Retirement Termination Options
- Understand your termination retirement options.retirement at last image by Pix by Marti from Fotolia.com
If you are terminated in the Massachusetts teachers' retirement system, you may be eligible for termination retirement benefits. These benefits are paid to teachers in the system who are involuntarily terminated from their job for reasons other than moral turpitude or a violation of work rules. You cannot return to work if a position opens up in the system after you have claimed benefits. However, if you are certain you want to claim termination retirement benefits, you have several options. - Option A calculates your termination benefits based on one third of the average of your three highest consecutive annual salaries, plus an additional annuity amount that is based on your age and former income. For example, if the average of your three highest consecutive annual salaries was $60,000, your benefits would be calculated by dividing this average by three. This results in $20,000. Depending on your age and former income, you would receive an additional annuity amount of approximately $3,000 to $6,000. For this example, use $4,000, for a total benefit of $24,000.
- Option B benefits are calculated based on the Option A formula of one third of your three highest salaries. However, the figure calculated in Option A is reduced by approximately one percent. In this example, 99 percent of $24,000 is $23,760 per year.
- Option C allows a joint and survivor benefit. This benefit is calculated using the Option A benefit amount. The Option A benefit amount is multiplied by a table C factor that is based on your age and your beneficiary's age (see Resources). Your annual benefit is then two thirds of this amount.
