Section 10.17 - Modification of Retirement Allowance and Fair Amount of Outside Earnings and Potential Earnings Pursuant to M.G.L. c. 32, Section 8(3)(1) For purposes of 840 CMR 10.17, "regular compensation" means, compensation received exclusively as wages by an employee for services performed in the course of employment for his or her employer, which would have been payable during the preceding year had the member continued in service in the grade held by him or her at the time he or she was retired.(2) For purposes of 840 CMR 10.00, "potential earnings" shall mean: (a) For a disability retiree who has been found able to return to his or her position, the amount that would have been received had he or she been reinstated to active service.(b) For a disability retiree who has completed a rehabilitation program, an amount that the member can potentially earn will be determined as a part of the rehabilitation program, after consideration of a disability retiree's functional capacity, age, education, and experience.(3) PERAC shall review all medical panel reports filed with respect to disability retirees, all earnings information submitted under M.G.L. c. 32, § 91A, and all reports submitted as the result of the completion of a rehabilitation program.(4) If PERAC finds that: (a) a retired member is engaged or is able to engage in gainful occupation; and(b) that the annual rate of his or her actual or potential earnings is less than his or her regular compensation as defined in this subdivision, but is more than the difference between such regular compensation plus the sum of $15,000, and the normal yearly amount of his or her retirement allowance, the yearly amount of his or her pension shall be reduced, and if his or her actual or potential earnings are more than such regular compensation, his or her pension shall be suspended.(5) If PERAC finds that a member has submitted earnings information pursuant to M.G.L. c. 32, § 91A indicating earnings in excess of regular compensation as defined in 840 CMR 10.17 the member's pension shall be reduced or suspended and shall not be reinstated or increased for a period of one year unless a report of a medical panel finds that the mental or physical condition of such member has deteriorated. If the annual rate of his or her earnings should later be changed, the yearly amount of his or her pension shall be further modified by reinstating, increasing, reducing, or suspending it, as the case may be.(6) For purposes of 840 CMR 10.00 and M.G.L. c. 32, § 8(3) the fair amount that a member retired for disability pursuant to M.G.L. c. 32, § 6 or § 7 may earn or may potentially earn shall be annually adjusted for inflation. To accomplish this, PERAC will determine the increase in the consumer price index in the same manner as determined for purposes of M.G.L. c. 32, § 102 and shall increase by that amount the $15,000 referred to in 840 CMR 10.17(4) be used in calculating the modification of a disability retiree's allowance pursuant to M.G.L. c. 32, § 8(3). Any increases applied to the $15,000 shall be permanent and any future increases will be applied to the permanent amount from the prior year.Amended by Mass Register Issue 1308, eff. 3/11/2016.