Notice: While reasonable efforts have been made to assure the accuracy of this information, this is an unofficial version of the MTRS regulations, and is for informational use only. For the official, printed version, please contact the State Bookstore (see for more information).

807-16.01. Establishment of Section 415 Excess Benefit Plan and Trust Fund

Since G.L.c. 32, § 104(b) requires the establishment of a qualified governmental plan excess benefit arrangement, as described in 26 U.S.C. section 415(m), for the payment of benefits in excess of the limits of section 415(b) of the Internal Revenue Code, the Board hereby establishes such an arrangement in the form set forth in a document entitled “The Massachusetts Teachers’ Retirement System Section 415 Excess Benefit Plan and Trust Fund, effective January 1, 2006,” and dated January 1, 2007 (the “Excess Benefit Plan”).

The purpose of the Excess Benefit Plan is solely to provide the part of a member’s retirement allowance that would otherwise have been payable by the MTRS except for the limitations of Internal Revenue Code Section 415(b). It is intended to be a “qualified governmental excess benefit arrangement” within the meaning of Internal Revenue Code Section 415(m)(3).

Pursuant to of G.L.c. 32, § 104(b), which provides that a qualified governmental plan excess benefit arrangement must be established according to the requirements of 26 U.S.C. section 415(m), the Board will not provide for the transfer of any funds to pay the excess benefits under the Excess Benefit Plan but, rather, the excess benefits will be funded by appropriations in such amount as determined by the Board to be necessary to fund the excess benefits, to be withheld before such appropriations are credited to the MTRS.

807-16.02. Grantor Trust

To implement the terms of section 104(b) and the Excess Benefit Plan, the Board is authorized to create a grantor trust, with themselves as trustees, to receive and hold contributions from employers and to pay benefits in accordance with the Excess Benefit Plan. The grantor trust shall be established pursuant to the terms of Article VI of the Excess Benefit Plan.

REGULATORY AUTHORITY: 807 CMR 16.00: M.G.L. c. 15, § 16, M.G.L. c. 32, § 104(b), M.G.L. c. 32, § 20(5)(b).