Retirement



FULL-TIME EMPLOYEES

The Human Resources recognizes that making decisions about retiring from employment is one of the most important decisions that one faces in their lifetime.  We encourage you to plan as far in advance for your retirement and no questions are ever to inconsequential to ask.  Below and through the provided links, we have tried to provide as much information as possible, but individual meetings with the Director of Human Resources and other HR Staff are strongly recommended.  Similarly, if you are looking for information that you do not find here, please ask.  Finally, our employee assistance program, LifeWorks, has some wonderful general information about retirement and things that employees should consider in making this important decision.

State Employees Retirement System (SERS)

SERS provides a defined benefit after a minimum of 10 years service that is based on years of services, age and salary. For new employees, 9% of salary is deducted from pay along with 2% of salary over $30,000.00. Deducted amounts are returned to the employee if he/she leaves state service prior to vesting. Click here to go the SERS website

Optional Retirement System (ORP)

The Optional Retirement Program (ORP) is an alternative to the State Employees' Retirement System that provides flexible and portable retirement benefits for faculty, President, Vice Presidents and Deans at the Commonwealth's public institutions of higher education. The ORP is an integral part of the Commonwealth's efforts to recruit and retain the strongest candidates for these key positions at the institutions. The approved providers are:

Teachers Insurance and Annuity Association College Retirement Equities Fun (TIAA/CREF) #1-800-842-2776

The Variable Annuity Life Insurance Company (VALIC) #1-800-448-2542

Fidelity Investments - 603-965-6266

To learn more about this program, or to request a copy of the Optional Retirement Program from the Human Resources Office or visit the Massachusetts Department of Higher Education website.

Tax Sheltered Annuity (403b Plan)

All employees are eligible to have additional money withheld from their weekly paycheck on a pretax basis for purposes of supplemental retirement savings. The Commonwealth allows employees to have this money invested with the seven companies on the Commonwealth's approved list.

All employees are eligible to set up and contribute to a TSA. The College makes no contribution to this account. The employee chooses the approved provider and contributes through payroll deduction an amount of money they determine. This money is contributed on a pretax basis. The seven (7) authorized companies are listed below with Representative's Name and telephone number.

AIG RETIREMENT (VALIC) - Josh Gould  Josh.Gould@valic.com 

978-287-4156 

FIDELITY - benjamin.greene@fmr.com 1-800-248-4213 X3107

ING - Teri Finigan 781-796-9869

LINCOLN FINANCIAL - Adam Dani 855-699-6875 Adam.Dani@LFG.com

METLIFE RESOURCES MFSP - John Hanna

800-492-3553 X. 28156

TIAA-CREF - Jean Younger 617-441-1315; 866-842-2824

Deferred Compensation (457 Plan)

Great-West Retirement 457 Plan (Smart Plan) - Jim Begley 877-457-1900 X20091

The Commonwealth of Massachusetts deferred compensation plan allows employees to defer current earnings and invest them on a federal and state tax-deferred basis through payroll deduction. More information is available on the Commonwealth website at http://www.mass.gov/smartplan/.

Social Security

The Commonwealth of Massachusetts has elected not to participate in the Social Security System. Therefore, Middlesex Community College employees are exempt from Social Security taxes. Employees do not have payroll deductions. However, federal law (COBRA) mandates that all state government employees hired after April 1, 1986 are required to pay the Medicare portion of the social security tax. This tax is 1.45% of the first $125,000 earned per year.

New legislation {Section 419(c) of Public Law 108-2-3, the Social Security Protection Act of 2004} requires state and local government employers to provide a statement to employees hired January 1, 2005 or later in a job not covered under Social Security. The statement explains how a pension from that job could affect future Social Security benefits to which they may be entitled. Social Security Information Form SSA-1945

For more information you should visit the Social Security Administration website: http://www.ssa.gov/ On this website there is specific information for government employees http://www.ssa.gov/gpo-wep/

 

PART-TIME EMPLOYEES

Omnibus Budget Reconciliation Act (OBRA)

As state employees are not subject to Social Security, and part-time non-benefited employees may not participate in the State Retirement System, those employees must participate in OBRA, which is administered by GREAT-WEST. Under this plan, 7.5% of earnings is deferred until retirement or separation. Please refer to the Commonwealth of Massachusetts SMART PLAN web site http://www.mass.gov/smartplan/ for additional information; click on "Find a Form" in the left-hand frame. You can also go directly to their website and find SMART-PLAN HIGHLIGHTS at http://www.mass.gov/smartplan/forms/OBRAPlanHighlightsr.pdf

Social Security

The Commonwealth of Massachusetts has elected not to participate in the Social Security System. Therefore, Middlesex Community College employees are exempt from Social Security taxes. Employees do not have payroll deductions. However, federal law (COBRA) mandates that all state government employees hired after April 1, 1986 are required to pay the Medicare portion of the social security tax. This tax is 1.45% of the first $125,000 earned per year.

New legislation {Section 419(c) of Public Law 108-2-3, the Social Security Protection Act of 2004} requires state and local government employers to provide a statement to employees hired January 1, 2005 or later in a job not covered under Social Security. The statement explains how a pension from that job could affect future Social Security benefits to which they may be entitled. Social Security Information Form SSA-1945

For more information you should visit the Social Security Administration website: http://www.ssa.gov/ On this website there is specific information for government employees http://www.ssa.gov/gpo-wep/

Last Modified: 4/8/14