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Retirement Planning

Congratulations on reaching the point in your career when you are considering retirement!  With the goal of sharing and documenting the wisdom of some individuals well versed in the nuances of preparing for retirement, we create this page.

The 10% Deadline
:  If you wish to continue with the 10% bonus over the last three years of your teaching career, you must notify the Wayland School Committee in writing by December 31, 2013.  There will soon be a from from Central Office for your use.  If you are not sure which option you should select, please read Conrad FAQ1.

FAQs - Overview of Retirement System

Question 1:  What is the retirement system?  Teachers in Massachusetts are part of the Massachusetts Teacher Retirement System (MTRS), a pension system in which retiring teachers receive up to 80% of their salary annually for the rest of their lives.  The pension percentage is based on a combination of years of service and age of employee.  The MTRS website has a wealth of information including the schedule for pension percentages.

Question 2:  Who funds the pension system?  Teachers fund about 96% of the pension system.  Typically, 11% of your paycheck goes into the pension fund.  Don't let anyone tell you that the teacher pension system in Massachusetts is a burden to local or state government.

Question 3:  What is pensionable?  You salary, of course, is pensionable, but there are other dollars that are part of the calculation of how large your pension will be.  Co-curricular stipends for coaching and clubs are pensionable.  Leadership stipends such as department heads are also pensionable.  Other stipends such as overnight chaperoning are not pensionable.  Summer work dollars are not pensionable.  The 2013-2017 Collective Bargaining Agreement includes a longevity payment as an alternative to the 10% bonus structure for those within 3 years of retirement.  The longevity payments are pensionable.  The 10% severance payments are not pensionable.

FAQs - Conrad’s Corner

Conrad FAQ1: I began working in Wayland prior to July 1, 2013. Should I move to the longevity system or continue with the 10% bonus option?

Answer


Conrad FAQ 2: How does the 10% Retirement Bonus Work?

Answer


Conrad FAQ 3: If I retire at age 59, what happens to my health care?

Answer:  If you have been purchasing your health insurance through the town of Wayland you can keep the same insurance coverage until either you or your spouse attains age 65, assuming that you and your spouse are Medicare eligible.  If you sign up for Wayland health insurance a year before you retire, can you still keep your coverage....

Conrad FAQ 4:  My husband has insurance through me here at Wayland.  He is two years younger than I am.  If I retire at age 58 what happens to our health care insurance?

Answer: 

Conrad FAQ 5:  What happens to our premiums upon retirement?

Answer:  If you are not Medicare eligible, you can remain on the same plan and your premium contribution remains the same as active employees, with premiums being deducted directly from your pension.  If you are Medicare eligible upon retirement, you will enroll in Medicare Parts A and Part B and then enroll in a Medicare supplemental plan through Wayland.  Medicare supplemental premium contribution rates will vary by plan.


Conrad FAQ 6:  What happens once I am on Medicare?

If you or your spouse are Medicare eligible, you will enroll in Medicare part A and Part B. You can then purchase Medicare supplemental insurance through the town for expenses not paid by Medicare.



Conrad FAQ 7:  What if we move out of state? Can we continue to receive health insurance through Wayland?

Answer: Yes, but you may have to change your plan to secure coverage out of the area. Wayland, through its insurance purchasing agent the West Suburban Health Group, offers plan(s) which will provide you with out of area coverage.


Conrad FAQ 8:  What does the MTRB require me to do when I retire?

Following is timeline of the steps you should take when you are ready to retire:

1)   2 Years Before – Look to see if you have any creditable service you can purchase.  If you are not at the maximum benefit level each year of service can mean a big difference in the percentage your retirement will be based on. 

2)   6 Months Before – Go online to the MTRS website and estimate your benefit, review general issues, and download the two-part retirement application found under, “downloadable forms”.

3)   6 Months Before – Complete Part 1 of application, gather your required documents, and give Part 2 to Wayland’s payroll official for completion. 

4)   4 Months Before – Receive Part 2 from payroll official and submit to MTRS. (This can be done in person which is very easy and saves you from having to send your birth certificate, a spouse’s birth certificate and a marriage license by mail.  Copies are not accepted.  You will also know the material has been received. The MTRS offices are right across the street from the Cambridge Side Galleria and very easy to get to.)

5)   1 Month Before – You will receive your notice of Estimated Retirement Benefit from the MTRS.

6)  2nd Full Month After Retirement – Receive first retirement check, covering period from date you officialy retired.

Can the MTRB help me as I plan my retirement?

Yes, their website is very helpful and if you want further assistance you can always set up an appointment.  They take awhile to set up so plan ahead.  Another good source of information and assistance is the MTA.  You can also request a personal meeting but again plan ahead as these book in advance.

What websites should I be looking to for retirement information?

The best and easiest to use is the MTRS website at:

http://www.mass.gov/mtrs/


From a retired WTA member:  Does the WTA have an opinion about Wayland’s new idea about getting the retirees "off the roll"?   My concerns are 1. paying taxes on the amount Wayland sends to cover the retiree's supplement, 2. not belonging to a group to keep costs low, 3. what if insurance costs rise?   Will the amount Wayland sends rise?  Are retirees' benefits part of the WTA's contract?