Post Retirement Earnings Restrictions

M.G.L., c.32, §91 restricts post-retirement earnings and hours of employment derived from the Commonwealth or any of its political subdivisions, which are subject to G.L. c. 32.

EARNINGS/HOURS LIMITATIONS FOR SUPERANNUATION RETIREES M.G.L. c. 32, §91(b)

Please note, the earnings and hours limitations referenced below for superannuation retirees only apply to post-retirement work in the public sector. Superannuation retirees do not have limits for working in the private sector. The public sector is any Massachusetts public entity, whether it’s for the state, county, municipal, city, town, district, or authority, and applies to contract employees and vendors.

HOURS LIMITATIONS – Retirees working in the public sector post-retirement, are limited to working a maximum of 1200 hours per calendar year.

EARNINGS RESTRICTIONS - Post-retirement earnings from a public sector employer when combined with their annual retirement benefit, cannot exceed the salary that is being paid for the position from which the individual retired, or in which their employment was terminated, or the salary upon which the retirement allowance is based, whichever is greater. Once a retiree has completed one full calendar year of retirement, an additional fifteen thousand dollars can be added to the salary used for determining their post-retirement earnings threshold.

EARNINGS/HOURS LIMITATIONS FOR DISABILITY RETIREES M.G.L. c. 32, §91A

HOURS LIMITATIONS - Disability retirees are limited to working a maximum of 1200 hours per calendar year if employed in the Massachusetts public sector.

EARNINGS RESTRICTIONS - Disability retirees are subject to earnings limitations regardless of where they work (public sector or private sector). Disability retirees can earn the difference between the current salary of the position they retired from and their pension, plus fifteen thousand dollars (the $15,000 can be added right away to this calculation).

All disability retirees, including those retired under accidental disability, are required to submit an annual statement of their earnings (M.G.L. c. 32, § 91A) to the Public Employees Retirement Administration Commission (“PERAC”). PERAC mails disability retirees an Annual Statement of Earned Income every January which they must complete on or before April 15th of each year. All pertinent W-2 forms, 1099 forms, other requested tax forms, proof of income, and any other documentation requested by PERAC must be included with the statement.