Glossary of Terms
Accidental disability retirement - a retirement based on a job related injury rendering the employee permanently and totally disabled from performing the essential duties.
Annuity - a portion of your monthly retirement allowance that is based on the total amount in your annuity savings fund on the date of your retirement.
Annuity savings fund - the total amount of your contributions and interest in the Lawrence retirement System
Beneficiary - Person, charity, or institution that you name to recieve your allowance or pensions upon your death
Board Members - a group of 5 people made up of 2 elected members, 2 appointed members and 1 member Executive Director-officio
Buy-Back of creditable service - The redeposit of a refund previously received from the termination of prior Massachusetts government employment
COLA - an annual cost of living adjustment not to exceed 3% of $12,000 upon Board approval, Cola´s are not automatic
Contributions - the mandatory deduction of 5% or 7% 8% 9% & 2% withheld from your regular compensation
Creditable service - the amount of months, years of continuous contributing to the retirement system
Make-Up of creditable service – To purchase prior employment in Massachusetts government prior to becoming a member of a retirement system
Military Service Credit - A Veteran´s ability to purchase up to four years of creditable service corresponding to their military service
Option C “Pop-Up” - If your Option C survivor dies before you, you will thereafter be paid the full allowance you would have received had you chosen Option A including Cost of Living increases.
Ordinary disability retirement - A retirement based on a non-job related injury rendering the vested employee totally and permanently disabled from performing the essential duties
PERAC. – Public Employee Retirement Administration which is the Regulatory Authority overseeing the 106 Retirement Systems in Massachusetts
Pension - A portion of your monthly retirement allowance that is the difference between the total retirement allowance and the amount provided by employee contributions
Refund - To receive the total contributions and/or interest in your annuity savings account at time of seperation of government employment
Regular compensation - An amount of monies paid to you on a weekly or monthly basis for your regular hours worked in the governmental entity
Rollover - To request a refund of your account and transfer the monies to your individual retirement account
Superannuation Retirement – “Regular” retirement which you collect a monthly amount for as long as you live after you have stopped working for the governmental entity
Vested - The establishment of the right to a retirement allowance. Minimum of 10 years of contributing to a Massachusetts retirement system
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