RETIREMENT QUESTIONS & ANSWERS

The following questions pertaining to Group 4 retirement were submitted by members and were answered by a representative at the State Board of Retirement, and by reviewing current state pension reform law. These questions from our members have arisen from the State takeover of the Sheriff’s Dept., changes that may have occurred due to recent pension reform and general questions that are asked by members when considering retirement. These FAQs and answers will be posted on the Local 419 Website as well as the Local 419 Union Board.

 

1. 1.      How long does it take to receive my first check when I retire? How often do I receive my check?

 

Answer:  Most receive their first check within 45-60 days. The Retirement board meets once a month to review applications for retirement and depending on what time of the month you apply for retirement, it could add a few weeks to when receive your first disbursement. Payments are made by direct deposit into your account on the first of day of each month.

 

1. 2.      What information do I need when I meet with the retirement board?

 

Answer:  A notice of Intent to Retire should be filled out for personnel no less (45) days prior to your expected retirement date in order to allow for payroll to communicate all pertinent information to the State Retirement Board. Once that  process starts, you will need to bring your birth certificate, and marriage certificate (if not option A), and a completed application which you can download at:

http://www.mass.gov/treasury/docs/retirement/retforms.pdf

when meeting with a representative from the Retirement Board. You should also meet with the Director of Payroll, Bill Sweeney, to insure that your information, (years of creditable service, salary reported for retirement earnings) are correct and congruent with what you expect them to be.

 

 

 

1. Will they be able to calculate my numbers at the State Retirement Board?

 

Answer: Only an estimate. No final numbers can be calculated until you actually retire. The estimate is based on the immediate past 12 months earnings if 20/50, and the highest 3 years earnings average if 32/55. They will be able to give you an estimate based on your reported retirement deductions and after determining your Group 4 status based on a review of job duties, position title and employing agency.

 

1. How much time prior to retirement date do I need to meet?

 

Answer: No sooner than 120 days.

 

1. 5.      Do you retroactively get back pay factored into the pension, if a contract is settled after retiring?

 

Answer: Only if it specifies in the contract that it is retroactive.  If not, then no.

 

1. 6.      The Suffolk County Sheriff’s Dept. has issues factoring in night time differential as part of base pay, and as agreed to in our current CBA (Article XIX, section 10C ”C.  Employees working a “night shift” are placed in the appropriate “N” pay grade which incorporates the night shift differential into the regular salary rate.”) Does the retirement board account for this disparity when calculating numbers for an employee’s pension?

 

Answer: No. Any issues specific to a CBA which might affect how you were/are paid are between the Employer and you. There is no final ‘fix’ to address how pay was calculated by your Employer at the State Board of Retirement.

 

1. 7.      Does Holiday pay factor into your pension if you chose to take credit time as opposed to pay? It’s my understanding that recent legislation includes Holiday pay in pension calculations.

 

Answer:  Due to recent pension reform included in 2011 Legislation, House Bill number 3790, Section 5, Section 1 chapter 32, and enacted into law on November 18^th, 2011, money paid for Holidays shall be regarded as regular compensation and included in wages for correctional officers, and therefore included in retirement earnings. Holiday compensation taken as credit(time) would not count towards your pension due to need for a percentage of that pay to be deducted for your retirement. Any officer close to retirement should consider switching to money as opposed to time for Holiday compensation to receive that benefit in their pension.

 

                                                                                                                                        

1. 8.      How are alimony/child support payments factored into the pension? Should an employee retiring and waiting to collect his first pension check, stay current with child support and/or alimony payments or wait for the payment, and then disburse?

Answer: Employee should refer to their Qualified Domestic Relations Order (Quadro). Any gap in receiving pay, when an Employee must adhere to a child support payment/alimony payment schedule and when waiting for their first retirement disbursement, is between the Employee and the person receiving those payments. The Retirement Board cannot withhold payment(s) to someone under Quadro so any extra payments made during the gap between retiring and waiting for first pension disbursement is the responsibility of the Employee and the person receiving those payment(s).  For further definition if this, an employee should refer to PERAC, Public Employee Retirement Administration Commission.

Website: www.mass.gov/perac/   Tel: (617) 666-4446

1. 9.      Besides base pay, are all differentials (educational, shift, weekend) factored into the amount calculated?  Longevity? Uniform? Fitness? OT?

 

Answer:  Base pay, educational, shift and weekend differentials, and holidays (taken as pay, not credit) along with longevity are factored into your retirement earnings. OT, uniform, and fitness are not factored into pension calculations. The key is that from any salary earned, a retirement deduction has to be made for it to count towards your retirement earnings. If no retirement deduction is made, it is not included in an employee’s pensionable earnings. NOTE: As of right now the Dept. is not CURRENTLY deducting for Holiday pay towards your retirement. The law that was enacted last November 18^th, treating Holiday pay as regular compensation and as a result, part of our retirement earnings, is recent enough that both the Dept. and the State Retirement Board have not adjusted for it. It is my understanding that the Dept. is working to correct this through payroll, and AFSCME, through attorney Joe Delorey, will be corresponding with the State Retirement Board in order to insure  that the law is adhered to.  Each employee should take an active role in insuring they receive all benefits they are entitled to under the law.

 

1. 10.  If retiring under 20/50, is the last year worked (going back one year from date of intent to retire) the method used to calculate the pension or is it based on your hrly wage at the time of your intent to retire? Under Group 4, 32/55?

 

Answer: For 20/50, the previous 12 months worked from the time of your retirement is what is used to calculate your pensionable earnings. If retiring at over 32 years of service/ 55 years of age, it would be Group 4, and 20/50 would not apply. That pension would be calculated as an average of your highest 3 years within your years of service.

 

1. 11.  If the increments that the pension goes up each year under 20/50 is 1% per year, at what point based on age or years of service does the % increase? For ex. At what age and at how many years of service do the increments become greater than 1% per year?

 

Answer: Age/years of service are the determining factors. At age 55 the percentage per year increases to 2.5% per year, for all years after 20 years of service. Until then, it remains 1% per year.

 

1. 12.  Are there any differences between the State and City of Boston retirement calculations or benefits under 20/50? Group 4?

Answer: None

1. 13.  Are there any dental/eye benefits for retirees?

Answer: Employee should refer to GIC for dental/eye benefits.

1. 14.  If an employee is not currently using the health benefits, (they are under a spouse’s health care plan for ex.), can they opt back into receiving health care benefits after they’ve retired? Any difference in cost?

Answer: Yes. An Employee who is not enrolled with GIC and are not receiving health care benefits at the time of their retirement may opt back into the health care coverage (GIC) if needed after retiring.  Potential cost differences, if any, should an Employee decide to opt back in, would need to be addressed by a representative of the GIC.

1. 15.  If an employee has had a break in service (chapters 600/800, LOA, FMLA), what steps should they take to ensure they are credited with accurate years of service once they plan to retire?

 

Answer:  The Employee should insure that all information that an Employer reports to the Retirement Board is accurate by meeting with personnel to discuss any possible breaks in service that may not have been considered part of their creditable years of service.

 

1. 16.  What are the differences in options A, B and C when retiring? (Retiree and you are the same).

 

Option A:  You get 100% of the benefits that the retiree (you) are due upon your retirement and all benefits cease upon your death.

Option B:   99% of option A.  There is a lump sum refund should you predecease your beneficiary (ies). Your accumulated total (the amount you have paid into your retirement) reduces itself each year after retirement and any remaining balance is paid to your beneficiary (ies) upon your death.

Option C:  95% of option A.  If the retiree predeceases their beneficiary, he/she will receive 2/3 of your pension for their lifetime.  If your beneficiary predeceases the retiree (you), your retirement will revert to Option A.  Formula:  for 20/50 annual salary [base pay + differentials + longevity+holidays] multiplied by 50% and 1% for each year of service over 20 years (for example: 24 yrs. 3 months of service equals 54.3%) equals your gross yearly pension. Based on the spouse’s age, your age and years of service that amount is then multiplied by 95% or less. Due to the large amount of variables, each employee would need to meet with a retirement counselor to get the best estimate of their expected pension benefit. For example, it is possible that based on the age of yourself and spouse, that the percentage multiplied for Option C could be lower than 95%.

 

 

1. 17.  What deductions can a retiree expect out of their retirement and is it possible to have no deductions?  Can, for example, Federal Tax be deferred until filing taxes similar to a 1099?

 

Answer:  Your pension is only taxable by the Federal Government and Federal Taxes can be deferred or averaged per month. No union dues are taken out. If you choose not to receive health benefits because you have other means of receiving them and choose to defer your Federal Taxes, it is possible to have little to no deductions,  and receive the entire amount calculated you are due based on which option you choose.

 

 

1. 18.  Can a State retiree collect his/her pension and work at another State job in any capacity? If so, is there a waiting period or limit to how much he/she can earn?

 

Answer: There is one year waiting period, after which you may work another State, Town, Municipal, City, County job, but with limits to your income dependent upon each individual’s circumstance. You may earn the difference between the current salary of the position you retired from and your pension, plus an additional $15,000. For example> If the position you retired from is $40,000 and your pension is $20,000 per year, you would be able to earn up to $35,000 per calendar year or work up to a maximum 960 hrs.

 

1. 19.  What is the average annual COLA (cost of living adjustment) for retirees? 

 

Answer: The COLA was based on the first $12,000 of your retirement earnings. Due to recent pension reform it is now based on the first $13,000. The average COLA per year is 3%, and that is based on the Consumer Price Index average as applied to Social Security for COLA. That would mean an increase in your pension of approx. $390 per year once retired.

 

1. 20.  Have any of the recent pension reforms changed the way in which a pension or benefits are calculated for current members of Local 419?

Answer: Please see below. The key wording is “newly hired” and “current active” and “current retiree.”

Massachusetts Public Employee Benefit Changes Under Pension Reform

On November 18, 2011 Governor Deval Patrick signed Chapter 176 of the Acts of 2011, “An Act Providing for Pension Reform and Benefit Modernization.” This is the third pension reform measure passed in the last three years, and significantly changes the benefit structure for all newly hired Massachusetts public employees. In addition, the law increases benefits for certain retired members and survivors. The law also changes certain rules affecting current employees. Below is a summary of the significant modifications under the new law.

Changes Affecting Current Active Public Employees

• Anti-Salary Spiking: The new law limits the annual increase in pensionable earnings Individuals who retire on or after 4/2/2012. Increases of more than 10% in salary will not be included in calculating the average pensionable earnings over the previous two year prior to retirement. This provision does not apply to bona fide job changes, payments for additional services that are otherwise eligible for inclusion, and other exempted payments.
• Buyback Increase: Interest charged on buybacks and certain other service purchases increases if the employee does not make the payment within the first year of membership or within one year from 4/2/2012.
• Holiday pay: Holiday pay received as money is now part of your regular compensation based on the following bill number 3790, enacted into law on November 18^th, 2011:

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same as follows:

SECTION 5. Section 1 of said chapter 32, as so appearing, is hereby further amended by inserting after the word ‘firefighters’, in line 607, the following words:- , correctional officers.

That change was applied to Section 3 of Senate Bill 2079, definition of Wages: …”Wages, the base salary or other base compensation of an employee paid to that employee for employment by an employer; provided, however, that “wages” shall not include, without limitation, overtime, commissions, bonuses other than cost-of-living bonuses, amounts derived from salary enhancements or salary augmentation plans which will recur for a limited or definite term, indirect, in-kind, or other payments for such items as housing, lodging, travel, clothing allowances, annuities, welfare benefits, lump sum buyouts for workers compensation, job-related expense payments, automobile usage, insurance premiums, dependent care assistance, 1-time lump sum payments in lieu of or for unused vacation or sick leave or the payment for termination, severance, dismissal, or any amounts paid as premiums for working holidays,….

20 except in the case of police officers, firefighters and (correctional officers-inserted November 2011), employees of a municipal

21 department who are employed as fire alarm signal operators or signal maintenance repairmen

22 money paid for holidays shall be regarded as regular compensation”…

 

Changes Affecting Current Retirees:

• Cost of Living Increases: Future COLA increases for retirees will be based on the first $13,000 instead of $12,000.
• Minimum Pension Benefit: Effective 4/2/2012, the minimum pension for members who retired with at least 25 years of creditable service is increased from $10,000/year to $15,000/year.
• Surviving Spouse: Effective 4/2/2012, the minimum benefit paid to the surviving spouse of a member who dies while in service increases from $250/month to $500/month.
• Post-Retirement Earnings: Effective 4/2/2012, members retired for at least one year may earn an additional $15,000/year in post-retirement earnings.

Changes Affecting New Public Employees Hired on or after April 2, 2012:

• Minimum Retirement Age: The minimum retirement age is raised from 55 to 60 for Groups 1 and 2
• Group 4 Retirement Age: The minimum retirement is raised from 45 to 50 for Group 4
• Age Factors: The new law reduces the age factors in the retirement formula.
• Average Salary for Calculation of Pension Benefit: The salary average period used in the retirement benefit calculation formula is lengthened from 3 years to 5 years.
• Contribution Rate: Reduces the contribution rate by 3% (e.g., from 11% to 8%) once a member has 30 years of creditable service.

Again, these changes primarily affect newly hired Officers and would not affect the majority of the Officers currently employed by the Suffolk County Sheriff’s Dept. There were no changes found to 20/50 other than forced inclusion into GIC and an increase in the future COLA for current and future retirees based on the first $13,000, rather than the first $12,000.

If a member has a question about their retirement or pension, please direct the question to me and I will answer it as thoroughly and correctly as I can. PERAC, (website provided in answer for eight) is also a very helpful tool in answering questions pertaining to your pension and retirement. You can also contact the State Board of Retirement located at One Ashburton Place, Room 1219, Boston, MA 02108.  Tel: 617-367-9333, Fax: 617-723-1438.  Website: http://www.mass.gov/treasury/retirement/state-board-of-retire/

Ken Long, Recording Secretary Local 419

Tentative Agreement Voting Results

296- yes
52- no
2- void

Contract has passed. Thank you to all who voted and participated in the process.

Monday, April 30th, 2012
McKeon Post
4 Hilltop St., Dorchester, MA
8 am. 11 am. 4 pm.

Contract Information/Tentative Agreement

Contract Vote to be held Tuesday, May 1st, 2012 from 6am to 4pm at South Bay.

sorry to inform the membership,but we lost the swap arbitration.the
arbitrator sided with the dept.it looks like we have to live with the
way the dept. currently allows swaps.i will post the decision shortly
on this site.

50/50 Raffle To Help Raise Money For The Local 419 Officers Benefit Fund
Begins March 30 And Runs To April 30. Cost Is $5 A Ticket.
See The Following Officers For Tickets.
7-3 Shift                        3-11 Shift                          11-7 Shift
Janine Dunn             George Rodriguez            Mike Simpson
Mike Gannon               Chris Ryan                     Vaughn Gibson

Minutes for Local 419 Union Meeting March 22, 2012

All Local 419 members, a Union
Meeting is scheduled for next Thursday, March 22 at 8am, 11am and 4pm
at the McKeon Post In Dorchester. Old Business/New Business.
Refreshments to be provided.

ALL LOCAL 419 MEMBERS
UNION MEETING IS NEXT THURSDAY MARCH 22ND AT MCKEON POST DORCHESTER SCHEDULED FOR 8AM, 11AM AND 4PM. OLD BUSINESS/NEW BUSINESS. REFRESHMENTS TO BE PROVIDED.

Locals:  419, 3643 & 3967.......attached is an unfavorable decision from
the Labor Board on the 1/2 Hour OT case.

Click here to Read More.

WAKE SERVICES AND FUNERAL ARRANGEMENTS FOR OFFICER M.R. COAKLEY

Wake: GORMLEY FUNERAL HOME 2055 CENTER ST WEST ROXBURY MA. Thursday February 2ed, 2012, 4:00pm, to 8:00pm. Walk by, at funeral home at meet approx 4:30pm. If you need a ride, meet at south bay house of corrections at 3:30pm. Uniform of the day is class A’s, hat, and gloves, mourning bands, will be provided.

Funeral: Holly Name Church, 521 W Roxbury Pkwy West Roxbury, MA. Phone: 617-323-9650. Services Friday, February 3, 2012. 10:00am. Meet at 8:15am the south bay House of Corrections if taking shuttle. The Church services will be at Holy Name Church (West Roxbury, Massachusetts)

Any questions please let me know, please attend, Officer Mike Coakley is our brother, and it is up to us to show our respect in numbers and support.

Thanks, local 419.com, Ronnie Lees.