Audit of the Massachusetts State Retirement Board
January 6, 2021 · Massachusetts State Retirement Board · Read the full official report on mass.gov ↗
Published January 6, 2021 Audit covers July 1, 2017 – June 30, 2019 Under Suzanne M. Bump · 2011–2023
source
“MSRB did not always make initial benefit payments within the mandated timeframe.”
Read the plain-English breakdown
This is a Massachusetts State Auditor performance audit of the Massachusetts State Retirement Board for July 1, 2017 through June 30, 2019.
“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2017 through June 30, 2019.”
Auditors checked whether new retirees got their first pension payments on time and whether earlier problems with benefit eligibility checks had been fixed.
“The purpose of our audit was to determine whether MSRB ensured that members received their first pension payments within the timeframe established by Section 13(1)(b) of Chapter 32 of the General Laws.”
Late first pension payments can hurt retirees who are counting on that money after leaving work.
“The delays may have resulted in financial hardship for retirees.”
If you are a state retiree, survivor, or beneficiary, this audit is about whether the system pays benefits on time and checks that payments go to eligible people.
“MSERS is a contributory defined-benefit retirement system, governed by Chapter 32 of the General Laws, that provides retirement, disability, survivor, and death benefits to members and their beneficiaries.”
The auditor found two main problems: first payments were often late, and the board did not properly verify a random sample of benefit forms.
“MSRB did not verify the accuracy of randomly sampled BVFs.”
The auditor recommended changes, including earlier salary requests, clearer notices to applicants when delays happen, and work with PERAC on whether the benefit verification process still makes sense.
“MSRB should collaborate with PERAC to evaluate the benefit (if any) derived from conducting the biennial verification process, given its current death match process.”
This matters because the board handles a very large public pension system, with billions of dollars in annual payments to tens of thousands of retirees and survivors.
“In fiscal year 2019, MSRB issued more than $2.3 billion in benefit payments to more than 64,000 retirees and survivors.”
A Benefit Verification Form is a form retirees or beneficiaries must sign and have notarized to help confirm they are still eligible for benefits.
“The forms must be signed by benefit recipients and notarized.”
What the Auditor checked
- Did not comply Does MSRB ensure that members receive their first pension payments within the timeframe established by Section 13(1)(b) of Chapter 32 of the General Laws?
- Did not comply Has MSRB taken corrective measures to address the issues identified in the prior OSA audit (Audit No. 2015-0088-3S) with its benefit eligibility verification procedures?
What the Auditor found
Why it matters: Retirees may have experienced financial hardship because first pension payments were delayed.
Standard: Section 13(1)(b) of Chapter 32 of the Massachusetts General Laws requires first pension payments to be made by the last day of the month following the month in which the retirement allowance becomes effective. ( Section 13(1)(b) of Chapter 32 of the Massachusetts General Laws )
2 recommendations
- MSRB should send Salary Request and Release Forms to employing agencies upon receipt of retirement applications or within two weeks thereafter.
- For applications whose processing is delayed, MSRB should notify applicants, indicate reasons for delays, and outline required remedial action.
Agency response & Auditor reply
Agency: "MSRB staff and the Board is open and prepared to explore implementing the earlier issuance of the Salary Request & Release Forms in the application process and copying members of ongoing data requests sent out by the MSRB."
Auditor: "Based on its response, MSRB is taking some measures to address our concerns in this area."
Why it matters: Without random verifications, MSRB lacked adequate assurance that information used to determine continued eligibility for pension benefits was complete and accurate.
Standard: Section 15.01(3) of Title 840 of the Code of Massachusetts Regulations requires MSRB to collect Benefit Verification Forms at least every two years and audit a random sample of at least 5% of the forms received. ( Section 15.01(3) of Title 840 of the Code of Massachusetts Regulations )
2 recommendations
- MSRB should perform random reviews and verifications of biennial BVFs received to determine the accuracy of information reported and stored in its database, as currently required by Public Employee Retirement Administration Commission regulations.agency: already implemented
- MSRB should collaborate with PERAC to evaluate the benefit, if any, derived from conducting the biennial verification process, given its current death match process.agency: agreed
Agency response & Auditor reply
Agency: "We would agree with the OSA in so far as there remains a continuing need to assess whether the issuance and processing of BVF’s as currently required provides value and is effective given the more frequent and regular electronic data matches carried out by the MSERS and other boards, or whether perhaps there could be an administrative exemption allowed by PERAC given these measures."
Auditor: "Based on its response, MSRB has taken measures to comply with 840 CMR 15.01(3) for its 2020 BVF process."
Prior findings revisited
"During our current audit, we found that MSRB had implemented controls, including more frequent death-match analyses, to facilitate communication with external parties regarding matters affecting its operations and ensure that it had access to the most current death data."
"During our current audit, we found that MSRB had not taken measures to address this issue fully."
More audits of this entity
Other Office of the State Auditor reports on Massachusetts State Retirement Board , including the prior audits referenced above.
- Audit of the Massachusetts State Employee Retirement Board (November 3, 2025)Authority / Commission · November 3, 2025
- Massachusetts State Retirement BoardAuthority / Commission · May 4, 2016