Superannuation Retirement
"Superannuation" is the formal Chapter 32 term for the standard age-and-service retirement most members take when they reach the end of their working career. It's defined in MGL Chapter 32 § 5.
Your allowance has two parts
Your retirement allowance is the sum of an annuity and a pension (MGL Chapter 32 § 1).
- The annuity is paid for your life from your own contributions and the interest credited on them. Your accumulated contributions are turned into a monthly amount.
- The pension is paid for your life from your employer's contributions. It is the rest of your allowance (§ 12(2)(a)), and the system pays it from its pension fund (§ 22(3)).
The formula below gives your total allowance. The two parts matter when you choose a retirement option, because the options treat them differently.
Eligibility
You can take a superannuation retirement once both are true:
- You have at least 10 years of creditable service (some pre-1978 rules may apply differently; verify with the board)
- You meet the minimum age for your group classification and hire-date class:
| Group | Hired before April 2, 2012 | Hired on or after April 2, 2012 |
|---|---|---|
| 1 | 55 | 60 |
| 2 | 55 | 55 |
| 4 | 55 | 55 |
Pre-2012 Group 1, 2 and 4 members who leave service with 20 or more years of creditable service can retire at any age (MGL Chapter 32 § 10(1)). Contact the retirement office for specifics.
How the benefit is calculated
The formula:
annual benefit = (highest 3-year or 5-year average regular compensation)
× (creditable service in years)
× (age factor for your group and age at retirement)
The salary base (what counts as regular compensation is explained in Regular Compensation):
- Pre-2012 members: highest 3 consecutive years of regular compensation
- Post-2012 members: highest 5 consecutive years of regular compensation
The age factor comes from the table in MGL Chapter 32 § 5(2)(a) (selected examples).
Pre-2012 members (hired before April 2, 2012):
| Age at retirement | Group 1 | Group 4 |
|---|---|---|
| 55 | 1.5% | 2.5% |
| 60 | 2.0% | 2.5% |
| 62 | 2.2% | 2.5% |
| 65 | 2.5% | 2.5% (capped) |
Hired on or after April 2, 2012, with under 30 years of service at retirement:
| Age at retirement | Group 1 | Group 4 |
|---|---|---|
| 55 | (not eligible) | 2.20% |
| 57 | (not eligible) | 2.50% |
| 60 | 1.45% | 2.50% (capped) |
| 65 | 2.20% | 2.50% (capped) |
| 67 | 2.50% (capped) | 2.50% (capped) |
Hired on or after April 2, 2012, with 30 or more years of service at retirement:
| Age at retirement | Group 1 | Group 4 |
|---|---|---|
| 55 | (not eligible) | 2.25% |
| 57 | (not eligible) | 2.50% |
| 60 | 1.625% | 2.50% (capped) |
| 65 | 2.25% | 2.50% (capped) |
| 67 | 2.50% (capped) | 2.50% (capped) |
Full age-factor tables are published by PERAC and distributed at counseling. The board's benefit estimator uses the exact tables.
The 80% cap
Total annual benefit cannot exceed 80% of the salary base under MGL Chapter 32 § 5(2)(c). At the maximum age factor of 2.5%, the cap is reached at about 32 years of service (2.5% × 32 = 80%); with a lower age factor it takes longer.
A worked example
A Group 1 member, hired before April 2, 2012, retires at age 62 with a $80,000 salary base and 30 years of creditable service. Their age factor at 62 is 2.2% (§ 5(2)(a)).
annual benefit = $80,000 × 30 × 2.2% = $52,800 / year
= $4,400 / month, before deductions, before COLA
Your actual numbers depend on your specific salary history, service, and age. The board provides written estimates on request.
How to apply
- Schedule a counseling appointment at least 60 days before your intended retirement date. Bring your most recent benefit estimate, your DD-214 (if any military service is creditable), your spouse's birth certificate (if you'll elect Option C), and any service-purchase paperwork still pending.
- Choose your retirement date, your group/age combination, and your retirement option (A, B, or C — see Retirement Options). The choice is final on the effective date of your retirement.
- Submit a completed retirement application. The board reviews it, calculates the final benefit, and forwards the determination to PERAC for concurrence.
- Receive your first payment. Allow several weeks between application and first payment for the processing and PERAC review. Direct deposit is recommended.
After you retire
Read the Retirees section for what to expect after retirement: payment schedule, COLAs, working after retirement, taxes, and health insurance.