Direct deposit

• Direct Deposit Authorization form (pdf, 2 pages)
• About direct deposit (also known as “Electronic Funds Transfer” or EFT)
• To transfer your direct deposit to another bank or to another account within the same bank

About direct deposit (Electronic Funds Transfer/EFT)

Direct deposit is a safe, convenient way to receive your retirement allowance. You don’t have to worry about a check being stolen or lost in the mail, or having to cash the check on your own.

Please note:

• Pursuant to 807 CMR 18, Massachusetts law now requires MTRS members wh retire after November 27, 2009 to receive their benefits via direct deposit. Members who retired prior to November 27, 2009 and who currently receive paper checks can sign up for direct deposit at any time.
  
  
• Even if you are on direct deposit, you must keep us informed of any change in address, so that you will receive direct deposit statements, 1099-R tax form and other mailings from us.

Please allow two months for us to process the direct deposit of your benefits. (You should expect to receive your retirement allowance checks at your home during this time.) Once you are receiving payments by electronic transfer, you will receive a direct deposit statement as follows:

• when your first direct deposit is made;

• when there is a change in the amount of your direct deposit from the prior month (for instance, if you change the amount of your federal tax withholding or your insurance premium changes);

• when the MTRS needs to inform retirees of new information and prints a special notice on the top portion of the direct deposit statement; and,

• at the end of December, when the MTRS provides you with a statement that shows your complete year-to-date information for the calendar year.

NOTE: A direct deposit statement is only produced and mailed in the circumstances listed above.

To transfer your direct deposit to another bank or to another account within the same bank

To transfer your existing direct deposit of your retirement or survivor benefit:

• to another bank, complete and return a new Direct Deposit Authorization form (pdf, 2 pages). Please note: You should not close your old account until the first deposit has been made to your new bank or you receive a retirement check at home. The process of changing your direct deposit from one bank to another takes approximately two months to complete. Occasionally, before the changeover is completed, one check may be mailed to the address shown on the Direct Deposit Authorization form.

• to another account within the same bank, simply write to our main office and direct us to change your direct deposit from the old account to the new account. Please be sure to include:

  • your Social Security number,

  • the old account number and type (checking or savings), and

  • the new account number and type (checking or savings).

  If the new account is a checking account, please attach a voided check to your correspondence.