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Departments: Retirement Board

Plan Description

The plan is a contributory defined benefit plan covering all Hingham Retirement System member unit employees deemed eligible by the retirement board, with the exception of school department employees who serve in a teaching capacity.  The pensions of such school employees are administered by the Teachers' Retirement Board.

Instituted in 1938, the System is a member of the Massachusetts Contributory Retirement System and is governed by Chapter 32 of the Massachusetts General Laws.  Membership in the plan is mandatory immediately upon the commencement of employment for all permanent, full-time employees as well as permanent, part-time employees working twenty (20) or more hours per week.

The system provides for retirement allowance benefits up to a maximum of 80% of a member's highest three-year average annual rate of regular compensation.  Benefit payments are based upon a member's age, length of creditable service, level of compensation, and group classification.

Members become vested after ten years of creditable service.  A superannuation retirement allowance may be received upon the completion of twenty years of service or upon reaching the age of 55 with ten years of service.  Normal retirement for most employees occurs at age 65 (for certain hazardous duty and public safety positions, normal retirement is at age 55).

A retirement allowance consists of two parts:  an annuity and a pension.  A member's accumulated total deductions and a portion of the interest they generate constitute the annuity.  The differential between the total retirement benefit and the annuity is the pension.   The average retirement benefit is approximately 80-85% pension and 15-20% annuity.

Benefit Rate Chart - Group 1 - PDF

Benefit Rate Chart - Group 4 - PDF

Retirement Calculator

Active members contribute 5, 7, 8, or 9% of their gross regular compensation.  Members joining the retirement system after January 1, 1979 must contribute an additional 2% on regular compensation earned at a rate in excess of $30,000.  The percentage rate is keyed to the date upon which an employee's membership commences.  These deductions are deposited in the Annuity Savings Fund and earn interest at a rate determined by the Executive Director of PERAC according to statute.  When a member's retirement becomes effective, his/her deductions and related interest are transferred to the Annuity Reserve Fund.  The pension portion of any retirement benefit is paid from the Pension Fund of the System.  The governmental unit employing the member must annually appropriate and contribute the amount of current year pension payments as determined by PERAC's Actuary. 

Members who become permanently and totally disabled for further duty may be eligible to receive a disability retirement allowance.  The amount of benefits to be received in such cases us dependent upon several factors including:  whether or not the disability is work related, the member's age, years of creditable service, level of compensation, veteran's status, and group classification.  Survivor benefits are extended to eligible beneficiaries of members whose death occurs prior to or following retirement.

Employees who resign from service and who are not eligible to receive a retirement allowance or are under the age of 55 are entitled to request a refund of their accumulated total deductions.  In addition, depending upon the number of years of creditable service, such employees are entitled to receive either zero (0%) percent, fifty (50%) percent, or one hundred (100%) percent of the regular interest which has accrued upon those deductions.