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SPECIAL NOTICE TO ALL RETIREES

The Public Employee Retirement Administration Commission (PERAC) has recently issued an updated memorandum concerning "Post-Retirement Earnings Limitations".  This applies to all retirees who work in the public sector after retirement.  the public sector is broadly defined as the Commonwealth and its political subdivisons, including cities, towns, authorities, districts and the like. 

Massachusetts General Laws Ch. 32, Sec. 91 limits a member who is receiving a retirement allowance to 960 hours of employment within the public sector in any calendar year.  In addition, the salary for such public sector employment when added to the memberīs retirement allowance cannot exceed the salary that is currently being paid for the position from which the member retired.  It is important to note that this limitation applies to public sector employment only.  A person who has retired for superannuation (as opposed to a disability retiree) can be employed in the private sector or in the public sector in another state without limitation.  Disability retireesī employment is also limited by the provisions of M.G.L. Ch. 32, Sec 91A.

It is important to to keep in mind:                                                                                                          

1.  This applies to any public employment, regardless of whether or not it occurs in the same governmental unit from which the retiree/employee retired.

2.  It is irrelevant whether an retiree chooses to classify him or herself as a "consultant" or "independent contractor" - the earnings limitation still apply.

3. A retiree may not avoid the limitations by forming a company if the primary reason for the formation of the company is to avoid the limitations.

4. Earnings for "details" which are paid by city or town payroll are included in the limitations, regardless of whether the city or town ultimately bills a private entity for the work.

5.  The limitations only apply to retirees, not survivors or beneficiaries.

Should you have any questions concering any of the above, please do not hesitate to contact the Bristol County Retirement Board.