Pension, OBRA & Deferred Comp. Plans

Middlesex County Retirement System (mandatory for benefit-eligible employees)
Employees who regularly work at least 20 hours per week on a year-round basis (not seasonal) are required to contribute to the Middlesex County Retirement System. This is a defined benefit (pension) plan.

Information on Massachusetts Public Retirement Benefits
Information on Social Security and Your Public Pension

MA SMART Plan OBRA Deferred Compensation Plan (mandatory for non-benefits-eligible employee)
Employees who work on a part-time (less than 20 hours per week) seasonal or temporary basis, are ineligible for membership in Middlesex Retirement, and must instead contribute to a deferred compensation plan (or similar plan) under the Omnibus Budget Reconciliation Act (OBRA).  This is a mandatory deduction of 7.5% that essentially replaces the deduction normally taken for Social Security.  If/when you separate from the Town, you can request a refund or roll the funds into another eligible employer-sponsored plan or a traditional Independent Retirement Account (IRA).  

The Social Security regulations require that participants in an OBRA program always receive 100% of their principal contributions, plus interest.  Therefore, all contributions are invested in a guaranteed fixed annuity.  Distributions are restricted to a lump sum payment.  The Town's OBRA plan is the MA SMART Plan, managed by Empower Retirement.  For more information about this plan SMART Plan OBRA Information Guide.

Voluntary 457(b) Deferred Compensation Plans

The Town of Bedford offers optional deferred compensation plans for benefits-eligible employees.  These plans allow employees to save and invest additional money (beyond their mandatory pension contribution) for retirement with tax benefits.  

What Is a 457(b) Plan?
A 457(b) plan is a tax-deferred retirement savings plan. Funds are withdrawn from an employee’s income without being taxed and are only taxed upon withdrawal, which is typically at retirement.  Some 457(b) plans offer a Roth contribution option. Roth contributions are made after-tax, rather than before tax, and withdrawn tax-free at retirement if certain criteria are met.

Town of Bedford employees who are enrolling for the first time in a 457 plan with the Town may enroll in the MA SMART Plan, a retirement savings program available for Commonwealth of Massachusetts state and municipal employees. Eligible employees can save and invest before-tax and after-tax dollars through salary deferrals into our wide array of low fee investments options.  Take advantage of this valuable employee benefit: Save Money And Retire Tomorrow.

MA SMART Plan Enrollment Link (contact HR for enrollment code)
Plan Overview
Plan Representative: Tyler Fouhey
Email: tyler.fouhey@empower.com


Mission Square Contact Information (for existing participants)
Plan Services Phone: (800) 669-7400
Plan representative: Michael Savage
Email: msavage@missionsq.org
Appointment Scheduling Link