Massachusetts · MTRS · Leaving teaching

Leaving Massachusetts teaching: refund or keep it?

If you leave Massachusetts public school teaching, you can take a refund, leave your money with MTRS, or retire if you're eligible. With 10 or more years, leaving it can mean a pension later.

Massachusetts specificsShort answer: with 10 or more years you can leave your money with MTRS and apply for a pension at 55 (Tier 1) or 60 (Tier 2). With fewer years, or if you choose, you can take a refund of your contributions and interest, but a refund ends your membership rights, including Tier 1 status if you come back (see Tier 1 or Tier 2). Buying a refund back later is on the service credit page, and how the pension is taxed on the taxes page.

Keeping your account

With at least 10 years of creditable service when you leave, you may leave your funds on account and apply for a retirement allowance at age 55 (Tier 1) or 60 (Tier 2). Tier 1 members with 20 or more years may retire at any age. MTRS web page 'Leaving MTRS service prior to retirement'; M.G.L. c. 32, § 10(1), (2)(b1/2)

Members first employed on or after Jan. 1, 1978 who leave with fewer than 10 years receive a return of their accumulated deductions with interest instead of a superannuation allowance. M.G.L. c. 32, § 5(1)(m)

Taking a refund

If you leave you may take a refund, leave funds on account, or retire if eligible. Taking a refund ends your membership rights (rate, RetirementPlus status and Tier 1 status are not restored by a later buyback; returning members are Tier 2). Interest on a refund for members since Jan. 1, 1984: 3% if you resign voluntarily with fewer than 10 years; the regular credited rate with 10+ years or if involuntarily terminated; only two years of interest after termination if you apply more than two years later. MTRS must refund your account by April 1 after the year you reach required-minimum-distribution age. Refunds are processed within 60 days of a complete application. MTRS web page 'Leaving MTRS service prior to retirement'; MTRS web page 'Contribution rates explained'; Introduction to the MTRS (Spring 2026), p. 8; M.G.L. c. 32, § 11

What it gives up: If you take a refund and later return, you start over as a new member: Tier 2, the current 11% rate and RetirementPlus. Buying back the refunded service does not restore your old membership date, rate or Tier 1 status. MTRS web page 'Contribution rates explained'; Introduction to the MTRS (Spring 2026), p. 8

A refund is your own contributions and interest, not the pension. To compare, try a future retirement date in the calculator (tick "The years above are what I'll have on my retirement date"). See also taxes and buying back service.

Questions

When am I vested in MTRS?

With 10 years of creditable service. Then you can leave your money with MTRS and apply for a pension at 55 (Tier 1) or 60 (Tier 2).

What do I give up with an MTRS refund?

If you take a refund and later return, you start over as a new member: Tier 2, the current 11% rate and RetirementPlus. Buying back the refunded service does not restore your old membership date, rate or Tier 1 status.

Source: MTRS Ready for Retirement reference guide, 2026. Also: MTRS web pages 'Leaving MTRS service prior to retirement', 'Contribution rates explained'; Introduction to the MTRS (Spring 2026) p. 8; M.G.L. c. 32, §§ 5, 10, 11. Last reviewed .