Please contact us if you need any assistance or have any questions. We truly value your efforts throughout the year on behalf of our members and the MTRS!

E-mail

empsup@trb.state.ma.us

Please do not include information of a confidential nature in your messages. The MTRS cannot guarantee or ensure the privacy, confidentiality and/or security of any messages submitted via e-mail.

Phone

617-679-6895

Fax

617-679-1661

Address

Main office, 500 Rutherford Avenue, Suite 210, Charlestown, MA 02129-1628

Employer Services staff

To find out which Employer Services representative is assigned to your district, please sign into MyTRS, click Employer Information under the first heading, and then click on the Additional Information tab. For detailed instructions, see Guided Practice 6: Viewing Employer Information .

Statutory and regulatory authority governing membership

The MTRS is a pension plan qualified under IRC section 401(a) and established in Massachusetts by M.G.L. c. 32, §2. Eligibility for membership in the MTRS is primarily determined by the definition of “teacher” in M.G.L. c. 32, §1. However, other sections of Chapter 32, Chapter 71 §89(y), as well as the MTRS regulation on membership eligibility also set out criteria for membership. This information is provided as a resource for employers–Massachusetts public school districts, charter and virtual schools and educational collaboratives–to help school administrators determine their employees’ eligibility for MTRS membership. It is not a substitute for the General Laws or MTRS regulations.

Employers’ responsibilities

Massachusetts public employers are required to:

• REGISTER all eligible full-time employees, and most part-time employees, in a local, regional or state retirement system when they are hired for employment.
• RE-EVALUATE an employee’s retirement system membership any time there is a significant change in the individual’s employment status or position. If there are any changes in an MTRS member’s status or position, employers are required to notify the MTRS within 30 days of the change [M.G.L. c. 32, §3(2)(g)].
  Using MyTRS, our online reporting system, MTRS employers have nearly 24/7 access to register newly eligible employees and update the status of current employees.

Which system should the employee be enrolled in: the MTRS or the local system?

All “teachers” are required to be enrolled in the Massachusetts Teachers’ Retirement System except teachers who are employed by the Boston Public Schools.

Employees who are not “teachers” must be enrolled in another contributory retirement system, or, if they are not eligible for any such system, in an OBRA plan.

Defining “teacher”

Persons considered “teachers” in a public school district, collaborative, charter school or virtual school are eligible for membership in the MTRS.

Exactly who qualifies as a “teacher” is a matter of statutory and regulatory definition, but below are some guidelines.

Employment requirements

Pursuant to M.G.L. c. 32, §1, for purposes of MTRS membership eligibility, a “teacher” must be employed:

• by a public school or school system, and
• on a basis of not less than half-time service (a member who falls below half-time is no longer eligible for membership in the MTRS). A member’s half-time status can be achieved by totaling the employment basis among multiple employers. For example, an individual who works 20% with one employer and 40% with another, has a total employment basis of 60% and, thus, meets the half-time employment requirement.

Positions that qualify for membership based on title alone

Individuals holding certain positions are eligible for membership based on their titles alone, because certain position titles are included in the statutory definition of “teacher”; however, they must still meet both employment requirements, above.

Position titles that are eligible for membership by definition are:

• School psychologist
• School psychiatrist
• School adjustment counselor
• School social worker appointed under Chapter 71, §46G
• Director of occupational guidance and placement appointed under Chapter 71, §38A or §38D
• Principal (also, assistant principal)
• Supervisor* or superintendent in any public school (also, assistant superintendent)
• Supervisor* or teacher of adult civic education
  * A “supervisor” is generally considered to be a person who supervises other “teachers.”

Evaluating positions that do not qualify for membership based on title alone

For positions not specifically listed above, the eligibility criteria are supplied by our membership regulation (807 CMR 4.00), which states:

(1) No individual shall be eligible for membership within the retirement system unless the retirement board finds:

(a) The individual is covered by a contractual agreement for employment with one or more school committees or boards of trustees or by any combination of such committees and boards;

(b) The contractual agreement requires not less than half-time service;

(c) The individual holds a certificate granted by the board of education, has been granted a waiver pending certification by the board of education, or has been approved as an apprentice teacher in accordance with the provision of St. 1985, c. 188, 21; and,

(d) The individual has a contractual agreement which requires that the individual be certified by the board of education as a condition of employment.

When applying the above four eligibility criteria, please note:

• Certification must be required as a condition of employment–it cannot simply be preferred–and the employee must possess the certification that is required. If the employee has been granted a certification waiver by the ESE, the MTRS acknowledges this as the equivalent of being certified.
• Teachers who are pending certification, and who qualify as apprentices, are conditionally accepted for the duration of their qualified apprenticeship program (usually one year).
• Employees must remain working at least half-time to remain eligible for MTRS membership.
• For the purpose of membership eligibility, the employer contract does not have to be a written contract.
• All positions not specifically mentioned in this summary, including BCBAs, Athletic Directors, ROTC instructors or teachers, and nurses, are eligible for the Massachusetts Teachers’ Retirement System if, and only if, they meet the eligibility criteria above.

Special cases

Charter school employees

Membership eligibility for charter school employees is slightly different from that for non-charter school employees.

• Charter school teachers are eligible for MTRS membership pursuant to Chapter 71, and do not have to be ESE certified [M.G.L. c. 71, §89(y)] so long as they meet the other requirements for being employed as a charter school teacher.
• As a general rule, a charter school “teacher” is any position that typically requires certification in non-charter schools where a member is required to work on at least a half-time basis.
• Charter School Directors (Superintendents), principals and other positions eligible by title in non-charter schools are still eligible by title for MTRS membership.
• Atypical titles and job descriptions should be reviewed for membership eligibility by the MTRS charter school representative.

NOTE: Virtual school employee eligibility is determined similarly to that for individuals in non-charter schools.

Part-time, temporary and provisional employees (6-month wait period)

Part-time, temporary and provisional employees are subject to a 6-month wait before being enrolled in the MTRS [M.G.L. c. 32, §3(2)(iv)]. If, however, they have prior MTRS service or funds on account with another Massachusetts contributory retirement system, they are not subject to the 6-month wait.

As a matter of practice, the MTRS does not consider employees hired with no anticipated termination date, or with an anticipated termination date after 7 months or more, as “temporary.”

Long-term substitutes

Employees who are considered “long-term substitutes” are eligible for MTRS membership if they meet the four eligibility criteria stated above, in our membership eligibility regulation.

The three most common reasons that a long-term substitute may not be eligible for MTRS membership are:

• Because they are temporary, long-term subs may be subject to the 6-month wait period explained above, and may not work enough days to qualify for membership.
• The employer does not require certification as a condition of employment at the position level for long-term subs.
• A long-term sub working on a day-to-day basis without any sort of defined employment period is not working “on an employment basis” of at least half-time.

The following applies to any newly hired employee or existing employee who is hired for an MTRS eligible position.

Once it has been confirmed that an employee is in an MTRS eligible position, the district must register  the employee in MyTRS; within 30 days of hire, the employee must enroll online in MyTRS (pursuant to CMR 807-4.03).

Employer responsibilities

1. Determine employee eligibility for MTRS membership.
2. Register  the employee in MyTRS.
3. Provide the registered employee with the “Enrollment Assignment Sheet” that is generated at the end of the registration process.
4. Check the employee’s deduction rate in MyTRS after registration to ensure they are set up in your payroll system with the proper deduction rate.
5. Enter the deduction rate, full-time equivalent contract salary and position information into your payroll system for monthly deduction reporting.
6. Ensure the employee has completed the mandatory online enrollment process within 30 days of hire. You can run a Members Pending Enrollment Report  in MyTRS to gather this information.

Employee responsibilities

In MyTRS, the employee must complete the mandatory online enrollment process within 30 days of hire (pursuant to CMR 807-4.03). This process can only be completed once the district has finalized the registration process mentioned above. In order to enroll, the employee must complete the following steps:

1. Create  a username and password for MyTRS if the employee does not already have them. The “Forgot Username” and “Forgot Password” links can be used if previously created log in credentials have been forgotten.
2. Log in, click on the Enroll in the MTRS link, and then follow the instructions to complete the four steps.
   Note: In Step 3, employees who have previously worked in a Massachusetts public service position, must list this prior service, and indicate if they have funds on account with another Massachusetts public retirement system; they do not need to list any prior MTRS service, as we should already have that information in our records.
3. From the Documents page, print the “Enrollment Confirmation” form and provide a copy to the Payroll/HR department.

Reminder to school departments: As described below, there are time and earnings restrictions on re-employment with a Massachusetts public employer. However, there are no restrictions on employment in the private sector, public employment in another state or employment with the federal government.

Reference: PERAC memos, including an interactive earnings calculator

• Enforcement of Post-Retirement Limits on Retirees of a Public Retirement System who Take Employment with any Public Entity in Massachusetts (Memo 30; November 1, 2013)
• Frequently asked questions 
• Post Retirement Earnings Calculator 
• Instructions for Post-Retirement Earnings Worksheet 
• Restrictions on post-retirement employment in Massachusetts  (Memo 24; July 2, 2008)
• Post-retirement earnings limitations in G.L. c. 32, § 91  (Memo 20; May 19, 2004)
• Post-retirement earnings limitations in G.L. c. 32, § 91   (Memo 3; January 12, 2004)

Overview

Pursuant to Massachusetts General Laws c. 32, § 91, there are limitations on the amount of time that a rehired retiree may work and the amount of money that he or she may earn.

However, pursuant to M.G.L. c. 32, § 91(e), the earnings limitations on re-employment of retirees in Massachusetts public schools are eased in the event of a “critical shortage” in a position as determined by the Department of Elementary and Secondary Education (ESE). The ESE has adopted regulation 603 CMR 7.14(13)(b), allowing the Commissioner of Elementary and Secondary Education to deem that a district has a “critical shortage” upon the request of a superintendent and demonstration that the district has made a good-faith effort to hire non-retirees and has been unable to find them. The “critical shortage” application process is similar to that for requesting a waiver for certification. (School districts wishing to take advantage of the “critical shortage” provision of M.G.L. c. 32, § 91(e) are advised to consult with the Department of Elementary and Secondary Education for guidance on the certification requirements for re-employed retirees.)

In brief:

FAQs

We wish to hire a Massachusetts public retiree to work beyond her post-retirement time and earnings limitations, and have applied for a critical shortage waiver with the Department of Elementary and Secondary Education (ESE). How will we know whether the critical shortage waiver is approved?

Once the ESE completes their review of the critical shortage waiver application, they will send written notice of their decision to the school district and mail a copy of the decision to the retiree. We advise retirees not to assume that they are working under a critical shortage waiver unless they have received a copy of the approval from the ESE.

How do you calculate the amount that the rehired retiree can earn?

Until the retiree has been retired for at least one full calendar year (meaning one full January-through-December year), the amount that the rehired retiree can earn is equal to the difference between the annual amount currently being paid for the position from which the retiree retired, and the retiree’s annual pension. After the retiree has been retired for at least one full calendar year, this limit is increased by $15,000.

For example: Trudy Teacher retires on June 30, 2019, with an annual retirement allowance of $48,000. The position from which Trudy retires, based on her step and education level, will pay $65,000 per year in the fall of 2019, and will remain at that amount for the next several years. She will return to teaching on September 1, 2019, and continue to work for the next several years (without exceeding the limit of 960 hours per calendar year). Trudy’s earnings limitations for the next few years are as follows:

For the last four months of 2019 (September 1 through December 31, 2019), Trudy can earn $17,000

 

Current annual salary for position from which Trudy retired*	$65,000
– Trudy’s annual retirement allowance	– $48,000
Amount of Trudy’s allowable earnings** for remainder of 2019	$17,000

* “Salary” includes earnings such as regular longevity, athletic coaching and contracted stipends. It does not include annuity/insurance premiums and other fringe benefits.
** “Earnings” include compensation in any form including annuity/insurance premiums and other fringe benefits.
For all of calendar year 2020 (January 1 through December 31, 2020), Trudy can still earn a total of $17,000

Current annual salary for position from which Trudy retired*	$65,000
– Trudy’s annual retirement allowance***	– $48,000
Amount of Trudy’s allowable earnings** for calendar year 2020	$17,000

Beginning January 1, 2021, after she has been retired for one full calendar year, Trudy can now earn an additional $15,000 for calendar year 2021 and every calendar year thereafter

Current annual salary for position from which Trudy retired*	$65,000
– Trudy’s annual retirement allowance***	–  $48,000
Standard earnings limitation for calendar year 2021	$17,000
+ $15,000 (per pension reform legislation of 2011)	+ $15,000
Amount of Trudy’s allowable earnings** for 2021	$32,000

*** Because cost-of-living adjustments must be granted by the Massachusetts Legislature on an annual basis, we have not included any COLA amounts in Trudy’s annual retirement allowance figures in these examples. If, however, the Legislature approves a 3% COLA for fiscal years 2021 and 2022, and the COLA base remains $13,000, then Trudy’s annual retirement allowance for calendar year 2020 would be $48,195 (an additional $32.50 per month for the six months of July through December, for a total increase of $195), and her allowable earnings for calendar year 2020 would decrease by $195, to $16,805. Likewise, for calendar year 2021, her annual retirement allowance would increase to $48,585 (an additional $32.50 per month for January through June, and an additional $65.00 per month for July through December, for a total increase of $585), and her allowable earnings for calendar year 2021 would decrease by $585, to $31,415.

For an interactive worksheet that both you and the rehired retiree can use to determine the earnings limitations, please see the Public Employee Retirement Administration Post retirement earnings calculator .

How is the “salary being paid” for the position from which the retiree retired determined?

If, in the position from which the retiree retired, he or she:

• was covered by a collective bargaining agreement, the “salary being paid” is the current annual contract rate for the retiree’s step and education level on the salary schedule.
• was not covered by a collective bargaining agreement (e.g., the retiree was an administrator covered by an individual contract), then the “salary being paid” is his or her last annual salary prior to retirement, plus an inflation factor equal to the Consumer Price Index (CPI-W) as certified by the Commissioner of Social Security, unless the retiree can provide sufficient evidence for the MTRS to reliably determine what he or she would have earned in a year after his or her retirement. An example of sufficient evidence would be a written, contemporaneous policy showing that the class of employees of which the retiree would have been a member had he or she not retired, would all receive the same raise in a given year.

For example, if a superintendent retired in 2018 with a final salary of $125,000 and the district wished to rehire her in 2019, for the purposes of determining the “salary being paid” for that position, the MTRS would apply the following formula:

Salary at retirement + inflation factor = “salary being paid”

$125,000 + 2.8% (the January 2019 COLA factor) = $128,500

NOTE: “Salary” includes earnings such as regular longevity, athletic coaching and contracted stipends. It does not include annuity/insurance premiums or other fringe benefits.

For part-time positions…

If the retiree worked part-time in his or her last year of employment, the “salary being paid” for the position from which he or she retired is, likewise, his or her former part-time equivalent of the current full-time salary. For example: Mary Music works on a 50%-of-full-time basis and retires June 30, 2019. For the 2018-19 school year, she earned $37,000, or 50% of the full-time salary of $74,000.

	School year 2019-20 full-time salary for Ms. Music’s former position		$76,000
x	Ms. Music’s former part-time basis (50%)	x	50%
	“Salary being paid” for Ms. Music’s position in 2019-20 on a 50% basis		$38,000
–	Ms. Music’s annual gross pension	–	$29,250
	Ms. Music’s allowable earnings for the rest of calendar year 2019		$8,750
	Beginning January 1, 2021, Ms. Music can earn an additional $15,000 per calendar year.

If the amount earned or the number of hours worked will exceed the limitations, what are the retiree’s options?

In either case, the retiree has two options. If the retiree wishes to work in a position that will exceed either the time or the earnings limitation, and he or she has not been approved for a critical shortage waiver, he or she may:

• a) Request a temporary cessation of pension payments by notifying the MTRS in writing to waive his or her retirement allowance for the period of employment. A retiree who has waived his or her retirement benefits is not subject to the time and earnings limitations and is not required to make contributions to the pension system. Stopping a retiree’s pension payments can affect the administration of his or her health insurance benefit, however, so it is a good idea for the retiree to discuss the impact of waiving the retirement benefit with his or her local insurance coordinator before making this decision.Upon completion of the employment, the retiree may resume receiving his or her retirement allowance at the same level of benefits he or she had before waiving the allowance, plus any cost-of-living adjustments passed by the Massachusetts Legislature. (In other words, the retiree cannot recoup his or her retirement benefits for the period during which he or she waived them.)
• b) Return to active membership in the MTRS and, in effect, “unretire,” if he or she agrees to certain terms and conditions. Pursuant to M.G.L. c. 32, § 105, in order to “unretire,” the retiree must pay back to the retirement system the total pension benefits received while retired, plus buyback interest (currently, 3.675%). Moreover, the retiree must be employed in a full-time position subject to membership in the MTRS, for at least five full years from his reinstatement date in order to accrue additional retirement benefits. For more information, please see:
  • Reinstatement to Service under G.L. c. 32 § 105 (July 14, 2011, PERAC memo 22 of 2011)
  • Application for Reinstatement to Service  (pdf, 3 pages)

Is it true that retired teachers can “unretire”?

Yes, a member may be reinstated, provided he or she agrees to certain terms and conditions. Please see 4(b) directly above.

Can a retired teacher or administrator who waives retirement benefits and then accepts a full-time, paid position, later have his or her retirement allowance reinstated for 960 hours during any calendar year?

No. The law does not permit retirees who waive their retirement benefits and then accept public employment to supplement their incomes by the device of reinstating their retirement allowances for the 960-hour period during each calendar year. Opinion of the Attorney General, February 2, 1979.

Whose responsibility is it to keep track of the number of hours worked and money earned by the retirees?

It is the responsibility of the rehired retiree to provide his or her employer and the treasurer of the city or town (or the source responsible for paying the retiree) with a certification of the length of time worked and the amount of income earned in a given calendar year. If either the period worked or the income earned exceeds the allowable amount, the rehired retiree can no longer be employed and the excess earnings must be returned to the appropriate treasurer or entity responsible for paying the retiree. In the case of excess or improper retirement payments, the MTRS has the authority either to require repayment or to offset the amount received against future retirement payments.

If a teacher or administrator is rehired as a “consultant,” do the restrictions on post-retirement employment still apply?

Yes. The restrictions set forth above apply to both employees and non-employees; except for services performed for the general court as a non-employee, the law makes no distinction between employees and non-employees. Accordingly, the restrictions on hours and earnings apply if a teacher or administrator is receiving a retirement allowance and is being paid as a “consultant,” independent contractor, or someone whose regular duties require their time to be devoted to the service of the Commonwealth.

Are “leased employees” subject to these restrictions?

Yes. M.G.L. c. 32, § 91(a) prohibits all retirees from “render[ing] service” to any public employer, including school districts. Section 91(b) provides a general exception to this prohibition, allowing post-retirement employment for up to 960 hours in any calendar year, and limiting annual earnings to the difference between the retiree’s retirement allowance and the salary being paid for the position from which he/she retired. The Massachusetts Teachers’ Retirement System (MTRS) interprets “render[ing] service” to include work under an employee leasing arrangement, and thus such arrangements are subject to the restrictions of section 91.

What is an employee leasing arrangement?

An employee leasing arrangement is one where one company (the “Leasing Company”) loans or hires out its employee to another (the “Client Company”). The “leased” employee is paid by the Leasing Company and may report occasionally to the Leasing Company. While working for the Client Company, however, the employee and his/her work are directed and controlled by the Client Company and the employee typically uses the Client Company’s work space and equipment to accomplish his/her work. A common example is a “temp” agency that supplies temporary workers. Since the law has often regarded “leased” employees as employed by both the Leasing Company and Client Company, it is clear that a “leased” employee “renders service” to the Client Company.

In the education context, some companies supply interim school administrators under “leasing” arrangements, and these administrators are directed in their day-to-day activities by the school district. Of course, superintendents, assistant superintendents and principals are by law appointed, employed and directed by their respective superiors (ultimately, the school committee). General Laws c. 71, §§ 59 and 59B. Thus, the System regards “leased” employees in such positions to be “render[ing] service” to the district and thus subject to the limitations of section 91(b).

Is the rehired retiree subject to Social Security deductions?

No. If a retired teacher or administrator returns to work in a Massachusetts public school, he or she is considered a “rehired annuitant” by the Internal Revenue Service, and therefore exempt from mandatory Social Security coverage. For more information, see the IRS web page on Rehired Annuitants as well as the Social Security Administration’s web page on Rehired Annuitants.

Is the rehired retiree subject to MTRS retirement contribution deductions?

No. Rehired retirees who return to work under the service and earnings restrictions do not pay retirement contributions to the MTRS.

Monthly deduction reports and payments are due to the MTRS the 10th of the following month in accordance with M.G.L c. 32, § 22 (e.g., September’s report and payment are due October 10).

Monthly payments can be made via EFT, direct deposit (currently available on a limited basis) or check. Payments made via check must be mailed to the address on the required submittal form . Please do not send any additional paperwork with the check and submittal form; all reporting must be completed online in MyTRS.

Monthly report files are generally exported from your school’s payroll software, in our file layout format, and then imported  into MyTRS. For a step-by-step list of this process, see our Monthly Deduction Reporting Checklist .

Deduction reporting tips and reminders

We suggest that you review these at the beginning of each new school year to ensure you have everything set up properly before the first payroll.

1. Only report what actually happened.

The monthly deduction reports need to reflect what actually happened during that month. If you overpaid or underpaid someone, that’s what the report needs to show. If the wrong deductions were taken, that’s what you need to show, even if you have corrected the deductions by the time you are working on the report.

Example: Deductions on an employee’s coaching earnings were not taken on her 09/26 check. You realize the mistake and collect the missed deductions on her 10/17 check.

• Your September report should reflect that the employee was paid for coaching and that no deductions were taken.
• Your October report should show the collection of the deductions as an adjustment record.

2. Register new employees in MyTRS and give them their Enrollment Assignment Sheet.

Employees who meet the membership eligibility criteria must be registered  in MyTRS. As instructed during the online registration process, be sure to print the “MTRS Enrollment Assignment Sheet” and give it to the employee so they can complete the online enrollment process.

3. Register your coach-only employees if they are MTRS members through another district.

If you employ coaches who are not teachers in your district, but who are MTRS members through another employer, you are required to deduct MTRS contributions from their pay.

Set their records as follows:

4. Check a new employee’s deduction rate in MyTRS.

After you register  a new employee, it is imperative that you to check their deduction rate in MyTRS so you can set them up properly in your payroll system.

To check a member’s rate:

1. Go to the View/Update Employee information.

2. If you have just completed the member’s registration, their name should already be showing on the screen. If you have not just completed the registration, please enter the member’s last name in the Select Member field and click the Search button.

3. When the member’s record is displayed, click on the Employment tab along the top of the page.

4. The member’s rate with MTRS is listed at the bottom of the page under Rates/R+

To see how the MTRS determines a member’s rate, see Contribution rates explained.

5.  Do not change contribution rates for existing employees unless requested by the MTRS.

If you have existing employees with detected rate discrepancies, please do not change their deduction rates unless your MTRS representative has specifically requested the change.

6. Report the correct annual salary to ensure that the member will receive the proper service credit. 

Note: MyTRS always needs the full-time, full year, non-adjusted contractual annual salary (from the salary schedule for members covered by a collective bargaining agreement).

Example:

Using the above salary schedule, you have an employee who is at M+15 Step 2.

Important note: It is common for some payroll software programs to prorate or recalculate annual salaries for some of the situations above, so be sure to check that you are reporting the full-time contractual salary in MyTRS.

7. Eligible longevity and stipend payments need to be reported separately from base pay and annual salary.

If you have employees who receive eligible longevity or stipend pay, these payments need to be broken out in the deduction report into the appropriate reporting categories. They should not be reported as base pay and should not be added to the annual salary field in MyTRS. Please contact your payroll company if you are not sure how to set up the different types of payment categories.

To verify what pay is pensionable—and, therefore, subject to retirement deductions—see regular compensation.

Example:

You have an employee who:

• is at M+15 Step 2 ($53,311.00),
• receives $2,000 in longevity,
• receives a $500 stipend, and
• is on a 26-pay cycle.

1. The regular bi-weekly per check is $2,050.42 and needs to be reported in the Base field in MyTRS.
2. The longevity per check is $76.92 and needs to be reported in the Longevity field in MyTRS.
3. The stipend per check is $19.23 and needs to be reported in the Stipend field in MyTRS.
4. The annual salary is $53,311.00 and needs to be reported in the Salary field in MyTRS.

8. Be sure the employee has the proper position code in your payroll system, and the proper position in your deduction reports.

Example: If someone is a Guidance Counselor, their position in MyTRS should be Guidance Counselor, not Teacher. The position code in your payroll software should be GUIDE.

Acceptable position codes that may appear in your deduction report import file:

9. Report changes in name, address, position or FT% via your deduction report.

Name and address changes are reported to the MTRS via the monthly deduction report for active members. Simply update the member’s name and/or address in your payroll system and the new information will be passed to us in the next monthly deduction report. Once that deduction report has been imported and processed successfully, our database will be updated with the new information.

The same policy holds true for position changes and FT% changes. A new event should not be created in MyTRS for these types of changes, simply update them in your payroll system, and the new information will be passed to us in the deduction report.

10. Report pro-rated paid leaves to your Employer Services Representative.

When a member goes out on leave and their bi-weekly pay is adjusted over more than one check, please fill out the Leave of Absence Information form  and return it to your Employer Services Representative (ESR). We no longer lower the member’s FT% or use the Partially Paid Leave event for these scenarios. Once your ESR receives the completed leave form, they can assist you in creating the appropriate event in MyTRS.

11. Payroll Calendars are usually created in December, but can be created at any time.

The payroll calendars in MyTRS are based on a calendar year and not a school year. You can create the calendars anytime you want, but they are typically created in December since they run from January 1–December 31. If your school offers a new pay frequency one year that was not offered the prior year, you may need to create a new calendar for that pay schedule before submitting your September report.

Overview

MTRS member contribution rates are established pursuant to M.G.L. c. 32, §22. For members of the MTRS, employers are responsible for deducting the mandated percentage from their employees’ regular compensation and forwarding those contributions to the MTRS for deposit. Once an employer has registered a member in MyTRS, the appropriate deduction rate can be found in MyTRS under View/Update Employee Information  file size1MB.

MTRS members’ contribution rates are determined by a combination of two factors:

• the employee’s RetirementPlus status, and
• if the employee is not participating in RetirementPlus, the date on which the employee most recently became eligible for membership in a Massachusetts contributory retirement system and from which he or she continuously maintained his or her funds on account. Most of our members will establish membership in a contributory retirement system on the date they start working as a public employee in Massachusetts.

Unless they are transferring into the MTRS from another Massachusetts contributory retirement system (see below), employees who join the MTRS after 7/1/2001 are mandated to contribute at 11% and participate in RetirementPlus [M.G.L. c. 32, §5(4)].

When a member changes districts, or takes a refund

When a member transfers into the MTRS from another Massachusetts contributory retirement system

Members who join the MTRS and have funds on account with another Massachusetts contributory retirement system are existing retirement system members who are required to transfer their retirement system membership, tier and service to the MTRS pursuant to M.G.L. c. 32, §3(8). The guidelines for determining contribution rates for transferring members are a little more complicated, but be assured that we will gladly help you and our members understand the rules. If a member has questions regarding their rate or RetirementPlus election, please do not advise them; instead, direct them to contact the MTRS.

Please note these guidelines regarding members who transfer in:

• The initial contribution rate will automatically be defaulted to the RetirementPlus rate of 11%: However, once we confirm that the other retirement system has funds and service on account that qualify the member for either a RetirementPlus election or a lower, grandfathered contribution rate, we will place the member’s rate and RetirementPlus status on-hold (the on-hold status will appear in two places: in your deduction exception report, and in the View/Update Employee Information window in MyTRS). The member will remain on-hold during the 180-day RetirementPlus election period, which starts when we receive the transfer. Members who are entitled to an election must submit a “yes” election before their deadline in order to be enrolled in RetirementPlus. Failure to elect will default a member to their non-RetirementPlus rate as described in the chart below, even if they have been paying 11%.
• If the member established his or her contribution rate with:
  • a Massachusetts contributory retirement system OTHER than the Boston retirement board, and transfers into the MTRS on or after July 1, 2001, he or she will have a one-time RetirementPlus election period that is 180 days from the date that the MTRS first receives the member’s transfer of service and funds. If he or she then:
    • makes a timely affirmative election to participate in RetirementPlus, his or her contribution rate will be the RetirementPlus rate of 11%.
    • EITHER opts to not participate in RetirementPlus OR fails to return his or her election form by the deadline, then he or she will not be enrolled in RetirementPlus, and his or her retirement contribution rate will be the rate established with the previous retirement system.
  • the Boston retirement board, and he or she was:
    • eligible for the Teachers’ Alternate Retirement Plan (TARP), and
      • either elected to participate in TARP or was mandated to participate in TARP; or,
      • elected not to participate in TARP or defaulted out of TARP
    • then he or she will retain his or her TARP status upon transferring to the MTRS. In other words, if the person participated in TARP, he or she will automatically participate in RetirementPlus; if he or she did not participate in TARP, then he or she will not be given a RetirementPlus election opportunity, will not contribute at 11%, and will not be eligible to participate in RetirementPlus.
    • ineligible for any TARP consideration (for example, he or she was not eligible based on his or her position and title), he or she will be subject to the same RetirementPlus election (as described above) as members transferring from any other Massachusetts contributory retirement system.Note: TARP and RetirementPlus both refer to the same provisions of Chapter 114 of the Acts of 2000—TARP is the Boston retirement board’s name for this legislation, and RetirementPlus is the MTRS’s label.

How a member’s contribution rate is determined

Based on the above, members’ contribution rates are as follows:

The additional 2% deduction

Employees who establish membership on or after 1/1/1979 and who are not participating in RetirementPlus contribute an additional 2% on all earnings over $30,000. This deduction is also known as the 30-plus deduction.

30-plus deductions are calculated on a pay period basis by taking all regular compensation on a pay date, subtracting the 30-plus exemption amount based on the member’s pay schedule (see table below) and then multiplying the result by two percent. (Note: Members who coach at a school district other than the one in which they qualify as a teacher, are required to make 30-plus contributions on all coaching pay in their secondary district if they earn more than $30,000 annually with their primary employer.)

The 30-plus (2%) deduction calculation formula

Regular compensation for pay period – 2% exemption amount = Earnings subject to 2% deduction

Earnings subject to 2% deduction x 2% = Amount due for 2% deduction

For example, Mary earns a base salary of $52,000 per year, and this year is also receiving a longevity payment of $2,000; she is paid in 26 bi-weekly payments. On this particular pay date, she is receiving her normal bi-weekly pay as well as the full $2,000 longevity payment, making her total compensation amount $4,000. Using the exemption amount for a 26 bi-weekly pay schedule (listed in the following section) the amount due for Mary’s 2% deductions would be $56.92, as shown below.

$4,000.00 – $1,153.85 = $2,846.15

$2,846.15 x 2% = $56.92

30-plus (2%) deductions exemption amounts, per pay date, by common pay schedules

Weekly
52 pays (12 months or LS)             $576.92
42 pays (10 months)                       $714.29

Bi-weekly
26 pays (12 months or LS)             $1,153.85
22 pays (10 months)                       $1,363.64
21 pays (10 months)                       $1,428.57

Semi-monthly
24 pays (12 months or LS)             $1,250.00
20 pays (10 months)                       $1,500.00

For additional information on the 30-plus deduction and how to calculate it, see PERAC’s Memo #43 of 1999 .

Incorrect assessments: When deductions are taken at the wrong rate

Contribution rate corrections may occur at any time during a member’s career. On occasion, and possibly years after the employee began employment in your district, the MTRS may discover that a member’s contribution rate will need to be reviewed due to either previously unknown service that needs to be transferred-in, or service for which deductions were omitted in error by an employer. If a rate is detected as an error on your payroll exception report, please don’t make a change to that rate until you have received notification from the MTRS. If the member’s contribution rate is determined to be incorrect the MTRS will contact both the member and employer to notify them of the change. If we request a rate change and you have reason to believe that our determination is wrong (for example, you have documentation of the member’s previous service with another Massachusetts public retirement system, or a copy of a RetirementPlus form from their personnel record that was completed before their election deadline), please contact your Employer Services Representative before making any change to the member’s deduction rate.

What earnings qualify as “regular compensation” is important for members, employers and the MTRS:

• “Regular compensation” is the amount of a member’s earnings upon which he or she pays retirement contributions.
• Only those payments that meet the definition of “regular compensation” may be used in the determination of a member’s final salary average, which is a factor in the calculation of his or her retirement benefit.

It is in everyone’s best interest to understand what earnings are included and excluded as regular compensation so that, when it is time for a member to retire, there are no misunderstandings or false expectations as to what will be included in the final salary average.

“Regular compensation” is a complex legal term whose precise definition is often the subject of court decisions. Below are some of the most commonly asked-about payments as far as what is generally included in, or excluded from, regular compensation.

What is generally INCLUDED as regular compensation:

• Annual base salary, which is usually set forth in the collective bargaining agreement or administrator’s contract
• Salary payable for services rendered in connection with a school lunch program
• Salary payable for services in connection with a program for physical education instruction and athletic contests such as intramural sports
• Athletic coaching
• Annual stipends for additional services set forth in the collective bargaining agreement (e.g., yearbook advisor, class advisor, department head)
• Cost-of-living adjustments that become part of base pay
• Payments for length of service (“longevity”)
• Educational step increases according to salary schedule set forth in collective bargaining agreement which become part of base pay

What is generally EXCLUDED as regular compensation:

• Retirement incentives
• Temporary salary augmentations (i.e., “ELBO” payments)
• Amounts paid for unused sick leave
• Payment for unused vacation
• Overtime
• Bonuses
• Special projects
• Summer school
• Reimbursement for travel or other expenses
• Travel or housing allowances
• Amounts paid on an hourly basis for additional services
• Amounts paid in addition to salary for professional development or education assistance (e.g., recertification workshops) that do not become part of annual base pay
• Any payment made as a result of the employer’s knowledge of the member’s retirement
• Workers’ compensation wages
• Effective July 1, 2012, all fringe benefits, including employer paid individual life and disability insurance premiums, annuities, and housing allowances. [Note: fringe benefits that were in the member’s contract in effect on May 1, 2009 may be grandfathered as regular compensation through the expiration of the term of that contract, or June 30, 2012, whichever occurs first.]

Note: Employees with membership dates after 12/31/1995 are subject to pensionable earnings limits

There are federal and state limits on the amount of pensionable earnings (“regular compensation”) that can be used in computing benefits for active members of public retirement systems with effective membership dates after 12/31/1995. Specifically, for members with effective membership dates:

• After 12/31/1995, the pensionable earnings limit for calendar year 2019 is $280,000* (pursuant to Internal Revenue Code § 401(a)(17); see 2019 PERAC Memo 3).
• After 1/1/2011, the pensionable earnings limit for calendar year 2019 is $179,200* (pursuant to Section 23 of Chapter 131 of the Acts of 2010; see 2019 PERAC Memo 4). For the purposes of imposing a pension “cap,” the maximum amount of regular compensation that may be used in the determination of the final average salary was set at 64% of the annual limit pursuant to the Internal Revenue Code, 26 U.S.C. 401(a)(17). In 2019, the 401(a)(17) limit is $280,000. Accordingly, the maximum amount of regular compensation for a member whose most recent date of membership is after 1/1/2011 is $179,200 in 2019 (64% of $280,000).*The limit applies only to pensionable earnings, and is based on calendar year compensation, not school year compensation or school year contractual rate. Additionally, unlike the 2% deduction exception, the eligible earnings amount is not apportioned throughout the year; employers are to deduct contributions on all eligible earnings as they are paid, up to the limit.

To ensure that deductions are not submitted on pensionable earnings above the annual limit, each year after all of the prior year’s deduction reports are fully processed, we review the regular compensation amounts reported by employers for the prior year. If any members are found to have exceeded the limit for the calendar year, we will reach out to their employer to make arrangements to return the excess contributions to the member.

August 15, 2006
This information is intended to provide clarification of which payments made to your employees pursuant to current, as well as future, salary augmentation plans or salary enhancement programs (also known as “enhanced longevity buy-out” provisions, or “ELBOs”) are pensionable, and which are not.

Background

In April 2006, the Public Employee Retirement Administration Commission (PERAC) amended its regular compensation regulation (840 CMR 15.00) to exclude any “extraordinary, ad hoc, or non-recurring payments,” such as ELBOs. The regulation includes grandfathering language allowing certain current and future ELBO payments to be pensionable.

Criteria for determining whether current and future payments are pensionable

Pursuant to the “grandfathering” provision, in order for a member’s ELBO payments to be pensionable:

• The member must be covered by a collective bargaining agreement (CBA) or an individual contract that includes an ELBO plan and was in effect on or before January 25, 2006.
• The member must begin to receive the ELBO payments, and make retirement contributions thereon, during the term of the CBA or individual employment contract that was in effect on or before January 25, 2006.
• The ELBO plan must not be one that would be excluded from regular compensation under the prior regulation (e.g. those that are directly linked to retirement, or that involve a trade of sick leave).

If the above criteria are met, the member may complete the plan or program under that CBA or individual employment contract, or under a successor CBA or individual employment contract, and have such payments be pensionable, provided that said successor agreement or contract continues to have an ELBO plan that does not exceed the amount of the plan that was in effect on or before January 25, 2006.

Sample scenarios

Pursuant to the “grandfathering” provision, in order for a member’s ELBO payments to be pensionable:

• The member must be covered by a collective bargaining agreement (CBA) or an individual contract that includes an ELBO plan and was in effect on or before January 25, 2006.
• The member must begin to receive the ELBO payments, and make retirement contributions thereon, during the term of the CBA or individual employment contract that was in effect on or before January 25, 2006.
• The ELBO plan must not be one that would be excluded from regular compensation under the prior regulation (e.g. those that are directly linked to retirement, or that involve a trade of sick leave).

If the above criteria are met, the member may complete the plan or program under that CBA or individual employment contract, or under a successor CBA or individual employment contract, and have such payments be pensionable, provided that said successor agreement or contract continues to have an ELBO plan that does not exceed the amount of the plan that was in effect on or before January 25, 2006.

Sample scenarios

1. Mary Educator’s CBA, which was in effect on 1/25/2006, covers the term of 2005–2008. As required in that CBA, Mary gives notice to her superintendent that she plans to collect her ELBO payments beginning with the 2006-2007 school year. The plan provides for a $4,000 payment for three consecutive years. Is Mary’s ELBO grandfathered under PERAC’s regulation?Yes. Mary’s ELBO payments will commence during the term (2005-2008) of the CBA that was in effect on January 25, 2006. Thus, the payments she receives in the 2006-07 and 2007-08 school years are grandfathered. The payment she receives in the 2008-09 school year will also be grandfathered, but only if the successor CBA (covering 2008-2011) contains the $4,000 ELBO provision.
2. Tom Teacher’s district has a new CBA commencing on July 1, 2006. There was a $4,000 ELBO plan in the 2003-2006 CBA that expired on June 30, 2006. The exact same ELBO plan is contained in the new 2006-2009 CBA. In November 2005, Tom notified his superintendent that he plans to collect his first ELBO payment in the 2006–07 school year. Can Tom’s ELBO payments be included in his regular compensation?No. The term of the CBA that was in effect on or before January 25, 2006 was 2003-2006 and that CBA expired on June 30, 2006. Although Tom gave notice of his intention to collect the ELBO payments within the term of that CBA, he did not start to receive payments for the ELBO plan and make retirement contributions thereon before that contract expired.
3. The same contract scenario as 2, above, only Tom notified his superintendent in November 2004 and received his first ELBO payment during the 2005–2006 school year. Tom is scheduled to receive two more payments of $4,000 under the new contract in effect July 1, 2006. Can Tom’s next two ELBO payments be included in his regular compensation?Yes. Tom’s ELBO payments commenced during the term of the contract in effect on January 25, 2006. His first payment is grandfathered as it was made in the 2005-06 school year (the final year of the 2003-2006 CBA). The second and third payments will also be grandfathered because the successor CBA (2006-2009) contains the same ELBO plan provision.

There are, of course, numerous other scenarios and this information is meant to act as a guide. If you have questions, we strongly encourage you to contact our office for clarification.

On April 30, 2010, the Massachusetts Teachers’ Retirement Board adopted its Policy on Furloughs and other Fiscal Emergency Measures for School Years 2009-10 and 2010-11 (see below).

On June 30, 2011, that policy expired, and as of July 1, 2011, the MTRS began applying G.L. c. 32, §§ 4(1)(c) and 5(3)(b):

• Chapter 32, § 4(1)(c) allows the MTRS to recognize creditable service for any “period of … continuous absence without regular compensation” up to one month.
• Chapter 32, § 5(3)(b) provides that any “leave or period of absence” occurring within the three-year period used for the member’s final average salary will be included in that period and, if unpaid, the “rate in effect for him immediately preceding any period of his absence” shall be used.

These two provisions allow members to have temporary (up to one month) unpaid leaves of absence from work without affecting their retirement calculation. The same two sections allow for service credit and imputed salary for members who are absent from work due to furloughs. This assumes the “furlough” is a temporary (less than one month) period of unpaid leave of absence from required work days. These two sections cannot be used if there is no absence, thus they are not applicable if a district implements a salary reduction or a reduction of the contractual work year.

• Service credit for a furlough: In order for a MTRS member not to lose creditable service for a “furlough,” the member must be placed on an authorized unpaid leave during the period of the furlough, not to exceed one month.
• The member’s last salary rate applies during the furlough: If a furlough day is a period of authorized unpaid leave, the MTRS will use the salary rate in effect immediately preceding the furlough when determining the salary average for any member who has a furlough within his highest three or last three years.

Please note: “Furloughs” that do not meet the statutory requirements include plans that reduce the number of work days by implementing “volunteer” days during which teachers work but do not get paid or when a district reduces the school year itself. These types of plans will negatively impact a MTRS member’s creditable service and salary average.

If you would like an opinion as to whether your district’s particular cost-saving measure will impact the retirement calculation of your MTRS members, please mail, e-mail, or fax us a copy of the relevant contract language.

Policy on Furloughs and other Fiscal Emergency Measures for School Years 2009-10 and 2010-11, and thereafter

Adopted by the Board on April 30, 2010

Chapter 32, section 4(1)(c) allows the System to recognize creditable service for any “period of … continuous absence without regular compensation” up to one month (emphasis added).
Chapter 32, section 5(3)(b) provides that any “leave or period of absence” (emphasis added) occurring within the three-year period used for the member’s final average salary will be included in that period and, if unpaid, the “rate in effect for him immediately preceding any period of his absence” shall be used.
The System has used these two provisions to allow members to experience temporary (up to one month) unpaid absences from work without affecting their retirement calculation, even when those absences occur during the “final three years.” Recently, staff have used these provisions to “fill in the gaps” on both service and salary for members who missed work due to weather emergencies.

The same two sections can be used to supply credit and imputed salary for members who are absent from work due to furloughs. This assumes the “furlough” is a temporary (less than one month) period of unpaid leave, or absence, from work. (These two sections cannot be used if there is no absence, thus they are not helpful if a district merely implements a salary reduction.)

School districts have implemented cost-saving measures that are structured in different ways, though they often call them “furloughs.” Some of these measures reduce the number of work days in such a way that it is difficult to consider them “absences” since there is no work day during which employees are absent. For example, some districts have reduced the school year itself, or have implemented “volunteer” days during which teachers work but do not get paid. These measures are substantively identical to furloughs and accomplish the same result, but do not fit within the literal terms of the statute.

Findings

To avoid different results based solely on the form, rather than the substance, of cost-saving measures during the present fiscal crisis, the Massachusetts Teachers’ Retirement Board finds as follows:

1. The Commonwealth and local school districts are experiencing a fiscal crisis that is requiring many school districts to reduce budgets substantially.
2. This fiscal crisis is likely to last at least through the end of the next fiscal year (ending June 30, 2011).
3. School districts are implementing cost-saving measures, including furloughs (i.e., periods of absence from work without pay).
4. Many cost-saving measures, including furloughs, involve a reduction in the required number of work days. Some are structured in such a way, however, that an employee is not absent on a regular work day (e.g., a reduction in the school year itself reduces the required number of work days, but does not involve absences). The TRS can impute creditable service and salary for days of absence, but not for cost-saving measures that do not involve an absence during work days.
5. “Volunteer” days, during which teachers work but do not get paid, are not considered “required” work days. Thus, a school year schedule that is reduced by some number of “volunteer” days is considered to have a reduction in the required number of work days.
6. The TRS was unable to give meaningful guidance to all school districts as to which types of cost-saving measures would fully preserve members’ service and salary, and which would not, before the cost-saving measures were adopted for school years 2009-2010 and 2010-2011.
7. Given the inability to provide meaningful guidance during the current fiscal year, the Teachers’ Retirement System desires to treat uniformly all cost-saving measures implemented for the 2009-10 or 2010-11 school years that involve a reduction in the required number of work days.

Policy

Thus, the Teachers’ Retirement Board directs staff to treat all cost-saving measures for school year 2009-2010 or 2010-2011 that involve a reduction in the required number of work days for any class of employees, including but not limited to furloughs, as a “period of absence,” and to implement sections 4(1)(c) and 5(3)(b) as appropriate. For this period, a “period of absence” is a reduction in the number of required work days, not a reduction in duties and/or pay.

For School Years 2011-12 and beyond

Beginning in July 2011, the TRS will apply sections 4(1)(c) and 5(3)(b) strictly according to its terms, as reflected in more detail in our broadcast e-mail of April 25, 2011 to employers.

How part-time “membership” service is credited

If you have rendered any “membership” service on a part-time basis, it will be credited as follows:

Overview of the changes effective July 9, 2010

On December 18, 2009, the Board amended the MTRS’s creditable service regulation (807 CMR 3.04). Effective July 9, 2010, this amendment:

• mandated that the credit for all part-time service rendered after July 9, 2010, including kindergarten service, be prorated based on the percentage of full-time service it represents;
• removed the effect of a change in an employee’s employment status (i.e., from part-time to full-time, or vice versa) on the crediting of his or her part-time service after July 9, 2010;
• provided a two-year “grandfather” period for members who elected to participate in RetirementPlus and who retire on or before July 1, 2012.

What this means for members who have worked—or are working—on a part-time basis

Your part-time service rendered:

• before November 9, 1990 will continue to be credited as before: as full-time service.
• between November 9, 1990 and July 9, 2010 will continue to be credited as before: either as full-time service (if you did not undergo a status change during that period), or prorated based on the percentage of full-time service that it represents, if you went from part-time to full-time, or vice versa, during that period. In other words, the new regulation does not affect credit accrued prior to July 9, 2010.
• on or after July 9, 2010 will be prorated based on the percentage of full-time service it represents, regardless of any changes in your employment status after that date. For example, if you render service on a half-time basis for the 2010–11 school year, you will receive 0.50 year of service credit for that year.

If you have always worked part-time, including as a kindergarten teacher, be aware that, while you previously earned full-time credit for your part-time service, after July 9, 2010 your part time service credit will be prorated.

Full-time salary equivalent
Whenever prorated part-time service is used in the calculation of a retiring member’s benefit allowance, the MTRS will use the member’s full-time equivalent salary to determine his or her final salary average. In other words, your service credit will be prorated, but your salary equivalent will not—you will not be “double-prorated” in the calculation of your retirement benefit.

Why the regulation was amended
The regulation was changed to address a number of longstanding problems presented by the previous regulation for members and employers alike. In prorating all part-time service rendered after July 9, 2010, the regulation resolves the inconsistencies associated with the status change rule.

For example, under the previous regulation, a member who worked half-time for ten years would receive ten years of creditable service. However, if that same member had a status change from part-time to full-time in her eleventh year of service, her ten years of half-time service would no longer count as ten years, but would be prorated and only count as five years. Thus, a member could be vested in the retirement system at the end of one school year, and then not vested at the start of the next school year due to a status change. Under the amended regulation, status change is no longer relevant. Members who qualify for full-time credit for their part-time work rendered prior to the effective date of the new regulation, will retain that credit regardless of future status changes.

The bottom line: The amendment may result in increased benefits for certain members with part-time service
Before adopting this regulation, the Board carefully analyzed the effect that the change would have on members with part-time service, especially those who might be retiring in the next few years. In reviewing numerous scenarios, the Board found that, because a retiring employee’s part-time service is prorated, but his or her full-time salary equivalent is used in the calculation of the final salary average, most members with part-time service would not be financially harmed by this amendment—in fact, they may even see their benefit increase.

If you have any questions about how your part-time service is credited, or how it affects the calculation of your retirement benefit, please contact us for assistance.

Example of how part-time service is credited

To estimate your retirement benefits, please use our online estimator.

Mary Music

For illustration purposes only; results may not be typical

A part-time music teacher her entire career and a member of the MTRS prior to April 2, 2012, Mary has always worked on a 50%-of-full-time basis. She is retiring at age 60 on June 30, 2019. She did not elect to participate in RetirementPlus.

Creditable Service

Salary average

 Benefit calculations

Additional notes

Part-time nonmembership service
All part-time nonmembership service, both before and after July 9, 2010, is prorated based on the percentage of full-time service that it represents. Additionally, all part-time service in the Boston Retirement System will be prorated.

Membership service and RetirementPlus
Membership service is service you acquire while working in a position eligible for membership in the MTRS during which you contribute directly to the MTRS via a payroll deduction by your school district. If you are participating in RetirementPlus, you must have 30 years of creditable service—at least 20 of which must be “membership” service with the MTRS or the Boston Retirement System as a teacher—in order to receive the enhanced benefit.

An exception: Part-time service and eligibility for ordinary disability retirement
For the purpose of determining your eligibility for ordinary disability benefits, part-time service will count as full-time service for purposes of meeting the ten-year minimum service requirement, but not for purposes of determining your benefit amount.

Am I allowed to provide personal information to the MTRS related to a disability retirement application?

Massachusetts General Laws chapter 32, section 20(5)(b) states: “The head of any department upon request from the Board shall promptly furnish it with such information as shall be required to effectuate the provisions of sections one to twenty-eight inclusive.” This language allows the MTRS as part of the disability retirement application process to ask the employer to complete an extensive Employer’s Statement form.

What is the criteria for eligibility when applying for an ordinary or accidental disability retirement benefit?

To be eligible to apply for an ordinary disability benefit, a member must have a minimum of at least 10 years of creditable service; there is no age requirement. However, if the member is:

• a nonveteran whose Membership Tier is:
  • Tier 1 (established membership BEFORE April 2, 2012) and who is:
    • under age 55, the benefit will be calculated as if he or she had retired at age 55 under the superannuation retirement formula (in other words, under the basic service retirement formula, but with the age factor increased to age 55);
    • age 55 or over, the benefit will be calculated under the superannuation retirement formula (the basic service retirement formula), with no adjustment to the age factor. In other words, if the member is already age 55 or over, the ordinary disability retirement benefit formula will not result in a higher benefit than what he or she would receive under the basic service retirement formula.
  • Tier 2 (established membership ON OR AFTER April 2, 2012) and who is:
    • under age 60, the benefit will be calculated as if he or she had retired at age 60 under the superannuation retirement formula (in other words, under the basic service retirement formula, but with the age factor increased to age 60);
    • age 60 or over, the benefit will be calculated under the superannuation retirement formula (the basic service retirement formula), with no adjustment to the age factor. In other words, if the member is already age 60 or over, the ordinary disability retirement benefit formula will not result in a higher benefit than what he or she would receive under the basic service retirement formula.
• a veteran, the allowance is equal to a yearly annuity amount plus one-half of the member’s salary for the last twelve months during which he or she was actually employed OR the superannuation allowance to which he or she is entitled, whichever is greater.

There are no service or age requirements for applying for an accidental disability retirement benefit.

What is the length of time for a disability retirement application to be processed?

An ordinary disability retirement takes approximately six to nine months. An accidental disability retirement takes approximately 12 to 14 months.

What is the difference between ordinary and accidental disability retirement?

An ordinary disability retirement is a medical condition which is unrelated to the job. A medical panel of three physicians must determine (1) that the member is unable to perform the essential duties of the job, and (2) that the disability is permanent.

An accidental disability retirement is a medical condition which is caused by the job. A medical panel of three physicians must determine (1) that the member is unable to perform the essential duties of the job, (2) that the disability is permanent, and (3) that the medical condition is a result of an incident, a series of incidents or a hazard undergone on the job.

As an employer, do I have any input into the disability process?

Yes. As the employer, you will be required to complete the Disability Applicant’s Employer Statement . Along with that statement, you will be required to submit attendance records and teacher evaluations from the past five years. Also, you or someone on your staff familiar with the circumstances surrounding the incident will, in all likelihood, be called before the Board to testify.

If a member incurs a work-related injury but does not lose any time from school, is it necessary to have him or her contact the MTRS?

Yes. The member should submit any and all information regarding the injury within 90 days of that injury. This will provide protection for the member if that injury were to develop into something more serious some years later.

Should I encourage the injured member to apply for Workers’ Compensation with our local carrier?

Yes. If the member incurs a work-related injury and is expected to be out of work for a period of time, he or she should be encouraged to apply for Workers’ Compensation. Again, this will protect the teacher if he or she applies for an accidental disability retirement some years later related to that particular injury.

When the MTRS requests a formal job description and none exists, what should the school send?

The medical panel must review an official school document which describes the requirements of the particular job. Therefore, the administration should report in writing exactly what those requirements are.

When does the member officially become retired on a disability?

The member is officially retired on the day that the Board votes to approve the disability. If the member is receiving paid sick leave, it should be stopped on that day. The Board vote, along with supporting documents, will be reviewed by the Public Administration Retirement Commission, which is a regulatory agency for all Massachusetts retirement systems. Once that process is completed, the member will receive an estimated check; within 60 days of receiving the first check, the member will receive a finalized check.

How to handle health insurance deductions for employees who are retiring at the end of the school year

Is your school district one of the districts that participate in the Group Insurance Commission’s RMT program? If:

• YES, then you should withhold premiums for any partial month and two full months following the employee’s retirement date, because the GIC begins coverage on the first day of the third full month of retirement.For example, if the employee is retiring on 6/30/13, then you should withhold premiums through August 30, 2013. The employee would then stay with your district’s group insurance program for July and August, and the GIC will pick up coverage as of September 1st. Likewise, if the employee is retiring on 7/15/13, then you should withhold premiums through September 30, 2013; in this case, the employee would stay with your district’s group insurance program through July, August and September, and the GIC will pick up coverage as of October 1st.
• NO, then you should treat the employee as if he or she would be returning to school the next year, and withhold his or her premiums as you would normally do from the employee’s (school) year-end payday or summer pays, so that his or her insurance is paid up through the month of September.Then, in September, the insurance coordinator for your city/town/regional district can instruct us to begin insurance premium withholdings for the new retiree’s October premium; the retiree’s October insurance premium will be withheld from the retiree’s MTRS retirement payment that is processed at the end of September.

In 1996, the MTRS standardized earnings and retirement contribution reporting. The original file specifications have since been modified to simplify payroll deduction reporting for employers and remove most of the originally required data that is otherwise non-existent in payroll systems. While updating the report validations and file field definitions, the MTRS has retained the fundamental structure of the original 309 character per record layout in order to avoid requiring software revisions by employers.

Field definitions

Updated August 20, 2014

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