Retirement Planning

There are three types of Benefit Programs to assist employees in saving for retirement.

The State/Boston Retirement System

The State/Boston Retirement System is a pension program mandated by Federal and State laws.  Most City of Boston employees who work more than 20 hours per week contribute to the State/Boston Retirement System instead of contributing to the Federal Social Security System.  A pre-tax payroll deduction is taken from each paycheck and is based on a variety of factors, including your start date, service years and projected annual earnings.  It is a comprehensive system which provides defined benefit pensions to workers who have retired after a fixed number of years of service and age or who have become disabled.    

Deferred Compensation (IRS 457)

The Massachusetts Deferred Compensation SMART Plan (IRS 457) is a Voluntary Retirement Account available to City of Boston employees as well as employees of the Boston Public Schools.  Employees may choose to contribute anywhere from $10 per pay period up to the IRS legal limit.  The money is withheld from your pay on a pre-tax basis and your contributions are invested as you have selected.  There are two ways for you to invest.  Under one option, you can choose to have your plan professionally managed, which involves a small fee. Under another option, you may choose to build and monitor your own portfolio.

To learn more about the Massachusetts Deferred Compensation SMART Plan, please visit http://www.mass-smart.com/. By logging on to this site, you can learn more about the program, download enrollment forms and find the contact information for your representative.  The current administrator of the Massachusetts Deferred Compensation SMART Plan is Great West Retirement Services.  Their offices are located at 255 Bear Hill Road, Waltham, MA 02451.

Annuity Programs (IRS 403 b)

Annuity Programs are optional and available only to employees of the Boston Public Schools. To learn more about Annuity plans, please visit http://www.irs.gov/publications/p571/ch01.html.  Current Providers offering plans to Boston Public School employees can be found on the Boston Public Schools website.


NOTE: All Retirement Planning programs described above have deductions that are taken ‘Before Tax’ and therefore decrease your taxable earnings.