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Factoids

10-year guarantee

Massachusetts has a defined benefit retirement program for its municipal, county and state workers. Public employees who work 10 years or more are guaranteed a retirement allowance consisting of a pension and at least a portion of what they paid into the system over the years plus interest, the annuity. They also get lifetime health benefits.

S. Shore numbers

The average municipal retiree on the South Shore’s annual pension in 2008 was between $19,000 and $21,500. The average accidental disability retiree on the South Shore’s annual pension in 2009 was about $31,500.

Private sector numbers

Private sector employees contribute 6.2 percent of their gross pay to Social Security and their employers contribute another 6.2 percent. Self-employed workers contribute 12.4 percent.

$13,500 on Social Security

The average annual benefit to people collecting disability through Social Security was about $13,500 in 2008.

Private sector funds Social Security

Most private sector employees – about 55 million nationwide – rely on defined contribution retirement plans, in which they are responsible for managing their money and there is no guaranteed benefit, to supplement Social Security.

Payments for Medicare

Both public and private sector employees in Massachusetts have 1.45% of their pay deducted for the Medicare portion of Social Security.

10 of 39 in Quincy

In Quincy, from June 2003 through June 2008, the rate for police was 26 percent – 10 out of 39 officers retired on accidental disability.

State Police: 27%

From June 2003 through June 2008, the rate of accidental disability retirements among State Police was 27 percent, or 90 out of 335 retirements.

Numbers flip-flop

In 1983, 62 percent of American workers were covered by a defined benefit retirement plan and 12 percent had defined contribution plans. By 2007, the numbers had flip- flopped, with 17 percent covered by defined benefit and 63 percent by defined contribution plans.

Average pensions

The average state retiree’s annual pension was $23,014 in January 2008.