Other issues you should know about:
RetirementPlus

RetirementPlus vs. regular formula: A comparison of the percentages
Legislative provisions of RetirementPlus
FAQ

RetirementPlus vs. regular formula: A comparison of the percentages

RetirementPlus increases retirement benefits for eligible and participating members by 2 percent for each full year of creditable service in excess of 24 years, up to the statutory maximum of 80 percent. A member cannot access bonus percentages, however, until he or she completes 30 years of service.

Comparison of percentage of three-year final salary average under regular formula vs. under RetirementPlus

**Under RetirementPlus, a member cannot access bonus percentages until he or she completes 30 years of service.

Legislative provisions of RetirementPlus

Enacted as Chapter 114 of the Acts of 2000 by the Massachusetts Legislature on June 22, 2000, RetirementPlus made major changes in the retirement law and affected all members of the MTRS. This legislation:

1) Enhanced the retirement formula (“RetirementPlus”)
Under RetirementPlus, retirement benefits for eligible and participating members are increased by 2% for each full year of creditable service in excess of 24 years, up to the statutory maximum of 80%. The contribution rate for RetirementPlus participants is a flat 11%.

In February 2001, then current members of the MTRS were mailed an Election Form and given until June 30, 2001 to affirmatively elect to participate in RetirementPlus. New members as of July 1, 2001 are automatically subject to RetirementPlus. Members who transfer into the MTRS from another Massachusetts contributory retirement system on or after July 1, 2001 have 180 days in which to elect to participate in RetirementPlus; if they do not respond, they are not enrolled in RetirementPlus.

2) Eased restrictions on retiree re-employment
During a period of a “critical shortage” of teachers as declared by local school districts, and approved by the Massachusetts Department of Education, MTRS retirees may return to public teaching service in Massachusetts without restriction. Members who retire under RetirementPlus, however, must be retired for at least two years before they may be rehired without restriction. In the absence of a “critical shortage,” the existing restrictions on re-employment in a Massachusetts public position apply to all retirees.

3) Allowed pre-1975 maternity leave purchases
Members who established membership in the MTRS or the Boston Retirement System as a teacher before 1975, and who left teaching or took a leave for maternity or adoption purposes before 1975, were given the opportunity to purchase up to four years of that time as creditable service, prior to December 31, 2001. For more information on this particular type of creditable service, please see our more detailed information on Pre-1975 maternity leave credit.

FAQ

I am participating in RetirementPlus. What does this mean for my retirement benefit?

If you are participating in RetirementPlus—because you either elected to participate or you became a member of the MTRS on or after July 1, 2001—you will be eligible to receive a RetirementPlus enhanced benefit if, at the time of your retirement, you:

• have accrued 30 or more years of creditable service, at least 20 of which are membership service with the MTRS or the Boston Retirement System as a teacher, and,
• have contributed at the RetirementPlus rate of 11% for at least five years, or have made accelerated payments to meet this contribution requirement.

However, if you are participating in RetirementPlus because you elected to participate in RetirementPlus, and you:

• do not accumulate 30 years of creditable service by your date of retirement, you will receive a retirement benefit calculated under the regular formula, and a refund of your RetirementPlus contributions, plus regular interest.
• retire with 30 or more years of creditable service, but fewer than 20 of your years are as a member of the MTRS or the Boston Retirement System as a teacher, you will receive the regular retirement benefit and a refund of your RetirementPlus contributions, plus regular interest.

Please note that if you are participating in RetirementPlus because you became a member of the MTRS on or after July 1, 2001, and you do not meet the criteria to be eligible for enhanced RetirementPlus benefit, you are not entitled to a refund as your contribution rate of 11% was mandatory.

I am not participating in RetirementPlus because I elected not to participate (or I didn’t submit a timely election form). Can I elect in now?

No—your election opportunity was a one-time chance. Once you elect not to participate (or, in the case of members who are transferring into the MTRS from another Massachusetts contributory retirement system, miss your 180-day deadline for submitting your form), you cannot later opt in. If, however, you leave MTRS service, take a refund of your annuity savings account and then return to MTRS service, you will return as a new member and automatically be subject to RetirementPlus and the contribution rate of 11%.

How do I know if I am subject to RetirementPlus?

If you:

• joined the MTRS on or after July 1, 2001, you are automatically enrolled in RetirementPlus.
  
• transferred to the MTRS from another Massachusetts contributory retirement system on or after July 1, 2001, you have 180 days from the date that you transfer into the MTRS to enroll in RetirementPlus. If you submitted (or submit) an affirmative election within 180 days, you will be subject to RetirementPlus.
  
• were a member of the MTRS prior to July 1, 2001, you had until June 30, 2001 to elect to participate in RetirementPlus. If you did not submit a timely, affirmative election, you were not enrolled in RetirementPlus and your contribution rate remained the same.
• If you are unsure of your RetirementPlus status, please call us.