Post-Retirement Earnings Limitations

Many police officers are interested in seeking public employment when they retire. Post retirement earnings paid by the Commonwealth of Massachusetts or any City and Town in Massachusetts are limited by G.L. c. 32 § 91. This post-retirement earnings cap applies whether the employee receives a regular or accidental disability retirement.

If you are receiving a public employee retirement, subject to a few rarely applicable exceptions, G.L. c. 32 § 91 limits your post retirement public employment earnings to the salary currently being paid for the position from which you retired plus $15,000.00. However, the $15,000.0 buffer does not apply to your first year of employment after retirement.

There is also a cap on the maximum number of hours which you can work after retiring from public employment in Massachusetts. Specifically, you cannot work more than 960 hours per calendar year for a public employer in Massachusetts.

If you are a retired public employee, such as a police officer or firefighter, you should be aware of the limitations on post-retirement earnings. If you have exceeded the limitations set forth above, your Retirement Board may garnish your future retirement payments to recoup excess benefits previously paid.

Retirees providing services to public entities in Massachusetts are subject to G.L c. § 91 earning limitations, regardless of whether they provide services as vendors, consultants, or independent contractors. Also, you cannot avoid the cap by forming a company or corporation if the arrangement is intended to circumvent post-retirement earnings limitations.