Retirement Board Memo

All current active members of the Boston Retirement Board recently received a letter about contribution rates errors.

The incorrect contribution rate issue applies to a small amount of members. Those most affected are members who left the system (voluntarily or by lay off) and withdrew or were refunded their retirement contribution and then returned to BPS at a later time. The contribution error typically happens when the member rejoins the system. At the time of rehiring, the contribution rate, set by state law, should have been higher.

A few other members may have simply been assigned the incorrect rate at the time of employment.

Whether the first or second scenario applies to you should check your contribution rate. The rate is itemized on your pay stub. Below are the rates and corresponding dates of hire.

HIRE DATE                                RATE
Prior to 1/1/75                    5% deducted
1/1/75                                7% deducted
1/1/84                                8% deducted
1/1/96                                9% deducted
1/1/79 – 6/30/01                additional 2% deducted for earnings over
$30,000
7/1/01 (“teachers” only)      11% deducted

Contact Michael McLaughlin with questions or if you need assistance.