Guide The Retirement Process for Public Employees

To qualify for a retirement benefit you must be vested in your retirement system. 

Vesting means you have met the minimum service requirements to qualify for a benefit. For most members, that means you have a minimum of 10 years of full-time creditable service. You would still have to meet the minimum age requirements. 

The basic formula for a benefit is made up of:

• Your benefit rate (age at retirement and your group classification)
• your years of creditable service 
• your salary average

To get more information on these factors, we recommend you read our Public Employee Retirement Guides:

• If your membership date is prior to April 2, 2012
• If your membership date is on or after April 2, 2012

You can do a quick calculation on the State Retirement Board's calculator to get an idea of what your benefit might be. 

Option A

• Provides the highest benefit for the member
• There is no survivor benefit

Option B

• Provides a slightly lower benefit for the member
• Member can select any beneficiary to receive the balance of their annuity savings fund upon their death
• Beneficiary can be any individual or entity, such as a charity

Option C

• Member's benefit is determined by a calculation of the member's age and the beneficiary's age
• You can only name ONE beneficiary
• To qualify, your beneficiary must be your:
  • Spouse
  • Unmarried former spouse
  • Child
  • Sister or brother
  • Mother or father
• The beneficiary will receive two-thirds of your monthly retirement allowance for the rest of their life upon your death
• If the beneficiary dies before you then your allowance will "pop up" to the higher Option A amount.
• You cannot name a new Option C beneficiary.

"Superannuation" is the term that is used to describe the process of being retired upon reaching a certain age and meeting other requirements, including the length of creditable service.

Required documents

Among the documents your retirement board may require to process your application are:

• Your birth certificate
• Your veteran's discharge papers (if applicable or not already on file)
  • Veterans may be eligible for additional benefits
• Your beneficiary's birth certificate, if choosing Option C
• Your marriage certificate, if your Option C beneficiary is your spouse
• Proof of age for any dependent children, if applicable
• Verification of student status for any dependent children, if applicable

Your retirement application and relevant forms must be submitted to your retirement system for processing. 

Complete your buyback payments

• If you are in the process of buying back prior public service, make sure you have made all your payments before your retirement date. 

Notify your employer

• If you are currently working, make sure to notify your employer of your retirement date

Health Insurance

• Contact the Group Insurance Commission to inform them of your retirement

Taxes

• State Taxes - your pension is not subject to Massachusetts state tax
• Federal Taxes - your pension is federally taxable for contributions made after 1/12/1988
  • You will complete a W-4P form upon retirement for your federal tax withholding
  • You can update your W-4P at any time
  • Consult a tax professional for guidance
• Instead of receiving a W2 from your employer, you will receive a 1099-R from your retirement system for tax filing purposes

Pension Payments

• Once your application is processed and approved, you will receive your check on the last day of the month 

Social Security

• If you plan on collecting Social Security benefits, you must contact them for guidance

Working After Retirement

• See our guide for restrictions on post-retirement employment for public retirees

Leaving public service before vesting

• Once you leave public service you are entitled to request a refund of your contributions
• You can also leave your funds on account with your retirement system to preserve your membership rights
• If you have the minimum years of service but are not old enough to retire, you can apply to retire at a later date, once you reach the required minimum age even if you are not currently employed, provided you have not taken a refund

You may need one or more of the following forms or guides to complete the retirement process or search for a form on the PERAC forms page.