Some Rules and Regulations You Should Know
MEMBERSHIP REQUIREMENTS
Membership in a contributory retirement system is mandatory for nearly all
public employees who are regularly employed on a full-time basis. Full
time employment is based on 35 hours per week. Elected Officials may choose
to become members after 90 days of employment.
DEDUCTION RATES
Members enrolled prior to January 1, 1975 have deductions taken at 5%.
Members enrolled on or after January 1, 1975 have deductions taken at 7%.
Members enrolled on or after January 1, 1984 have deductions taken at 8%.
Members enrolled on or after July 1, 1996 have deductions taken at 9%
Members enrolled on or after January 1, 1979 and who earn in excess of
$30,000.00 per year will have an additional deduction of 2% taken on salary
over $30,000.00. This deduction is to be taken on a per pay period basis.
Eg.: for salary paid weekly, 2% additional deduction should be taken on
compensation in excess of $576.92, since $30000 / 52 = $576.92.
Before January 12, 1988 deductions were taken on an after-tax basis, and those
contributions will not be federally taxable during retirement. Since that date
deductions have been taken on a pre-tax (tax deferred) basis. The retirement
system keeps track of both your pre and post tax deductions.
RETIREMENT ELIGIBILITY
Members with twenty (20) or more years of service may retire regardless of
age.
Members enrolled before January 1, 1978 may retire upon reaching age 55.
Persons enrolled after January 1, 1978 must have 10 years of Creditable
Service in order to collect a retirement allowance.
Any member who has completed 10 or more years of Creditable Service may
"Vest His Rights" and apply for a retirement allowance at age 55 or any time
thereafter.
WORK AFTER RETIREMENT
A member may work for private industry after retirement with no
restrictions.
A member may be elected to public office by popular vote and serve with no
restrictions.
A member may work for a Massachusetts governmental unit after retirement for
a maximum of 960 hours in a calendar year provided the salary earned
combined with the member's retirement allowance does not exceed the salary
for the position from which the member retired.
MEMBER-SURVIVOR BENEFITS
The original member must have at least 2 years of Creditable Service and be
married for 1 year. Any absence from work must be an AUTHORIZED leave of absence
(with or without pay) to qualify for a guarantee. The guarantee is $6,000.00 Per
year, or $5000.00 Per month. Children under age 22 who are full time students at
an accredited school receives $120.00 per month for the 1st child and $90.00 Per
month for each additional child.
MAKE-UP SERVICE
Any prior employment with a governmental unit in Massachusetts or prior
employment for which you were refunded. Check with the retirement board to see
if you are eligible to buy back this service.
REFUNDS
Members who terminate employment are entitled to a refund under the following
conditions:
Members employed on or after January 1, 1984
No interest will be refunded to withdrawing members who have less than five
years of Creditable Service.
Members having at least five but less than ten years of Creditable Service
will receive fifty percent (50%) of regular interest.
Members having ten or more years of Creditable Service will receive one
hundred percent (100%) of regular interest.
These rules do not apply to members whose services were involuntarily
terminated, or to members who were employed prior to January 1, 1984.
Interest will be paid on inactive accounts for two years only after termination
of service.
VETERAN STATUS
Must meet at least one of the following criteria for ACTIVE MILITARY SERVICE:
90 days during the period 1940 thru 01/01/1947
non-vet 01/01/1947 thru 06/24/1950
90 days active service 06/25/1950 thru 01/31/1955
180 days active service 02/01/1955 thru 08/04/1964
90 days active service 08/05/1964 thru 05/07/1975, of which at least 1 day
was wartime service
As of 05/07/1975 NO MILITARY SERVICE CREDITS except as provided for under
Chapter 534 which includes:
"Vietnam Veterans" "Panamanian Intervention Force"
"Lebanese Peace Keeping Force" "Persian Gulf Veteran"
"Granada Rescue Mission"
TAXES
At the time of retirement all retirees are given their final statement of
account and are provided with letters which explain the taxable and
non-taxable portions of their allowance as computed according the I.R.S.
"Simplified General Rule".
PLEASE NOTE . . . Members who have retired since June 30, 1986 are advised
that their pensions are immediately taxable with the federal government.
Your retirement allowance, at the present time, is still non taxable with
the state of Massachusetts.
SUPPLEMENTARY REGULATIONS OF THE ADAMS RETIREMENT BOARD
Membership:
Full time permanent employees who work at least 35 hours per week and are
Under age 65 shall join the retirement system as of their date of
employment.
Employees who work at least 20 but less than 35 hours per week must join
Within 6 months of their date of employment but may join at an earlier date
at the discretion of the Board.
Appointed officials who receive compensation of at least $5000 per year may
Join within 90 days of each appointment. Elected officials who receive
Compensation may join within 90 days of each election.
Temporary employees, employees who are normally scheduled to work less than
20 hours per week and appointed officials who receive compensation of less
than $5000 per year are not eligible for membership.
The Board shall have full jurisdiction to determine the eligibility of
Employees for membership in all cases involving part time, provisional,
temporary provisional, seasonal or intermittent employment or service.
Creditable Service:
Members who work at least 7 continuous months per year shall be credited
With One full year of service for each year worked. Members who work less
Than 7 Continuous months shall be credited on a prorated basis. For every
150 hours or portion thereof worked in a calendar year, a member shall
receive credit for one month of service to a maximum of 12 months.
Members who are elected officials shall be credited with one year of service
For any time served within the calendar year. Members who are appointed/
Salaried employees shall be credited with service in accordance with their
Salary schedule.
Members shall be credited with one month of service to a maximum 0f 60
Months for each month that a reserve or permanent intermittent police
Officer was on his/her respective list and was eligible for assignment to
Duty subsequent to his/her appointment.
Members who were full time employees who became part time or members who
Were part time employees and became full time shall have their part time
Service credited in the same manner as employees who work less than 7
Continuous months.
Approved unpaid leaves of absence of not more than 30 days per calendar year
Shall not affect creditable service. Unapproved unpaid leaves of absences in
Excess of 30 days per calendar year shall decrease creditable service for a
like period.
Continuation of Membership:
An employee, appointed official, or elected official who is presently a
Member of the system who would no longer be eligible for initial membership
May at the member's option, continue membership. Service will be credited in
Accordance with the rules established under the section entitled "creditable
Service".
Buybacks:
All active members shall have the option to buy back periods
Of service worked prior to his/her acceptance as a member of the Retirement
system. This includes regular part time, provisional full time, provisional
part time, temporary part time, seasonal full time or seasonal part time.
Inactive Members may buy back regular full time and regular part time
Service. Service shall be credited in accordance with the rules established
Under the section entitled "Creditable Service"
When buying back time, members must buy back entire blocks of previous
Service. Members may make lump-sum payments or weekly payroll deductions of
Not less than twenty dollars($20.00) per week. Interest due will be re-
Calculated during the month of January and the member will be notified of
The change. At no time shall the length of time allowed for payroll
Deductions exceed five (5) years. The buyback of service must be completed
Prior to retirement.
Members seeking to buy back time must submit in writing, dates and
Places of previous employment. The Retirement Board will request all
pertinent information from the appropriate agencies. The Board will accept
the liability on a prior member for only full time and part time regular
service.
Definitions:
Full Time Service-Service while an employee having established hours of work
Consisting of a minimum of 35 hours per week for 52 weeks per year.
Part Time Service-Service while an employee having established hours of work
Consisting of less than 30 hours per week for 52 weeks per year.
Regular Service-Service while an employee that is appointed for a fixed
Period of time with a reasonable expectation of reappointment for continuing
Periods of time.
Temporary Service-Service while an employee that is appointed for a fixed
Period of time, not to exceed 8 months to replace employees who might be
Absent for extended periods.
Seasonal Service-Service while an employee that is appointed for a fixed
period of time due to conditions caused by increased workload.
Provisional Service-Service while an employee that is appointed through a
Noncompetitive process to a position for a period of time to prevent stopp-
Age of public business or hazard or serious inconvenience to the public.
Change in Employee Status:
Member agencies must notify the retirement board within 90 days of any
Changes in employee status including workers' compensation, position held,
And hours in the workweek.
Injuries-All major injuries incurred due to employment must be reported in
Writing to the Adams Retirement Board within 90 days of the accident.
Regular Compensation-Shall include: annual rate of compensation as shown in
An approved salary schedule; educational incentives; longevity; shift
Differentials. Shall not include: unused vacation, sick leave or severance
Pay; amounts paid for hours worked beyond the normal work schedule; premiums
For working holidays except as authorized by law; early retirement
incentives; bonuses.
Disability Retirement Re-application-If the Retirement board denies an
Application for accidental or ordinary disability, a similar application
Shall not be accepted within 1 year from the date of denial unless there is;
New evidence; a new incident; aggravation of a pre-existing condition.
Advance payments-Upon acceptance by the retirement board of the provisions
Of c.32, &99, members who have filed applications for retirement may receive
Advance payments not to exceed 75% of their estimated allowance during such
Period as is necessary for the processing of such application. Determination
Of such payments shall be made by the board of Retirement.
Post Retirement Earnings-An accidental or ordinary disability retiree may
Not earn a sum that, when added to his/her retirement allowance, exceeds
What the position from which he/she retired is presently paying plus $5000.
On or before April 15 of each year, every person retired for disability
Shall file with the board a statement of earnings for the previous year sub-
Scribed to by him/her under penalties of perjury. Failure to comply shall
Result in the withholding of allowance payments.
Annual Verification-Each retiree is required to annually file a certi-
fication, signed under the penalties of perjury, with the retirement
system. Failure to comply shall result in the withholding of allowance
payments.
Benefits to Dependants Who Have Attained Age 18-Benefits will cease
Regardless of age upon the marriage of the dependant or the death of the
Dependent. Dependant's benefits cease at age 18 as stated in G.L. c. 32 &12B
Unless the dependant is physically or mentally incapacitated from earning on
The date of death of the member or if the dependant is a full time student.
Benefits are to be paid through date of graduation from college or through
The last day of schooling if the dependent does not complete college,
Provided that all such dependent benefits must cease at or before age 22,
regardless of the date of graduation or last day of schooling. Benefits are
To be paid through the 18th birthday and resumed if the dependent enters a
Accredited educational institution with reimbursement made for the summer
months. The parent/guardian will be contacted to provide the board with
Certification of attendance from the school and the parent/guardian will be
Informed regarding dependent's student status. Certification can only be
Made by the Registrar of the college or university or the chief administra-
tive officer of the secondary school.
The financial and medical records of the Adams
Retirement system are not
public records.
Refunds of Accumulated Deductions-A member is eligible for a refund of his/
Her accumulated deductions under the following conditions:
1.The member permanently leaves the service and does not intend to take a
position in the Commonwealth of Massachusetts subject to the provisions of
ss. 1-28 of c.32 of the general laws.
2. The member is an elected official whose term has expired and he/she is
not eligible for a retirement allowance.
3. If a member's retirement allowance amounts to less than $600 a year, he/
she may receive a refund of his/her accumulated total deductions. If a
member's retirement allowance is less than $360 a year, he/she must receive
a refund instead of an allowance.
4. The member is a veteran who entered the employ of any governmental unit
prior to 7/1/39 and is retiring under ss.56-60A of G.L. c.32. A member who
has entered service after 1/1/84 is eligible for a refund of interest
credited to his/her total deductions according to the following schedule:
1. The member has less than 60 months (5 years) of creditable service and
he/she VOLUNTARILY terminated, he/she will receive no interest credited to
the total deductions.
2. The member has 60 months (5 years) of creditable service but less than
120 months (10 years) of creditable service, and he/she VOLUNTARILY
terminated, he/she will receive 50% of the interest credited to the total
deductions.
3. The member has 120 months (10 years) or more of creditable service, or,
if he/she was INVOLUNTARILY terminated, he/she will receive 100% of the
interest credited to the total deductions.
No refund will be given to a member who takes another position in the
Commonwealth of Massachusetts subject to the provisions of ss. 1-28 of
Chapter 32. Said accumulated total deductions will be transferred to the
Appropriate retirement system. A member may not apply for or receive a
Refund if the member is currently subject to workers' compensation.
Board Pay:
To receive compensation under MGL Chapter 32 Section 20 paragraph 6, Board
Members must attend the monthly board meetings. Failure to attend meetings,
Will be grounds for forfeiture of monthly stipend for that month.
Board members may receive compensation when their absences are excused by a
Vote of the Board for the following reasons:
a. work conflict
b. illness of board member or immediate family
c. vacation
In order for the Board to grant an excused absence the Board's Administrative
Assistant or Chairman must be notified of the absence prior to the scheduled
Time of the meeting. The Board may grant an excused absence if notification
Is not received under extenuating circumstances.
Generally, Board members will be granted only one (1) excused absence per
Calendar quarter, but may request more. The Board may, at its discretion,
Grant additional excused absences. The Board may refuse to grant an excused
Absence if the Board determines that the board member has a history of non-
Attendance or flagrant abuse of excused absences.
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