Download a printable version: Post Retirement Employment Guidelines pdf format of Post Retirement Employment Guidelines [.pdf] format

 

Introduction

The terms and conditions of employment for post retirement employees are set forth in the General Laws of Massachusetts, Chapter 32: Sections 91 and 91A. The guidelines are to be followed by Executive Branch departments and supersede any previous guidelines regarding post retirement (960-hour) employees.

Definition of a Post Retirement - 960 hour Employee

A person who has been retired and who is receiving a pension, disability pension or retirement allowance from the Commonwealth, or from any county, city, town or district may be employed in the service of the Commonwealth for up to 960 hours in the aggregate in any calendar year. Such person shall serve at the will of the Appointing Authority.

Job Classification

Post retirement employees may be rehired into their former job title or other job titles in accordance with the services they will provide.

Positions

Executive Branch post retirement positions must be established with a position type of PR - Post Retirement 120 day Appt. Non-Executive Branch departments are not required to use position type PR, but are encouraged to do so to ensure consistent practices and accurate reporting. This category of employee is included in the agency official FTE count.

Compensation

Limitations on compensation include:

Employment may not exceed 960 hours per calendar year and/or total earnings per calendar year cannot exceed the difference between the retirement allowance and the current pay rate for the position from which the employee was retired or terminated prior to his/her retirement. (See Appendix for sample calculations).

It is strongly recommended that each agency keep documentation in its files on the rationale for each post retiree's compensation limitation. It is also strongly recommended that agencies complete and provide postretirement employees with the attached Post Retirement Employment Statement of Earnings form (see Appendix) and require their signature on the form on or before the first day of their employment during each calendar year. Post retirement employees may negotiate their compensation rate with their employer so long as their calendar year earnings are in compliance with M.G.L.Ch 32 section 91. Post retirement employees are not eligible for collectively bargained step increases, COLAs, bonuses, or differentials. Post retirement employees are not eligible for Executive Branch management or Technical Pay Law pay increases. Post retirement pay rate, including differentials, is negotiated between the employee and the employer.

Post retiree employees may be reimbursed for mileage expenses incurred in the course of their work at rates negotiated between the employee and the employer.

Post retiree employees who are collecting a disability pension are subject to M.G.L. Ch 32 section 91A. This section states that such employees may earn up to $5,000 more than the difference between the retirement allowance and the current pay rate for the position from which the employee was retired or terminated prior to his/her retirement. In addition, such employees must annually file a statement of earnings from all earned income for the previous calendar year with the Public Employees Retirement Administration Commission (PERAC) on or before April 15 th of each year.

Time and Attendance

Post retirement employees in non-exempt titles (titles covered by collective bargaining or Manager I-IV) are eligible for overtime under the Fair Labor Standards Act (FLSA).

Post retirement employees are not eligible for paid time off; sick, vacation, personal, holiday, compensatory time, or emergency office closing (SNO/SKE) time. Nor are they eligible for such paid leave programs as blood donation, school volunteer, mentoring, organ donation, jury duty, etc.

Post retirement employees will be eligible for up to 12 weeks unpaid FMLA leave in the 52 weeks following retirement only if they meet the required criteria (serious health condition etc.)

Benefits

Post retirement employees are not eligible for union provided benefits, i.e. dental/vision, insurance, or other supplemental coverage. Questions regarding Group Insurance Commission (GIC) retirement benefits should be directed to the GIC.

Payroll Deductions

a) Mandatory- All post retirement 960 hour appointments are subject to Medicare Tax regardless of status prior to retirement.

b) Voluntary-Post retirement employees are eligible for the following payroll deductions: MBTA Charlie card and Charlie ticket; COMECC, Health Care Spending Account (HCSA), and Dependent Care Assistance Program (DCAP) deductions, SMART plan, and UFUND.

Related Policies and Documents

  • HRCMS Job Aid - Hire Post Retirement
http://www.hrcms.state.ma.us/Job_Aids/human_resources/HR - Rehire Employees_JOBAID.doc (Exclusive link for State Employees only)

 

  • Benefit Guide for the Massachusetts State Employees' Retirement System

http://www.mass.gov/treasury/forms/ret/retguide.pdf

  • MMARS Policy: Payroll - Employee-Employer Relationship: State Employees

http://www.mass.gov/Aosc/docs/policies_procedures/
payroll_lcm/po_pr_state_emp.doc

  • MMARS Policy: Payroll - Employer Relationship: Types of Employment

http://www.mass.gov/Aosc/docs/policies_procedures/payroll_lcm/
po_pr_types_empl.doc

  • MMARS Policy: Payroll - Mandatory and Voluntary Deductions: Retirement Programs

http://www.mass.gov/?pageID=oscterminal&L=3&L0=Home&L1=Publications+and+Reports&L2=
Policies&sid=Aosc&b=terminalcontent&f=policies_procedures_po_payroll_lcm&csid=Aosc

 

Frequently Asked Questions

Massachusetts General Law Chapter 32 Section 91 & 91A

Maximum Earnings Calculation - Examples

Statement of Earnings