Pensions
Excerpt from Sudbury Public Schools' FAQs:
Teachers, administrators and other ‘licensed’ SPS employees contribute to the Mass Teachers Retirement System (MTRS). This is a state operated and mandated retirement system. Each employee contributes a set percentage of his/her earnings, by payroll deduction, to MTRS. Neither SPS, nor the Town of Sudbury, contributes any amount to this pension plan. Due to other legislative structures, teachers are eligible for very minimal Social Security benefits, if any, upon retirement. These conditions are not subject to collective bargaining.
All non-licensed employees, working 20 or more hours per week, (for example, secretaries, custodians, teacher assistants, and many town employees) contribute to the Middlesex County Retirement System (MCRS). This is a mandated plan that has similar benefits to the MTRS. There are approximately 152 SPS employees in this category. The Town has approximately 173. Each active employee contributes a set percentage of their earnings, by payroll deduction, to the MCRS. The Town pays an annual assessment as a participating member of the MCRS.
The total assessment for FY09 for the Middlesex County Retirement System (both Town and SPS), is approximately $2.6 million. This is for all eligible employees of the Town and the SPS who are not part of the Mass Teacher Retirement System. The FY09 annual assessment includes a $2.1 million payment Sudbury is required to make toward the unfunded liability for accrued pension costs. This is a system-wide actuarial liability, not specific to Sudbury, that covers accrued pension costs. In 1988, state law changed to require the MCRS to pay down its unfunded liability by a certain date. Accordingly, participating members of the MCRS (including Sudbury) began setting aside money to cover the costs of retirees. This is unrelated to any retiree health benefit costs.
An employee whose work assignment is less than half-time or is temporary in nature, is not eligible to participate in the MCRS or the MTRS. He/she must contribute to an OBRA (Omnibus Budget Reconciliation Act of 1990) account. Neither SPS, nor the Town of Sudbury, contributes anything toward this retirement plan.