No, your retirement account has no loan provision. 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.
FAQs
Can I borrow money from my retirement account and pay it back later?
Can I change my beneficiary after I retire?
If you have selection an Option B Retirement, you may change your beneficiary as often as you wish. To do so you must request a Change of Beneficiary Form. If you selected an Option C, you can’t not change your beneficiary.
Can I work after I retire under a Superannuation?
If you are employed in the private sector, there are no limitations. If you are re-employed in the service of the Commonwealth, or any of its counties, cities or municipalities, there are strict earnings and hours limitations.
Do I need to notify the Retirement Office if I change banks?
If you change banks immediately contact the Retirement Office. You can print a Direct Deposit Form from the website and bring it in.
How do I calculate my pension deductions on my biweekly pay?
How to Calculate Your Pension Deductions and 2% Pension Deductions (AKA 30+)
- The 2% is calculated on those that earn over 30K of regular compensation
- Only regular compensation (guaranteed, predictable, regular) is pensionable.
- You will need to know if you are a 5%, 7%, 8% or 9% contribution rate.
- Rate is determined by your membership into the system. (When you started to work and had pension contributions taken out)
- Prior to 01/01/1975 5%
- 1/1/75-12/31/1983 7%
- 01/01/84-06/30/96 8%
- 07 /01/1996-Present 9%
Your biweekly pay:
$ 300.00 (overtime)
$ 800.00 (doubletime)
$ 320.00 (detail)
$ 2,300.00 (regular pay) **subject to pension deductions
$3,720.00 total pay
Step 1
Take your regular compensation and multiply it by your contribution rate.
For instance if you are 8% and got paid regular compensation of $2,300.00
Take $2,300.00 x 8% = 184.00 This equals your pension deduction
Step 2
Take your regular compensation pay and subtract $1153.85 which is the biweekly
threshold to determine if an additional 2% should be taken out.
(30K divided by 26 payperiods = $1,153.85)
$2,300.00- $1,153.85 = $ 1,146.15 which is subject to 2%
$1,146.15 x 2% = $22.95 as your pension 30+
How does my pension affect my Social Security benefit?
Massachusetts public employees are "non-Social Security" contributors, which means that as a Massachusetts public employee, neither you nor your employer pays into Social Security. Instead, as a member Gloucester Contributory Retirement System you and your employer pay into our system, a Government Pension Plan under IRS code 401 (a). You may qualify for Social Security benefits through other employment or through your spouse's employment. If you are eligible for SSA benefits, you may be subject to provisions that offset or reduce your SSA benefits because of your Retirement pension. The two provisions that may affect your Social Security benefits are the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO). For more information about the WEP or GPO, contact the Social Security Administration at www.ssa.gov
If I die before retirement, what happens to my money?
If you are married and die before you retire, your surviving spouse can collect a lump sum payout of your accumulated deductions or will have the option of collecting a monthly benefit, including a monthly allowance for children under the age of 18. If you have named a Member-Survivor (Option D) beneficiary, that beneficiary would be eligible to receive a monthly benefit.
If I leave for the winter, do you need to know?
The office can place a seasonal address on your file so that all correspondence will be mailed to your seasonal address.
What happens to my contributions?
The Retirement office established and maintains an individual annuity savings account in your name for your retirement. Every year before July 1st , you will receive an Annual Statement showing the balance of the previous calendar year.
What is a Member-Survivor benefit (Option D)
Member-Survivor (Option D) benefit provides a lifetime monthly benefit to a single person who is a surviving "eligible spouse" or other named Member-Survivor (Option D) beneficiary. The amount of the benefit depends on your age and the survivor's age on the date of death. Only one person may receive the member-survivor benefit.
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 full time 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 soley on your contributions to the system.
When will I receive my monthly retirement allowance?
Your monthly retirement allowance will be available in your account on the last business day of each month. As of October 2009, The Retirement Board requires all retirees to be enrolled in direct deposit.
Who can make changes to my retirement information?
ONLY the retiree can make changes, unless there is guardian or Power of Attorney documentation provided to the Retirement office.
Who is eligible to be named Member-Survivor (Option D) beneficiary
The Member-Survivor beneficiary is limited to a spouse, child, parent, sibling, or a former spouse who has not remarried. An eligible surviving spouse or dependent chitd may supersede any other named beneficiary.
Why do I receive election information periodically?
The Gloucester Contributory Retirement Board has two members who are elected by the active and retired members of our system. The elected Board members have 3-year terms. Any active, inactive or retired member of the Gloucester Contributory Retirement System is eligible to run for the elected seats.