Working After Retirement
Many retirees look forward to continuing their service after retirement. If you return to work with a Massachusetts public employer, whether as an employee, a consultant, or an independent contractor, there are certain time and earnings limitations you must follow.
Please note: The rules differ depending on whether you work in the public sector, private sector, or if you are a disability retiree.
Post-Retirement Employment
Non-Disability Retirees
1. Annual Hours Limitation
You may work up to 1,200 hours in a calendar year in the Massachusetts public sector. The “public sector” includes the Commonwealth of Massachusetts and its political subdivisions, including municipalities, authorities, and districts that provide retirement benefits under Massachusetts General Laws Chapter 32.
2. Earnings Limitation
Your post-retirement earnings from Massachusetts public employment cannot exceed the difference between your retirement allowance and the greater of:
- The current salary of the position you retired from, or
- The salary upon which your retirement allowance was based.
If you exceed this amount, the excess must be refunded to the employer or the retirement system.
After 12 Months of Retirement
Beginning January 1st, following 12 months of retirement, you may earn:
- The difference between the salary paid in your former position, or
- The salary upon which your benefits are based, minus your retirement allowance, plus an additional $15,000.
You must stop working if you reach the 1,200-hour limit before reaching the earnings limit.
Please note: These public-sector limitations apply to all retirees, but do not apply to survivors or beneficiaries.
These limits do not apply to:
- Private sector employment
- Federal employment
- Public service in another state
Post-Retirement Employment
Disability Retirees
1. Annual Hours Limitation
You may work up to 1,200 hours in a calendar year for Massachusetts public employers.
This limit does not apply to:
- Private sector employment
- Federal employment
- Public service in another state
2. Earnings Limitation
Regardless of where you work, your earnings are limited to:
- The difference between your retirement allowance and the amount of regular compensation you would have earned had you continued in service, plus an additional $15,000.
If you exceed this amount, the excess must be refunded to the retirement system.
Additional Requirements for Disability Retirees
All disability retirees must complete the Annual Statement of Earned Income required by PERAC:
- The form must be filed by April 15 of each year.
- Failure to comply may jeopardize the continued receipt of retirement benefits.
Have Questions?
Find answers to common questions about eligibility, contributions, and retirement benefits.