HomeMy Public PortalAbout2017-05-23 USERRA Military ToWN OF
1636 WATFRTOWN
Office of the Town Manager
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149 Main Street
Watertown,MA 02472
Phone; 617-972-6465
Michael J.Driscoll www.watertown-ma.gov
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Town Manager - -
To: Honorable Town Council -
From: Michael J. Driscoll, Town Manager w
Date: May 18, 2017
RE: Agenda Item—Transfer of Funds Request
Enclosed please find correspondence from Barbara A. Sheehan, Director of the Watertown
Retirement System, regarding the provisions of the federal Uniformed Services Employment and
Reemployment Rights Act (USERRA) and Massachusetts General Law Chapter 32 as it relates
to employees called to active duty by the Armed Forces of the United States.
Therefore, in order to be in compliance with the above mentioned USERRA and the Laws of the
Commonwealth, I respectfully request the attached transfer be placed on the May 23, 2017 Town
Council Agenda.
Thank you for your consideration in this matter.
cc: Watertown Contributory Retirement Board
Thomas J. Tracy, Town Auditor/Assistant Town Manager for Finance
Mark R. Comeiro, Veterans' Services Officer
Nancy J. Heffernan, Treasurer/Collector
Gayle M. Shattuck. Personnel Director
Transfer Amount $4,478
From: FY 2017 Town Council Reserve $ 4,478
0111152-570780
To: FY 2017 Retirement Appropriation $ 4,478
0191151-510171
1 hereby certify to the availability, authority of funding source, mathematical
accuracy and appropriate fiscal year.
Date /r Town Auditor
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WATERTOWN,MA 02471-0199
TEL(617)972-6456-TOLL FREE (888)972-6456
FAX(617)923-3531
THOMAS V.THIBAUT,JR.,Chainnan DOMENIC ARONE,Elected Member
THOMAS J.TRACY,Ex-ORicio JOHN T.LOUGHRAN,Appointed Member
KATHLEEN KIELY-BECCHEITI,FiRh Member
May 11, 2017
Michael J. Driscoll, Town Manager
Town of Watertown
Administration Building
Watertown, MA 02472
Dear Mr. Driscoll:
Enclosed you will find a spreadsheet listing the Town of Watertown employee who has been called up
to active duty in the armed forces during FY16& FY17.
Kindly recall that federal and state laws provide that any person employed by the Commonwealth of
MA or a political subdivision thereof, who leaves their position to serve In the armed forces must be
granted creditable service toward their retirement for the entire period of their active duty service.
Furthermore, the provisions mandate that the political subdivision, in this case the Town of
Watertown, is responsible for the contributions that the employee would have made into their annuity
savings funds had they not been called to active military duty.
For your reference, I am enclosing a copy of Memorandum#39/2001 Issued by the Public Employee
Retirement Administration Commission (PERAC) addressing the matter of military service credit for
employees called to active military duty.
If you have any questions or concerns, please do not hesitate to contact this office.
Sincerely,
Barbara A. Sheehan, Director
Watertown Retirement System
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enclosures
cc: Thomas J. Tracy, Town Auditor
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PERAC MEMO 139/2001
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MASSACHUSETTS
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�ll y .state.ma.us/PERAC ROBERT E.TIERNEY, CmR"i
JOSEPH E.CONNARTON
EXECUTIVE DIRECTOR A.JOSEPH DENUCCI,VICE CMRM4
JOHN R.ABBOTT
MEMORANDUM STEPHEN P. CROSBY
KENNETH J.DONNELLY
TO: All Retirement Boards DONALD R.MARQUIS
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FROM: Jos h E. Comiarton, Executive Director
RE: Military Service Credit Provisions for Members Called to Active Military Duty
DATE: October 4, 2001
We have received several inquiries as to what actions must be taken to provide for members-in-
service who are called to active military duty because of the current crisis.
This memo will outline the provisions of the federal Uniformed Services Employment and
Reemployment Rights Act (38 U.S.C. § 4301 et seq., hereinafter USERRA) and laws of the
Commonwealth governing the responsibilities of retirement boards relative to public employees
called to active duty by the Armed Forces of the United States. The term "Armed Forces" means
the United States Army, Navy, Marine Corps, Air Force and Coast Guard, and reserve
components thereof which have been activated including the Army National Guard of the United
States and Air National Guard of the United States.
USERRA pre-empts conflicting state laws and provides that any person who leaves a position
(other than a temporary position) in the employ of a state or political subdivision thereof to serve
in the Armed Forces is entitled to certain rights and benefits. It provides in part:
A person who is reemployed under this chapter is entitled to the seniority and other rights
and benefits determined by seniority that the person had on the date of the
commencement of service in the uniformed services plus the additional seniority and
rights and benefits that such person would have attained if the person had remained
continuously employed. ... [A] person who is absent from a position of employment by
reason of service in the uniformed services shall be ...deemed to be on furlough or leave
of absence while performing such service.... 38 USCS §§ 4311(a)-(b)(1).
The Supreme Court has held that "accredited service for the purpose of determining pension
benefits is an aspect of seniority and thus must be granted to persons returning from military duty
for the entire period of such duty. In other words, all employees returning to public employment
from military duty must be given creditable service for the entire period of such duty.
Along with the requirement that members be granted creditable service while in the Armed
Forces, they also retain their status as members in service for purposes of G.L. c. 32. G.L. c. 32,
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MEMORANDUM - Page Two
TO: All Retirement Boards
FROM: Joseph E. Connarton, Executive Director
RE: Military Service Credit Provisions for Members Called to Active Military Duty
DATE: October 4, 2001
§ 3(1)(a)(i) provides that a member in service can retain that status only during unpaid leaves of
absence of one year or less. However, this limitation conflicts with the portion of USERRA
which states "any person whose absence from a position of employment is necessitated by reason
of service in the uniformed services shall be entitled to the reemployment rights and benefits and
other employment benefits of this chapter." Thus, even where a member's unpaid leave of
absence for military duty continues beyond one year, that member is still entitled to member in
service status.
The provisions of G.L. c. 32, when read together with USERRA, mandate that the
Commonwealth or political subdivision thereof is responsible for the payments that the members
would have made into the annuity savings fund of their respective retirement systems had they
not been called to military duty.
The procedures that must be followed in order to ensure that members called to active duty by
the Armed Forces receive proper retirement benefits under G.L. c. 32 are outlined below.
Pursuant to G.L. c. 32, § 22(7), each board must furnish information each year to PERAC's
Actuary so that the amount of its contribution to the pension fund for the following fiscal year
can be determined. When providing this information, each board must also furnish information
as to the amount of regular deductions any member on military leave of absence would have paid
into the retirement system if he or she had not been called to active military duty. The board
shall determine the amount to be paid by the board for the special fund for military service credit.
This determination is subject to the Actuary's review.
Pursuant to G.L. c. 32, § 22(4)(b), if a member with military service credit retires or dies prior to
retirement and leaves a beneficiary eligible for member-survivor benefits under G.L. c. 32, §
12(2)(d), the amount provided for the member in the special fund plus interest is to be transferred
to the annuity reserve fund and added to the amount of the member's accumulated regular
deductions. This total will be used to determine the amount of the annuity payable to the
member or his or her beneficiary under the provisions of G.L. c. 32, § 12(2). Also, if the total
amount of a member's retirement allowance is dependent on the amount of the accumulated total
deductions, the amount transferred from the special fund is to be included in the aggregate of his
or her regular deductions.
When a member with military service credit withdraws from the retirement system or dies before
any retirement allowance becomes effective for him or her and if there is no member-survivor
allowance payable under G.L. c. 32, § 12(2)(d) or survivor benefits under G.L. c. 32, § 12B, G.L.
c. 32, § 22(4)(c) provides that the amount in the special fund for this member is to be transferred
to the pension fund of the governmental unit or units that paid into the special fiord for the
member. If a member is later reinstated or becomes a member of another retirement system and
re-deposits his or her accumulated total or
plus interest, that governmental unit must re-
MEMORANDUM - Page Three
TO: All Retirement Boards
FROM: Joseph E. Connarton, Executive Director
RE: Military Service Credit Provisions for Members Called to Active Military Duty
DATE: October 4, 2001
transfer the amount originally transferred to the pension fund plus regular interest to the special
fund.
If the member is a member of the Teachers' Retirement System, the amount paid into the special
fund by a city or town on behalf of the member is to be returned to the appropriate city or town
with accumulated interest and any portion paid by the Commonwealth is to be transferred to the
pension fund of the Teachers' Retirement System. If the member is later reinstated and returns
the full amount he or she withdrew with interest, the appropriate city or town is to be notified
and must pay back the amount that was returned to it to the special fund of the Teachers'
Retirement System with interest at three percent to the date of the repayment. Any amount
transferred to the pension fund must also be re-transferred to the special fund with interest at
three percent.
G.L. c. 32, § 22(4)(d) deals with instances in which a member with military service credit
transfers his or her membership to a second system or re-establishes membership by paying into
the annuity savings fund of a second system. When such a member retires or dies and his or her
beneficiary is entitled to member-survivor benefits under G.L. c. 32, § 12(2)(d) or survivor
benefits under G.L. c. 32, § 12B, the amount of the military service credit payments made on his
or her behalf plus interest is to be transferred from the pension fund of the first system to the
special fund of the second system and thereafter handled as discussed above.
In some communities a member will be paid the difference between his or her military pay and
the total amount of regular compensation that would have been received had the member not
been called to active duty. Pursuant to G.L. c. 32, § 3(6)(a), a retirement board has full power to
make rules, regulations and findings as it deems necessary, consistent with the provisions of G.L.
c. 32, §§ 1-28, relating to leaves and periods of absence. We find nothing in G.L. c. 32 that
would prohibit treatment of such payments as regular compensation for the purposes of
determining retirement allowances. Retirement deductions must be taken from these payments.
Finally, it should be noted that all persons called to active duty for at least ninety days in the
Armed Forces would qualify as veterans for the purposes of G.L. c. 32 since current service
would be included in the Persian Gulf period and is considered wartime service. It is important to
note that persons who receive military service credit as outlined in this memorandum cannot later
purchase service for the same period under the voluntary purchase provisions of G.L. c. 32, §
4(l)(h).
We trust the foregoing is of assistance. If you have further questions or concerns, please contact
this office.
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