PERAC Memo #21 - 2026: Updated Calculation Figures for Post-Retirement Work Under Section 91 and Section 91A
Updated Calculation Figures for Post-Retirement Work Under Section 91 and Section 91A
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This memo announces that the FY2027 state budget (signed July 9, 2026) increased the earnings add-on used to calculate permissible post-retirement earnings under G.L. c. 32, §§ 91 and 91A, from $15,000 to $25,000, effective retroactively for all of calendar year 2026. Boards should apply the new $25,000 add-on when calculating allowable post-retirement earnings for both regular retirees (§91) and disability retirees (§91A), while continuing to apply the existing rule that a retiree must be retired a full calendar year before the higher limit applies. No other action is required, but boards should update any earnings-limit calculations/notices already issued for 2026 to reflect the revised figure.
Full Text
PERAC MEMO 21/2026
M E M O R A N D U M
TO: All Retirement Boards
FROM: Bill Keefe, Executive Director
RE: Updated Calculation Figures for Post-Retirement Work Under Section 91 and
Section 91A
DATE: July 13, 2026
On July 9, 2026, Governor Healey signed the Fiscal Year 2027 Annual Budget, which included
two amendments to the calculation of excess earnings for retirees pursuant to G.L. c. 32, §§ 91 &
91A. Pursuant to the new language of Sections 91 & 91A, in calculating their ability to work post-
retirement, retirees can now add an additional $25,000 to their calculation instead of $15,000.
These changes are effective as of July 9, 2026, and will apply to earnings limitations for all of
calendar year 2026. Please note, G.L. c. 32, § 91 still requires that an individual be retired for a
full calendar year before the limit on their post-retirement earnings increases by the amount
specified in the statute.
Prior Language for Calculating Excess Earnings
For work performed in the public sector post-retirement, all retirees are limited in their hours and
earnings. In its previous form, G.L. c. 32, § 91(b) provided that in calculating the allowable
earnings for a retiree who returns to work in the public sector, the calculation should be completed
as follows:
...the earnings therefrom when added to any pension or retirement allowance he is
receiving do not exceed the salary that is being paid for the position from which he
was retired or in which his employment was terminated or the salary upon which
the retirement allowance is based, whichever is greater, plus $15,000....
For disability retirees, they are further limited in their earnings in both private and public sector
employment pursuant to G.L. c. 32, § 91A. In its previous form, Section 91A provided that in
calculating the allowable earnings for a disability retiree, the calculation should be completed as
follows:
WILLIAM T. KEEFE, Executive Director
10 CABOT ROAD, SUITE 300 | MEDFORD, MA 02155
M E M O R A N D U M - Page Two
TO: All Retirement Boards
FROM: Bill Keefe, Executive Director
RE: Updated Calculation Figures for Post-Retirement Work Under Section 91 and
Section 91A
DATE: July 13, 2026
...if such earnings exceed an amount which when added to the member's retirement
allowance is greater than the amount of regular compensation which would have
been payable to such member if such member had continued in service in the grade
held by him at the time he was retired plus $15,000....
New Language for Calculating Excess Earnings
Section 30 and Section 31 of the Fiscal Year 2027 Annual Budget provide as follows:
SECTION 30. Section 91 of said chapter 32, as appearing in the 2024 Official
Edition, is hereby amended by striking out, in line 101, the figure “$15,000” and
inserting in place thereof the following figure:- $25,000.
SECTION 31. Section 91A of said chapter 32, as so appearing, is hereby
amended by striking out, in line 27, the figure “$15,000” and inserting in place
thereof the following figure:- $25,000.
As such, G.L. c. 32, § 91(b) will now read, in pertinent part, as follows:
...the earnings therefrom when added to any pension or retirement allowance he is
receiving do not exceed the salary that is being paid for the position from which he
was retired or in which his employment was terminated or the salary upon which
the retirement allowance is based, whichever is greater, plus $25,000....
G.L. c. 32, § 91A will now read, in pertinent part, as follows:
...if such earnings exceed an amount which when added to the member's retirement
allowance is greater than the amount of regular compensation which would have
been payable to such member if such member had continued in service in the grade
held by him at the time he was retired plus $25,000....
This new language will help increase the earnings capacity of all retirees who work post-
retirement. These amendments will increase the amount a retiree working post-retirement can
earn in each calendar year by an additional $10,000.
We trust the foregoing will be of assistance. If you have any further questions, please feel free
to contact Associate General Counsel Daniel Taylor at (617) 666-4446, ext. 912, or at
daniel.taylor2@mass.gov. Thank you.