Any state employees w knowledge about the SERS? (credit, how much)

[foxboro82]

If I were a member of the SERS retirement program, and quit working in public service at age 55, could I go work somewhere else and defer collecting SERS retirement until a later age, say age 60 as a way of increasing my pension?

I understand at age 55 (with 21 years of creditable service), the pension would be calculated at around 31.5% of my averaged last three years’ salary. At age 60 with 21 years of service, this percentage is around 42.0%.

I just wanted to see if the SERS program worked in this way.

[Cloudship]

I would talk with your HR department on that.

I really don't understand much about it, but from what I gather...

The SERS (State Employee Retirement System) program only looks at when you worked for the state, not what you did after leaving. So being based on your last 3 years, it will be based on the last 3 when working for the state. The percentage that you get is determined not by when you last worked, but by your age when you start withdrawing from your account. So that part does not matter as to who you worked for just before you retire.

However, I know there are lots of complicated factors in determining how much you can get. I know that if you get any other kinds of benefits it will affect your pension from the state as well.

[johngolf]

Originally Posted by foxboro82

If I were a member of the SERS retirement program, and quit working in public service at age 55, could I go work somewhere else and defer collecting SERS retirement until a later age, say age 60 as a way of increasing my pension?

I understand at age 55 (with 21 years of creditable service), the pension would be calculated at around 31.5% of my averaged last three years’ salary. At age 60 with 21 years of service, this percentage is around 42.0%.

I just wanted to see if the SERS program worked in this way.

Also be aware that MA is one of 26 states that are part of WEP.

Q. What's the Windfall Elimination Provision (WEP)?
A. The WEP is a federal law that applies to individuals who receive a pension from a public-service job that is not covered by Social Security. If the public pensioner also worked in a Social Security-covered job for at least 10 years, the WEP creates a public pension offset that can greatly reduce that person's earned Social Security benefit. The maximum reduction is $380.50 a month (2010).

It is my understanding that when you start collecting retirement from SERS that your Social Security will be reduced if taking SS or later when applying for.

My wife retired from MA. We met with the MA State Retirement Board and they were very helpful in explaining all her options. Try contacting them. You will also have to talk to SS about it to get an exact number.

Hope this helps.

[foxboro82]

Thank you Cloudship and Johngolf. I'll keep looking into it.

I was aware of the WEP and am basically counting on not getting any SS upon retirement. I have enough years vested prior to working for the state of MA, but when I visited them to ask about it, they estimated a monthly SS payment of around $100-$200 at best.