Withholding of Regular Compensation

  • How much do persons who become members on or after April 2, 2012 contribute?

Contributions to a retirement system are determined by the date that a person becomes a member of a Retirement System. If you were a member prior to that date but withdrew your funds from the retirement system, your contribution rate will be established based upon the date that you re-entered the system, even if you redeposit the amount withdrawn.  The contribution rates for other members are contained in the Massachusetts Public Employee Retirement Guide for those Who Became Members Prior to April 2, 2012

The contribution rate for most members whose membership date is April 2, 2012 or thereafter, including those who re-entered membership after that date, repaying contributions withdrawn, will be 9% of regular compensation.  The contribution rate will be reduced to 6% of regular compensation when at least 30 years of creditable service has been granted for members in Group 1.

The contribution rate for state police officers is 12% of regular compensation.

The contribution rate for teachers who participate in the enhanced superannuation retirement program is 11% of regular compensation.  The contribution rate will be reduced to 8% of regular compensation when at least 30 years of creditable service has been granted.

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Regular Compensation In Excess of $30,000

  • Could my contributions be affected by the amount of my regular compensation?

If your annual rate of regular compensation is $30,000 or more, the treasurer of the governmental unit for which you work will withhold two percent of that portion of your rate of regular compensation which is in excess of $30,000.  This two percent withholding is in addition to the percentage that is already deducted from your total regular compensation as outlined above.  (Teachers participating in the “Retirement Plus” program are not subject to this additional withholding.)  This additional withholding will be made each pay period from that amount of your compensation that is in excess of an annual rate of $30,000 even before your total compensation for the year exceeds $30,000.

Example
For example, if your rate of regular compensation is $40,000 and you have less than 30 years of creditable service:

  • Deductions in the amount of 9% of $40,000 equaling $3,600 will be taken; and
  • Deductions in the amount of 2% of $10,000 ($40,000 minus $30,000) equaling $200 will also be taken.
  • Your annual contributions will be $3,800, which will be taken from your rate of regular compensation on a weekly, biweekly, or monthly basis (as determined by your pay period).

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