Delay in direct deposit of retirees’ May benefit payments
The Massachusetts Teachers’ Retirement System posted a notice on its website today to notify retirees that there is a problem with the direct-deposit process and that May direct deposits have not reached bank accounts.
MTRS Executive Director Joan Schloss e-mailed us about the problem, and MTA Executive Director-Treasurer Ann Clarke spoke to her.
Ms. Schloss told us that there was a problem with the direct-deposit file the treasurer’s office uses for teacher retirees.
The treasurer's office is working on the problem, and the MTRS will be notified as soon as it is resolved. The MTRS will then provide an update on the MTRS homepage:
Ms. Schloss expressed her concern for retirees who have automatic bill-paying linked to their direct deposits and assured us that the MTRS will be monitoring this situation until it is resolved.
Statement of State Treasurer:
Treasurer Steven Grossman deeply regrets the error made by the State Treasurer's Office Thursday that resulted in about 49,000 retirees in the Massachusetts Teachers' Retirement System (MTRS) not receiving their retirement benefits as scheduled. Very simply, the computer file that is necessary to transfer funds electronically was not sent to the state's bank when it should have been. Those who receive printed checks or are in the State Employees Retirement System were not affected.
When the mistake was discovered, Treasury sent out the payment data and worked with banks to expedite payment. The Treasurer also personally contacted MTA so that it could alert its members. However, thousands of retirees had their deposits delayed. All retirees will receive their monthly benefit not later than June 1. Treasurer Grossman is deeply apologetic for the inconvenience this has caused and will work with his colleagues at Treasury to ensure that such an error will not occur in the future.