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Retirement System Fact Sheet

Rules & Regulations


MEMBERSHIP REQUIREMENTS

Membership in a contributory retirement system is mandatory for nearly all public employees who are regularly employed on a full-time basis. Full time employment is based on 35 hours per week. Elected Officials may choose to become members after 90 days of employment.

DEDUCTION RATES

  • Members enrolled prior to January 1, 1975 have deductions taken at 5%.
  • Members enrolled on or after January 1, 1975 have deductions taken at 7%.
  • Members enrolled on or after January 1, 1984 have deductions taken at 8%.
  • Members enrolled on or after July 1, 1996 have deductions taken at 9%.
  • Members enrolled on or after January 1, 1979 and who earn in excess of $30,000.00 per year will have an additional deduction of 2% taken on salary over $30,000.00. This deduction is to be taken on a per pay period basis. Eg.: for salary paid weekly, 2% additional deduction should be taken on compensation in excess of $576.92, since $30000 / 52 = $576.92.
  • Before January 12, 1988 deductions were taken on an after-tax basis, and those contributions will not be federally taxable during retirement. Since that date deductions have been taken on a pre-tax (tax deferred) basis. The retirement system keeps track of both your pre and post tax deductions.

RETIREMENT ELIGIBILITY

  • Members with twenty (20) or more years of service may retire regardless of age.
  • Members enrolled before January 1, 1978 may retire upon reaching age 55.
  • Persons enrolled after January 1, 1978 must have 10 years of Creditable Service in order to collect a retirement allowance. Any member who has completed 10 or more years of Creditable Service may "Vest His Rights" and apply for a retirement allowance at age 55 or any time thereafter.

WORK AFTER RETIREMENT

  • A member may work for private industry after retirement with no restrictions.
  • A member may be elected to public office by popular vote and serve with no restrictions.
  • A member may work for a Massachusetts governmental unit after retirement for a maximum of 960 hours in a calendar year provided the salary earned combined with the member's retirement allowance does not exceed the salary for the position from which the member retired.

MEMBER-SURVIVOR BENEFITS

  • The original member must have at least 2 years of Creditable Service and be married for 1 year.
  • Any absence from work must be an AUTHORIZED leave of absence (with or without pay) to qualify for a guarantee. The guarantee is $6,000.00 Per year, or $500.00 Per month.
  • Children under age 22 who are full time students at an accredited school receives $120.00 per month for the 1st child and $90.00 Per month for each additional child.

MAKE-UP SERVICE

Any prior employment with a governmental unit in Massachusetts or prior employment for which you were refunded. Check with the retirement board to see if you are eligible to buy back this service.

REFUNDS

Members who terminate employment are entitled to a refund under the following conditions:

  • Members employed on or after January 1, 1984:
     
    • No interest will be refunded to withdrawing members who have less than five years of Creditable Service.
    • Members having at least five but less than ten years of Creditable Service will receive fifty percent (50%) of regular interest.
    • Members having ten or more years of Creditable Service will receive one hundred percent (100%) of regular interest.

These rules do not apply to members whose services were involuntarily terminated, or to members who were employed prior to January 1, 1984.

Interest will be paid on inactive accounts for two years only after termination of service.

VETERAN STATUS

Must meet at least one of the following criteria for ACTIVE MILITARY SERVICE:

  • 90 days during the period 1940 thru 01/01/1947 (non-vet 01/01/1947 thru 06/24/1950).
  • 90 days active service 06/25/1950 thru 01/31/1955.
  • 180 days active service 02/01/1955 thru 08/04/1964.
  • 90 days active service 08/05/1964 thru 05/07/1975, of which at least 1 day was wartime service.

As of 05/07/1975 NO MILITARY SERVICE CREDITS except as provided for under Chapter 534 which includes:

  • "Vietnam Veterans"
  • "Panamanian Intervention Force"
  • "Lebanese Peace Keeping Force"
  • "Persian Gulf Veteran"
  • "Granada Rescue Mission"

TAXES

At the time of retirement all retirees are given their final statement of account and are provided with letters which explain the taxable and non-taxable portions of their allowance as computed according the I.R.S. "Simplified General Rule".

Please Note: Members who have retired since June 30, 1986 are advised that their pensions are immediately taxable with the federal government. Your retirement allowance, at the present time, is still non taxable with the state of Massachusetts.

SUPPLEMENTARY REGULATIONS OF THE ADAMS RETIREMENT BOARD

Membership:

  • Full time permanent employees who work at least 35 hours per week and are under age 65 shall join the retirement system as of their date of employment.
  • Employees who work at least 20 but less than 35 hours per week must join within 6 months of their date of employment but may join at an earlier date at the discretion of the Board.
  • Appointed officials who receive compensation of at least $5000 per year may join within 90 days of each appointment. Elected officials who receive compensation may join within 90 days of each election.
  • Temporary employees, employees who are normally scheduled to work less than 20 hours per week and appointed officials who receive compensation of less than $5000 per year are not eligible for membership. The Board shall have full jurisdiction to determine the eligibility of employees for membership in all cases involving part time, provisional, temporary provisional, seasonal or intermittent employment or service.

Creditable Service:

  • Members who work at least 7 continuous months per year shall be credited with 1 full year of service for each year worked. Members who work less than 7 Continuous months shall be credited on a prorated basis. For every 150 hours or portion thereof worked in a calendar year, a member shall receive credit for one month of service to a maximum of 12 months.
  • Members who are elected officials shall be credited with one year of service for any time served within the calendar year. Members who are appointed/salaried employees shall be credited with service in accordance with their salary schedule.
  • Members shall be credited with one month of service to a maximum of 60 months for each month that a reserve or permanent intermittent police officer was on his/her respective list and was eligible for assignment to duty subsequent to his/her appointment.
  • Members who were full time employees who became part time or members who were part time employees and became full time shall have their part time service credited in the same manner as employees who work less than 7 continuous months.
  • Approved unpaid leaves of absence of not more than 30 days per calendar year shall not affect creditable service. Unapproved unpaid leaves of absences in excess of 30 days per calendar year shall decrease creditable service for a like period.

Continuation of Membership:

  • An employee, appointed official, or elected official who is presently a member of the system who would no longer be eligible for initial membership may at the member's option, continue membership. Service will be credited in accordance with the rules established under the section entitled "Creditable Service".

Buybacks:

  • All Active Members shall have the option to buy back periods of service worked prior to his/her acceptance as a member of the Retirement System. This includes regular part time, provisional full time, provisional part time, temporary part time, seasonal full time or seasonal part time.
  • Inactive Members may buy back regular full time and regular part time service. Service shall be credited in accordance with the rules established under the section entitled "Creditable Service".
  • When buying back time, members must buy back entire blocks of previous service. Members may make lump-sum payments or weekly payroll deductions of not less than twenty dollars ($20.00) per week. Interest due will be re-calculated during the month of January and the member will be notified of the change. At no time shall the length of time allowed for payroll deductions exceed five (5) years. The buyback of service must be completed prior to retirement.
  • Members seeking to buy back time must submit in writing, dates and places of previous employment. The Retirement Board will request all pertinent information from the appropriate agencies. The Board will accept the liability on a prior member for only full time and part time regular service.

Definitions:

  • Full Time Service: Service while an employee having established hours of work consisting of a minimum of 35 hours per week for 52 weeks per year.
  • Part Time Service: Service while an employee having established hours of work consisting of less than 30 hours per week for 52 weeks per year.
  • Regular Service: Service while an employee that is appointed for a fixed period of time with a reasonable expectation of reappointment for continuing periods of time.
  • Temporary Service: Service while an employee that is appointed for a fixed period of time, not to exceed 8 months to replace employees who might be absent for extended periods.
  • Seasonal Service: Service while an employee that is appointed for a fixed period of time due to conditions caused by increased workload.
  • Provisional Service: Service while an employee that is appointed through a noncompetitive process to a position for a period of time to prevent stopage of public business or hazard or serious inconvenience to the public.

Change in Employee Status:

Member agencies must notify the retirement board within 90 days of any changes in employee status including workers' compensation, position held, and hours in the workweek.

  • Injuries: All major injuries incurred due to employment must be reported in writing to the Adams Retirement Board within 90 days of the accident.
  • Regular Compensation: Shall include: annual rate of compensation as shown in an approved salary schedule; educational incentives; longevity; shift differentials. Shall not include: unused vacation, sick leave or severance pay; amounts paid for hours worked beyond the normal work schedule; premiums for working holidays except as authorized by law; early retirement incentives; bonuses.
  • Disability Retirement Re-Application: If the Retirement board denies an application for accidental or ordinary disability, a similar application shall not be accepted within 1 year from the date of denial unless there is; new evidence; a new incident; aggravation of a pre-existing condition.
  • Advance Payments: Upon acceptance by the retirement board of the provisions of c.32, &99, members who have filed applications for retirement may receive advance payments not to exceed 75% of their estimated allowance during such period as is necessary for the processing of such application. Determination of such payments shall be made by the board of Retirement.
  • Post Retirement Earnings: An accidental or ordinary disability retiree may not earn a sum that, when added to his/her retirement allowance, exceeds what the position from which he/she retired is presently paying plus $5000. On or before April 15 of each year, every person retired for disability shall file with the board a statement of earnings for the previous year subscribed to by him/her under penalties of perjury. Failure to comply shall result in the withholding of allowance payments. Annual Verification-Each retiree is required to annually file a certification, signed under the penalties of perjury, with the retirement system. Failure to comply shall result in the withholding of allowance payments.
  • Benefits to Dependents Who Have Attained Age 18: Benefits will cease regardless of age upon the marriage of the dependent or the death of the dependent. Dependents' benefits cease at age 18 as stated in G.L. c. 32 &12B unless the dependent is physically or mentally incapacitated from earning on the date of death of the member or if the dependent is a full time student. Benefits are to be paid through date of graduation from college or through the last day of schooling if the dependent does not complete college, provided that all such dependent benefits must cease at or before age 22, regardless of the date of graduation or last day of schooling. Benefits are to be paid through the 18th birthday and resumed if the dependent enters an accredited educational institution with reimbursement made for the summer months. The parent/guardian will be contacted to provide the board with certification of attendance from the school and the parent/guardian will be informed regarding dependent's student status. Certification can only be made by the Registrar of the college or university or the chief administrative officer of the secondary school. The financial and medical records of the Adams Retirement system are not public records.
  • Refunds of Accumulated Deductions: A member is eligible for a refund of his/her accumulated deductions under the following conditions:
    1. The member permanently leaves the service and does not intend to take a position in the Commonwealth of Massachusetts subject to the provisions of ss. 1-28 of c.32 of the general laws.
    2. The member is an elected official whose term has expired and he/she is not eligible for a retirement allowance.
    3. If a member's retirement allowance amounts to less than $600 a year, he/she may receive a refund of his/her accumulated total deductions. If a member's retirement allowance is less than $360 a year, he/she must receive a refund instead of an allowance.
    4. The member is a veteran who entered the employ of any governmental unit prior to 7/1/39 and is retiring under ss.56-60A of G.L. c.32. A member who has entered service after 1/1/84 is eligible for a refund of interest credited to his/her total deductions according to the following schedule:
      1. The member has less than 60 months (5 years) of creditable service and he/she VOLUNTARILY terminated, he/she will receive no interest credited to the total deductions.
      2. The member has 60 months (5 years) of creditable service but less than 120 months (10 years) of creditable service, and he/she VOLUNTARILY terminated, he/she will receive 50% of the interest credited to the total deductions.
      3. The member has 120 months (10 years) or more of creditable service, or, if he/she was INVOLUNTARILY terminated, he/she will receive 100% of the interest credited to the total deductions. No refund will be given to a member who takes another position in the Commonwealth of Massachusetts subject to the provisions of ss. 1-28 of Chapter 32. Said accumulated total deductions will be transferred to the Appropriate retirement system. A member may not apply for or receive a Refund if the member is currently subject to workers' compensation.
  • Board Pay: To receive compensation under MGL Chapter 32 Section 20 paragraph 6, Board Members must attend the monthly board meetings. Failure to attend meetings, will be grounds for forfeiture of monthly stipend for that month. Board members may receive compensation when their absences are excused by a vote of the Board for the following reasons:
    1. Work conflict;
    2. Illness of board member or immediate family;
    3. Vacation.

In order for the Board to grant an excused absence the Board's Administrative Assistant or Chairman must be notified of the absence prior to the scheduled time of the meeting. The Board may grant an excused absence if notification is not received under extenuating circumstances.

Generally, Board members will be granted only one (1) excused absence per calendar quarter, but may request more. The Board may, at its discretion, grant additional excused absences. The Board may refuse to grant an excused absence if the Board determines that the board member has a history of non-attendance or flagrant abuse of excused absences.