ACTIVE MEMBER INFORMATION
Frequently Asked Questions:
(Click individual questions or scroll down to read all)
- AM I ELIGIBLE TO BECOME A MEMBER OF THE WATERTOWN RETIREMENT SYSTEM?
If you are employed by the Town of Watertown on a permanent basis, holding a position which requires you to work a minimum of 20 hours per week, you are eligible to become a member of the Watertown Contributory Retirement System.
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- AM I REQUIRED TO BECOME A MEMBER OF THE WATERTOWN RETIREMENT SYSTEM?
According to the Massachusetts Retirement Law (Chapter 32 of the Massachusetts General Laws), you must become a member of the system if you meet the eligibility requirements.
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- HOW MUCH AM I REQUIRED TO CONTRIBUTE?
You are required to contribute a set percentage of your salary and if applicable, an additional 2% on any salary over $30,000 through regular payroll deductions. Your contribution rate is established by the Massachusetts Retirement Law and is determined by the date on which you first became eligible for membership in a Massachusetts contributory retirement system and from which you continuously maintained your funds on account.:
If the date on which you became a member of a Massachusetts contributory your retirement system and from which you continuously maintained your funds on Contribution account is:
Rate is
- Before January 1, 1975 ……………………………………..5%
- January 1, 1975 through December 31, 1983...…………..7%
- January 1, 1984 through June 30, 1996 ..…………………8%
- July 1, 1996 or after…………………………………………..9%
Whether you are subject to the 2% Over $30,000 deduction (‘OVER 30 PLUS") is determined by your membership date. If the date on which you became a member of the Massachusetts contributory retirement system and from which you continuously maintained your funds on account is:
You are
- Before January 1, 1979……………NOT subject to "OVER 30 PLUS"
- On or after January 1, 1979……….Subject to the "OVER 30 PLUS"
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- WHAT HAPPENS TO MY CONTRIBUTIONS?
The retirement office establishes and maintains an individual annuity savings account in your name for your retirement. At the end of every calendar year, you will receive a statement showing the balance of your contributions and accumulated interest so you know how much you have in your account.
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- WHAT TYPE OF RETIREMENT PLAN IS THIS?
Your pension plan is considered a defined benefit plan that operates as a qualified employer plan under section 401(a) of the Internal Revenue Code. As a defined benefit plan, your retirement allowance is calculated using 1.) your years of creditable service 2.) your age at retirement and 3.) your highest average salary for 36 consecutive months. Your retirement allowance is not based solely on your contributions to the system.
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- WILL I HAVE ACCESS TO THE FUNDS IN MY ANNUITY SAVINGS ACCOUNT?
No. The funds must remain in your account with the system until you retire, die or become an inactive member who is eligible to receive a refund of the money.
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- WHEN WILL I BE ELIGIBLE TO RECEIVE A RETIREMENT ALLOWANCE?
You will be eligible to receive a retirement allowance when you:
PRE 04/02/12
- GROUP 4 - Age 55
- GROUP 1 & 2 - Have at least 10 years of creditable service AND have reached age 55
OR
- Have 20 years of creditable service regardless of your age.
POST 04/02/12
- GROUP 4 - Age 55 (Must have performed the duties of the Group 4 position for at least 12 months prior to termination or retirement)
- GROUP 2 - Have at least 10 years of creditable service AND have reached age 55
- GROUP 1 - Have at least 10 years of creditable service AND have reached age 60
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- A SPECIAL NOTE ABOUT PART-TIME, TEMP AND SEASONAL EMPLOYMENT:
Even though eligibility requirements clearly state that you must be employed on a permanent basis working a required minimum of 20 hours per week, there is often confusion whether employees hired for positions considered Part-Time. Temporary, and/or Seasonal should enroll in the retirement system. Please contact the retirement office with any questions you may have regarding enrollment eligibility.
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