Mass Police Association Initiated Amendment
The State Senate has approved an increase in post-retirement work earnings limits. If passed into law, the measure will mark the first increase in the limit since 2014.
Initiated by the Mass Police Association (MPA) and supported by Mass Retirees, the increase was unanimously approved by the 40-member Senate as an amendment to the FY27 State Budget. The amendment was sponsored by Senator Michael Moore (D-Worcester).
Moore’s amendment increases the earnings limit by $10,000 a year.
As was the case the last time the limit was increased in 2014, the driving force behind the issue was MPA Executive Director Jim Machado. A long-time close friend, ally, and now member of Mass Retirees, Machado is a retired Fall River police sergeant and former Public Employee Retirement Administration (PERAC) Commissioner.
The amendment is subject to negotiations within the House/ Senate conference committee, which is now underway, due to the measure having been included within just the Senate version of the FY27 budget. We anticipate the committee completing its work and recommending a final unified budget in early July.
“Retirement earnings has always been a priority for me. This amendment is a sensible step to allow retirees some relief from inflationary pressures. I am hopeful the conference committee will concur with the Senate,” said Machado.
GROWING IMPORTANCE
An issue of growing importance and overall interest to retired public employees is that of post-retirement work. Whether for economic reasons, to stay active or to fulfill specific public service needs, a greater number of retirees are opting to work in retirement than ever before.
While public retirees are allowed to work in a post-retirement job, certain restrictions apply depending on the type of work and/or the type of pension a retiree is receiving. The restrictions can restrict both the hours and earnings of a retiree in a calendar year.
Superannuation (regular non-disability pension) retirees are allowed to work without any limits in a private sector or federal job, as well as for a state or municipal government outside of Massachusetts. Disability retirees are restricted in their earnings in a calendar year regardless of the source of earned income.
All public sector retirees, regardless of pension type, are restricted when it comes to public sector work here in MA either for the state or local government. Again, the restriction applies to both hours and earnings in a calendar year. Hours are restricted to 1,200 a year and were last increased in 2023 – averaging 23 hours per week annually.
The earnings limit formula applies to both superannuation and disability retirees. It is the difference between what a retiree’s former job now pays (currently, in the year in question) and their current pension – plus an additional $15,000. For example, if your former job currently pays $80,000 and your current pension is $56,000 then the difference between the two is $24,000. You would then add an additional $15,000 to that amount for a total annual earnings limit of $39,000.
Public retiree work restrictions have been on the books in MA dating back to the creation of the public retirement systems in the early 1900s. Originally, except for jury service, public retirees could not hold any public sector job within MA whatsoever. Over the decades the restrictions have been loosened, in large part to reflect the modern needs of our workforce and a population that is living longer.
However, public policy sentiment continues to restrict both the hours and earnings for post-retirement public sector work, as well as all earned income of disability retirees.
That said, since the last increase in the earnings limit having occurred in 2014 – before the high inflationary period retirees are still experiencing – we believe that it is time for an increase. Thankfully others agree.
“We are very grateful that our friend Jim Machado and the MPA have once again taken the lead on this issue. With a growing number of public retirees being recruited to return to part-time public service to fulfill important needs, modernizing the retirement law to reflect the demands of today’s society is important,” comments Mass Retirees President Frank Valeri, who also serves as an elected member of the State Retirement Board.
Mass Retirees has conveyed our strong support for this measure to the House leadership and the six conferees now negotiating a final FY27 State Budget. Our hope is to see this passed in 2026, helping to provide some additional relief to retirees.
“We are very grateful that our friend Jim Machado and the MPA have once again taken the lead on this issue. With a growing number of public retirees being recruited to return to part-time public service to fulfill important needs, modernizing the retirement law to reflect the demands of today’s society is important,” comments Mass Retirees President Frank Valeri, who also serves as an elected member of the State Retirement Board. FRANK VALERI MASS RETIREES PRESIDENT