What are the different ways you can collect a retirement allowance?
The retirement law of Massachusetts (M.G.L., Chapter 32) regulates your retirement allowance and allows you to receive the payment of a monthly retirement allowance by choosing one of the three options listed below:

1. Option A: This option provides for a lifetime retirement allowance to the retiree. This retirement allowance would cease upon the death of the retiree. The beneficiary would receive only the pro-rated portion of the last month’s retirement allowance.

2. Option B: This option provides for a lifetime retirement allowance to the retiree. Typically, this retirement allowance is about 1% less than the Option A retirement allowance. In addition, upon the death of the retiree, this option provides for a lump sum distribution of the retiree’s annuity, if any, to the named beneficiary of the retiree. On average, a retiree’s annuity will last 10-12 years into retirement. If the retiree dies within those 10–12 years, the named beneficiary will receive a one-time lump sum distribution of any monies remaining in the retiree’s annuity savings account, if any. If the retiree dies after that 10- 12 years, the named beneficiary will receive only the pro-rated portion of the retiree’s last retirement allowance. * Note: There are no restrictions on whom or how many individuals or entities may be named as the beneficiary.

3. Option C: This option, commonly referred to as the joint and last survivor allowance, provides for a lifetime retirement allowance to the retiree. On average, the retirement allowance that the retiree receives is approximately 9 - 11% less than the Option A retirement allowance. Upon the death of the retiree, this option provides for a lifetime allowance to a named beneficiary in the amount of 2/3 of the retiree’s Option C retirement allowance. If the named beneficiary should pre-decease the retiree, upon the date of death, the retiree will pop-up to his/her Option A retirement allowance.

*Note: Beneficiary must be the member’s parent, sibling, child, spouse or former spouse who has not remarried.
If you are married, your spouse must accompany you so that he/she can be informed of your options and your option choice. If this is not possible, a form will be forward to your spouse informing them of the option that you have chosen and the estimated retirement allowance under each of the three options. Payments of retirement allowance are made on the last business day of each month.

Show All Answers

1. If I work full-time for the Town of Falmouth, do I have to join the Falmouth Retirement System?
2. What does it mean to be a member of the Falmouth Retirement System?
3. How much am I required to contribute?
4. Who is subject to the additional 2% contribution?
5. Is regular compensation the same as total compensation?
6. How do I earn creditable service?
7. Why do I have less creditable service than my co-worker when I started working before he/she did?
8. I work for the Town of Falmouth and I also have a job in Barnstable. Do I get double service credit for my work?
9. Formerly, I was a member of a contributory retirement system, and I withdrew my funds. Now, can I “buy back” that service and enter the retirement system at my earlier (and lower) contribution rate?
10. I need to pay off some bills. Can I borrow from my Annuity Savings Account?
11. When I leave my job with the Town of Falmouth, what happens to my Annuity Savings Account?
12. How can I change my beneficiary?
13. Do I need to let the Falmouth Retirement System know if I change my personal information, i.e. my address, my marital status, my beneficiary, etc.?
14. How do I qualify for a retirement allowance?
15. What is the maximum retirement allowance that I can receive?
16. When I decide to retire, what steps do I need to take?
17. What are the different ways you can collect a retirement allowance?
18. Will my Health Insurance be covered by the Town?