Dear School District Superintendents, Charter School and Education Collaborative Directors, Business Managers, Payroll Officers, Personnel Administrators and Town Treasurers,

We are writing to advise employers that the Supreme Judicial Court has affirmed a determination by the Contributory Retirement Appeal Board (CRAB) that sick leave or vacation payments, when used to supplement workers’ compensation payments to a member, are NOT “regular compensation” as defined in G.L. c. 32, § 1. For the Court’s decision, see PERAC v. CRAB, SJC No. 12331.

Accordingly, effective immediately, please stop taking retirement deductions on any supplemental payments from sick leave or vacation time paid to a member who is receiving workers’ compensation benefits. This change will require that you update the affected members’ Events in MyTRS (see instructions).

The Public Employee Retirement Administration Commission (PERAC) is in the process of drafting a Memorandum that will address the many issues raised by this case. If you have any implementation questions that you would like to see addressed, please e-mail them to your Employer Services Representative by the end of the day on February 27.

Thank you for your attention to this important matter. We’ll update you as more information becomes available from PERAC.