Superannuation Retirement
A superannuation (“regular”) retirement allowance is calculated by a formula which includes the member’s age at retirement, years of creditable service, and salary average over a defined period of time. The specific formula used in a member’s retirement calculation will depend on when the person established membership in a Massachusetts contributory retirement system as well as his or her assigned group classification.
Superannuation Retirement– Membership prior to April 2, 2012
For those employees who established membership in a Massachusetts contributory retirement system prior to April 2, 2012, the following guidelines apply.
• Eligibility
Groups 1, 2 and 4
Members who established membership on or after January 1, 1978, and the employee is a member of Group 1 or 2, he or she must have at least ten (10) years of creditable service and be at least age 55 to be eligible to receive a retirement allowance. There is no minimum service requirement for members in Group 4. However, they must be at least 55 years old in order to retire and have performed the duties of a Group 4 member for at least 12 months prior to retirement.
Members with at least twenty years of creditable service are eligible to retire at any age.
• Calculation
A member’s monthly retirement allowance is calculated using the member’s age at retirement, years of creditable service, and amount of the member’s high, three-year average salary. Only regular compensation is included in a member’s salary average. In addition, veterans are entitled to a veteran’s benefit equal to $15 per year for every year of creditable service, up to a maximum additional benefit of $300.
A retiree’s benefit cannot exceed 80% of the high, three-year salary average. Group 1 employees reach the maximum benefit of 80% of regular compensation at age 65 with 32 years of service. Group 2 employees reach the maximum benefit allowed at age 60 and Group 4 employees at age 55. Please note that veterans can still receive the additional veteran’s benefit even if it causes their superannuation retirement allowance to exceed 80% of their average annual rate of compensation.
Members who wish to apply for a superannuation retirement allowance should contact our office.
Superannuation Retirement– Membership on or after April 2, 2012
For those employees who established membership in a Massachusetts contributory retirement system on or after April 2, 2012, the following guidelines apply.
• Eligibility
Group 1
If membership was established on or after April 2, 2012, and the position held by the member is classified in Group 1, the member must have at least ten (10) years of creditable service and be at least age 60 to be eligible to receive a retirement allowance.
Group 2
If the position held by the member is classified in Group 2, the member must have at least ten (10) years of creditable service and be at least age 55 to be eligible to receive a retirement allowance. However, they must have performed the duties of a Group 2 member for at least 12 months prior to retirement.
Group 4
There is no minimum service requirement for members in Group 4. However, they must be at least 55 years old in order to retire and have performed the duties of a Group 4 member for at least 12 months prior to retirement.
• Calculation
A member’s monthly retirement allowance is calculated using the member’s age at retirement, years of creditable service, and amount of the member’s high, five-year average salary. Only regular compensation is included in a member’s salary average. In addition, veterans are entitled to a veteran’s benefit equal to $15 per year for every year of creditable service, up to a maximum additional benefit of $300.
A retiree’s benefit cannot exceed 80% of the high, five-year salary average. Group 1 employees reach the maximum benefit of 80% of regular compensation at age 67 with 32 years of service. Group 2 employees reach the maximum benefit allowed at age 62 and Group 4 employees at age 57. Please note that veterans can still receive the additional veteran’s benefit even if it causes their superannuation retirement allowance to exceed 80% of their average annual rate of compensation.
Members who wish to apply for a superannuation retirement allowance should contact our office.