Termination retirement benefits

The Official Website of the Massachusetts Teachers' Retirement System (MTRS)

Mass.Gov

MTRS logo

Home > Members > Active members > Retiring from the MTRS > Termination retirement

Termination retirement benefits

If you are involuntarily terminated, the MTRS provides a termination retirement allowance. The eligibility criteria and benefit calculation formula are different from those for a superannuation retirement allowance.

If my position is eliminated due to a reduction in force or if I am terminated, what benefits am I entitled to?

If your position is eliminated or you are terminated for a reason that does not include moral turpitude, you may take a refund of your MTRS annuity savings account. Or, if you have accrued:

20 years or more of creditable service, you may be entitled to receive a termination retirement allowance.
at least 10 years of creditable service, you may leave your funds on account and apply for a superannuation retirement allowance upon attaining age 55 or anytime thereafter.

Note: The law also provides certain forfeiture provisions in the event you are convicted of a criminal offense involving your job.

What are the eligibility criteria for a termination retirement allowance?

To be eligible to receive a termination retirement allowance, the following conditions must be met:

the position you held with your school district must be eliminated or you failed to be reappointed to your position;
the elimination of your position or your failure to be reappointed must be completely involuntary on your part; and,
you may not have refused an offer of a comparable position in which you are certified.

How is the amount of a termination allowance calculated?

The termination retirement allowance is equal to one-third of the average of your three highest consecutive years’ salaries, plus an annuity amount that is based on your age and account balance at retirement (see below).

What is the difference between regular (“superannuation”) retirement and termination retirement?

Superannuation retirement and termination retirement differ as far as their eligibility criteria as well as the formula used to calculate the Option A benefit amount. However, once the termination allowance under Option A is calculated, the termination allowances under Options B and C are determined in the same way as for a superannuation allowance.

How do I apply for a termination retirement allowance?

As soon as possible after you receive formal notice of termination from your school district, contact us for a retirement application.
As soon as possible—and, if you want your retirement to become effective on your date of termination, no later than 60 days after your effective date of termination—file your completed application with our office. For example, if your effective date of termination is June 30, you must file your application with our office no later than August 29 in order to have an effective date of retirement of June 30. If your retirement application is received after 60 days from your effective date of termination, the earliest you could retire, by law, would be 15 days from the date that we receive your retirement application.
After we have received your completed application, we will contact your school district for written verification of your statement and determine your eligibility. If you are eligible, we will then send you additional information on the benefits you are entitled to.

A word of caution

Please be advised that once your termination retirement allowance becomes effective, you may not return to active service as a teacher. Specifically, if your name should appear on a recall list after the approval of your termination retirement allowance, you may not be able to “un-retire” and elect to take a teaching position if one is offered to you. “Un-retirement” can only be accomplished through Section 105 of the retirement law, which requires, among other things, repayment of all the retirement allowance you received, plus interest.

For more information, please see working after retirement. Additionally, if you are recalled prior to our approval of your application for a termination retirement allowance, you must immediately notify the MTRS, as you would not be eligible to retire under this formula. For these reasons, consider your options carefully. If you have any questions, please contact us.

Termination retirement allowance: Formula and worksheet

The example illustrates the calculations for a 45-year old member who, is a non-veteran, and who, at the time of termination, has a salary average of $55,000 for his or her highest three consecutive years, an MTRS annuity savings account balance of $60,000, and a beneficiary who is age 44.

Also shown here is the member-survivor benefit payable only under Option C. This benefit is payable on a monthly basis to your beneficiary for the rest of his or her life.

Note: This is not an interactive worksheet that you can fill in on screen. Accordingly, you may want to print this page and complete the worksheet on paper.

Option A allowance

Example

You as of _/_/_

3-year salary average

$55,000

$____

x 1/3
x

1/3
x

1/3

Pension portion

$18,150

$_

+
Annuity portion

The annuity portion is calculated based on your age and the balance in your MTRS annuity savings account. In general, the annual annuity portion for members with approximately 20 years of creditable service ranges from $3,000 to $6,000. Your actual figure will vary.

+

$4,558
+

$_

Option A annual allowance
Note: If you are a wartime veteran, $15 for each year of teaching service (up to a maximum of $300) is added to the Option A annual allowance.

$22,708

$_______

Option B allowance

Example

You

Option A annual allowance (see above)

$22,708

$_

x

99% (approximately 1% less than Option A)

x

99%

x

99%

Option B annual allowance

$22,480

$_

Option C allowance and survivor benefit

Example

You

Option A annual allowance (see above)

$22,708

$_____

x Option C Factor (see table)
x

96% x

%

Option C annual allowance

$21,799

$_

x 2/3 (allowed survivor portion)
x

2/3 x

2/3

Annual member-survivor benefit

$14,532

$_____

Option C factors

To obtain your Option C factor, determine what your age will be on the birthday closest to your retirement date; then determine what your beneficiary’s age will be on his or her birthday that is closest to your retirement date. Find these ages on the appropriate axes and follow the row and column into the table. The Option C factor is the number where the row and column intersect. Please note that, for purposes of this worksheet, the values in this table are rounded, approximate percentages.

Option C factor table
(for termination retirements on or after July 1, 2004)

Member’s age	67	78	78	78	79	79	79	80	80	81	81	81	82	82	83	83	84	84	85	85	86	86	87	87	88
	66	79	79	80	80	80	81	81	82	82	82	83	83	84	84	84	85	85	86	86	87	87	88	88	89
	65	80	81	81	81	82	82	82	83	83	84	84	84	85	85	86	86	87	87	87	88	88	89	89	90
	64	82	82	82	83	83	83	84	84	84	85	85	86	86	86	87	87	88	88	88	89	89	90	90	91
	63	83	83	84	84	84	84	85	85	86	86	86	87	87	87	88	88	89	89	89	90	90	91	91	91
	62	84	84	85	85	85	86	86	86	87	87	87	88	88	88	89	89	90	90	90	91	91	91	92	92
	61	85	85	86	86	86	87	87	87	88	88	88	89	89	89	90	90	90	91	91	92	92	92	93	93
	60	86	87	87	87	87	88	88	88	89	89	89	90	90	90	91	91	91	92	92	92	93	93	93	94
	59	87	88	88	88	88	89	89	89	90	90	90	91	91	91	91	92	92	92	93	93	93	94	94	94
	58	88	88	89	89	89	90	90	90	90	91	91	91	92	92	92	93	93	93	93	94	94	94	95	95
	57	89	89	90	90	90	90	91	91	91	92	92	92	92	93	93	93	94	94	94	94	95	95	95	95
	56	90	90	90	91	91	91	91	92	92	92	93	93	93	93	94	94	94	94	95	95	95	95	96	96
	55	91	91	91	91	92	92	92	92	93	93	93	93	94	94	94	94	95	95	95	95	96	96	96	96
		44	45	46	47	48	49	50	51	52	53	54	55	56	57	58	59	60	61	62	63	64	65	66	67
		Beneficiary’s age

A note about this formula

The formula for estimating termination retirement allowances under Options A, B and C is also used in another situation. If, at the time you apply for regular retirement you have 30 years of creditable service and are under age 55, we will automatically calculate your retirement benefits under this formula as well as under the regular retirement formula. Whichever formula results in the greater Option A amount is the one we will use to provide you with your estimated retirement allowance figures.

Note: This is not an interactive worksheet that you can fill in on screen. Accordingly, you may want to print this page and complete the worksheet on paper.

Option B allowance Example You Option A annual allowance (see above) $22,708 $___________ x 99% (approximately 1% less than Option A) x 99% x 99% Option B annual allowance $22,480 $___________

Option B allowance

Example

You

Option A annual allowance (see above)

$22,708

$_

x

99% (approximately 1% less than Option A)

x

99%

x

99%

Option B annual allowance

$22,480

$_