Updated October 8, 2026. Quick answer: A Worcester Regional Retirement System member who retires picks Option A, B or C, and the choice cannot be changed once the retirement is effective. Option A pays the most and leaves nothing to a survivor. Option B leaves the remaining annuity balance as a lump sum. Option C pays a survivor 2/3 of the allowance for life. A member who leaves can take a refund, with 20% federal withholding unless it is rolled over, but the refund ends membership and any right to a retirement allowance. The pages read do not state how much each option cuts the benefit.
What this page covers and what it does not
This page works from documents published by the Worcester Regional Retirement System (WRRS) at wrrboard.org, read on October 8, 2026: its Plan Benefits, FAQs and Refunds pages, its retirement and withdrawal application packets, a percentage chart, and the Choice of Option and Option D forms it posts under the name of the state’s Public Employee Retirement Administration Commission. Any figure here is the board’s, or is labeled as a computed example from assumed inputs.
Members are sorted into groups. The application says “Most people are in Group 1” and “Generally speaking, Group 4 encompasses the most hazardous occupations”. Rules also differ for membership that began before, or on or after, April 2, 2012, and each statement below says which it concerns. Neighboring systems are on Boston Retirement System decisions and Massachusetts state retirement decisions; state tax questions are on Massachusetts retirement taxes.
When a pension can start
The Plan Benefits page says “after ten years of creditable service in a public employee retirement system, you are considered vested and are eligible to apply for retirement if you meet your specific age requirement”.
| Membership | Minimum to retire | Where it appears |
|---|---|---|
| Before April 2, 2012, Group 1 | Age 55 with 10 years, or 20 years at any age | Plan Benefits page |
| Before April 2, 2012, Group 4 | Age 55 with no minimum service, or 20 years at any age | Plan Benefits page |
| On or after April 2, 2012, Group 1 | Age 60 with 10 years | Plan Benefits page and application |
| On or after April 2, 2012, Group 4 | Age 50 with 10 years, or age 55 with any amount subject to certain minimums | Application |
Age still moves the amount. For members who joined before April 2, 2012, the Plan Benefits page says “the further below the maximum age factor (Age 65 for Group 1 and Age 55 for Group 4) you are at retirement, the lower your benefit”. For members hired on or after April 2, 2012, the board’s chart reaches its 2.5 percent maximum at age 67 or older for Group 1 and at age 57 or older for Group 4.
How the allowance is figured
The board describes the inputs as “This retirement allowance is based upon your age, years of service, group classification, and salary”. Its chart for members hired on or after April 2, 2012 says to “Multiply the indicated percentage by the average of your highest consecutive five-year annual rate of regular compensation”, and for Group 4 it says “For members of Group 4: add 10 years to your age when finding your pension percentage”. It is marked “FOR ESTIMATING PURPOSES ONLY”.
A computed example from assumed inputs, not a WRRS figure: a Group 1 member hired after April 1, 2012 who retires at age 65 with an assumed 25 years of service finds a rate of 2.20 per year in the chart’s per-year table, so 25 times 2.20 is a computed 55.00 percent, matching the 55.0 where the chart’s 25-year row meets its age 65 column. Applied to an assumed $60,000 five-year average of regular compensation, 55.0% of $60,000 is a computed $33,000 a year, or a computed $2,750 a month before any option reduction. A Group 4 member retiring at 55 would read the chart at age 55 plus 10, a computed 65.
There is a ceiling: “The most anyone can collect as an annual retirement allowance is approximately 80% of his or her average three high consecutive years of regular salary”. On the assumed $60,000, 80% is a computed $48,000 a year. For a personal figure the board offers estimates: “Contact the Retirement Office for more information about your retirement options”.
The election: three options and one permanent choice
The table summarizes the board’s descriptions. The pages read publish no percentage or dollar reduction for Options B or C.
| Option | What the member receives | What a survivor receives |
|---|---|---|
| Option A | The largest allowance; the form calls it the highest possible monthly allowance | Nothing continues after death and no remaining annuity balance is paid out |
| Option B | A smaller allowance than Option A | A one-time payment of the remaining annuity balance, if any, to the beneficiaries named; no lifetime benefit |
| Option C | An allowance less than under Option A or Option B | 2/3 of the allowance for the survivor’s life, if the survivor is in a listed relationship |
For the general trade-off see single-life versus joint-and-survivor pension.
Option B: a one-time balance for any beneficiary
The Plan Benefits page says “Your beneficiary(s) will receive as a one-time payment your remaining annuity balance,* if any, upon your death”. The balance shrinks: the form says “the contributions comprising the annuity account will be depleted within approximately twelve to fifteen years depending upon your age at retirement”, and that “If your account has been fully depleted, nothing will be paid to your named beneficiary(ies)”. The beneficiary can be changed: “You may designate and change at any time, one or more beneficiaries to receive in designated proportions, the lump sum Option (B) benefit”.
Option C: the only lifetime survivor benefit
The Plan Benefits page says “This is the only option that provides a lifetime benefit for your survivor”. “Upon your death, your survivor will receive 2/3 of your allowance for the remainder of his or her life.” The form explains the pricing: “a monthly retirement allowance during your lifetime that is less than you would receive under either Option (A) or Option (B)”. “Only your spouse, former spouse who has not remarried, mother, father, sister, brother or child may be designated as your Option (C) beneficiary.” If the survivor dies first, “If your survivor predeceases you, you are not allowed to select a replacement”; instead “your allowance will automatically be switched to that of Option A”.
A computed example from an assumed figure, not a WRRS figure: if an Option C allowance were an assumed $2,700 a month (the reduction is not published), 2/3 of $2,700 is a computed $1,800 a month for the survivor.
What is irrevocable, and the deadlines
Before retirement is effective, “You may change your Option selection before your retirement becomes effective by filing a new form”. After it, “You may not change your Option selection once your retirement becomes effective”. A default exists: “If no Option selection is made, your allowance will be paid under Option (B).” That is Option B, not the highest allowance.
For a married member, “Unless there is a Domestic Relations Order in effect, if a member is married, the election of an option shall not be valid unless it is accompanied by the signature of the member’s spouse”. The spouse’s role is an acknowledgement: “Your signature is not consent or approval, only an acknowledgement of the Option chosen by your spouse.” For waivers elsewhere see spousal consent to waive a joint-and-survivor annuity.
The application adds timing: “Submit your original retirement application no sooner than 4 months prior to your retirement date.” “If you file your application 60 days past your date of separation, your retirement date will be effective 15 days after the date of receipt of application.”
If a member dies before retiring: Option D
The separate form is titled “Option D (If Member Dies Before Retirement)”. By it a member nominates a person “to receive from the retirement system a benefit equal to the Option C retirement allowance which would otherwise have been payable to me, in the event that I die before being retired”. “You may name only one person as the Option D beneficiary.” The form says “This form becomes void upon your retirement”, and the nomination can be superseded if “I have at least two years of creditable service and leave a spouse to whom I have been married for over one year and with whom I am living on the date of my death, or if living apart, doing so for justifiable cause as determined by the Retirement Board”.
The form also warns: “If you designate an eligible beneficiary on this form, and that beneficiary is living at the time of your death, the money in your annuity account will not be disbursed to anyone in a one-time, lump-sum payment”.
Lump sums at retirement
In the documents read, the only lump sum tied to a retirement allowance is Option B’s remaining annuity balance, paid after death. The pages read do not describe a lump-sum retirement option, a partial lump sum or a deferred retirement option plan (DROP). See also pension lump sum versus monthly annuity break-even.
Leaving before retirement: refund or leave it
The refunds page says “Members of the Worcester Regional Retirement System (WRRS) who terminate their employment are eligible to apply for a refund of their account”. Not everyone can: “You are not eligible to withdraw any portion of your funds if you are actively employed by any unit of the WRRS, or on an authorized leave of absence, or collecting Workers’ Compensation benefits”.
On leaving funds in place, the page says “If you think it is a possibility that you will become re-employed by a Massachusetts municipality, you may wish to consider leaving your funds in our system, so that upon re-employment, you will maintain the current level of creditable service and annuity balance that you have earned”. It adds “Members who leave their funds in the retirement system are entitled to preserve their membership date and would not be affected by the changes listed above”. A member who is not vested has a clock: “If you are not vested, you may leave your funds in the retirement system up to 10 years, after which time your account is considered abandoned.” On interest, the FAQs say “your account will continue to accrue interest up to 2 years from the last contribution”, and “A limitation on the amount of interest may apply when you decide to withdraw funds”. More on the trade-off is on pension refund versus leaving it.
What a refund ends
For a vested member the refunds page is blunt: “By withdrawing your funds, you forfeit any right to a retirement allowance.” On the withdrawal application the member initials statements including “In consideration of the return of my accumulated total deductions, my membership in the Retirement System shall terminate” and “I am also giving up any rights any beneficiary may have on my account in the Retirement System”. Coming back has a price: “I will need to repay the amounts withdrawn by me, with interest, if I wish to be credited with the service associated with this withdrawal”.
Members who joined before April 2, 2012 lose more than service: “you will lose all rights to the pre 04/02/2012 benefit structure upon return”, and the changes include “Five-year average annual rate of regular compensation for calculating allowances rather than a three-year average”.
Interest and processing
The interest section of the application opens: “Members who entered into service on or after January 1, 1984 are subject to the following provisions with respect to the refund of interest credited to their annuity accounts”. For a voluntary withdrawal by a member who “has less than 120 months (10 years) of creditable service and has voluntarily withdrawn from service”, “The member will receive 3% interest on accumulated total deductions”. With more than 120 months of service, and for involuntary termination regardless of service, “The member will receive full regular interest on accumulated total deductions as set out in the statute”.
Processing: “All refunds require Board approval before any funds can be released.” “Please allow 60 to 90 days after the date we received your complete application for our refund unit to process your payment.”
Paid to you or rolled over: withholding
The refunds page lists the choice: “You may choose to take the balance in a refund directly to you, or you may choose to make a direct rollover to another eligible retirement plan.” The FAQs say “the WRRS will withhold 20% of the balance as a Federal tax withholding”, and “If you choose to rollover your funds, your refund will not be subject to any tax withholding”. The application agrees: “20% of the taxable portion of such return will be withheld and paid to the Internal Revenue Service”.
A computed example from an assumed $10,000 taxable refund paid directly to the member, not a WRRS figure: 20% of $10,000 is a computed $2,000 withheld, leaving a computed $8,000 in cash. The final tax can differ from the withholding. See 20% withholding on a pension lump sum.
On destinations, “Federal law allows the WRRS to move funds directly to a traditional IRA, a 403(b) plan or an eligible 457 governmental deferred compensation plan.” On state tax: “Refunds are not currently subject to Massachusetts state income tax.”
Buying service credit
For military service, the FAQs say “You can be eligible to purchase up to 4 years of military service”. “Your service must be purchased in a lump sum.” For a prior refund, “you are eligible to buyback the service with a redeposit of the funds plus interest”. A buyback sits next to the refund decision, because a refund taken now is a purchase cost later. See the pension buyback calculator.
What the IRS adds on tax
A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of WRRS’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that if you roll it over yourself “you’ll have to add funds from other sources equal to the amount withheld”. WRRS’s own packet describes withdrawals and rollovers on the same basis, including the 20% federal withholding and the rollover exception. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.
On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan” if the employee separated from service during or after the year they attained age 50 or 25 years of service under the plan, whichever is earlier. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.
Where the sources disagree
The refunds page lists, among the changes for pre-2012 members who withdraw and return, “Increased minimum retirement age; from 50 to 60”. The withdrawal application lists “An increase in the minimum retirement age from 55 to 60 (Group 1 only)”. They differ on the old minimum age (50 or 55) and on whether the change is limited to Group 1. The application carries a June 2025 revision date and the web page is undated; WRRS should confirm which applies.
On rollovers, the FAQs say “We are not able to make direct rollovers to 401(k) plans or Roth IRAs”, while the withdrawal application’s rollover block lists “Name of eligible 401(a) Plan, 401(k) Plan, 403(b) Plan, Governmental 457(b) Retirement Plan, IRA, Roth IRA, or SIMPLE IRA” as destinations. What the board will actually process is a question for the board.
On the ceiling, the FAQs tie the 80% cap to a three-year average, while the board’s chart and refunds page describe a five-year average for members hired on or after April 2, 2012. The FAQ does not say which members it describes.
What this page could not settle
- The pages read do not state how much Option B or Option C reduces the monthly allowance.
- Only the percentage chart for members hired on or after April 2, 2012 was worked through.
- The pages read do not state the rate behind full regular interest on a refund, the interest rules for members who entered before January 1, 1984, or how a member with exactly 120 months is treated.
- Cost-of-living adjustments, disability retirement, other survivor benefits and limits on working after retirement were not read for this page.
- The Plan Benefits and FAQs pages are undated; the forms are dated February 2020 and June 2025 and the chart October 2016, so later changes may not be reflected.
- The three disagreements above are not resolved by the documents.
Common mistakes
- Assuming the option can be changed after retirement; WRRS says it cannot once retirement is effective.
- Leaving the option blank; the form says the allowance is then paid under Option B.
- Taking a refund without asking for a retirement estimate first; WRRS says withdrawing forfeits any right to a retirement allowance.
- Assuming a rollover to a 401(k) or Roth IRA will be accepted; the FAQs and the application differ.
Related on this site: Boston Retirement System decisions, Massachusetts state retirement decisions, Massachusetts retirement taxes, does Massachusetts tax pensions, pension refund versus leaving it, single-life versus joint-and-survivor pension, 20% withholding on a pension lump sum and public pension retirement decisions by system.
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Answer againSources
- Worcester Regional Retirement System, Plan Benefits Information (member web page, read October 8, 2026): https://www.wrrboard.org/1261/Plan-Benefits-Information
- Public Employee Retirement Administration Commission, Choice of Option at Retirement form as posted by the Worcester Regional Retirement System (Form Last Revised: February, 2020): https://www.wrrboard.org/DocumentCenter/View/635/Choice-of-Retirement-Option
- Worcester Regional Retirement System, Application for Withdrawal of Accumulated Total Deductions (Refund Form) packet with Special Tax Notice Regarding Your Rollover Options (Form Last Revised: June, 2025): https://www.wrrboard.org/DocumentCenter/View/641/Application-for-Withdrawal
- Worcester Regional Retirement System, FAQs (member web page, read October 8, 2026): https://www.wrrboard.org/1367/FAQs
- Worcester Regional Retirement System, Retirement Refunds / Withdrawals / Service Purchases (member web page, read October 8, 2026): https://www.wrrboard.org/1270/Retirement-Refunds-Withdrawals-Service-P
- Worcester Regional Retirement System, Application for Superannuation Retirement packet including the Application for Voluntary Superannuation Retirement and Choice of Option at Retirement (Form Last Revised: February, 2020): https://www.wrrboard.org/DocumentCenter/View/634/Application-For-Retirement-Superannuation-And-Option-Form
- Worcester Regional Retirement System, Massachusetts Group 1 Retirement Percentage Chart for members hired on or after April 2, 2012 (chart dated 10/2016): https://www.wrrboard.org/DocumentCenter/View/238/Percentage-Chart
- Public Employee Retirement Administration Commission, Beneficiary Selection Form Option D as posted by the Worcester Regional Retirement System (Form Last Revised: February, 2020): https://www.wrrboard.org/DocumentCenter/View/643/Option-D-Beneficiary-Selection-Form
- IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
- IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558
Sources: the primary documents linked above, read on October 8, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.