Tally section now shows all those in the 118th Congress signed on who support the complete repeal of the Windfall Elimination Provision and the Government Pension Offset. Go to Tally under legislation to see the complete list.
On April 2, 2012, all those who retired prior to September 2000 and left the classroom to have a child, or adopt, prior to January 1975 (or within a specified period of months following that date), and were teachers in Massachuetts can receive up to four years added to their creditable service, of the time they were out. Their pensions will be recalculated. If you have questions on this bill please send an email to
mardito@retireesunited.org
All those returning to a public sector job in Massachusetts may add $15,000 to the amount they are allowed to earn after being retired one full calendar year. This became effective April 2012.
The amount of hours they may work was increased from 960 to 1200. This is also calculated on a calender year.
In 2014 the Comminwealth imposed a new higher rate of interest on purchasing creditable service. It is adviseable to withdraw money from a new or existing pre-taxed vehicle such as a TSA, 403b plan, etc to pay for that servvice. You are then paying with pre-taxed dollars and the Government is helping foot the bill.
In 2012, the Commonwealth's retirement plan initiated a Tier 2 component. All those entering the retirement system after April 2, 2012 are in Tier 2. This tier does not allow one to retire before age 60 irrespective of how many years of service you have. It also uses a different age factor chart.
In July 2014, the Commonwealth reduced the penalties associated with Option B and Option C. Option B was reduced from 3-5% penalty to a 1-2% penalty. It greatly reduced the Option C amount which is determined by the age of the member and the age of the beneficiary. Consult your respective retirement site calculator to see how you are affected if you are entertaining taking one of these options
New Ruling by IRS went into effect early fall of 2005. It will allow you to defer your federal tax on your sick leave buy back. This must be done properly to be effective. If you do not need your sick leave buy back at the time that you retire and wish to defer paying federal tax on it, please email me at mardito@retireesunited.org and I will have someone knowledgeable about the process contact you. In the year you retire, if your sick leave buy back is a good amount, you may have federal tax implications. If you retire June 30 of a given year, you will collect 1/2 year of full teacher's salary plus 1/2 year of your pension.(You collect pension for the months of July and August). Plus if you take on a full or part time job you will have that income as well. If you do the long form for taxes, you will have a very high salary if you add a high amount of sick leave buy back to the above two or three amounts.