MWRA RETIREMENT SYSTEM

Frequently Asked Questions


Retirement Topics

Retirement

  1. What is superannuation? ANSWER
  2. When am I considered eligible to retire on the basis of superannuation? ANSWER
  3. What factors affect the amount of my retirement allowance? ANSWER
  4. How is a superannuation retirement allowance calculated under the provisions of Chapter 32? ANSWER

Refunds and Transfers

  1. What is a refund? ANSWER
  2. When may I request a refund of my contributions? ANSWER
  3. What if I die before receiving a refund?ANSWER
  4. Are there any restrictions on the withdrawal of annuity monies? ANSWER
  5. May I request a refund upon transferring from one public service position to another? ANSWER
  6. If I return to public service, do I have to return contributions I withdrew?ANSWER
  7. How is creditable service reestablished? ANSWER
  8. Could withdrawal of contributions affect the level of my deductions when I re-enter public service? ANSWER

Interest Limitations

  1. Am I entitled to receive full payment of the interest which my contributions have earned during my public service? ANSWER
  2. Does my account earn interest after resignation? ANSWER
  3. If I return to public service without taking a refund, will my account earn interest? ANSWER
Retirement

1. What is superannuation?

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

2. When am I considered eligible to retire on the basis of superannuation?

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 1, 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. If 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. A superannuation retirement allowance would not be payable.
You are eligible to retire at any age if you have twenty years of creditable service.

3. What factors affect the amount of my retirement allowance?

The amount of your retirement allowance depends on:

  • Your age
  • The level of your average annual rate of regular compensation
  • Your length of creditable service
  • Your group classification (All Authority employees are Group 1)

4. How is a superannuation retirement allowance calculated under the
provisions of Chapter 32?

A. The basic formula for calculating a superannuation retirement allowance is:

[ Your benefit rate ] X
[ your highest three year average annual rate of regular compensation ] X
[ your creditable service ] = [ Retirement Allowance ]

ESTIMATED RETIREMENT ALLOWANCE CALCULATOR

Note: See Retirement Forms Page

Refunds and Transfers

1. What is a refund?

A refund is a lump sum returned to you of your accumulated total deductions plus accrued interest which have been set aside in an individual account in the Annuity Savings Fund administered by your retirement board. Monies held in the Annuity Savings Fund earn interest at a rate set annually by PERAC in conjunction with the Commissioner of Banks.

2. When may I request a refund of my contributions?

You may request a refund following your resignation from public service. Although the length of time it takes to process a refund varies among boards, the law says you shall receive your refund within 60 days after filing a written request on a prescribed form with your retirement board. There may be substantial federal tax consequences if you take a return of your deductions. A MWRA Retirement System staff member will provide you with written text about this subject along with a "Return of Accumulated Deductions" form at your request.


3. What if I die before receiving a refund?

If your death occurs while you are a member-in-service (currently employed), your accumulated deductions would be awarded to your designated beneficiary(s) of record. If there is no beneficiary living, the MWRA Retirement Board shall determine the person(s) who are entitled, in the judgment of the Board, to repayment.

4. Are there any restrictions on the withdrawal of annuity monies?

All members-inactive who are receiving retirement allowances are ineligible to request a refund because their accumulated total deductions are being used on an on-going basis to provide a portion of their retirement allowance.
In addition to those members who are already retired, you may not request a refund if:

  • You continue to be a member-in-service
  • You are on an official leave of absence
  • You have a Workers' Compensation claim pending or if you are receiving Workers' Compensation benefits for total incapacity
  • You have been charged with, or convicted of, misappropriation of funds or property of the governmental unit by which you were employed
  • You are appealing a dismissal or you have otherwise expressed your intent to continue in public employment

5. May I request a refund upon transferring from one public service position to another?

You are not entitled to a refund if you have resigned for the purpose of accepting an appointment to a position in the service of the Commonwealth of Massachusetts or a political subdivision thereof which is subject to the provisions of the contributory retirement law.

6. If I return to public service, do I have to return contributions I withdrew?

When you return to public service, you are no longer compelled to pay back, with interest, any contribution that you withdrew. Prior to 1983, if you left public employment and returned within two years, you had to repay withdrawn contributions with interest. But as a result of changes in the retirement law, re-establishment of an account in the annuity savings fund upon reinstatement in active service is now optional rather than compulsory.

7. How is creditable service re-established?

Your prior creditable service will count toward your retirement allowance only if you pay back any contributions that you withdrew. Repayment must include the amount withdrawn plus annual interest payments to the date of repayment.

8. Could withdrawal of contributions affect the level of my deductions when I re-enter public service?

When you re-enter public employment, your deductions must be taken at the current rate regardless of what you were paying prior to the withdrawal of your deductions. If you do not withdraw your contributions, your deduction rate will not increase upon your re-entry to public service.

Note: See Retirement Forms Page

Interest Limitations

1. Am I entitled to receive full payment of the interest which my contributions have earned during my public service?

Withdrawal may have an affect on the payment of interest which has accrued on the monies in your individual account in the annuity savings fund. There are limitations on your receipt of interest which has accrued on your account in the annuity savings fund. These limitations are:
If your membership began after January 1, 1984 and you voluntarily withdraw from public service with less than five years of creditable service, you will receive no interest on your accumulated deductions.
If you voluntarily withdraw from public service with a minimum of five years of creditable service but less than ten years of creditable service, you will receive 50% of the interest which has accrued on your payroll deductions over the entire length of service.
If you voluntarily withdraw from public service with at least ten years of creditable service and you are not age 55, you will receive 100% of the interest which has accrued. You are not subject to any interest limitations if your continuous membership began prior to January 1, 1984.
If you are terminated from your position, you are entitled to all of your interest.

2. Does my account earn interest after resignation?

If you terminate on or after January 1, 1946 but you choose to maintain your account with the retirement system and later seek a refund, your accumulated deductions will continue to earn interest for two years after your termination of service.

3. If I return to public service without taking a refund, will my account earn interest?

If you maintain your account with the retirement system and later return to public service, interest will be credited to your account for the entire period of your absence. If you again leave public service and request a refund, the limitations stated above will apply.

Note: See Retirement Forms Page