History of the Plymouth County Retirement Association
1935 - PRESENT
1935 - Massachusetts established MGL Chapter 32, which codified and expanded the Government Pension Plan to include municipal and county employees. In most states, government employees were covered by state and 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 and 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 government 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 toward 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 were required to contribute 7% of pay toward the funding of their retirement benefits. This amount is reflected in their annuity savings account.
1978 - New employees were required to contribute an additional 2% on salary in excess of $30,000.00 (7% on first $30,000.00 of salary - 9% on salary above $30,000.00). This amount is reflected in their annuity savings account.
1984 - New employees were required to contribute 8% plus an additional 2% on salary in excess of $30,000.00 (8% of first $30,000.00 - 10% on salary above $30,000.00). This amount 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’s 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% plus an additional 2% on salary in excess of $30,000.00. (9% of first $30,000.00 - 11% on salary above $30,000.00). This amount is reflected in their annuity savings account.
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 2031.
2012 - Public employees hired after April 2, 2012 fall under a different benefit formula than those hired prior to April 2, 2012.
