If you are employed by the City of Worcester or WHA on a permanent basis and holding a position, which requires you to work a minimum of 20 hours per week (excluding teachers), you are eligible to become a member of the Worcester Retirement System.

Am I required to become a member of the Worcester Retirement System?

According to the Massachusetts Retirement Law (M.G.L. Chapter 32), you must become a member of the system if you meet the eligibility requirements.

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 Massachusetts General Law and is determined by the date on which you first became eligible for membership in a Massachusetts Contributory Retirement System and continuously maintained your funds on account.

If the date of which you become a member of a Massachusetts Retirement System and continuously maintained your funds on account is:

Your contribution 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 is determined by your membership date. If the date on which you become a member of the Massachusetts Contributory Retirement System and continuously maintained your funds on account is:

You are:

Before January 1,1979 ................ NOT subject to "2% OVER $30K"
On or after January 1, 1979 ........... Subject to the "2% OVER $30K"

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 for your records.

What type of retirement plan is this?

You pension 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:

your years of creditable service;
your age at retirement; and
your highest average annual salary for 36 consecutive months.

Can I borrow money from my retirement account now and pay it back later?

No! Under State Law, your retirement account has no provision for withdrawal under any circumstance including mortgage down payments or college education.

When will I be eligible to receive a retirement allowance?

You will be eligible to receive a retirement allowance when you:

Have at least 10 years of creditable service AND have reached age 55
OR
Have 20 years of creditable service regardless of your age.