The 2023 R+ Transfer-in election ended on June 30, 2023
I received an invoice for RetirementPlus, do I need to pay it?
Yes, you agreed to make up the difference in contributions if your contribution rate was not previously at 11% when you made your election. For reference, please see the highlighted text from the 2023 special election ballot and also our standard RetirementPlus participation form.
2023 RetirementPlus special election ballot
RetirementPlus participation form
How much do I owe to make my account whole?
This amount may vary; however, as stated above, the amount is generally $600 per year for members contributing at “9+2”. You owe the difference going back to when you first became a member of the MTRS. If you owe 10 years’ worth of contributions, you will owe approximately $6,000 ($600/year x 10 years). If you were at a rate lower than “9+2”, you would owe significantly more because the difference between 11% and an even lower rate will produce a higher amount.
The final amount will be calculated once your rate has been changed to 11% and posted to your annuity savings account.
What are my payment options?
If you owe money to the MTRS to make your account whole, you have the following options:
- Pay in full by check
- Transfer money over from a qualified supplemental retirement plan
- Trust-to-Trust Transfer Acknowledgment Form for a plan that you are still actively contributing to
- Direct Rollover Acknowledgment Form for a plan that you have stopped contributing to
- A five-year installment plan if your amount is $1,000 or higher. This plan will include interest at one half of the actuarial rate of return, which is currently at 3.5% (actuarial rate is currently set at 7% for CY2023).
If you chose not to pay your invoice, interest will accrue on the principal amount at the buyback rate, starting on the day of your first due date (currently 90 days from the MTRS mailing out your invoice) until the time of payment. This must be paid in full prior to your retirement date.
When will I receive my Invoice/Refund from the 2023 Special R+ Election?
We are working hard to finalize and work through almost 8,000 cases. You will receive an email with your final determination. Please keep your email address updated through your MyTRS account and periodically check your spam/junk folder for any of our communications.
What if I chose not to participate in RetirementPlus and have contributed at 11%?
If you have contributed at 11% and chose not to participate in RetirementPlus, the MTRS will ensure that you are no longer contributing at 11% and calculate what you should have contributed to the MTRS at your lower rate, making your account whole and returning the principal amount to you. When feasible, the IRS requires these contributions to be returned as a payroll credit or as an MTRS refund directly to the member. The refund will have 10% withheld for federal taxes, and you will receive a 1099-R at the beginning of the following year. These refunds are not eligible for rollovers to other financial institutions.
Interest earned on these contributions will remain in your MTRS annuity savings account and be used to fund your future benefit. In rare circumstances, some members may owe contributions to make their account whole due to other shortages.
Can I change my RetirementPlus election?
No, you agreed that your choice was voluntary and irrevocable when you made your election.
For reference, please see the highlighted text from the 2023 special election ballot and also our standard RetirementPlus participation form.
2023 RetirementPlus special election ballot
RetirementPlus participation form
Election stats
R+ Special Election 2023 Communications Binder *
- A comprehensive listing of all communications sent to members and employers during the election period.
- *Please note that the R+ Special Election 2023 Communications Binder is a “PDF Portfolio” file and must be downloaded and viewed in Acrobat Reader.
From the signing of the law on August 3, 2022 until the end of the election period on June 30, 2023, we conducted numerous outreach initiatives to inform the eligible members of this election of their rights and actions they needed to take. This included:
- Mailed correspondence
- Emailed correspondence
- Online seminars for eligible members
- Phone outreach, as needed
At the conclusion of the election, a total of 5,268 members responded with a RetirementPlus participation decision. Per the statute affecting these members, those who did not respond are now ineligible to participate in RetirementPlus. Any further opportunity would need to be made allowable by legislation as the MTRS’ operations are ultimately beholden to Massachusetts General Law.
Eligibility
The new law provided a final, one-time opportunity to participate in the R+ program only to those members who:
- were not a part of the original election window prior to July 1, 2001, AND
- transferred into the MTRS from one of the other 103 Massachusetts public retirement systems between July 1, 2001 and June 30, 2022, AND
- did not yet submit an election.
All other members were not included in the scope of this legislation. There are other bills related to RetirementPlus currently circulating through the Massachusetts Legislature but whether or not they are ultimately passed into law is subject to the legislative process. For information about these bills, please see https://malegislature.gov/.
R+ Election and Rate Notifications to Employers and Members sent in August 2023
The last broadcast email sent from rates@trb.state.ma.us to both Employers and Members were sent between Thursday, August 10, 2023 and Monday, August 14, 2023 with a subject of “MTRS Rate and R+ Confirmation – Member’s first and last name (i.e., John Smith)”.
The email confirmed the final R+ Election as well as the correct contribution rate that should be withheld. The MTRS requested that schools made any necessary rate changes by September 30, 2023.
If you were part of the special election and do not remember receiving this email, please search your email, including your spam/junk folder.
Next steps
We ask for your patience as we must wait to confirm that rates are correct as of September 2023 for nearly 8,000 members that were eligible for the special election.
We will contact you once a determination has been made on your account.
We understand that you may want to receive this determination immediately; however, we can only calculate the final amount once the correct rate has been released to your account, which may not occur for several more months. This will vary for each member depending on the completion of your district’s monthly retirement contribution reports.
What to expect once a determination has been made
Once your correct rate has been verified, the MTRS will research whether you have paid the correct contribution rate for your final R+ Election, retroactive to your MTRS start date. We will determine whether you:
- owe contributions,
- are due a refund, or
- have contributed at the correct rate the entire time.
You will receive an email with your final determination. Please always be on the lookout for emails from the MTRS, update your email address in your MyTRS account if necessary, and check your spam/junk folder from periodically in case our email goes to junk/spam.
Members that did not submit a timely response prior to 6/30/2023
If you did not submit an election prior to the statutory deadline of 6/30/2023 it is too late to make an election.
We will make a final determination on your account which is described above.
Final, one-time opportunity to participate in R+ for eligible members
Chapter 134 of the Acts of 2022 was signed into law in August of 2022 and allowed eligible members a final, one-time opportunity to participate in RetirementPlus via an election that began on January 1, 2023 and ended on June 30, 2023.
This opportunity to participate in the R+ program was only for those members who:
- were not a part of the original election window prior to July 1, 2001, AND
- transferred into the MTRS from one of the other 103 Massachusetts public retirement systems between July 1, 2001 and June 30, 2022, AND
- did not yet submit an election.
RetirementPlus options for members transferring into the MTRS
Additionally, the new law changes the election procedures for members who transfer into the MTRS on or after July 1, 2022, and whose membership in another Massachusetts public retirement system was established prior to July 1, 2022. These members will now participate in the R+ program by default but can elect to opt-out within 180 days from the date the MTRS receives their transfer from the other system.
Finally, the law mandates participation in the R+ program for all new members of the MTRS who transfer into the system on or after July 1, 2022, and whose prior service in another Massachusetts public retirement system began on or after July 1, 2022. Like all other new teachers, these members have no election option and are required to participate in RetirementPlus.