| For example: Trudy Teacher retires on June 30, 2026, with an annual retirement allowance of $48,000. The position from which Trudy retires, based on her step and education level, will pay $65,000 per year in the fall of 2026, and will remain at that amount for the next several years. She will return to teaching on September 1, 2026, and continue to work for the next several years (without exceeding the limit of 1,200 hours per calendar year). Trudy's earnings limitations for the next few years are as follows: |
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|---|---|---|
For the last four months of 2026 (September 1 through December 31, 2026), Trudy can earn $17,000 |
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| Current annual salary for position from which Trudy retired* | $65,000 | |
| -Trudy's annual retirement allowance | ($48,000) | |
| Amount of Trudy's allowable earnings** for remainder of 2026 | $17,000 | |
| * "Salary" includes earnings such as regular longevity, athletic coaching and contracted stipends. It does not include annuity/insurance premiums and other fringe benefits. ** "Earnings" include compensation in any form including annuity/insurance premiums and other fringe benefits. |
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For all of calendar year 2027 (January 1 through December 31, 2027), Trudy can still earn a total of $17,000 |
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| Current annual salary for position from which Trudy retired* | $65,000 | |
| -Trudy's annual retirement allowance*** | -48000 | |
| Amount of Trudy's allowable earnings** for calendar year 2027 | $17,000 | |
Beginning January 1, 2028, after she has been retired for one full calendar year, Trudy can now earn an additional $25,000 for calendar year 2028 and every calendar year thereafter |
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| Current annual salary for position from which Trudy retired* | $65,000 | |
| -Trudy's annual retirement allowance*** | -48000 | |
| Standard earnings limitation for calendar year 2028 | $17,000 | |
| + $25,000 (enacted in the FY2027 State Budget) | $25,000 | |
| Amount of Trudy's allowable earnings** for 2028 | $42,000 | |
| *** Because cost-of-living adjustments must be granted by the Massachusetts Legislature on an annual basis, we have not included any COLA amounts in Trudy's annual retirement allowance figures in these examples. If, however, the Legislature approves a 3% COLA for fiscal years 2027 and 2028, and the COLA base remains $13,000, then Trudy's annual retirement allowance for calendar year 2027 would be $48,195 (an additional $32.50 per month for the six months of July through December, for a total increase of $195), and her allowable earnings for calendar year 2027 would decrease by $195, to $16,805. Likewise, for calendar year 2028, her annual retirement allowance would increase to $48,585 (an additional $32.50 per month for January through June, and an additional $65.00 per month for July through December, for a total increase of $585), and her allowable earnings for calendar year 2028 would decrease by $585, to $31,415. | ||