Alternative Retirement Program (OBRA)
The Omnibus Budget Reconciliation Act of 1990 (OBRA) requires that part-time, seasonal and temporary employees of the Commonwealth be covered by a retirement plan that meets federal regulations. This alternate retirement plan is the Commonwealth of Massachusetts' Deferred Compensation Plan. This is not Social Security and there are no matching funds from the State.
Enrollment in this plan is mandatory unless you are a regular state employee already contributing to the State Retirement System (SERS) or Optional Retirement Program (ORP), a retiree receiving a pension from SERS/ORP, or a student working at the college s/he is attending. If your status changes, please contact the Payroll Office immediately.
The current contribution rate is 7.5% of total compensation. This deduction is taken before federal and state taxes. The Plan Administrator (currently Great West Retirement Services) will automatically invest contributions in The Income Fund.
Upon termination of your employment with the State, you may withdraw your funds with no penalty.
For further information:
a) on OBRA in general, visit the State Treasurer's website;
b) on OBRA investment options and plan specifics, please contact the Customer Service Center at 1-877-457-1900 or visit their website here: GWRS.