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- AM
I ELIGIBLE TO
BECOME A MEMBER OF THE WATERTOWN
CONTRIBUTORY 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
CONTRIBUTORY 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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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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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:
- Have
at least 10 years of creditable
service AND have reached age 55
OR
- Have
20 years of creditable service
regardless of your age.
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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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