The Governor recently signed the FY 2027 budget on July 9, 2026, which includes important changes to the post-retirement earnings limitations for retirees.
For Non-Disability Retirees
As long as you have been retired for one full calendar year, you are now able to earn the difference between your retirement allowance and the greater of:
- The current salary of the position from which you retired, or the salary on which your retirement allowance was based,
- plus, an additional $25,000 instead of the previous $15,000.00.
Your post-retirement employment is also limited to a maximum of 1,200 hours, in the aggregate, in any calendar year. No change has been made to the hours’ limitation.
Your employment must cease when either limitation is reached.
For Disability Retirees
Regardless of whether you work in the Massachusetts public sector or elsewhere, you can now earn the difference between your retirement allowance and the amount of regular compensation that you would be earning had you remained in service, plus an additional $25,000 instead of the previous $15,000.
Your post-retirement employment is also limited to a maximum of 1,200 hours, in the aggregate, in any calendar year. No change has been made to the hours’ limitation.
Your employment must cease when either limitation is reached.
