The Newton Retirement System is one of 104 contributory retirement systems for public employees in Massachusetts. A Retirement Board governs each system and all Boards, although operating independently, are bound together under one retirement law – Chapter 32 of the Massachusetts General Laws – that establishes benefits, contribution requirements, and an accounting and funds structure for all systems. Additionally, all 104 systems are governed by the Commonwealth of Massachusetts, Division of Public Employee Retirement Administration Commission (PERAC). The Retirement System is a defined benefit plan - not a defined contribution plan.

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