Code of Massachusetts Regulations 840 CMR - PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION COMMISSION
Here’s an updated overview of 840 CMR – Public Employee Retirement Administration Commission (PERAC):
🏛 What is 840 CMR?
840 CMR comprises the Massachusetts regulations governing public employee retirement systems, issued by PERAC under M.G.L. c. 7 § 50 and c. 32. These rules oversee all aspects of retirement boards and systems in the Commonwealth (mass.gov).
📜 Contents & Major Sections
The code is organized into titles (1.00 through 28.00, with subchapters) addressing:
1.00 – Protection of Interests
Fiduciary duties of board members, investment prudence, diversification, and liabilities for breaches (mass.gov).
2.00 – Travel by Retirement Board
Rules for travel approval, documentation, cost control, prohibitions (e.g., no club memberships or alcohol) (law.cornell.edu).
3.00 – IRC Compliance & 13.00 – Rollovers
Align retirement purchases and rollovers with IRS regulations; amendments proposed in 2023 (malegislature.gov).
4.00 – Financial Operations & Accounting Standards
Uniform accounting rules required of boards (northamptonma.gov).
5.00 – Records & Reports
Mandates record-keeping and submission of regular reports (mass.gov).
6.00 – Disclosure & Privacy
Sets standards for public record disclosure/regarding nonpublic elements (mass.gov).
7.00 – Elections
Standard rules governing retirement board elections (mass.gov).
8.00 – $30,000 Salary Cap
Applies salary limits to determine benefit eligibility (sec.state.ma.us).
9.00 – Board Decisions
PERAC approval required for certain retirement board decisions (mass.gov).
10.00 – Disability Retirement
Procedures for ordinary and accidental disability, medical panels, hearings, annual earnings statements (regulations.justia.com).
11.00 & 12.00 – Service Beyond Age Thresholds
Rules for continuing service after ages 70 and 65, respectively (malegislature.gov).
14.00 – Board-Specific Supplementary Rules
Process for submitting local supplemental regulations for PERAC approval (mass.gov).
15.00 – Miscellaneous
Miscellaneous provisions including field exams, consultants (mass.gov).
16.00–19.00 – Investments & Fiduciary Standards
Covers formation of investment policy, standards of conduct, exemption from certain restrictions (mass.gov).
21.00 – Prohibited Investments
Funds may not be invested in items explicitly barred unless exempted (regulations.justia.com).
23.00 – Gains & Losses Accounting
Recognition rules for investment results .
25.00 – Field Examinations
Procedures for PERAC audits and field reviews of local systems .
26.00 – Consultants & 27.00 – System Protection Orders
Protocols for hiring advisors and steps to protect system integrity, including hearings (law.cornell.edu).
28.00 – Electronic Signatures (added July 2022)
Establishes standards for digital signatures, security, and legal enforceability (legiscan.com).
🔍 Why It Matters
These regulations standardize fiduciary responsibility, travel accountability, financial transparency, disability & rollover processes, and investment safety across all municipal and state pension boards. PERAC ensures oversight, audits, and approval of local board rules to maintain consistent governance and protect member benefits.
✅ Getting Access
The full text is available at Mass.gov and the Massachusetts Trial Court’s Law Library (mass.gov).
Official, up‑to‑date versions should be referenced for legal or administrative use.
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