Annuity Savings Account

Employee contribution to the retirement system is mandatory and your employer forwards your contributions to us and we maintain your Annuity Savings Account.  Your Annuity Savings Account consists of employee contributions and interest.  Contributions are posted to your account each pay period and interest is calculated based on your prior year’s ending balance. The interest rate is determined annually by the Public Employee Retirement Administration Commission (PERAC).

Contributions and Rates

Contribution rates are determined by M.G. L. Chapter 32 and are based on your Membership Date. 

Contribution rates are as follows:

5% for Members Enrolled Prior to 1/1/75

7% for Members Enrolled Prior to 1/1/84

8% for Members Enrolled Prior to 7/1/96

9% for Members Enrolled After 7/1/96

Additional 2% deductions on wages in excess of $30,000 annually for all employees who became members after 1/1/79.

For example; an employee earning $50,000 annually will contribute $4,500 (9%) plus an additional $400 (2% ) on the $20,000 earned over $30,000

​The Medford Retirement System mails Annual Statements to all active and inactive members who have funds in their Annuity Savings Account.  Annuity Savings Accounts balances are updated every pay period and can be viewed anytime via the online portal.

Please note: Contributions may not be withdrawn or borrowed against while you are an active member of the Medford Retirement System.