- Working for any Massachusetts public employer after retirement is limited to 1,200 hours a calendar year. Your earnings can't exceed the greater of the current salary for the position you retired from or your salary average, minus your pension. After you've been retired for one full January-December year, you can earn $25,000 more.MTRS web page 'Working after retirement'; Ready for Retirement 2026 p. 28; PERAC Memo 21/2026
- Example: Trudy retires June 30, 2026 with a $48,000 pension; her old position pays $65,000. She can earn $17,000 in 2026 and 2027, and $42,000 from 2028.MTRS web page 'Working after retirement', FAQ 'How does the MTRS calculate the amount that I can earn?'
- The extra amount rose from $15,000 to $25,000 in the FY2027 budget, signed July 9, 2026, and applies to all of calendar year 2026.PERAC Memo 21/2026, pp. 1-2; MTRS news (July 13, 2026)
- Going back to the same employer requires 60 days off, unless you retired at 62 or older or at the 80% maximum. If the state declares a critical shortage, the limits are waived for regular-formula retirees, and for RetirementPlus retirees after their first two years. Private-sector, out-of-state and federal jobs have no limits.Ready for Retirement 2026 p. 28; MTRS web page 'Working after retirement'
The earnings limit
Calendar-year earnings may not exceed (the greater of the salary now being paid for the position you retired from or your salary average) minus your annual pension; after you have been retired for one full January-December calendar year, add $25,000. MTRS web page 'Working after retirement'; Ready for Retirement 2026, pp. 27-28; PERAC Memo 21/2026, pp. 1-2; M.G.L. c. 32, § 91(b) as amended by FY2027 budget § 30
MTRS's example, Trudy Teacher: retired June 30, 2026 with a $48,000 pension; her old position now pays $65,000.
| Calendar year | Extra | She can earn |
|---|---|---|
| 2026 | — | $17,000 |
| 2027 | — | $17,000 |
| 2028 | +$25,000 | $42,000 |
$65,000 − $48,000 = $17,000, plus $25,000 once she's been retired a full January-to-December year. Our engine matches MTRS's figures. MTRS web page 'Working after retirement'; Ready for Retirement 2026, pp. 27-28; PERAC Memo 21/2026, pp. 1-2; M.G.L. c. 32, § 91(b) as amended by FY2027 budget § 30
When the extra amount starts
| If you retired during | Extra $25,000 from |
|---|---|
| 2025 | January 1, 2027 |
| 2026 | January 1, 2028 |
| 2027 | January 1, 2029 |
The extra amount was $15,000 before the FY2027 budget. PERAC Memo 21/2026 quotes FY2027 budget § 30 striking '$15,000' and inserting '$25,000' (signed July 9, 2026; applies to all of calendar year 2026). The website text is simply not yet updated.
One footnote on MTRS's page still uses the old figure: MTRS 'Working after retirement' page footnote *** says 2028 allowable earnings 'would decrease by $585, to $31,415' - which is $65,000 - $48,585 + $15,000, i.e. the old $15,000 figure. We follow the formula. Formula: $65,000 - $48,585 + $25,000 = $41,415 for 2028.
What counts
'Salary' includes longevity, coaching and contracted stipends but not annuity/insurance premiums or other fringe benefits; 'earnings' include those fringe benefits. If you were on an individual contract, 'salary being paid' = last annual salary plus the CPI-W inflation factor (example: $125,000 + 1.3% = $126,625). If you worked part-time in your final year, you may use your salary average instead. MTRS web page 'Working after retirement'; Ready for Retirement 2026, pp. 27-28; PERAC Memo 21/2026, pp. 1-2; M.G.L. c. 32, § 91(b) as amended by FY2027 budget § 30
Going back to the same employer
Returning to the same employer you retired from requires a 60-day separation, except if you retired at 62 or older or at the 80% maximum ('presently'). Ready for Retirement 2026, p. 28; MTRS web page 'Working after retirement'
Critical shortage waivers
If DESE declares a critical shortage (603 CMR 7.14(13)(b)), the hours and earnings limits are waived for regular-formula retirees; for RetirementPlus retirees they still apply in the first two years of retirement and are waived after that. The 60-day separation still applies. Ready for Retirement 2026, p. 28; MTRS web page 'Working after retirement'; M.G.L. c. 32, § 91(e)
Pausing your pension, or un-retiring
You may waive ('freeze') your allowance while working, then resume it later at the same level plus COLAs (you cannot recoup waived payments, nor reinstate it for 1,200 hours a year while waived). Or you may 'unretire' under § 105: repay all benefits received plus interest at the buyback rate (currently 3.5%, one-half of the 7.00% actuarial rate) and work full time in an MTRS position for at least five full years to accrue more benefits. Ready for Retirement 2026, p. 28; MTRS web page 'Working after retirement', FAQs
Rehired retirees are not subject to Social Security or MTRS contribution deductions (IRS 'rehired annuitant'). MTRS web page 'Working after retirement', FAQ 'Will I be subject to Social Security deductions?'
Disability retirees: total public and private earnings plus the allowance may not exceed the salary for the grade held at retirement plus $25,000 (§ 91A). MTRS web page 'Working after retirement', FAQ 'I am a disability retiree'; PERAC Memo 21/2026, p. 2
MTRS has no DROP. Ready for Retirement 2026 (no such program described)
Questions
How much can an MTRS retiree earn working for a Massachusetts public employer?
Calendar-year earnings may not exceed (the greater of the salary now being paid for the position you retired from or your salary average) minus your annual pension; after you have been retired for one full January-December calendar year, add $25,000. You're also limited to 1,200 hours a calendar year.
Do I have to wait before going back to my old district?
Returning to the same employer you retired from requires a 60-day separation, except if you retired at 62 or older or at the 80% maximum ('presently').
Source: MTRS Ready for Retirement reference guide, 2026, pp. 27-28, 28. Also: MTRS web page 'Working after retirement'; PERAC Memo 21/2026 pp. 1-2, 2; M.G.L. c. 32, § 91. Last reviewed .