Chapter 161 of the Acts of 2006

Some individuals who performed contract service with the State are eligible to purchase this service.  The individual must be a member in service of the State Employees’ Retirement System with at least ten (10) years of state service.  (This does not include time with cities, towns or counties of the Commonwealth.)  The contract service being purchased must have been service to the Commonwealth, not service within a city, town or county.  The maximum amount of contract service eligible to be purchased is four (4) years.  The contract service being purchased must immediately precede membership in the State Employees’ Retirement System with no more than a 6 month break in service.  The job description of the member in the position compensated from contract funds must be substantially similar to the job description the member held upon entry into membership in the State Employees’ Retirement System.  Eligible members who worked part-time as contract employees shall be eligible for creditable service proportionally equal to their part-time service. 

The cost to purchase contract service is the amount equal to that which would have been withheld as regular deductions for the service as a contract employee if the service had been rendered as a state employee and the individual had been a member of the State Employees’ Retirement System, plus buyback interest of 4.125% ( ½ of the actuarial assumed interest rate.

In order to apply to purchase contract service, members must submit documentation from the department that employed them for contract service attesting to the above facts and giving the dates and salaries of the contract service and the ratio of time employed.  No creditable service shall be allowed under this section unless the member provides documentation of the service as a contract employee satisfying the State Board of Retirement’s requirements.

Once the member is notified by the Board that they are eligible to purchase contract service, they must purchase the service in a lump sum within 180 days after the notice or enter into an installment agreement within 180 days after the notice.  If the 180 days expires without action, the time will not be eligible for purchase.

Please see 941 CMR 2.09

Download the Contract Service Buyback application pdf format of    Contract Service Form  to apply or contact the Buyback department at telephone 617-367-7770 ext. 6 or e-mail buyback@tre.state.ma.us for more information.