Welcome to the Members Information Page

THE BASICS

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If you are employed by the City of Lawrence on a permanent basis and holding a position, which requires you to work a minimum of 20 hours per week (excluding teachers), you are eligible to become a member of the Lawrence Retirement System. According to the Massachusetts General Laws, Chapter 32 you must become a member of the system if you meet these eligibility requirements. Since the Lawrence Retirement System is governed by the provisions of M.G.L., Chapter 32, any changes in the plan must be made through the legislative process. Each employee is required to contribute to the retirement system a rate which is determined by statute. Rates are as follows

 

Employment began on or after July 1, 1996 - 9 % of regular compensation

Employment began between January 1, 1984 and July 1, 1996 - 8 % of regular compensation

Employment began between January 1, 1975 and December 31, 1983 - 7 % of regular compensation

Employment began prior to 1975 - 5 % of regular compensation

 

The law also mandates that for members whose employment commenced on or after January 1, 1979, an additional two percent of regular compensation will be withheld on compensation over $30,000. This two percent is in addition to the above set percent that is already being deducted from regular compensation.

Regular compensation is the portion of your salary that is subject to retirement contributions. Overtime, bonus pay, severance pay and payments made for unused sick time are not considered regular compensation, are not subject to retirement and cannot be used towards your three-year or five-year salary average for the purpose of determining your retirement allowance.

 

Once you begin contributing to the system, an Annuity Savings Account is established on your behalf. Your employer deducts your retirement contributions and forwards them to us. We then deposit your contributions into your Annuity Savings Account. Your contributions, plus any accumulated interest (interest rate is determined by the Public Employee Retirement Administration Commission), are credited directly to your account.

 

Each year we will issue a statement to all our active members that reflects the yearly and total contributions and interest credited to the account. We ask that all our members please keep us updated with their current addresses

 

ACCRUING TIME WITH THE RETIREMENT SYSTEM INCLUDING BUYBACK

 

As a full time employee, each month you work you are credited a month of service. If you are a part time employee, your time will be prorated accordingly. The only individuals who work less than full time, yet are given full time credit are teacher aide's. If you were a member of another retirement system subject to the provisions of M.G.L., Chapter 32, and you withdrew your retirement funds, it is possible to buy back your prior creditable service. Once supplied with payroll records. The Retirement Office will verify your prior service, then calculate the amount of your buyback. You must repay the amount withdrawn, plus interest, to the date of repayment. You may complete a buyback as a lump-sum payment or through payroll deduction over a five to ten year period. This service is then added to your account for retirement purposes. If you worked for a municipality yet did not contribute to their retirement system, upon furnishing proof of employment, showing length of service, and salary paid, the Retirement Office will calculate a buyback and request an acceptance of liability. Once received you may complete a buyback as a lump-sum payment or through payroll deduction over a five-year period. All requests can be made at the office or with a phone call to the office.

 

Purchasing Service - New members who apply for a makeup/buyback payment will be subject to 3.5 % interest if paid within a year of their membership date. If a re-payment is extended beyond this time frame (not to exceed 5 years for balance under 10K or 10 years for balance over 10K), it will be subject to 7.0% interest. All Make-up payments for service that one never paid into the system will be subject to 7.0% interest.  - If you are interested at any point in purchasing prior Commonwealth of Massachusetts service, please fill out this form             and return it to our office

 

Please note any new member that is a veteran may be eligible to do a veteran buyback.  Any veteran who filed an application for a veteran buyback may be eligible.  Please contact the office for more information.  

 

What is considered Regular Compensation:

Regular compensation is the amount of earnings that a member will pay retirement contributions on.  Regular compensation will be used in determining a member’s final average salary, which is one of the factors used in calculating a retirement allowance. Compensation must comply with statutory and regulatory requirements in order to be pensionable.

 

Regular compensation generally includes:

• the annual rate of compensation in a member’s salary schedule

• educational incentives

• longevity payments made for length of service

• premiums for holidays and shift differentials for police and fire

• on call or standby pay

• hazmat pay for police and fire

• payments for rendering instructional training

 

Regular Compensation Generally Excludes:

• amounts paid for hours worked beyond the member’s normal work schedule (i.e., overtime)

• amounts paid as bonuses other than cost-of-living bonuses

• payments which will not recur, and payments which will recur for only a limited or definite term (i.e., salary augmentation plan)

• amounts paid for unused vacation, sick leave, or other leave

• severance pay

• amounts paid as early retirement incentives

• any payments made as a result of giving notice of retirement

• amounts paid for housing and lodging

• amounts paid for clothing, uniform, tool allowances

• amounts paid for annuities

• amounts paid for expense payments

• amounts paid for travel

• amounts paid for automobile usage

• amounts paid for insurance premiums or for not participating in the employer’s health insurance plan