Retirement

Commonwealth of Massachusetts employees, including employees of the University of Massachusetts Amherst, participate in one of three mandatory retirement plans based on employee type and student enrollment status. Earnings from the Commonwealth are exempt from federal Social Security tax. Mandatory Massachusetts retirement benefits may affect Social Security income. More detailed information based on employment type is provided below.

Benefited employees may also participate in one or both of the voluntary retirement plans (which provide both pre- and post-tax retirement savings options).

Employees thinking about retirement should review the information provided on the University's Thinking about Retirement page.

Benefited staff in positions subject to overtime are members of the Massachusetts State Employees' Retirement System (MSERS), contributing 9 percent of the first $30,000 of annualized regular compensation and 11 percent of annualized regular compensation above $30,000 to that plan.

MSERS falls under U.S. Internal Revenue Code Section 401(a) and is administrated by the Massachusetts State Retirement Board, which can be reached by phone at 617-367-7770.

These positions may fall under one of the AFSCME, PSU/MTA Unit B, USA/MTA, or NEPBA bargaining agreements or are non-unit non-exempt ("classified") positions.

Voluntary Retirement Plans

In addition to contributing to MSERS or the ORP, benefited faculty and staff may voluntarily contribute to one or more voluntary retirement plans. Please refer to the Voluntary Retirement Plan page for more information.  

Benefited faculty and staff in positions that are exempt from overtime* are required to contribute to one of two mandatory retirement plans and may additionally contribute to one (or both) of two voluntary retirement plans.

Mandatory Retirement Plans

Benefited faculty and staff in positions exempt from overtime* have the option to contribute to one of two mandatory retirement plans. New employees contribute 9 percent of the first $30,000 of annualized salary and 11 percent of annualized salary above $30,000 to one of the following programs:

These plans fall under U.S. Internal Revenue Code Section 401(a), and contributions are capped in compliance with IRS code. MSERS is administrated by the Massachusetts State Retirement Board.

Additional Mandatory Retirement

For individuals whose initial MSERS or ORP membership date is after January 1, 2011, contributions to these plans are calculated on regular compensation up to 64 percent of the federal 401(a) limit. For individuals whose regular compensation exceeds this limit ($211,200 in calendar year 2023), mandatory contributions withheld on regular compensation above that limit are invested in the University's GAP retirement plan.

Voluntary Retirement Plans

In addition to contributing to MSERS or the ORP, benefited faculty and staff may voluntarily contribute to one or more voluntary retirement plans. Please refer to the Voluntary Retirement Plan page for more information.

Non-benefited faculty and staff* contribute 7.5 percent of regular compensation paid by UMass to the Commonwealth of Massachusetts mandatory pre-tax OBRA retirement plan administrated by Empower Retirement. Contributions are invested in a fixed-return account unless the employee voluntarily works with Empower Retirement to elect different investments. OBRA funds can be withdrawn from or rolled out of the plan after employment with the Commonwealth of Massachusetts ends as long as re-employment is not anticipated.

Participants should work directly with Empower Retirement (877-457-1900) regarding investment and withdrawal/rollover options. Postdoctoral employees and non-benefited faculty & staff can also contribute more to an OBRA retirement account by working directly with Empower Retirement to establish a voluntary OBRA retirement account. Because Empower Retirement data-feeds contributions into the University's HR Direct payroll system once monthly, changes in contributions made in Empower Retirement's database become effective in the following calendar month.

 

* These positions may fall under the AFSCME Unit B, Postdoctoral, or MSP collective bargaining agreement or may hold a position not affiliated with a union.

When not otherwise exempt* from participation, student employees contribute 7.5 percent of regular compensation paid by UMass to the Commonwealth of Massachusetts mandatory pre-tax OBRA retirement plan administrated by Empower Retirement. Contributions are invested in a fixed-return account unless the employee voluntarily works with Empower Retirement to elect different investments. OBRA funds can be withdrawn from or rolled out of the plan after employment with the Commonwealth of Massachusetts ends as long as re-employment is not anticipated.

Participants should work directly with Empower Retirement (877-457-1900) regarding investment and withdrawal/rollover options. OBRA-eligible students can also contribute more to an OBRA retirement account by working directly with Empower Retirement to establish a voluntary OBRA retirement account. Because Empower Retirement data-feeds contributions into the University's HR Direct payroll system once monthly, changes in contributions made in Empower Retirement's database become effective in the following calendar month.
 

* Student employees are typically exempt from mandatory OBRA retirement contributions when working while also enrolled as a full-time student or when the Graduate School confirms that the employee is enrolled and working full-time on their dissertation.