Retirement Planning

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

The Boston Retirement System

The 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) offers two Voluntary Retirement Account options to employees of the City of Boston and Boston Public Schools.  Employees may choose to contribute  to either aTraditional 457 Accounton apre-taxbasis or to aRoth 457 Accounton apost-taxbasis.  There are two ways for you to invest:  1.) You may choose to have your plan professionally managed, which involves a small fee or 2.)  You many choose to build and monitor your own portfolio. 

The two accounts have very different tax implications.  Please review the information before deciding to enroll in one or both.  Log on to www.mass-smart.com for more information, to obtain the contact information for your designated representative or to enroll online.

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.