For the first time in decades, Massachusetts has increased the annual limit on work hours for public-sector retirees with pensions who want — or need — to continue working.
In September, the Legislature overrode a veto by Governor Charlie Baker and approved a new yearly cap of 1,200 hours.
The action is expected to open more opportunities for affected retirees.
Many people work in retirement out of necessity.
Even as the pandemic has resulted in inflation, the state budget provided only a 3 percent cost-of-living increase for public-sector retirees, which is limited to the first $13,000 of their pension — a maximum of $390 per year.
Retired public-sector employees, including city and state retirees, for years were restricted to working 960 hours a year in public-sector jobs. Baker wanted to increase that limit by 15 hours.
The new flexibility, retroactive to July 1, will not affect previously earned pensions. And no cap applies to retirees who go on to work for a private employer.
For more information, members are advised to read the notice at https://www.mass.gov/orgs/massachusetts-state-retirement-board. Further information on the changes is also available at https://mtrs.state.ma.us.
