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1. Can I withdraw or borrow from my funds while still employed?

No. State law prohibits withdrawing or borrowing from your accumulated deductions while still a contributing member. Your funds can only be withdrawn upon termination of employment.

2. Are there penalties for withdrawing my funds?

For direct withdrawal of funds, 20% of your total accumulated deductions will be withheld for federal taxes. This amount is not necessarily the amount you may actually owe when you file your federal taxes, rather it is a standard withholding requirement.

Please be aware that when you file your federal taxes you may also be subject to a federal tax penalty for early withdrawal of retirement funds. Check with the IRS for complete information.

3. Can I rollover my funds to another plan?

Yes. Upon termination of employment you may rollover your funds to a qualified plan such as an IRA. We do not withhold federal taxes on funds that are rolled over into a qualified plan.

4. Can I get a refund if I owe child support?

You may not be entitled to some or any of your retirement funds if you owe back child support. All applicants are checked with the Department of Revenue for child support obligation purposes before funds are released.

5. Can I leave my funds in the system upon termination of employment?

If you are not vested you may leave your funds in the retirement system for up to 10 years, upon which time your account is considered abandoned.

6. Can I transfer my funds to another retirement system?

You may transfer your funds and creditable service to any public municipality retirement system within the Commonwealth of Massachusetts. To do so, ask your new retirement system to request a transfer from our system. No forms are required from our office to process a transfer, only a letter from the requesting retirement system.

7. Is there a waiting period before I can apply for a refund?

Your application will not be acted upon or processed in any way until the retirement office has been notified that your employment has been terminated, and the completion of one full pay period past your date of separation.

8. How long does it take to get my refund?

Assuming the above conditions are met, we will generally process your application within 60 days of receipt. All refunds require board approval before any funds can be released. The board meets once a month, generally during the last week of the month. Depending upon circumstances, we are sometimes able to process applications the same month they are received.