Post-Retirement Earnings

Employment Restrictions

As a Massachusetts Public Employment Retiree, there are restrictions on post-retirement employment for any and all Massachusetts Public Employers (including all cities, towns, public schools, fire/water or health districts, housing authorities, state agencies, state colleges and universities).  Restrictions also apply to federal grant funded positions with a Massachusetts Public Employer.

If you return to public sector employment after retirement - Keep track of your hours and earnings!

Public sector employment for retirees is limited to both aggregate hours and earnings per calendar year.  Hours of compensated work are limited to an aggregate of 960 hours per calendar year.  Earnings are limited to the difference between your retirement allowance and the compensation paid for the position you retired from.  For example, if the position you retired from currently pays $30,000 and your retirement allowance is $20,000, you are limited to the difference - $10,000 of earnings from public sector employment in a calendar year.  The rationale – as a public sector retiree, you cannot be compensated (from public funds) more than you would have received had you continued working in the position from which you retired.  You, the retiree, are responsible for monitoring your aggregate hours and compensation from all public sector employment.  You must cease all public employment when either limit is reached.  If you exceed either limitation, you will be subject to reimbursement of all compensation in excess of limits or you must waive receipt of your retirement allowance for the period of re-employment with any public sector employer(s).

Change effective 4/2/2012: Chapter 176 of the Acts of 2012 ... After first 12 months in retirement post-retirement earnings limitation is raised an additional $15,000.  New limit = Position salary minus Retirement Allowance plus $15,000.

For regular “Superannuation” retirees (i.e. regular age/service based retirements) post-retirement employment in the private sector is not subject to restrictions.

For “Disability” retirees all post-retirement earnings, both private and public sector, are subject to $ amount restrictions. But only Public sector work has the addition restriction of 960 hours.