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UMASS/AMHERST Ill 312066 0382 2822 0 V J 1^ STEALING PERAC'S Guide To Understanding and Preventing Pension Fraud PERAC About the Fraud Prevention Unit Chapter427 ofthe Acts of 1996 established the creation Commonwealth ofMassachusetts ofa Fraud Prevention Unit within the Public Employee Public Employee Retirement Retirement Administration Commission (PERAC).The Unit Administration Commission has the powers and duties necessaryforthe prevention and investigation offraudulent disability pension claims Five Middlesex Avenue and payments.The unit is responsiblefordata collec- Suite 304 tion relating to all disability retirees, including earnings Somerville, MA 02145 statements, registry information, criminal offender record ph 617 6664446 information, retirement board records and other relevant fax 617 6284002 information. tty 617 591 8917 web www.mass.gov/perac Any person orentity paying disability benefitsto any public employeethat has reason to believethat a disabil- Fraud Hotline:800 445 3266 ity pension claim or payment may be fraudulent or has knowledgethat a fraudulent disability pension claim or ForadditionalcopiesofthePERAC2007FraudAwareness payment is about to take place or hastaken place, should PosterorReferralReportofPotentialFraudformsplease promptly notifythe Unit.The Unitwill review each such contactthePERACFraudUnit. report and undertake such further investigation as it deems necessary and properto determinethe validityof thetransaction.Thetelephone numberto calltomake sucha report is1-800-445-3266. Depending on the outcome ofany investigation,the Commission may refer matterstothe AttorneyGeneral, the appropriate District Attorney orthe United States Attorney. CALL the PERAC Fraud Prevention Unit 1-800-445-3266 All information is confidential. PublicEmployeeRetirementAdministrationCommission REFERRAL REPORT OF POTENTIAL FRAUD buojeci or neterroi NAME (LAST, FIRST, MIDDLE INITIAL) S.SJ (IF AVAILABLE) STREET ADDRESS PHONE # (IF AVAILABLE) CITY/TOWN STATE ZIP RETIREMENT BOARD OF RETIREE Allegation Please give a briefdescription ofthe allegation. Optional Ifwe need more information, may we contact you? NAME (LAST, FIRST, MIDDLE INITIAL) PHONE # STREET ADDRESS CITY/TOWN STATE ZIP Ifyou prefer to make a report by telephone, please call the PERAC Pension Fraud Hotline at 1-800-445-3266. For PERAC Use Only RECEIVED BY DATE Commonwealth ofMassachusetts Public EmployeeRetirementAdministration Commission | FiveMiddlesexAvenue,Third Floor,Somerville,MA02145 ph6176664446 fax6176284002 fty617591 8917 webwww.mass.gov/perac j | | F CALL the PERAC Fraud Prevention Unit 1-800-445-3266 All information is confidential. Public Employee Retirement Administration Commission Digitized by tlie Internet Archive 2015 in https://archive.org/details/pensionfraudperaOOnnass Preventing Pension Fraud The Public Employee Retirement Administration to file anAnnualStatementofEarnedIncome with PERAC Commission (PERAC) was created forand is dedicated on or before April 15th ofeach year, certifying the tothe oversight, guidance, monitoring, and regula- amount, ifany, of his/her earnings from earned income tion ofthe Massachusetts public pension systems.The during the preceding year. Disability Retirees who do not Commission's efforts are focused on the identification report or under-report earned income will be investi- and prevention ofpublic pension fraud. Fraud can be gated forfraud. defined as"deception deliberately practiced in orderto secure unfairor unlawful gain." RetireesWorking in Excessofthe Limitations in the Massachusetts Public Sector Public pensionfraud fails iargelyintofour Pursuantto G.L. c. 32, § 91(b) a retiree (accidental, categories: ordinary, or superannuation) can be employed in the service ofthe commonwealth, county, city, town, district or Submission of Falsified Records authorityfor not morethan nine hundred and sixty hours Anyone who knowingly submitsfalsified records to a in the aggregate, in any calendaryear; provided that public employee retirement board or PERAC forthe pur- the earnings therefrom, when added to any pension or poseofgaining benefits will be investigated forfraud. retirement allowance he/she is receiving, do not exceed Such records may include, but are not limited to, falsified the salarythat is being paid forthe position from which birth certificates, marriage certificates, adoption records, he/she was retired. Retirees who fail to report their status divorce decrees, medical records, and accident reports. as public retireesto prospective public employers will be investigated forfraud. Submission ofFalsified Affidavits Each year, every public pension retiree and the surviving Referral ReportofPotential Fraud beneficiaries ofsuch deceased retirees, receive affidavits Ifyou have reason to believe that public pension fraud from their retirement board.The purpose ofthis affida- may have occurred or is aboutto occur, please promptly vit istoverifythatthe retiree/beneficiary is living and notify PERAC's Fraud Unit.The Unit will review each such to update other key information such as his/hercurrent report and undertake such further investigation as it address. Confirmation ofa beneficiary's dependency deems necessary and properto determine the validity of status is also sought where it is relevant to continued thetransaction.You may reach the Fraud Unit at 1-800- receipt ofbenefits. Any retiree/beneficiarywho know- 445-3266. You mayalso file a written ReferralReportof ingly makesfalse responses on this affidavit will be inves- PotentialFraudwith the Unit (PERAC, 5 Middlesex Ave., tigated forfraud. Anyone who signs an affidavit who Suite 304, Somerville, MA 02145). Copies ofthe referral is otherthan the retiree, his/her beneficiary, oran indi- report form may be obtained from PERAC, the PERAC vidual with a valid power ofattorneywill be investigated Web site(www.mass.gov/perac) orany public employee forfraud. retirement board in the Commonwealth. Disability RetireesWorking in Excessofthe Limitations in the Private Sector G.Lc.32, § 91A provides that ifthe amount ofa disability retiree's annual retirement allowance, when added to his/her post retirement earnings, is in excess ofthe regular compensation the retiree would have received if he/she continued in service atthe grade held at retirement plus $5,000, his/her retirement allowance may be reduced or suspended. Each disability retiree is required Public EmplayEE RetirEmEnt Administratian Commissian Five MiddlesexAvenue, Suite304, Somerville, MA02145 ph 617 6664446 fax617 6284002 ffy617 591 8917 webwww.mass.gov/perac | | | Pension Fraud Hotline:800445 3266