G.. L. c. 32, § 7 (2)(a)(ii) specifies how Accidental Disability Retirement benefits in Massachusetts are calculated. The provides two methods of calculating the annual amount of a Massachusetts accidental disability retirement allowance. The employee’s age and years of service are irrelevant when it comes to calculating an ADR pension.
Under the first method, the annual accidental disability retirement pension is an amount equal to 72% of the accidental disability retiree’s annual regular compensation on the date the disabling injury was sustained.
The second way to calculate an annual accidental disability retirement pension is to set the pension amount as 72% of the retiree’s annual regular compensation for the 1 year period which immediately preceded the effective date of his or her disability retirement.
The calculation method which provides the highest amount is to be used. Also, in cases where the disability results from a prolonged exposure or series of incidents, the second method must be used. It is not possible to use the first method because there is no single date of injury or hazard undergone which resulted in the disability.
Ordinary Disability Retirements are calculated based on the retiree’s age and years of service. To receive an Ordinary Disability Retirement, the applicant does not need to prove that his or her disability was job-related. Causation is not an element in these cases.
Accidental Disability Retirement benefits are state and federal tax free.