TO: All Retirement Boards

FROM: Joseph E. Connarton, Executive Director

RE: Updated Work Sheet for Post Retirement Limits on Public Employment for Retirees of a Public Retirement System who Retired for Superannuation.  (Follow-up to MEMO #28 / 2011)

DATE: March 13, 2012

In accordance with Section 50 of Chapter 176 of the Acts of 2011, public retirees who return to public employment with any governmental entity in Massachusetts and have been retired for more than 12 months may earn an additional $15,000 during a calendar year.

Effective April 2, 2012, superannuation retirees, who have been retired more than a year, will be allowed earnings of up to $15,000 above the salary currently being paid for the position from which he/she retired when added to his/her retirement allowance. Please note, the new law did not increase the number of hours of public employment that are allowed to be worked during a calendar year.  It remains set at 960 annual hours.

Since the calculation for post-retirement limits for public employment is based on a calendar year basis under the provisions of G.L. c. 32 § 91(b), adding the additional $15,000 towards post-retirement limits during calendar year 2012 will be afforded to only those  retirees whose retirement became effective on or before April 1, 2011. In subsequent calendar years, retirees who have retired before January 1st of the prior calendar year will be afforded the additional $15,000 towards their post-retirement earnings limit.

The updated worksheet has been adjusted in order for individuals who retired on or before April 1, 2011, to receive the additional $15,000 in earning capacity for public employment in calendar year 2012. This adjustment will also allow individuals retiring after  April 1 to utilize the worksheet to calculate their earnings capacity for calendar year 2012. If you have downloaded the Worksheet that accompanied Memo #28 / 2011, it should be disregarded and replaced with the Worksheet accompanying this Memo #28 / 2012.

Thank you very much for your cooperation.

Enclosure: Calculation Worksheet for Post-Retirement Earnings in the Public Sector 2012  xls format of Post-Retirement Earnings: Public Sector Worksheet 2012