Good news for retirees! The Governor recently signed the FY 2027 budget, which includes two important changes to the post-retirement earnings limitations for retirees who return to work in the Massachusetts public sector.
Non-Disability Retirees
After being retired for one full calendar year, non-disability retirees who return to work in the Massachusetts public sector may now earn the difference between their retirement allowance and the greater of:
- The current salary of the position from which they retired, or
- The salary on which their retirement allowance was based,
plus an additional $25,000.
Disability Retirees
Disability retirees are also receiving an increase to the allowable earnings amount. Regardless of whether they work in the Massachusetts public sector or elsewhere, disability retirees may now earn:
- The difference between their retirement allowance and the amount of regular compensation they would have earned had they remained in service,
- plus an additional $25,000.
These changes provide greater flexibility and increased earning opportunities for retirees while maintaining their retirement benefits.
Annual Hours Limitation
The annual hours limitation for retirees who return to employment in the Massachusetts public sector remains unchanged at 1,200 hours per calendar year.