Unofficial Information about the OBRA Retirement Plan
For MCCC DCE Unit Members

Frequently Asked Questions

• What is OBRA?
  Read this page.
  
  
• Do I have to participate in OBRA?
  Yes.
  
  We are aware of two exemptions.
• You are a full, or part-time benefitted, employee of your college.
• You are retired from the Commonwealth of Massachusetts Retirement System.
  (But... the Massachusetts Teachers' Retirement System does not qualify you to be exempt from OBRA!)
  
  
• Can I withdraw my contributions at the end of each semester?
  Yes.
  
  In fact, adjunct faculty who are required to participate in the state's OBRA Pension are advised to consider withdrawing their money at the end of each semester and put the money into private pension plans.
  The OBRA plan is not the same as a 401k plan, and many financial planners are not aware of its particulars. In short, OBRA contributions are placed into a low rate savings account and, therefore, do not provide any additional financial gain beyond what you as an individual can do by withdrawing the funds and putting it into your own savings account (or better yet pay down higher interest rate loans).
  You may be told that you are not allowed to withdraw the money, but that is not the fact. When the semester is finished adjunct faculty are no longer employed by the state, and therefore eligible to withdraw their pension contributions. (It is the same reason adjunct faculty are able to collect unemployment benefits over semester breaks.)
  As always you should consult a financial planner in making financial decisions.  However, be sure that your financial advisor is fully aware of the OBRA policies.
  
  
• Where can I find official state information on OBRA?
  Latest link of which we are aware.