New Pension Agreement – FAQs
The Massachusetts Bay Transportation Authority (“Authority”) and the Local 589, Amalgamated Transit Union, AFL-CIO (“Union”) entered into a new Pension Agreement effective March 31, 2023 that made important changes. Those changes included the creation of a two-tier pension benefit structure consisting of the Group A Plan and the Group B Plan. Additionally, the Authority and Union entered into a side letter on January 29, 2024 that made two changes for employees who became Members of the Fund on or before June 30, 2023.
These frequently asked questions (these “FAQs”) are being provided to you for informational purpose only. Nothing in these FAQs is intended to supersede the terms and conditions of the Trust Agreement or the Pension Agreement. Notwithstanding anything to the contrary herein, the Retirement Fund reserves its rights to enforce the Pension Agreement and the Trust Agreement according to its literal terms which shall govern if, and to the extent, those terms differ from anything set out in these FAQs.
Group B Plan: A member qualifies for a vested deferred retirement allowance if the member accrues at least 10 years of credible service, the member’s employment with the MBTA is terminated for any reason prior to becoming eligible for a Normal Retirement allowance per Article IV(2), and the member has not withdrawn their contributions from the Fund. A member may begin collecting their vested allowance between the ages of 55-65 provided that such allowance will be reduced by one half of one percent (0.5%) for each month prior to their 65th birthday. All vested retirement allowances are calculated using the 2.46% multiplier.