The Annual Statement of Earned Income

G.L. c. 32, § 91A - Adjusted Pension or Retirement Allowances

All disability retirees, including those who retired under accidental disability, are required by law (M.G.L. c. 32, § 91A) to submit a statement of their earnings. PERAC mails disability retirees an Annual Statement of Earned Income every year which they must complete on or before April 15th of each year.

All pertinent W-2 forms, 1099 forms, other requested tax forms and proof of income, and any other documentation requested by PERAC must be included with the statement. 

2021 Statements were mailed the week of February 22, 2022 and must be returned by April 15, 2022. If you have not filed your statement and have questions or need assistance, please contact our office. 

Annual Statement of Earned Income

• Frequently Asked Questions: The Annual Statement of Earned Income
• Disability Retiree Earned Income Worksheet

Evaluation and re-examination of disability retirees

Pursuant to M.G.L. c. 32, § 8(3), disability retirees can have their benefits modified for three main reasons: 

1. A regional medical panel finds you are no longer disabled and recommends the modification,
2. Earnings information submitted under §91A is more than what is allowable by law, or
3. You completed a rehabilitation program (M.G.L. c. 32, §8(1) or §21(5))

If you are found engaged or able to engage in gainful occupation and the annual rate of your actual or potential earnings are less than your "regular compensation" but more than the difference between your regular compensation plus $15,000 and the normal yearly amount of your retirement allowance, then the yearly amount of your pension will be reduced by that difference. 

If your earnings are more than your "regular compensation" then your pension will be suspended. 

Once reduced or suspended, the retirement allowance cannot be increased for one year unless a medical report finds that your mental or physical condition has deteriorated. 

If your earnings should later change, the yearly amount of your pension will be further modified by reinstating, increasing, reducing or suspending it, as the case may be. 

What is "regular compensation"?

Regular compensation is compensation which would have been payable to you the previous year had you continued as a member in service in the position and/or grade level you held at the time of retirement. The commission provides for a system of annually adjusting for inflation and other equitable factors as the commission deems relevant to calculate the fair amount of outside income that may be earned by a member. 

You can appeal pension modifications to the Contributory Retirement Appeals Board.

Modification of disability retirement allowances

• Modification policy
• Modification procedure

Additional Resources

Massachusetts Public Employee Guide to Disability Retirement - Regardless of the Date of Membership