Can I receive a refund of my contributions and will I get the interest on those contributions?

You may receive a refund of your total contributions if you officially resign from your position with the City and it is not your intention to accept another position of employment that requires membership in another Massachusetts Retirement System. If you voluntarily leave employment that began after January 1, 1984 and have less than five years of service, no interest will be refunded to you.

If you have served between five and ten years of service, you will receive half of the interest. If you have over ten years of service, all of the interest will be refunded to you. It is important to note that if you do receive a refund or your retirement contributions, we are required to withhold 20% of your federal tax liability. Alternatively, you can have the entire retirement contribution "Rollover" into a tax-qualified Individual Retirement Account (IRA).

Show All Answers

1. Am I required to become a member of the Retirement System?
2. How much does a member contribute to the Retirement System?
3. What happens to the money I contribute to the System?
4. Can I borrow money from my retirement account now and pay it back later on?
5. Can I receive a refund of my contributions and will I get the interest on those contributions?
6. When am I eligible to retire?
7. What are the factors used to determine my retirement allowance?
8. What is the maximum retirement allowance that I can receive?
9. Are there any additional benefits to which I am entitled?
10. What does the term “vested” mean? When am I considered vested?
11. Can I purchase creditable service earned in another Massachusetts Retirement System?
12. Will prior years of creditable service affect my membership date or contribution rate in the Leominster Contributory Retirement Board?
13. How is creditable service achieved?
14. Is regular compensation the same as total compensation?
15. What are the group classifications within the Retirement System?
16. What are the different options I can chose from when I retire?
17. If I leave my job what happens to my contributions?
18. Is there any time limit after your termination for requesting a refund of your contributions?
19. Can a member who is vested and who terminates employment be eligible for a refund?
20. If I terminate my employment and leave my money in the retirement system can I retire at a later date?
21. What are the tax consequences if I take a refund of my retirement contributions?
22. If I die before retirement, what happens to my money?