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Your membership in the MTRS
Membership is a benefit and a very important part of your financial future—the MTRS is your retirement plan.
What requirements must I meet in order to become a member of the Massachusetts Teachers’ Retirement System?
You are eligible to join the MTRS if you are employed as a teacher or administrator in a Massachusetts public school outside the City of Boston or in any charter school in Massachusetts and:
- you are covered by a contractual agreement regarding your employment;
- you are employed on at least a half-time basis;
- you are certified by the Department of Education; and,
- your contractual agreement requires that you be certified by the Department of Education as a condition of your employment.
Directors of educational collaboratives and charter schools are also eligible for membership.
Do I have to become a member of the MTRS?
If you meet the eligibility requirements stated above, yes.
Why don’t I pay into Social Security?
When Social Security was enacted in 1935, it specifically excluded public employees who were covered by their own pension systems. While Congress periodically tries to enact laws requiring public employees to pay into Social Security, we have been successful in opposing such action because it is an unfunded federal mandate that could have devastating effects on state and municipal services.
Massachusetts is one of a handful of “non-Social Security” states, which means that you pay into our system instead of Social Security; you do not earn any Social Security “credits” or “quarters” for your MTRS contributions or service. However, if you earned Social Security credits through other employment and you will be eligible for Social Security benefits based on your other employment history or your spouse’s eligibility, your Social Security pension may be reduced pursuant to the IRS’ Government Pension Offset or Windfall Elimination Provision. For details, please visit the IRS’ web site at www.irs.gov, or ours.
How much am I required to contribute?
You are required to contribute a set percentage of your salary through regular payroll deductions.
Your contribution rate is established by the Commonwealth’s retirement law (Chapter 32 of the Massachusetts General Laws) and is determined by the date on which you most recently became eligible for membership in a Massachusetts contributory retirement system and from which you continuously maintained your funds on account. Most of our members will establish membership in a contributory retirement system on the date they start working as a public employee in Massachusetts.
If the date on which you became a member of a Massachusetts contributory retirement system and from which you continuously maintained your funds on account is...
Your contribution rate is... Before January 1, 1975
5% January 1, 1975 through December 31, 1983*
7% January 1, 1984 through June 30, 1996*
8% July 1, 1996 through June 30, 2001
9% July 1, 2001 or after** (automatically enrolled in RetirementPlus)
11% All RetirementPlus participants**
11% * If your enrollment date is between January 1, 1979 and June 30, 2001, and you are not participating in RetirementPlus, you must also contribute an additional 2% on any salary over $30,000 (the “30-plus” deduction). For example, if your enrollment date is January 2, 1979 and your salary is $35,000, your total contribution would be 7% of $35,000 plus 2% of $5,000. The 2% contribution does not apply to RetirementPlus participants.
** New members as of July 1, 2001 are required to participate in RetirementPlus. Members transferring to the MTRS from other Massachusetts public retirement systems will have 180 days during which to make an affirmative election to participate in RetirementPlus.
| How to check your contribution rate Look at your pay stub. Divide the amount of your retirement withholding by your gross income, and then refer to the contribution chart. If your contribution rate is not correct, confirm your calculation with your payroll office and then contact the MTRS. Note: If the 2% contribution also applies, be sure it appears on your pay stub. |
If I was formerly a member of a Massachusetts contributory retirement system and I withdrew my funds, can I now “buy back” that service and enter the MTRS at my earlier—and lower—contribution rate?
No. While you may “buy back” that time in order to increase the total amount of your creditable service, your buy-back does not entitle you to your earlier contribution rate. You may purchase service time only, not the benefit of the lower rate.
Why do I have to pay a 1.45% Medicare tax?
If you were hired on or after April 1, 1986, you are required to pay a 1.45% Medicare tax. While this does not earn you any Social Security “credits,” it does entitle you to Medicare coverage at age 65 if you have paid this tax for at least 10 years.