Anti-spiking provision does not apply where there is a gap in the "consecutive years"

Massachusetts General Laws, Chapter 32, Section 5(2)(a) governs in situations where the salary of a public employee increases by more than 100% between two consecutive years during the five-year period immediately preceding retirement.  If triggered, this rule alters how the employee’s pension is calculated to thwart inflated pension payments.

The case of Susan Hartnett and others v. Contributory Retirement Appeal Board , SJC-13568 (2024) involved an interpretation of the anti-spiking provision reflected in G.L. c. 32, § 5(2)(a).

From 1978 to 1990, Hartnett was employed by the Commonwealth. Although she departed from state service in 1990, she reentered public service in 2002. In 2002, her salary was over twice the amount she earned in 1990. Upon resuming work, Hartnett served the City of Boston until her retirement. Initially, her pension was computed without factoring in the anti-spiking provision. Subsequently, following an audit, her pension was decreased due to her salary increase of more than double between 1990 and 2002.

The anti-spiking applies where a public employee’s salary more than doubles between any “two consecutive years,” the pension calculation changes during the five-year salary look back period. CRAB applied this rule to the employee’s final retirement benefits such that they were reduced compared to what they would have been under the standard calculation method, mitigating the effect of the sudden salary increase.  CRAB viewed 1990 and 2002 as two consecutive years of creditable service.  Hartnett appealed, arguing that 1990 and 2002 were not consecutive years and thus the provision should not apply.

The court ruled in favor of Hartnett, concluding that the phrase “two consecutive years” referred to back-to-back years and not to years separated by a gap (in this case, 12 years). Consequently, the anti-spiking provision did not apply and Hartnett’s pension was restored to the higher amount without the reduction.  This decision affirms that consecutive years in the statute must be continuous, following each other without interruption, and a gap of 12 years breaks this continuity.