Retirement

No! Under Massachusetts law, your retirement account has no provisions for withdrawal under any circumstance, including mortgage down payment or college education.

If you voluntarily leave employment that began after January 1, 1984 and have less than 10 years of service, you will receive 3% interest. If you have over ten years of service, interest will be refunded to you at the “regular interest” rate, which is currently set at by the State for .01 %. Also, if you are removed or discharged, you will receive the “regular interest” rate regardless of the years of service.

Your retirement allowance is determined by your age, years of creditable service, three year-average annual rate of compensation, and your group classification. The maximum retirement allowance is 80% of the high three-year average annual rate of compensation. Your age factor times the number of years of service determines this percentage. For Members who join the system after 4/2/12, a five-year average annual rate of compensation will be used to calculate their retirement. In addition, the age factor table for member who join the system after 4/2/12 will require you to work longer for the same or similar benefit.

There are limitations that apply to superannuation retirees who work after retirement in positions in local as well as state government. Limitations include:

• Employment may not exceed 1200 hours per calendar year; and/or
• Total earnings per calendar year cannot exceed the difference between the retirement allowance and the current salary of the position from which you retired. After the first full calendar year of retirement, you can earn the difference plus $15,000.

As a retiree, you must cease employment whenever either one of the above two conditions are met. If you wish to continue working, then you must waive your retirement allowance. There are no earnings limitations for superannuation retirees who work in the private sector. Please note, separate earnings limitations apply to members who receive Accidental Disability Benefits.

You may buy back any prior public service with the City of Everett or certain other service with the Commonwealth that was refunded or service in which retirement contributions were not withheld. You must buy back such service as an active member in order to have that time credited toward a retirement. Buyback requests must be submitted in writing and you will have to pay the appropriate contribution plus accumulated interest as determined by the Board.

Vesting is a term commonly used to signify the right to a retirement allowance at a later date. Vested benefits are those benefits, which a member is entitled to today, not based on additional service.

If you leave service after you are vested, you may leave your retirement contributions in the system and receive a retirement allowance at age 55. Group 1 Members who join the system after 4/2/12 must be age 60 to be eligible for an allowance.

If you leave service, two options are available to you. You may receive a refund of your retirement contributions, with 20% deducted for federal taxes. Under certain circumstances, there may be a penalty for early withdrawal. Alternatively, you can have it “Rollover” into a tax-qualified IRA.

You are vested in the Everett retirement system once you have accumulated the equivalent of 10 years of full-time service.

No sooner than 120 days before you plan to retire. You can also file for retirement up to sixty days after you leave public service. You can file after sixty days but your benefits will not be retroactive to your retirement date. Therefore, the Everett Retirement Board strongly recommends that you plan your retirement before leaving your job. Certain retirement options will not be available to you once you stop working. You should therefore obtain counseling from the Everett Retirement Board before you stop working.

Contribution to the retirement system is determined by your most recent entry into the system. Members who re-enter the system with funds on deposit or who transfer from another contributory retirement system maintain their former contribution level.

Employee Contribution Rates:

Before January 1, 1975 – 5%
January 1, 1975 – January 1, 1984 – 7%
January 1, 1984 – June 30, 1996 – 8%
July 1, 1996 – present – 9%

Also, employees hired after January 1, 1979 will pay their regular contribution plus an additional 2% contribution on salaries in excess of $30,000.