Working After Retirement
Working After Retirement
Retirees may return to work — but Massachusetts law limits the type and amount of work, particularly for public employment, under MGL Chapter 32 §§ 91 and 91A. Earning over the limits can suspend or reduce your retirement allowance.
Work for any private employer
There are no Chapter 32 limits on private-sector work, including self-employment. You can earn any amount in the private sector without affecting your Massachusetts retirement allowance.
(Private earnings may, however, affect your Social Security benefits if you're under full retirement age — that's a separate federal calculation. See Social Security and Public Pensions.)
Work for a Massachusetts public employer — § 91 limits
If you return to work for any Massachusetts public employer (state, city, town, county, regional school district, authority, etc.), MGL Chapter 32 § 91 imposes two limits:
- Hours limit: No more than 960 hours in a calendar year (roughly half-time annualized).
- Earnings limit: Total post-retirement earnings from public employment, plus your retirement allowance, cannot exceed the salary you would have been earning had you stayed in your old position. The exact formula uses your current allowance and the salary of the position from which you retired (escalated for any subsequent salary increases for that position).
If you exceed either limit, your retirement allowance is reduced or suspended for the period of the violation. Knowingly exceeding the limits can also result in the board recovering the overpayment.
Annual earnings reporting
Each year, every Massachusetts public retiree must file an Annual Statement of Earnings (the § 91A form) with PERAC, reporting all earnings — public and private — for the prior year. This is mandatory for all retirees, not just those who returned to public work. PERAC uses the data to detect violations of § 91 limits and (for disability retirees) the more stringent § 91A limits.
The form is mailed each spring and is also available in the Member Portal and on the PERAC website. Failure to file is a violation of MGL Chapter 32 § 91A and can result in suspension of retirement payments.
Disability retirees — § 91A
Disability retirees (whether ordinary or accidental) are subject to stricter earnings limits under MGL Chapter 32 § 91A. The limit relates to the salary of the position the retiree held at disability, escalated for subsequent salary changes. Earnings above the § 91A limit reduce the retirement allowance dollar-for-dollar above the threshold.
The § 91A limits apply to earnings from any source, public or private — not just public employment. This is the key difference from § 91.
Volunteer service
Volunteer work for a public employer is generally not counted as employment under § 91 or § 91A — but the line between volunteer and employee can get blurry, particularly for board memberships, paid stipends, or recurring "consulting" arrangements. Document the nature of any volunteer role in writing. If a public employer pays you anything (even a per-diem stipend), it likely counts as earnings.
Returning to active membership
If you return to a Massachusetts public position covered by the retirement system and re-establish active membership (i.e., you start contributing again), you have a different category — you're no longer a retiree under § 91. There are specific rules about when this happens; the board's office can walk through them.
Brief reemployment in a non-membership position generally doesn't trigger re-active-membership.
Common questions
I'm thinking of taking a part-time job at the town library — does it count? Yes — the town library is a public employer, so § 91 limits apply. Track your hours and earnings carefully.
What if I work for a state contractor or a private company that has a state contract? The contractor is private. Earnings are unlimited under § 91. You still must report them on the § 91A form.
I was offered a stipend to serve on a town committee. Does that affect my retirement? A modest committee stipend may push you over the earnings test depending on its size and your other public earnings. Check before accepting — the board can run the numbers.
Where do I file the § 91A form? PERAC mails it each spring. You return it by mail or upload it through the PROSPER member function at the address PERAC provides. The board does not file it for you.