become employed as an
                                             retirement employment guidelines.          independent contractor or consultant
                                                                                        with the Commonwealth, a municipality
                                             For superannuation retirees work in        or other public entity your earnings
                                             the public sector is limited to 960        will be subject to the limitations listed
                                             hours per year or earnings that are        above.
                                             less than the difference between your
                                             pension and the current salary of the
                                             position you retired from - whichever



  w w w. m a s s . g o v / r e t i r e m e n t     Tr e a s u r e r T i m o t h y P. C a h i l l , C h a i r m a n                                             3
The Commonwealth of Massachusetts State Board of Retirement


Pension Reform:                   What Does it Mean to You?
   On June 16, 2009 Chapter 21 of the Acts of 2009, An Act Providing Responsible Reforms in the Pension
System (the Act) was signed into law. It had been approved unanimously in the House and Senate. Please see
our website for a link to the full text of the legislation. Some of the highlights of this legislation that address the
retirement benefits of members of the State Employees’ Retirement System are listed below.

Regular Compensation:
   The new definition of “regular compensation” took effect July 1, 2009. It limits regular compensation to
   “wages” and defines wages as base salary. Payments that are not regular and recurring are not regular
   compensation.
   No longer allowed are housing allowances or other indirect payments.
   If a member was under a collective bargaining agreement or an employment contract on May 1, 2009 that
   allowed a housing allowance or other payments, they would continue to have those contracts honored until
   June 30, 2012 or the expiration of their contract, whichever comes first.

Creditable Service and Retirement Allowances for Elected Officials
    Elected officials will no longer be granted a full year of creditable service for any part of a year during which
    they serve in elected office. After July 1, 2009 they will be credited with time actually served.
    Elected officials will no longer be able to retire with 6 years creditable service. The minimum requirement is
    10 years creditable service and 55 years of age.
    The termination allowance for elected officials who fail of nomination or reelection is eliminated.

Creditable Service for Uncompensated Positions
The legislation strikes out paragraphs (o) and (o 1/2) o f section 4 in chapter 32 and replaces it with a new
paragraph (o) which states that the service of those “employed or elected in a position receiving compensation of
less than $5,000 annually, which service occurs on or after July 1, 2009, shall not constitute creditable service for
purposes of this chapter”.

Retirement Calculation for Dual Members
Members who are employed by and are members of more than one retirement system concurrently will have to
retire from each retirement system separately. Members can retire under the previous formula until January 1,
2010.

Accidental Disability Retirement Allowances
On or after July 1, 2009 the disability retirement allowance will be calculated as follows:
    For a person who was working in their permanent position and sustained an injury or hazard, the disability
    retirement allowance will be based on the annual rate of compensation on the date of injury or hazard
    undergone.
    For a person who was injured and returns to work in a permanent position and is re-injured, the disability
    retirement allowance will be based on the annual rate of compensation on the date of the later injury or
    hazard undergone.
    If a person was in a temporary or acting position on the date of injury or hazard undergone, the disability
    retirement allowance will be based on the annual rate of regular compensation during the previous 12
    month period immediately preceding the date of injury or hazard undergone.




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