Plymouth County Retirement Association
1935 - PRESENT
1935 - Massachusetts established MGL Chapter 32, which codified and expanded the Government Pension Plan to include municipal & county employees. In most states, government employees were covered by State & Local Government Pension Plans prior to the establishment of Social Security.
1936 - Federal Government established Social Security Insurance covering all private sector employees. Originally, State & Local Government employees were excluded from Social Security due to "States Rights Doctrine". As in the case of Massachusetts, most states already had established pension plans covering State and Local Governments employees before the establishment of the Social Security Administration.
1937 - Plymouth County Retirement Association was established under MGL Chapter 32. Cities, towns, districts, and authorities within Plymouth County were eligible to join the Plymouth County Retirement Association.
1946 - Employees began paying 5% of their pay towards the funding of their retirement benefits. This amount established their respective annuity savings account.
1951 - State and Local Governments were allowed to enter voluntary agreements (Section 218 Agreements) with the federal government to include their public employees under the social security program. Massachusetts public employees do not participate in social security.
1975 - New employees required to contribute 7% of pay towards the funding of their retirement benefits. This is the amount that is reflected in their annuity savings account.
1978 - New employees required to contribute additional 2% on salary in excess of $30,000.00 (7% plus additional 2% over $30,000.00; i.e. 7% on first $30,000.00 of salary - 9% salary above $30,000.00).
1984 - New employees required to contribute 8% plus additional 2% (salary >$30,000.00) (8% of first $30,000.00; 10% over $30,000.00). This is the amount that is reflected in their annuity savings account.
1988 - Up until 1988, Massachusetts public employers contributed to their respective pension systems on a "pay as you go" basis (i.e. as benefits were paid out to retirees); employers did not contribute towards the future benefits of current employees (normal costs). In 1988, State law changed to establish a funding schedule, requiring employers to contribute for the future benefits of active employees as well as to pay down the previously unfunded liabilities created from 1937 to 1988. The target deadline to achieve full-funding status was 2028. Upon reaching full-funding the employer ís contribution will be reduced to "normal cost" (current year liability for current employees).
1988 - Employees contributions changed status from Post-tax contribution (after tax) to Pre-tax contribution (before tax or tax-deferred).
1991 - Amendment to Internal Revenue Code mandated Social Security for those public employees not covered by "qualifying retirement system"; Establish OBRA programs for non-members; elimination of probationary period before membership eligibility.
1996 - New employees required to contribute 9% of salary plus additional 2% over $30K (9% on first $30,000.00, 11% on salary over 530,000.00).
2009 - Law change to allow extension of Funding Schedule to 2030.
2010 - Law change to allow extension of Funding Schedule to 2040. Plymouth County Retirement Association has a funding target of 2029.
2012 - Public employees hired after April 2 2012 fall under a different benefit formula than those hired prior April 2 2012.