Pension, OBRA & Deferred Comp. Plans
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 County Retirement System. This is a defined benefit (pension) plan.
Mission Square PTS Employee 457 Deferred Compensation Plan (mandatory for non-benefits-eligible employee)
Employees 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).
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 provider is Mission Square Retirement (formerly ICMA-RC). Mandatory contributions are invested in the PLUS Fund. Voluntary contributions are invested in a guaranteed fixed annuity. If you have any questions about this plan, please contact the Town's plan representative, Michael Savage, at 202-759-7148 or email@example.com.
Optional 457 Deferred Compensation Plans
The Town of Bedford offers two 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. Employees have a choice of two providers: Mission Square Retirement (formerly ICMA-RC) and the Massachusetts SMART Plan. More information can be found at the following links:
MA SMART Plan
WebsitePlan Representative: Sean Doucette