Despite consistent demands by the union, the Town of Chelmsford has refused to treat as pensionable the EMT compensation paid to its police officers. The union has a contractual provision that pays officers a 2.5% increase for EMT certifications, and a 6% increase when more than 50% of the bargaining unit is certified. The Town would not credit either of the payments as pensionable, which decision hurt its retired police officers for years.

Ultimately, PERAC issued an opinion splitting the difference, ruling that the only the lower amount was regular compensation, and calling the 6% payment "contingent" and, therefore, not pensionable. The local retirement board was bound by the PERAC ruling. NEPBA Local President Frank Goode and NP attorney Gary Nolan appealed.

The Massachusetts Division of Administrative Law Appeals agreed with the union, and clarified in great detail the reasons why the union was entitled to the entire 6% payments, regardless of the contractual contingency. Because compensation stipends are so common in the public sector, this case demonstrates why it is so important for unions and individual employees to be vigiliant in ensuring they are receiving pension credit for their hard earned benefits.

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