Members
Is membership to the Haverhill Retirement System mandatory?
How much to members contribute to the Retirement System?
What happens to the money that I contribute to the System?
Can I borrow money from my retirement account now and pay it back later?
What does the term “vested” mean? When am I considered vested?
Can receive a refund of my contributions, and will I get interest on those contributions?
When am I eligible to retire?
How is my Retirement Allowance figured?
What is the maximum retirement allowance that I can receive?
Are there any additional benefits to which I am entitled?
How is the contribution rate determined?
How are Groups classified within the system?
When should I notify the retirement office that I plan to retire?
Will I be eligible for health insurance and life insurance after retirement?
Is there a benefit for a Veteran?
What if I continue to maintain my Annuity Savings Fund Account with the retirement system even though I have resigned from public service? Will interest still accrue on my account?

Retirees
What do you need to know if I change banks for my direct deposit?
I´ll be out of the State for the winter, do you need to know
Should I inform you if I change my address, change my personal status or have children?
How long will I be able to collect my retirement benefits?
Will my retirement board ask me or my beneficiaries to produce additional information?
Am I limited in the amount of income I earn or receive from other sources after my retirement for superannuation?
What are the restrictions pertaining to public service re-employment following superannuation retirement?

Members
Q: Is membership to the Haverhill Retirement System mandatory?
A: Membership is mandatory for nearly all public employees who are regularly employed on a full-time basis. Each retirement board exercises full jurisdiction to determine an employee´s eligibility for membership in cases involving part-time, provisional, temporary, provisional seasonal or intermittent employment or service. Certain part-time, seasonal or temporary employees who are ineligible for membership may be required to contribute or participate in an alternative plan.

Q: How much to members contribute to the Retirement System?
A: The amount you contribute to the System each year is set by statute, and it is determined by your date of membership in the System. The following will outline the contribution rates based on the current statute: Date of Entry into the System Percentage Before January 1, 1975 5% January 1, 1975 – December 31, 1983 7% January 1, 1984 – June 30, 1996 8% After June 30, 1996 9% In addition to the above percentages, a member who first enters the system on or after January 1, 1979 must contribute an additional 2% of his/her salary in excess of $30,000. This 2% is in addition to the seven, eight or nine percent that is already being deducted from total regular compensation.

Q: What happens to the money that I contribute to the System?
A: Once you become a member of the System, an Annuity Savings Account is established on your behalf. Your employer deducts your retirement contributions and forwards them to the System, which in turn deposits your contributions into your Annuity Savings Account. Your contributions, plus any accumulated interest, directly to your account. Each year, the Board issues a statement to all its active members that reflects the yearly and total contributions and interest credited to the account.

Q: Can I borrow money from my retirement account now and pay it back later?
A: No. Under state law, your retirement account has no provisions for withdrawal under any circumstance.

Q: What does the term “vested” mean? When am I considered vested?
A: Vesting is term commonly used to signify the right to a retirement allowance at a later date. Vested benefits are those benefits that a member is entitled to today, not based on additional service. You are vested in the Haverhill Retirement System once you have accumulated the equivalent of 10 years of full-time service.

Q: Can receive a refund of my contributions, and will I get interest on those contributions?
A: You may receive a refund of your total contributions if you have officially resigned your position and it is not your intent to accept another position of employment that requires membership in another Massachusetts contributory retirement system. If you voluntarily leave employment that began after January 1, 1984 and have less than 5 years of service, no interest will be refunded to you. If you have served between five and ten years, you will receive half interest credited to your account. If you have over ten years of service, all of the interest will be refunded to you. Also, if you are removed or discharged, you will receive interest regardless of the years of service. It is important to note that if you receive a refund of your retirement contributions, we are required to withhold 20% for your federal tax liability. Alternatively, you can have the entire retirement contribution “Rollover” into a tax-qualified IRA.

Q: When am I eligible to retire?
A: If your membership began prior to January 1, 1978, upon attaining age 55 you are eligible to retire. There are no minimum service (vesting) requirements for members in this category. If your membership began on or after January 1978 and you are a member of Group 1 or Group 2, you must have at least ten years of creditable service, and be age 55 or older to be eligible to receive a retirement allowance. I such a member terminates their employment prior to completing ten years of creditable service, eligibility for benefits is limited to a refund of accumulated deductions. You are eligible to retire at any age if you have twenty years of creditable service.

Q: How is my Retirement Allowance figured?
A: A public employee retirement allowance consists of two parts: an annuity and a pension. The contributions that are deducted during the course of creditable service are deposited for you in an annuity savings fund by your retirement board. The interest that accrues on these contributions is credited to your individual account. That part of your retirement allowance that is based on the total amount in your annuity savings account on the date of your retirement is the annuity. A pension is the difference between the total retirement allowance specified by law and the amount provided by employee contributions. The factors that affect the amount of your superannuation (a regular retirement, non-disability related) retirement allowance depends on your age at retirement, your length of creditable service, your three highest consecutive years average of regular compensation and your group classification. The type of retirement plan that you are enrolled in is a "defined benefit" plan. This means that based on the factors mentioned above, you could determine what percentage of your three-year average you will be entitled to upon retirement. For example: If a person becomes a member at age thirty-three and works until age sixty-five as a group one member, he or she would be entitled to the maximum of 80% of their three highest consecutive years compensation.

Q: What is the maximum retirement allowance that I can receive?
A: The maximum benefit you can receive is 80% of your three highest consecutive years of regular compensation.

Q: Are there any additional benefits to which I am entitled?
A: If you are a veteran as defined in the Massachusetts General Laws, a veteran’s credit will be added to your retirement allowance. The amount of this credit will equal $15 per year for each year of creditable service you have accrued, not to exceed 20 years or $300. You will receive this additional benefit even if you are already at the maximum, or if the additional $300 puts your total allowance over the 80% maximum.

Q: How is the contribution rate determined?
A: Employees who became members prior to January 1, 1975 must contribute 5% of their regular compensation. Employees whose membership commenced on or after January 1, 1975 but prior to January 1, 1984 must contribute 7%. Those employees whose membership commenced on or after July 1, 1996 must contribute 8%. Those employees whose membership commenced on or after July 1, 1996 must contribute 9%. If your membership began on or after January 1, 1979 and if your annual rate of regular compensation is $30,000.00 or more, the treasurer of the governmental unit for which you work will withhold two (2) percent of that portion of your rate of regular compensation which is in excess of $30,000.00. This two percent withholding is in addition to the 7,8, or 9 percent that is already being deducted from your total regular compensation. This additional withholding will be made each pay period from that amount of your compensation that is in excess of an annual rate of $30,000.00 even before your total compensation for the year exceeds $30,000.00.

Q: How are Groups classified within the system?
A: Groups are classified by type of occupation, position or duties. Retirement boards assign employees to one of four specific groups based upon the classifications set out in section three of Chapter 32. ·Group 1 members are officials and general employees including, clerical, administrative and technical workers, laborers, mechanics, and all others not otherwise classified. ·Group 2 includes certain employees with hazardous occupations, such as ambulance attendants, licensed electricians, and mental health hospital attendants. ·Group 3 is made up of state police officers ·Group 4 consists of public safety officers, officials, and employees, such as police officers, firefighters, and certain correction officers.

Q: When should I notify the retirement office that I plan to retire?
A: When you do decide to retire you must contact the retirement office not earlier than four months prior to your date of retirement. We generally ask that you call one month prior to set up an appointment. If you are married, your spouse must accompany you so he or she can be informed of your options and your choice. If his is not possible, a form will be forward to your spouse informing them of the option chosen and he estimated payment under each of the three options. Payments of retirement allowance are made on the last business day of each month.

Q: Will I be eligible for health insurance and life insurance after retirement?
A: If you were entitled to the benefits of health insurance and life insurance while you were employed, these too will follow into your retirement and be deducted from your monthly check. (Not for Whittier Vo-Tech Members)

Q: Is there a benefit for a Veteran?
A: If you are a veteran, as defined in section one of Chapter 32, you will receive $15 a year extra for every year or fraction thereof of creditable service, up to a maximum additional benefit of $300 a year. Veterans may be entitled to purchase creditable service for military service rendered before becoming public employees or while on leave from public service.

Q: What if I continue to maintain my Annuity Savings Fund Account with the retirement system even though I have resigned from public service? Will interest still accrue on my account?
A: Your accumulated deductions will continue to earn interest after you resign. The interest that may be paid to you, if you later seek a refund, is limited to that which accrues during the first two years following your resignation. As in the cas with interest earned prior to withdrawal from public service, your date of employment and length of service will determine how much of the interest accrued during this two year period can be paid to you.

Retirees
Q: What do you need to know if I change banks for my direct deposit?
A: You should notify this office immediately and then mail us another "voided" check from your new account.

Q: I´ll be out of the State for the winter, do you need to know
A: Yes, please drop us line to let us know, we´ll be happy to forward notices to you or hold them until your return.

Q: Should I inform you if I change my address, change my personal status or have children?
A: Yes, it is vital that your pertinent information be updated in the retirement system. You must submit your address change in writing so that we may verify your signature.

Q: How long will I be able to collect my retirement benefits?
A: The payment of superannuation retirement allowances is considered to be a contractual obligation of the Commonwealth and its governmental subdivisions to retirement system members. Superannuation retirement allowances paid to members cannot be decreased or terminated during the member´s lifetime.

Q: Will my retirement board ask me or my beneficiaries to produce additional information?
A: Retirement Boards may request copies of particular certified records which are required by provisions of Chapter 32 or by rules and regulations of their own which are consistent with the law. Among the documents which the board could ask you to submit are: birth certificates for you and your spouse, a marriage certificate, veteran´s discharge papers, verification of student status, and proof of age for your dependent children.

Q: Am I limited in the amount of income I earn or receive from other sources after my retirement for superannuation?
A: Only if you are re-employed in the service of the Commonwealth or any of its counties, cities, towns or districts.

Q: What are the restrictions pertaining to public service re-employment following superannuation retirement?
A: There are two strict limitations on further public employment in the Commonwealth following your superannuation retirement from a public service position. Your earnings for the period of re-employment in any calendar year, when added to your retirement allowance cannot be greater than the salary currently being paid for the position from which you retired. And your re-employment is limited to a period of up to 960 hours, in the aggregate in any calendar year. Your employment must cease when either limitation is reached.

Last revised: 9/1/2005