Middlesex County Retirement System Information on Massachusetts Public Retirement Benefits<\/a> MA SMART Plan OBRA Deferred Compensation Plan The Social Security regulations require that participants in an OBRA program always receive 100% of their principal contributions, plus interest. Therefore, all contributions are invested in a guaranteed fixed annuity. Distributions are restricted to a lump sum payment. The Town’s OBRA plan is the MA SMART Plan<\/a>, managed by Empower Retirement. For more information about this plan SMART Plan OBRA Information Guide<\/a>.<\/p>\n The Town of Sudbury offers optional deferred compensation plans for benefits-eligible employees. These plans allow employees to save and invest additional money (beyond their mandatory pension contribution) for retirement with tax benefits. <\/p>\n What Is a 457(b) Plan?<\/strong> Town of Sudbury employees may enroll in the MA SMART Plan<\/a>, <\/strong>a retirement savings program available for Commonwealth of Massachusetts state and municipal employees. Eligible employees can save and invest before-tax and after-tax dollars through salary deferrals into our wide array of low fee investments options. Take advantage of this valuable employee benefit: S<\/strong>ave M<\/strong>oney A<\/strong>nd R<\/strong>etire T<\/strong>omorrow. To learn more<\/strong> about the SMART Plan, read the SMART Plan Overview<\/a>. For questions or to enroll<\/strong>, contact our plan representative Andrew Wilson at 719-300-5553, Andrew.Wilson@empower.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Mandatory Retirement Plan Contributions Middlesex County Retirement System (mandatory for benefit-eligible employees) Employees who regularly work at least 20 hours per week on a year-round basis (not seasonal) are required to contribute to the Middlesex … Read full article
\n<\/strong>(mandatory for benefit-eligible employees)
\nEmployees who regularly work at least 20 hours per week on a year-round basis (not seasonal) are required to contribute to the Middlesex County Retirement System<\/a>. This is a defined benefit (pension) plan.<\/p>\n
\nInformation on Social Security and Your Public Pension<\/a><\/p>\n
\n<\/strong>(mandatory for non-benefits-eligible employee)
\nEmployees who work on a part-time (less than 20 hours per week) seasonal or temporary basis, are ineligible for membership in Middlesex Retirement, and must instead contribute to a deferred compensation plan (or similar plan) under the Omnibus Budget Reconciliation Act (OBRA). This is a mandatory deduction of 7.5% that essentially replaces the deduction normally taken for Social Security. If\/when you separate from the Town, you can request a refund or roll the funds into another eligible employer-sponsored plan or a traditional Independent Retirement Account (IRA). <\/p>\nVoluntary 457(b) Deferred Compensation Plans<\/h4>\n
\nA 457(b) plan is a tax-deferred retirement savings plan. Funds are withdrawn from an employee\u2019s income without being taxed and are only taxed upon withdrawal, which is typically at retirement. Some 457(b) plans offer a Roth contribution option. Roth contributions are made after-tax, rather than before tax, and withdrawn tax-free at retirement if certain criteria are met.<\/p>\n
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