Becoming a Member: Eligibility & Enrollment
Most people who work for a Massachusetts city, town, county, or regional authority are required by law to join the local retirement system. This article explains who must join, who is excluded, how enrollment works, and how much you contribute each pay period.
The governing sections are MGL Chapter 32 § 3 (membership) and MGL Chapter 32 § 22 (deductions).
Who must join
Membership is mandatory for any employee who:
- Is regularly employed in a position requiring at least half-time service, and
- Is compensated for that service by the public employer, and
- Is not excluded by statute
"Regularly employed" means ongoing, not casual or seasonal. A newly hired full-time employee is enrolled automatically — there is no opt-out. Half-time is roughly 20 hours a week; contact the retirement office for specifics.
Who is excluded
Some employees are exempt from mandatory membership, including:
- Part-time employees working fewer than half the normal hours for their position
- Temporary or intermittent employees not in a regular schedule
- Student employees and certain other categories defined by PERAC
- Employees who are already members of another Massachusetts contributory retirement system (you stay in your existing system; you don't join a second one)
- Employees covered by a separate retirement system (e.g., Teachers Retirement System, State Employees Retirement System) if their position is governed by that system
If you're unsure whether your position requires membership, ask our office at hire.
Enrollment when you're newly hired
When you start employment:
- Your employer notifies us. The payroll or HR office reports new hires to the board.
- You complete enrollment paperwork. You'll receive forms — typically a membership card, a beneficiary designation form, and withholding election paperwork.
- Deductions begin. Contributions are withheld from your pay starting with the first applicable payroll cycle. There is no waiting period.
- You receive a confirmation. The board records your membership date, group classification, and contribution rate.
Your membership date is the date your membership is established — not the date paperwork was returned. If there's a delay in processing, your membership date may be backdated to your first payroll date; confirm with the board.
Contribution rates — how much you pay
Your contribution is a percentage of your regular compensation withheld from each paycheck. The rate depends on when you first entered Massachusetts public service (not the date you joined this particular board):
| Date you entered Massachusetts public service | Contribution rate |
|---|---|
| Before January 1, 1975 | 5% of regular compensation |
| January 1, 1975 – December 31, 1983 | 7% of regular compensation |
| January 1, 1984 – June 30, 1996 | 8% of regular compensation |
| On or after July 1, 1996 | 9% of regular compensation |
A Group 1 member who became a member on or after April 2, 2012 and has at least 30 years of creditable service pays 6% of regular compensation (MGL Chapter 32 § 22(1)(b)(vii)). Contact the retirement office for specifics.
The additional 2% on higher earnings
Members who entered service on or after January 1, 1979 also pay an additional 2% on any regular compensation above $30,000 per year (approximately $2,500 per month). This applies on top of the base rate above.
Example: A member who entered service in 2005 earns $60,000/year. Their contribution is:
- 9% on the full $60,000 = $5,400/year (base)
- 2% on $30,000 (the portion above $30,000) = $600/year (additional)
- Total: $6,000/year, or $500/month
Group 2 and Group 4 members
Group classifications affect your retirement benefit formula and minimum retirement age — but not your contribution rate. Group 2 and Group 4 members use the same date-of-entry rate schedule as Group 1 members. See Group Classifications for more on groups.
Contributions are pre-tax for federal purposes
Your contributions are deducted before federal income tax is calculated, reducing your current taxable income. They are treated as after-tax for Massachusetts income tax purposes (Massachusetts does not allow a current deduction for retirement contributions). Your Massachusetts public retirement allowance is exempt from Massachusetts income tax (MGL Chapter 32 § 19). See Taxation of Benefits for more.
What your contributions earn
Contributions are credited to your individual member account and earn regular interest at a rate that is set each year; contact the retirement office for specifics. This account balance matters if you ever take a refund, purchase service, or die before retiring (see Survivor and Death Benefits).
Common questions
What if I worked for another Massachusetts public employer before this job? If you were already a member of another Massachusetts contributory retirement system, your prior service may transfer. Contact the board — and your prior system — to initiate a membership transfer. Your original entry date determines your contribution rate.
I work part-time now but used to be full-time. Am I still a member? It depends on your hours. If your current position falls below the half-time threshold, you may be ineligible for active membership while in that part-time role. Talk to our office; the rules can be nuanced.
Can I contribute more than my required rate? No. Massachusetts Chapter 32 does not allow voluntary additional contributions to the defined-benefit pension. If you want to save more, your employer may offer a 457(b) deferred compensation plan — ask your HR office.