Contribution Rates

Your pension contributions are made through a payroll deduction. The contribution rates are different based on the date you became a member of a public retirement system.  The pension contribution rates are based on the following dates of membership:
 
  • If you became a member before 1975 your contribution rate is 5%
  • If you became a member between 1975 - 1983 your contribution rate is 7%
  • If you became a member between 1984 - June 30, 1996 your contribution rate is 8%
  • If you became a member after July 1, 1996 to present your contribution rate is 9%
Additionally, if your employment date in a public entity subject to Massachusetts General Law Chapter 32 is after January 1, 1979, you also must contribute 2% of your annual pensionable income earned over $30,000.  Please note that your employment date may differ from your membership date and that it is your employment date that determines whether the additional 2% will be withheld from your regular compensation over $30,000.  You should also be aware that the Pension Reform Act of 2011 establishes a new contribution rate for Group 1 members who become members of a public retirement system on or after April 2, 2012. The contribution rate of these members will be reduced to 6% when the 30 years of creditable service is attained. The new contribution rate applies to those who become members on or after April 2, 2012.  Additionally, if a member who has terminated and taken a refund of his or her accumulated total deductions later becomes a member of a public retirement system, he or she is subject to all of the rights and responsibilities of Massachusetts General Law, Chapter 32 as of the date that the individual returns to membership.


ERRS encourages you to regularly check your retirement deductions to verify that you are contributing the correct amount.  If you have questions on your retirement deduction percentage, please contact your payroll coordinator or Traci Masterson, Membership Coordinator at the Essex Regional Retirement System at (978) 739-9151, extension 121 or via email at tmasterson@essexrrs.org.