Eldridge Bay Retirement System

About Massachusetts Public Retirement Systems

About Massachusetts Public Retirement Systems

A statewide system, locally administered

Massachusetts public retirement is governed by Chapter 32 of the Massachusetts General Laws — a statewide statute that defines benefits, eligibility, and obligations identically for every public employee in the Commonwealth. Day-to-day administration, however, happens at the local level.

There are 104 public retirement systems in Massachusetts:

  • The Massachusetts State Retirement Board (MSRB) for state employees
  • The Massachusetts Teachers' Retirement System (MTRS) for teachers
  • Local and special-jurisdiction retirement boards for cities, towns, counties, regional school districts, regional authorities, the State Police, the Boston Police, and others

The Eldridge Bay Retirement System is one of these local systems.

Defined benefit, contributory

Massachusetts public retirement is a defined benefit system. Your retirement allowance is calculated by formula — based on your salary, your length of service, and your group classification — not by the value of an individual investment account. This is fundamentally different from a 401(k) or 403(b), where the benefit depends on market performance.

It is also a contributory system. Active members contribute a percentage of regular compensation each pay period; the employer contributes a separate amount each year (set by an actuarial valuation and PERAC's appropriation letter). Both go into a single pension fund that pays current and future retirees.

Who oversees it

The Public Employee Retirement Administration Commission (PERAC) is the state agency that oversees all 104 retirement systems. PERAC publishes the regulations (840 CMR), audits each board on a 3- to 5-year cycle, sets actuarial assumptions, reviews COLA votes, and reviews investment policy. PERAC does not administer your benefit — your local board does — but PERAC's regulations and concurrence are required for many board actions.

Members and retirees

Massachusetts public retirement covers more than 270,000 active members and more than 200,000 retirees and survivors statewide. Each system reports its membership annually in PERAC's Annual Profile.

Specific information about the Eldridge Bay Retirement System — current statistics, audited financials, actuarial valuations, and the most recent annual report — is filed under Documents.

Where to learn more