Employers - MTRS

    • Contrast
    • Layout
    • Font
Top Navigation
  • Member sign in
  • About
  • Contact
MTRS
WCAG buttons
MENUMENU
  • Home
  • Members
  • Retirees
  • Employers
  • Forms

Employers

Employers
MyTRS Employer sign in
ESS error reporting form
Online training and guides
News and email archive
Employer forms
Contact Employer Services
MTRS membership eligibility
Employee enrollment procedure
Rehiring a MA public retiree
Monthly deduction reporting
Contribution rates explained
Regular compensation: Pensionable earnings
Salary augmentation “ELBO” plans
Military leave
Part-time “membership” service
Disability retirement processing guidelines
Retiree insurance
Financial reports
MTRS monthly report layout

Employer forms

Employers

Download forms to your computer before completing themInteractive PDFs must be saved to your computer to work properly. To ensure proper functionality, 1) click on a form link, 2) download the PDF to your computer and 3) open the PDF using Adobe Acrobat Reader. You may encounter technical issues if you attempt to enter data in the PDF using your web browser.

MTRS benefits and resources

Retirement application, Part 2 for employers

Retirement Application, Part 2


Training video on how to complete Part 2


What is this?

  • This is Part 2 of our retirement application.
  • It is the service and salary history portion of the application that is to be completed by payroll administrators.
  • It is five pages long, and, unlike the Part 2 that appears in the downloadable application that is accessible to members, is interactive. Be sure to download the form to your desktop before entering any data.
  • Note: since the recording of this video, section 3 has been expanded to accommodate salary history for both Tier 1 and Tier 2 members. Additionally, sections 4 and 6 have had minor layout adjustments, however the data collected in these sections remains the same.

For the complete 19-page application, see Retirement Application.


What is the process?

  • Step 1: The retiring member will present you with a printed copy of Part 2 of his or her retirement application. Members applying for superannuation (regular and RetirementPlus) or termination retirement are required to use this application. They are instructed to print the application—which includes Part 2 in a non-interactive version—and bring Part 2 to you for completion. Neither Part 1, which is completed by the applicant, nor Part 2 may be submitted by e-mail or via the web.
  • Step 2: You are to complete Part 2, make a copy for your records, and return Part 2 to the member. It is the member’s responsibility to send us both Part 1 and Part 2 together. You are welcome to complete the copy of Part 2 that they bring you, or come to this page and access this interactive version so that you may complete Part 2 onscreen. In all cases, you must have a hard copy that you sign and return to the member. It is not possible to submit Part 2 by e-mail or via the web.
Refund application, Part 2 for employers

Refund Application, Part 2


What is this?

This is Part 2 of our refund application, which is to be completed by payroll administrators.

Part 2 is the service and salary history portion of the application. You will find that it is very similar to Part 2 of the Retirement Application.

It is two pages long, and, unlike the Part 2 that appears in the downloadable application that is accessible to members, is interactive. Be sure to download the form to your desktop before entering any data.

For the application that is available to members, see Refund Application.


What is the process?

  • Step 1: The refund applicant will present you with a printed copy of Part 2 of his or her refund application. Members applying for a refund are instructed to use this application. They are instructed to print the application—which includes Part 2 in a non-interactive format—and bring Part 2 to you for completion. Neither Part 1, which is completed by the applicant, nor Part 2 may be submitted by e-mail or via the web.
  • Step 2: You should complete and return Part 2 directly to the applicant after you have issued the applicant’s final paycheck. It is then the applicant’s responsibility to submit both Part 1 and Part 2 to the MTRS’s main office. Please note that the applicant cannot submit this application until after his or her last day of service, and we cannot process the refund until after we have received and posted the applicant’s final payroll deduction.
    You are welcome to complete the copy of Part 2 that they bring you, or come to this page and access this interactive version so that you may complete Part 2 onscreen. In all cases, you must have a hard copy that you sign and return to the member. It is not possible to submit Part 2 by e-mail or via the web.

 


Service purchase forms

Vocational work experience form for employers

Vocational work experience service purchase application


What is this?

  • This is our vocational work experience service purchase form.
  • It is the same four-page, interactive form available to members.

You are welcome either to complete the copy of page two that members provide, or to access this interactive version. Either way you choose to complete your part is fine; the advantage of the online interactive version is that you may more easily type in your data. In all cases, the completed form must be printed out and signed. It is not possible for the applicant or you to submit the form either by e-mail or via the web.


What is the process?

Members applying to purchase this service are instructed to print the application, complete page one and bring the application to you for completion of page two. Depending on the applicant’s service history, you may be asked to complete Section 4, Section 5, or both:

  • If your school or school district has a vocational education program, your current and former employees will be asking you to complete Section 4, to verify their Chapter 74-approved program service. Section 4 consists of your contact info and three fields: the start date of the applicant’s employment in a Chapter 74-approved program with your district; the name of that Chapter 74-approved program ; and, the applicant’s position title and subject area at the time.
  • If yours is the district in which the applicant most recently established membership service in the MTRS, members will be asking you to complete Section 5. Section 5 consists of your contact info and four fields: the start date of the applicant’s employment in your district, and the applicant’s position title, annual contract rate and employment status (full-time or part-time and percentage).
  • Just as you’ve done with our other service purchase forms, please complete, sign and return the form directly to the member. It is then the applicant’s responsibility to submit the two-page application to the MTRS.
Substitute, Temporary or part-time service in MA form for employers

Substitute, temporary or part-time public school service in Massachusetts


What is this?

  • This is our Substitute, temporary or part-time service purchase form.
  • This is the same six-page, interactive form available to our members.

You are welcome either to complete the copy of the form that members provide or to access the interactive version on this page. Either way you choose to complete your part is fine; the advantage of the online interactive version is that you may more easily type in your data. In all cases, the completed form must be printed out and signed. It is not possible for the applicant or you to submit the form either by email or via the web.

Other Massachusetts public service purchase application for employers

Other Massachusetts public service purchase application


What is this?

  • This is our Other Massachusetts public service purchase form.
  • This is the same five-page, interactive form available to our members.

You are welcome either to complete the copy of the form that members provide or to access the interactive version on this page. Either way you choose to complete your part is fine; the advantage of the online interactive version is that you may more easily type in your data. In all cases, the completed form must be printed out and signed. It is not possible for the applicant or you to submit the form either by email or via the web.


New Members

Social Security Form 1945

The Social Security Protection Act of 2004 (Public Law 108-203) requires state and local employers who hire individuals for non-Social Security covered positions on or after January 1, 2005 to provide these new hires with Form 1945. This notice explains the possible reduction in the employee’s future Social Security benefit as a result of the Windfall Elimination Provision and Government Pension Offset . The new hire must sign the notice, acknowledging that he or she is aware of this possible reduction, and then you must send it to:

Massachusetts Teachers’ Retirement System
c/o Employer Services
500 Rutherford Avenue, Suite 210
Charlestown, MA 02129-1628

Please be sure to have your employee enter either their Social Security Number or MTRS member number in the “Employee ID” field on the form, and send completed forms directly to our main office, and not with your monthly payroll deduction report payments to our lockbox in Philadelphia.

To obtain the form as well as more information on the notice itself, instructions for its use and how the form can be ordered, please visit Social Security’s website at http://www.ssa.gov/forms/ssa-1945.pdf.


Contribution reporting

Leave of Absence Information

Workers’ Compensation Leave form

Retirement Deduction Submittal form

Military Service Leave Reporting Form


Rehiring of a retired Massachusetts public retiree

Post Retirement Earnings Calculator

Instructions for Post-Retirement Earnings Worksheet

Contact Employer Services

Employers

Please contact us if you need any assistance or have any questions. We truly value your efforts throughout the year on behalf of our members and the MTRS!

Email

empsup@trb.state.ma.us

Please do not include information of a confidential nature in your messages. The MTRS cannot guarantee or ensure the privacy, confidentiality and/or security of any messages submitted via email.

Address

Main office, 500 Rutherford Avenue, Suite 210, Charlestown, MA 02129-1628

Employer Services staff

To find out which Employer Reporting Analyst is assigned to your district, please sign into MyTRS, click Employer Information under the first heading, and then click on the Additional Information tab. For detailed instructions, see Guided Practice 6: Viewing Employer Information.

Thierno Bah617-679-6113Thierno.Bah@trb.state.ma.us
Matthew Channing617-679-6816Matthew.Channing@trb.state.ma.us
Christine Connell617-679-6896Christine.Connell@trb.state.ma.us
Christine Goulet617-679-6878Christine.Goulet@trb.state.ma.us
Varada Krishnadas617-679-6885Varada.Krishnadas@trb.state.ma.us
Jonathan Martin617-679-6847Jonathan.Martin@trb.state.ma.us
Christopher McCarthy617-679-6178Christopher.McCarthy@trb.state.ma.us
Shannon Murphy617-679-6826Shannon.Murphy@trb.state.ma.us
Judith Nabagereka617-679-6875Judith.Nabagereka@trb.state.ma.us
Ayoub Omri617-679-6125Ayoub.Omri@trb.state.ma.us
Kristin Patti617-679-6880Kristin.Patti@trb.state.ma.us
Amina Rodriguez617-679-6101Amina.Rodriguez@trb.state.ma.us
Mildred Rodriguez617-679-6886Mildred.Rodriguez@trb.state.ma.us
Ryan Roseman617-679-6890Ryan.Roseman@trb.state.ma.us
Jessica Tang617-679-6861Jessica.Tang@trb.state.ma.us
Tania Tyman617-679-6857Tania.Tyman@trb.state.ma.us
Jay Zimmerman617-679-6863Jay.Zimmerman@trb.state.ma.us
Jamie Zizza617-679-6850Jamie.Zizza@trb.state.ma.us

MTRS membership eligibility

Employers

Statutory and regulatory authority governing membership

The MTRS is a pension plan qualified under IRC section 401(a) and established in Massachusetts by M.G.L. c. 32, §2. Eligibility for membership in the MTRS is primarily determined by the definition of “teacher” in M.G.L. c. 32 (primarily Section 1) and the MTRS regulation on membership eligibility also set out criteria for membership. Additionally, other provisions of Commonwealth law, such as Chapter 71 §89(y), provide a pathway to MTRS membership even for individuals who might not satisfy this initial eligibility criteria. This information is provided as a resource for employers Massachusetts public school districts, charter and virtual schools and educational collaboratives to help school administrators determine their employees’ eligibility for MTRS membership. It is not a substitute for the General Laws or MTRS regulations.

Employers’ responsibilities

Massachusetts public employers are required to:

  • REGISTER all eligible full-time employees, and most part-time employees, in a local, regional or state retirement system when they are hired for employment.
  • RE-EVALUATE an employee’s retirement system membership any time there is a significant change in the individual’s employment status or position. If there are any changes in an MTRS member’s status or position, employers are required to notify the MTRS within 30 days of the change [M.G.L. c. 32, §3(2)(g)].
    Using MyTRS, our online reporting system, MTRS employers have nearly 24/7 access to register newly eligible employees and update the status of current employees.

Which system should the employee be enrolled in: the MTRS or the local system?

All “teachers” are required to be enrolled in the Massachusetts Teachers’ Retirement System except teachers who are employed by the Boston Public Schools.

Employees who are not “teachers” must be enrolled in another contributory retirement system, or, if they are not eligible for any such system, in an OBRA plan.

Defining “teacher”

Persons considered “teachers” in a public school district, collaborative, charter school or virtual school are eligible for membership in the MTRS.

Exactly who qualifies as a “teacher” is a matter of statutory and regulatory definition, but below are some guidelines.

Employment requirements

Pursuant to M.G.L. c. 32, §1, for purposes of MTRS membership eligibility, a “teacher” must be employed:

  • by a public school or school system, and
  • on a basis of not less than half-time service. A member’s half-time status can be achieved by totaling the employment basis among multiple employers. For example, an individual who works 20% with one employer and 40% with another, has a total employment basis of 60% and, thus, meets the half-time employment requirement.

Positions that qualify for membership based on title alone

Individuals holding certain positions are eligible for membership based on their titles alone, because certain position titles are included in the statutory definition of “teacher”; however, they must still meet both employment requirements, above.

Position titles that are eligible for membership by definition are:

  • School psychologist
  • School psychiatrist
  • School adjustment counselor
  • School social worker appointed under Chapter 71, §46G
  • Director of occupational guidance and placement appointed under Chapter 71, §38A or §38D
  • Principal (also, assistant principal)
  • Supervisor* or superintendent in any public school (also, assistant superintendent)
  • Supervisor* or teacher of adult civic education
    * A “supervisor” is generally considered to be a person who supervises other “teachers.”

Individuals with other titles are NEVER DISQUALIFIED FROM MEMBERSHIP BASED SOLELY ON THEIR TITLES; rather, their eligibility is determined pursuant to our membership eligibility regulation, as described below.


Evaluating positions that do not qualify for membership based on title alone

For positions not specifically listed above, the eligibility criteria are supplied by our membership eligibility and continued membership regulation (807 CMR 4.00) as shown below.

807-4.01: Purpose of Standard Rules; Retirement Board Policy

The purpose of 807 CMR 4.00 is to establish uniform criteria and procedures to be applied by the Retirement Board in determining an individual’s initial eligibility for membership within the Massachusetts Teachers’ Retirement System (“MTRS”); under what circumstances a separation from service occurs; and continued membership for those who, though still members in service, no longer meet the statutory definition of “Teacher.” The retirement board shall assist all public school teachers and administrators in obtaining all rights and benefits authorized by M.G.L. c. 32 while protecting the retirement system from liability not authorized by law.

807-4.01.1: Definitions

Teacher Position:  A “teacher position” means regular employment, on at least a half-time basis, in a position that satisfies the MTRS’ eligibility criteria at 807 CMR 4.02. A “teacher position” shall not include day-to-day or short-term employment.

Day-to-day Employment: Employment on a day-to-day basis means any employment on an intermittent basis. Day-to-day employment is not regular employment.

Short-term Employment: Short-term employment is substitute, part-time, temporary or seasonal employment of less than six calendar months’ duration.

Separation from Service: “Separation from service” for a teacher occurs at the moment they cease to be regularly employed in a teacher position with their employer. This occurs upon:

(a) Their resignation from that employer;

(b) Their failure to be re-elected or re-appointed in a teacher position by that employer;

(c) Their removal or discharge from their position;

(d) Their commencement of service in a position other than a teacher position;

(e) Their commencement of day-to-day or short-term employment;

(f) The beginning of any period of an authorized unpaid leave of absence beyond one year, which is not:

(i) Leave that is due to mental or physical incapacity for duty or to permit such member to perform their duties as a member of a retirement board, as provided for in M.G.L. c. 32, § 3, or

(ii) Leave to serve as a representative of an employee organization, as provided for in M.G.L. c. 32, § 28K;

(g) Their retirement.

For purposes of determining whether there has been a separation from service, an existing member of the MTRS, employed under a 10 month, or school year contract, will not be considered separated from service during the summer months between school years so long as they return to regular employment in a teacher position with their same employer, beginning with the start of the next school year.

807-4.02: Eligibility Criteria

(1) No individual shall be eligible for membership within the retirement system unless the retirement board finds:

(a) The individual holds a license granted by the Department of Elementary and Secondary Education (“DESE”), or has been granted a waiver pending licensure by the DESE;

(b) The individual is covered by a contractual agreement for employment with one or more school committees or boards of trustees or by any combination of such committees and boards;

(c) The contractual agreement requires not less than half-time service as a teacher, as defined in M.G.L. c. 32 and clarified herein; and

(d) The contractual agreement requires that the individual be licensed by the DESE as a condition of employment.

(2) In addition to those individuals determined to be eligible pursuant to 807 CMR 4.02(1), the following individuals shall be deemed eligible for membership:

(a) Individuals who hold a license granted by the DESE and are employed on the basis of not less than half-time as the director of an educational collaborative as organized and approved under the provisions of M.G.L. c. 40, § 4E;

(b) Individuals employed, pursuant to a contractual agreement, on at least a half-time basis as a teacher by a Massachusetts public charter school, an innovation school, or Quincy College. Because “teachers” in these entities are members of the MTRS irrespective of any provision of Chapter 32, a “teacher” in these entities is hereby defined as one who either holds the title of teacher, meets all four of the eligibility criteria set forth in 807 CMR 4.02(1) above, or works in a position that would be eligible for MTRS membership if it were performed in a Massachusetts public school;

(c) Any member in service of the MTRS whose employment status becomes less than half-time without an intervening separation from service as defined in 807 CMR 4.01(1) above. For example, a full-time teacher whose position in the same district is reduced to forty percent.

807-4.03: Enrollment

(1) Enrollment. Any individual satisfying the eligibility criteria in 807 CMR 4.02, who enters into a contractual agreement for employment with a school committee or board of trustees shall file for enrollment, in the form prescribed by the MTRS, within 30 days of becoming eligible for membership.

Additional notes on our membership eligibility and continued membership regulation:

  • Licensure must be required as a condition of employment–it cannot simply be preferred–and the employee must possess the license that is required. If the employee has been granted a licensure waiver by the DESE, the MTRS acknowledges this as the equivalent of being  licensed during the period covered by the waiver.
  • Teachers who are pending licensure  are conditionally accepted for the duration of their qualified application period (usually one year).
  • For the purpose of membership eligibility, the employer contract does not have to be a written contract.
  • All positions not specifically mentioned in this summary, including BCBAs, Athletic Directors, ROTC instructors, and nurses, are eligible for the Massachusetts Teachers’ Retirement System if, and only if, they meet the eligibility criteria in (807 CMR 4.00).

Special cases

Charter school employees

Membership eligibility for charter school employees is slightly different from that for non-charter school employees.

  • Charter school employees who meet all of the membership qualifications in (807 CMR 4.00) are eligible in a charter school just as in any Massachusetts public school.
  • Charter school teachers are eligible for MTRS membership pursuant to Chapter 71, and do not have to be DESE licensed [M.G.L. c. 71, §89(y)] so long as they meet the other requirements for being employed as a charter school teacher.
  • As a general rule, a charter school “teacher” is any position that typically requires licensure in non-charter schools where a member is required to work on at least a half-time basis.
  • Directors (superintendents), principals and other positions that are eligible for MTRS membership by title in non-charter schools are also eligible by title in charter schools.
  • Charter schools are required to submit to the MTRS the job description for any position other than teacher or the positions listed in c. 32, § 1 for for membership eligibility determination.

NOTE: Virtual school employee eligibility is subject to all of the same rules as for individuals in non-charter schools.

Part-time, temporary and provisional employees (6-month wait period)

Part-time, temporary and provisional employees are subject to a 6-month wait before being enrolled in the MTRS [M.G.L. c. 32, §3(2)(iv)]. If, however, they have prior MTRS service or funds on account with another Massachusetts contributory retirement system, they are not subject to the 6-month wait.

As a matter of practice, the MTRS does not consider employees hired with no anticipated termination date, or with an anticipated termination date after 7 months or more, as “temporary.”

Long-term substitutes

Employees who are considered “long-term substitutes” are eligible for MTRS membership if they meet the four eligibility criteria stated above, in our membership eligibility regulation.

The four most common reasons that a long-term substitute may not be eligible for MTRS membership are:

  • The long-term sub position may be for 6-months or less and as such is considered Short Term Employment as defined in (807 CMR 4.00) as described above.
  • Because they are temporary, long-term subs may be subject to the 6-month wait period explained above, and may not work enough days to qualify for membership.
  • The employer does not require DESE licensure as a condition of employment at the position level for long-term subs.
  • A long-term sub working on a day-to-day basis without any sort of defined employment period is not working “on an employment basis” of at least half-time.

 

Last updated: 08/29/2022

Employee enrollment procedure

Employers

The following applies to any newly hired employee or existing employee who is hired for an MTRS eligible position.

Once it has been confirmed that an employee is in an MTRS eligible position, the district must register the employee in MyTRS; within 30 days of hire, the employee must enroll online in MyTRS (pursuant to CMR 807-4.03).

Employer responsibilities

  1. Determine employee eligibility for MTRS membership.
  2. Register the employee in MyTRS.
  3. Provide the registered employee with the “Enrollment Assignment Sheet” that is generated at the end of the registration process.
  4. Check the employee’s deduction rate in MyTRS after registration to ensure they are set up in your payroll system with the proper deduction rate.
  5. Enter the deduction rate, full-time equivalent contract salary and position information into your payroll system for monthly deduction reporting.
  6. Ensure the employee has completed the mandatory online enrollment process within 30 days of hire. You can run a Members Pending Enrollment Report in MyTRS to gather this information.

Employee responsibilities

In MyTRS, the employee must complete the mandatory online enrollment process within 30 days of hire (pursuant to CMR 807-4.03). This process can only be completed once the district has finalized the registration process mentioned above. In order to enroll, the employee must complete the following steps:

  1. Create a username and password for MyTRS if the employee does not already have them. The “Forgot Username” and “Forgot Password” links can be used if previously created log in credentials have been forgotten.
  2. Log in, click on the Enroll in the MTRS link, and then follow the instructions to complete the four steps.
    Note: In Step 3, employees who have previously worked in a Massachusetts public service position, must list this prior service, and indicate if they have funds on account with another Massachusetts public retirement system; they do not need to list any prior MTRS service, as we should already have that information in our records.
  3. From the Documents page, print the “Enrollment Confirmation” form and provide a copy to the Payroll/HR department.

Rehiring a MA public retiree

Employers

Reminder to school departments: As described below, there are time and earnings restrictions on re-employment with a Massachusetts public employer. However, there are no restrictions on employment in the private sector, public employment in another state or employment with the federal government.

Reference: PERAC memos, including an interactive earnings calculator

  • New Standard for Calculating Public Sector Post-Retirement Work Limitations (Memo 22, August 14, 2024)
  • Reintroduction of Earning and Hour Limitations for All Retirees in the Public Sector (Memo 1; January 3, 2023)
  • Expansion of Post-Retirement Work in the Public Sector (Memo 29; October 22, 2021)
  • Calculation Worksheet for Post-Retirement Earnings in the Public Sector
  • Frequently asked questions
  • Enforcement of Post-Retirement Limits on Retirees of a Public Retirement System who Take Employment with any Public Entity in Massachusetts (Memo 30, November 1, 2013)
  • Restrictions on post-retirement employment in Massachusetts (Memo 24; July 2, 2008)
  • Post-retirement earnings limitations in G.L. c. 32, § 91 (Memo 20; May 19, 2004)
  • Post-retirement earnings limitations in G.L. c. 32, § 91 (Memo 3; January 12, 2004)

Overview

Pursuant to Massachusetts General Laws c. 32, § 91, there are limitations on the amount of time that a rehired retiree may work and the amount of money that he or she may earn.

However, pursuant to M.G.L. c. 32, § 91(e), the earnings limitations on re-employment of retirees in Massachusetts public schools are eased in the event of a “critical shortage” in a position as determined by the Department of Elementary and Secondary Education (ESE). The ESE has adopted regulation 603 CMR 7.14(13)(b), allowing the Commissioner of Elementary and Secondary Education to deem that a district has a “critical shortage” upon the request of a superintendent and demonstration that the district has made a good-faith effort to hire non-retirees and has been unable to find them. The “critical shortage” application process is similar to that for requesting a waiver for certification. (School districts wishing to take advantage of the “critical shortage” provision of M.G.L. c. 32, § 91(e) are advised to consult with the Department of Elementary and Secondary Education for guidance on the certification requirements for re-employed retirees.)

In brief:

Post-retirement employment restrictions for Massachusetts public retirees

When NO critical shortage

When a critical shortage IS declared by ESE

All MTRS RetireesRetirees under Regular formulaRetirees under RetirementPlus formula
1) Time limitation: 1,200 hours in a calendar year.AppliesWaivedWaived
2) Earnings limitation (for superannuation retirees):
On a calendar year basis, a rehired retiree's post-retirement earnings cannot exceed the difference between the salary being paid for the position from which the member retired OR the salary average used to calculate their retirement allowance (whichever is greater), and the amount of his or her annual pension. After the member has been retired for at least one full calendar year (one full January-through-December year), this earnings limit is increased by $15,000 (see below).
Date of retirement / Date eligible to earn additional $15,000
  • 1/1/2025-12/31/2025 : On 1/1/2027
  • 1/1/2026-12/31/2026 : On 1/1/2028
  • 1/1/2027-12/31/2027 : On 1/1/2029
2) Earnings limitation (for superannuation retirees):
On a calendar year basis, a rehired retiree's post-retirement earnings cannot exceed the difference between the salary being paid for the position from which the member retired OR the salary average used to calculate their retirement allowance (whichever is greater), and the amount of his or her annual pension. After the member has been retired for at least one full calendar year (one full January-through-December year), this earnings limit is increased by $15,000 (see below).
Date of retirement / Date eligible to earn additional $15,000
  • 1/1/2025-12/31/2025 : On 1/1/2027
  • 1/1/2026-12/31/2026 : On 1/1/2028
  • 1/1/2027-12/31/2027 : On 1/1/2029
2) Earnings limitation (for superannuation retirees):
On a calendar year basis, a rehired retiree's post-retirement earnings cannot exceed the difference between the salary being paid for the position from which the member retired, and the amount of his or her annual pension. After the member has been retired for at least one full calendar year (one full January-through-December year), this earnings limit is increased by $15,000 (see below).
Date of retirement / Date eligible to earn additional $15,000
  • 1/1/2025-12/31/2025 : On 1/1/2027
  • 1/1/2026-12/31/2026 : On 1/1/2028
  • 1/1/2027-12/31/2027 : On 1/1/2029
2) Earnings limitation (for superannuation retirees):
On a calendar year basis, a rehired retiree's post-retirement earnings cannot exceed the difference between the salary being paid for the position from which the member retired, and the amount of his or her annual pension. After the member has been retired for at least one full calendar year (one full January-through-December year), this earnings limit is increased by $15,000 (see below).
Date of retirement / Date eligible to earn additional $15,000
  • 1/1/2025-12/31/2025 : On 1/1/2027
  • 1/1/2026-12/31/2026 : On 1/1/2028
  • 1/1/2027-12/31/2027 : On 1/1/2029
3) Separation from service:
If returning to the same employer from which the member retired, 60 days. Exception: Presently, this particular restriction does not apply if the member retired either at age 62 or older or at the maximum benefit amount of 80 percent of his or her allowable salary average.
AppliesAppliesApplies

FAQs

We wish to hire a Massachusetts public retiree to work beyond her post-retirement time and earnings limitations, and have applied for a critical shortage waiver with the Department of Elementary and Secondary Education (ESE). How will we know whether the critical shortage waiver is approved?

Once the ESE completes their review of the critical shortage waiver application, they will send written notice of their decision to the school district and mail a copy of the decision to the retiree. We advise retirees not to assume that they are working under a critical shortage waiver unless they have received a copy of the approval from the ESE.

How do you calculate the amount that the rehired retiree can earn?

Until the retiree has been retired for at least one full calendar year (meaning one full January-through-December year), the amount that the rehired retiree can earn is equal to the difference between the annual amount currently being paid for the position from which the retiree retired OR the salary average used to calculate their retirement allowance (whichever is greater), and the retiree’s annual pension. After the retiree has been retired for at least one full calendar year, this limit is increased by $15,000.

For example: Trudy Teacher retires on June 30, 2022, 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 2022, and will remain at that amount for the next several years. She will return to teaching on September 1, 2022, 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:

For the last four months of 2022 (September 1 through December 31, 2022), Trudy can earn $17,000

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 2022 $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.

For all of calendar year 2023 (January 1 through December 31, 2023), Trudy can still earn a total of $17,000

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 calendar year 2023$17,000

Beginning January 1, 2024, after she has been retired for one full calendar year, Trudy can now earn an additional $15,000 for calendar year 2024 and every calendar year thereafter

Current annual salary for position from which Trudy retired* $65,000
– Trudy’s annual retirement allowance***– $48,000
Standard earnings limitation for calendar year 2024 $17,000
+ $15,000 (per pension reform legislation of 2011)+ $15,000
Amount of Trudy’s allowable earnings** for 2024$32,000
*** 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 2023 and 2024, and the COLA base remains $13,000, then Trudy’s annual retirement allowance for calendar year 2023 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 2023 would decrease by $195, to $16,805. Likewise, for calendar year 2024, 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 2024 would decrease by $585, to $31,415.
For an interactive worksheet that both you and the rehired retiree can use to determine the earnings limitations, please see the Public Employee Retirement Administration Post retirement earnings calculator.

How is the “salary being paid” for the position from which the retiree retired determined?

If, in the position from which the retiree retired, he or she:

  • was covered by a collective bargaining agreement, the “salary being paid” is the current annual contract rate for the retiree’s step and education level on the salary schedule.
  • was not covered by a collective bargaining agreement (e.g., the retiree was an administrator covered by an individual contract), then the “salary being paid” is his or her last annual salary prior to retirement, plus an inflation factor equal to the Consumer Price Index (CPI-W) as certified by the Commissioner of Social Security, unless the retiree can provide sufficient evidence for the MTRS to reliably determine what he or she would have earned in a year after his or her retirement. An example of sufficient evidence would be a written, contemporaneous policy showing that the class of employees of which the retiree would have been a member had he or she not retired, would all receive the same raise in a given year.

For example, if a superintendent retired in 2018 with a final salary of $125,000 and the district wished to rehire her in 2019, for the purposes of determining the “salary being paid” for that position, the MTRS would apply the following formula:

Salary at retirement + inflation factor = “salary being paid”

$125,000 + 2.8% (the January 2019 COLA factor) = $128,500

NOTE: “Salary” includes earnings such as regular longevity, athletic coaching and contracted stipends. It does not include annuity/insurance premiums or other fringe benefits.

For part-time positions…

If the retiree worked part-time in his or her last year of employment, the “salary being paid” for the position from which he or she retired is, likewise, his or her former part-time equivalent of the current full-time salary. For example: Mary Music works on a 50%-of-full-time basis and retires June 30, 2019. For the 2018-19 school year, she earned $37,000, or 50% of the full-time salary of $74,000.

School year 2019-20 full-time salary for Ms. Music’s former position $76,000
x Ms. Music’s former part-time basis (50%) x 50%

“Salary being paid” for Ms. Music’s position in 2019-20 on a 50% basis $38,000
– Ms. Music’s annual gross pension – $29,250

Ms. Music’s allowable earnings for the rest of calendar year 2019 $8,750
Beginning January 1, 2021, Ms. Music can earn an additional $15,000 per calendar year.

If the amount earned or the number of hours worked will exceed the limitations, what are the retiree’s options?

In either case, the retiree has two options. If the retiree wishes to work in a position that will exceed either the time or the earnings limitation, and he or she has not been approved for a critical shortage waiver, he or she may:

  • a) Request a temporary cessation of pension payments by notifying the MTRS in writing to waive his or her retirement allowance for the period of employment. A retiree who has waived his or her retirement benefits is not subject to the time and earnings limitations and is not required to make contributions to the pension system. Stopping a retiree’s pension payments can affect the administration of his or her health insurance benefit, however, so it is a good idea for the retiree to discuss the impact of waiving the retirement benefit with his or her local insurance coordinator before making this decision.Upon completion of the employment, the retiree may resume receiving his or her retirement allowance at the same level of benefits he or she had before waiving the allowance, plus any cost-of-living adjustments passed by the Massachusetts Legislature. (In other words, the retiree cannot recoup his or her retirement benefits for the period during which he or she waived them.)
  • b) Return to active membership in the MTRS and, in effect, “unretire,” if he or she agrees to certain terms and conditions. Pursuant to M.G.L. c. 32, § 105, in order to “unretire,” the retiree must pay back to the retirement system the total pension benefits received while retired, plus buyback interest (currently, 3.675%). Moreover, the retiree must be employed in a full-time position subject to membership in the MTRS, for at least five full years from his reinstatement date in order to accrue additional retirement benefits. For more information, please see:
    • Reinstatement to Service under G.L. c. 32 § 105 (July 14, 2011, PERAC memo 22 of 2011)
    • Application for Reinstatement to Service (pdf, 3 pages)

Is it true that retired teachers can “unretire”?

Yes, a member may be reinstated, provided he or she agrees to certain terms and conditions. Please see 4(b) directly above.

Can a retired teacher or administrator who waives retirement benefits and then accepts a full-time, paid position, later have his or her retirement allowance reinstated for 1,200 hours during any calendar year?

No. The law does not permit retirees who waive their retirement benefits and then accept public employment to supplement their incomes by the device of reinstating their retirement allowances for the 1,200-hour period during each calendar year. Opinion of the Attorney General, February 2, 1979.

Whose responsibility is it to keep track of the number of hours worked and money earned by the retirees?

It is the responsibility of the rehired retiree to provide his or her employer and the treasurer of the city or town (or the source responsible for paying the retiree) with a certification of the length of time worked and the amount of income earned in a given calendar year. If either the period worked or the income earned exceeds the allowable amount, the rehired retiree can no longer be employed and the excess earnings must be returned to the appropriate treasurer or entity responsible for paying the retiree. In the case of excess or improper retirement payments, the MTRS has the authority either to require repayment or to offset the amount received against future retirement payments.

If a teacher or administrator is rehired as a “consultant,” do the restrictions on post-retirement employment still apply?

Yes. The restrictions set forth above apply to both employees and non-employees; except for services performed for the general court as a non-employee, the law makes no distinction between employees and non-employees. Accordingly, the restrictions on hours and earnings apply if a teacher or administrator is receiving a retirement allowance and is being paid as a “consultant,” independent contractor, or someone whose regular duties require their time to be devoted to the service of the Commonwealth.

Are “leased employees” subject to these restrictions?

Yes. M.G.L. c. 32, § 91(a) prohibits all retirees from “render[ing] service” to any public employer, including school districts. Section 91(b) provides a general exception to this prohibition, allowing post-retirement employment for up to 1,200 hours in any calendar year, and limiting annual earnings to the difference between the retiree’s retirement allowance and the salary being paid for the position from which he/she retired. The Massachusetts Teachers’ Retirement System (MTRS) interprets “render[ing] service” to include work under an employee leasing arrangement, and thus such arrangements are subject to the restrictions of section 91.

What is an employee leasing arrangement?

An employee leasing arrangement is one where one company (the “Leasing Company”) loans or hires out its employee to another (the “Client Company”). The “leased” employee is paid by the Leasing Company and may report occasionally to the Leasing Company. While working for the Client Company, however, the employee and his/her work are directed and controlled by the Client Company and the employee typically uses the Client Company’s work space and equipment to accomplish his/her work. A common example is a “temp” agency that supplies temporary workers. Since the law has often regarded “leased” employees as employed by both the Leasing Company and Client Company, it is clear that a “leased” employee “renders service” to the Client Company.

In the education context, some companies supply interim school administrators under “leasing” arrangements, and these administrators are directed in their day-to-day activities by the school district. Of course, superintendents, assistant superintendents and principals are by law appointed, employed and directed by their respective superiors (ultimately, the school committee). General Laws c. 71, §§ 59 and 59B. Thus, the System regards “leased” employees in such positions to be “render[ing] service” to the district and thus subject to the limitations of section 91(b).

Is the rehired retiree subject to Social Security deductions?

No. If a retired teacher or administrator returns to work in a Massachusetts public school, he or she is considered a “rehired annuitant” by the Internal Revenue Service, and therefore exempt from mandatory Social Security coverage. For more information, see the IRS web page on Rehired Annuitants as well as the Social Security Administration’s web page on Rehired Annuitants.

Is the rehired retiree subject to MTRS retirement contribution deductions?

No. Rehired retirees who return to work under the service and earnings restrictions do not pay retirement contributions to the MTRS.

Monthly deduction reporting

Employers

Monthly deduction reports and payments are due to the MTRS the 10th of the following month in accordance with M.G.L c. 32, § 22 (e.g., September’s report and payment are due October 10).

Monthly payments can be made via EFT, direct deposit (currently available on a limited basis) or check. Payments made via check must be mailed to the address on the required submittal form. Please do not send any additional paperwork with the check and submittal form; all reporting must be completed online in MyTRS.

Monthly report files are generally exported from your school’s payroll software, in our file layout format, and then imported into MyTRS. For a step-by-step list of this process, see our Monthly Deduction Reporting Checklist.


Deduction reporting tips and reminders

We suggest that you review these at the beginning of each new school year to ensure you have everything set up properly before the first payroll.

1. Only report what actually happened.

The monthly deduction reports need to reflect what actually happened during that month. If you overpaid or underpaid someone, that’s what the report needs to show. If the wrong deductions were taken, that’s what you need to show, even if you have corrected the deductions by the time you are working on the report.

Example: Deductions on an employee’s coaching earnings were not taken on her 09/26 check. You realize the mistake and collect the missed deductions on her 10/17 check.

  • Your September report should reflect that the employee was paid for coaching and that no deductions were taken.
  • Your October report should show the collection of the deductions as an adjustment record.

2. Register new employees in MyTRS and give them their Enrollment Assignment Sheet.

Employees who meet the membership eligibility criteria must be registered in MyTRS. As instructed during the online registration process, be sure to print the “MTRS Enrollment Assignment Sheet” and give it to the employee so they can complete the online enrollment process.


3. Register your coach-only employees if they are MTRS members through another district.

If you employ coaches who are not teachers in your district, but who are MTRS members through another employer, you are required to deduct MTRS contributions from their pay.

Set their records as follows:

FTE% 0
Pay Duration 01, 02, 03 or 06
Pay Frequency 01, 02, 03 or 06
Contract Term 01, 02, 03 or 06

4. Check a new employee’s deduction rate in MyTRS.

After you register a new employee, it is imperative that you to check their deduction rate in MyTRS so you can set them up properly in your payroll system.

To check a member’s rate:

1. Go to the View/Update Employee information.

2. If you have just completed the member’s registration, their name should already be showing on the screen. If you have not just completed the registration, please enter the member’s last name in the Select Member field and click the Search button.

3. When the member’s record is displayed, click on the Employment tab along the top of the page.

4. The member’s rate with MTRS is listed at the bottom of the page under Rates/R+

To see how the MTRS determines a member’s rate, see Contribution rates explained.


5.  Do not change contribution rates for existing employees unless requested by the MTRS.

If you have existing employees with detected rate discrepancies, please do not change their deduction rates unless your MTRS representative has specifically requested the change.


6. Report the correct annual salary to ensure that the member will receive the proper service credit. 

Note: MyTRS always needs the full-time, full year, non-adjusted contractual annual salary (from the salary schedule for members covered by a collective bargaining agreement).

Example:

Using the above salary schedule, you have an employee who is at M+15 Step 2.

If the employee… The annual salary to use in MyTRS is…
• Is working full-time $53,311
• Is working part-time $53,311
•Starts the year late $53,311
• Is on, or has returned from, a leave of absence and is receiving prorated bi-weekly pay $53,311

Important note: It is common for some payroll software programs to prorate or recalculate annual salaries for some of the situations above, so be sure to check that you are reporting the full-time contractual salary in MyTRS.


7. Eligible longevity and stipend payments need to be reported separately from base pay and annual salary.

If you have employees who receive eligible longevity or stipend pay, these payments need to be broken out in the deduction report into the appropriate reporting categories. They should not be reported as base pay and should not be added to the annual salary field in MyTRS. Please contact your payroll company if you are not sure how to set up the different types of payment categories.

To verify what pay is pensionable—and, therefore, subject to retirement deductions—see regular compensation.

Example:

You have an employee who:

  • is at M+15 Step 2 ($53,311.00),
  • receives $2,000 in longevity,
  • receives a $500 stipend, and
  • is on a 26-pay cycle.
  1. The regular bi-weekly per check is $2,050.42 and needs to be reported in the Base field in MyTRS.
  2. The longevity per check is $76.92 and needs to be reported in the Longevity field in MyTRS.
  3. The stipend per check is $19.23 and needs to be reported in the Stipend field in MyTRS.
  4. The annual salary is $53,311.00 and needs to be reported in the Salary field in MyTRS.


8. Be sure the employee has the proper position code in your payroll system, and the proper position in your deduction reports.

Example: If someone is a Guidance Counselor, their position in MyTRS should be Guidance Counselor, not Teacher. The position code in your payroll software should be GUIDE.

Acceptable position codes that may appear in your deduction report import file:

Position in MyTRS Position code in your payroll software
Superintendent SUPT
Charter School Leader LEADER
Collaborative School Director COLDIR
Teacher TEACH
Kindergarten Teacher KINDER
Coach (as primary title) COACH
Administrator ADMIN
Principal PRIN
School Nurse NURSE
Other OTHER
Psychologist or psychiatrist PSYCH
Librarian LIBRA
Assistant Principal ASPRIN
Assistant Superintendent ASUPT
Guidance Counselor GUIDE
School Social Worker SOCIAL
School Adjustment Counselor ADJUST
Speech and Language Therapist SPEECH
Occupational Therapist OT

9. Report changes in name, address, position or FT% via your deduction report.

Name and address changes are reported to the MTRS via the monthly deduction report for active members. Simply update the member’s name and/or address in your payroll system and the new information will be passed to us in the next monthly deduction report. Once that deduction report has been imported and processed successfully, our database will be updated with the new information.

The same policy holds true for position changes and FT% changes. A new event should not be created in MyTRS for these types of changes, simply update them in your payroll system, and the new information will be passed to us in the deduction report.


10. Report pro-rated paid leaves to your Employer Services Representative.

When a member goes out on leave and their bi-weekly pay is adjusted over more than one check, please fill out the Leave of Absence Information form and return it to your Employer Services Representative (ESR). We no longer lower the member’s FT% or use the Partially Paid Leave event for these scenarios. Once your ESR receives the completed leave form, they can assist you in creating the appropriate event in MyTRS.


11. Payroll Calendars are usually created in December, but can be created at any time.

The payroll calendars in MyTRS are based on a calendar year and not a school year. You can create the calendars anytime you want, but they are typically created in December since they run from January 1–December 31. If your school offers a new pay frequency one year that was not offered the prior year, you may need to create a new calendar for that pay schedule before submitting your September report.

Contribution rates explained

Employers

Overview

MTRS member contribution rates are established pursuant to M.G.L. c. 32, §22. For members of the MTRS, employers are responsible for deducting the mandated percentage from their employees’ regular compensation and forwarding those contributions to the MTRS for deposit. Once an employer has registered a member in MyTRS, the appropriate deduction rate can be found in MyTRS under Employee Roster.

MTRS members’ contribution rates are determined by a combination of two factors:

  • the employee’s RetirementPlus status, and
  • if the employee is not participating in RetirementPlus, the date on which the employee most recently became eligible for membership in a Massachusetts contributory retirement system and from which he or she continuously maintained his or her funds on account. Most of our members will establish membership in a contributory retirement system on the date they start working as a public employee in Massachusetts.

Unless they are transferring into the MTRS from another Massachusetts contributory retirement system (see below), employees who join the MTRS after 7/1/2001 are mandated to contribute at 11% and participate in RetirementPlus [M.G.L. c. 32, §5(4)].


When a member changes districts, or takes a refund

If a member...Then...
Changes employers (for example, leaves the Cambridge Public School system to teach in the Springfield Public School system)There is no change in his or her contribution rate, RetirementPlus status, or Membership Tier.
Leaves active service and:
  • Leaves funds on account with the MTRS
If and when the member later returns to service, there is no change in contribution rate, RetirementPlus status, or Membership Tier.
  • Takes a refund
He or she will lose all membership rights. If the member later re-establishes MTRS membership, he or she is required to contribute at the new member rate (currently 11%), and participate in RetirementPlus. Members can buy back refunded service, however, this will not reinstate the member’s prior membership date, contribution rate, or, if applicable, prior Tier 1 status.

When a member transfers into the MTRS from another Massachusetts contributory retirement system

Members who join the MTRS and have funds on account with another Massachusetts contributory retirement system are existing retirement system members who are required to transfer their retirement system membership, tier and service to the MTRS pursuant to M.G.L. c. 32, §3(8). The guidelines for determining contribution rates for transferring members are a little more complicated, but be assured that we will gladly help you and our members understand the rules. If a member has questions regarding their rate or RetirementPlus election, please do not advise them; instead, direct them to contact the MTRS.

Please note these guidelines regarding members who transfer in:

  • All new members of the MTRS who transfer into the system on or after July 1, 2022, and whose prior service in another Massachusetts public retirement system began on or after July 1, 2022, pursuant to Chapter 134 of the Acts of 2022, are required to participate in the R+ program. Like all other new teachers, these members are mandated to participate and have no election option.
  • For members who transfer in service from another retirement system rendered prior to July 1, 2022, the initial contribution rate will automatically be defaulted to the RetirementPlus rate of 11%. Once we confirm that the other retirement system has funds and service on account that qualify the member for either a RetirementPlus election or a lower, grandfathered contribution rate, we will place the member’s rate and RetirementPlus status on-hold (the on-hold status will appear in two places: in your deduction exception report, and in the View/Update Employee Information window in MyTRS). The member will remain on-hold during the 180-day RetirementPlus election period, which starts when we receive the transfer. Members who are entitled to an election will default into RetirementPlus participation, but will have an opportunity to “opt-out” of participation in the program.
  • If the member established his or her contribution rate with:
    • A Massachusetts contributory retirement system OTHER than the Boston retirement board, and transfers into the MTRS on or after July 1, 2001 with other MA service rendered prior to July 1, 2022, he or she will have a one-time RetirementPlus election period that is 180 days from the date that the MTRS first receives the member’s transfer of service and funds. If he or she then:
      • EITHER makes an affirmative election to participate in RetirementPlus OR fails to return his or her election from by the deadline, his or her contribution rate will be the RetirementPlus rate of 11%.
      • Opts to not participate in RetirementPlus, then his or her retirement contribution rate will be the rate established with the previous retirement system.
    • the Boston retirement board, and he or she was:
      • eligible for the Teachers’ Alternate Retirement Plan (TARP), and
        • either elected to participate in TARP or was mandated to participate in TARP; or,
        • elected not to participate in TARP or defaulted out of TARP
      • then he or she will retain his or her TARP status upon transferring to the MTRS. In other words, if the person participated in TARP, he or she will automatically participate in RetirementPlus; if he or she did not participate in TARP, then he or she will not be given a RetirementPlus election opportunity, will not contribute at 11%, and will not be eligible to participate in RetirementPlus.
      • ineligible for any TARP consideration (for example, he or she was not eligible based on his or her position and title), he or she will be subject to the same RetirementPlus election (as described above) as members transferring from any other Massachusetts contributory retirement system. Note: TARP and RetirementPlus both refer to the same provisions of Chapter 114 of the Acts of 2000—TARP is the Boston retirement board’s name for this legislation, and RetirementPlus is the MTRS’s label.

How a member’s contribution rate is determined

Based on the above, members’ contribution rates are as follows:

Date employee established current
“effective membership date”
RetirementPlus status
Not participating in RetirementPlus*Participating in RetirementPlus*
April 2, 2012 and after9% plus 2% on earnings over $30,000/year; with 30 years of creditable service, contribution rate decreased to 6% plus 2% on earnings over $30,000/year11%; with 30 years of creditable service, contribution rate decreased to flat 8%, and no additional 2%
July 1, 2001 through April 1, 20129% plus 2% on earnings over $30,000/year11%
July 1, 1996 through June 30, 20019% plus 2% on earnings over $30,000/year
January 1, 1984 through June 30, 19968% plus 2% on earnings over $30,000/year
January 1, 1979 through December 31, 19837% plus 2% on earnings over $30,000/year
January 1, 1975 through December 31, 19787%
Before January 1, 19755%

The additional 2% deduction

Employees who establish membership on or after 1/1/1979 and who are not participating in RetirementPlus contribute an additional 2% on all earnings over $30,000. This deduction is also known as the 30-plus deduction.

30-plus deductions are calculated on a pay period basis by taking all regular compensation on a pay date, subtracting the 30-plus exemption amount based on the member’s pay schedule (see table below) and then multiplying the result by two percent. (Note: Members who coach at a school district other than the one in which they qualify as a teacher, are required to make 30-plus contributions on all coaching pay in their secondary district if they earn more than $30,000 annually with their primary employer.)

The 30-plus (2%) deduction calculation formula

Regular compensation for pay period – 2% exemption amount = Earnings subject to 2% deduction

Earnings subject to 2% deduction x 2% = Amount due for 2% deduction

For example, Mary earns a base salary of $52,000 per year, and this year is also receiving a longevity payment of $2,000; she is paid in 26 bi-weekly payments. On this particular pay date, she is receiving her normal bi-weekly pay as well as the full $2,000 longevity payment, making her total compensation amount $4,000. Using the exemption amount for a 26 bi-weekly pay schedule (listed in the following section) the amount due for Mary’s 2% deductions would be $56.92, as shown below.

$4,000.00 – $1,153.85 = $2,846.15

$2,846.15 x 2% = $56.92

30-plus (2%) deductions exemption amounts, per pay date, by common pay schedules

Weekly
52 pays (12 months or LS)             $576.92
42 pays (10 months)                       $714.29

Bi-weekly
26 pays (12 months or LS)             $1,153.85
22 pays (10 months)                       $1,363.64
21 pays (10 months)                       $1,428.57

Semi-monthly
24 pays (12 months or LS)             $1,250.00
20 pays (10 months)                       $1,500.00

For additional information on the 30-plus deduction and how to calculate it, see PERAC’s Memo #43 of 1999.


Incorrect assessments: When deductions are taken at the wrong rate

Contribution rate corrections may occur at any time during a member’s career. On occasion, and possibly years after the employee began employment in your district, the MTRS may discover that a member’s contribution rate will need to be reviewed due to either previously unknown service that needs to be transferred-in, or service for which deductions were omitted in error by an employer. If a rate is detected as an error on your payroll exception report, please don’t make a change to that rate until you have received notification from the MTRS. If the member’s contribution rate is determined to be incorrect the MTRS will contact both the member and employer to notify them of the change. If we request a rate change and you have reason to believe that our determination is wrong (for example, you have documentation of the member’s previous service with another Massachusetts public retirement system, or a copy of a RetirementPlus form from their personnel record that was completed before their election deadline), please contact your Employer Services Representative before making any change to the member’s deduction rate.

Regular compensation: Pensionable earnings

Employers

What earnings qualify as “regular compensation” is important for members, employers and the MTRS:

  • “Regular compensation” is the amount of a member’s earnings upon which he or she pays retirement contributions.
  • Only those payments that meet the definition of “regular compensation” may be used in the determination of a member’s final salary average, which is a factor in the calculation of his or her retirement benefit.

It is in everyone’s best interest to understand what earnings are included and excluded as regular compensation so that, when it is time for a member to retire, there are no misunderstandings or false expectations as to what will be included in the final salary average.

“Regular compensation” is a complex legal term whose precise definition is often the subject of court decisions. Below are some of the most commonly asked-about payments as far as what is generally included in, or excluded from, regular compensation.

What is generally INCLUDED as regular compensation:

  • Annual base salary, which is usually set forth in the collective bargaining agreement or administrator’s contract
  • Salary payable for services rendered in connection with a school lunch program
  • Salary payable for services in connection with a program for physical education instruction and athletic contests such as intramural sports
  • Athletic coaching
  • Annual stipends for additional services set forth in the collective bargaining agreement (e.g., yearbook advisor, class advisor, department head)
  • Cost-of-living adjustments that become part of base pay
  • Payments for length of service (“longevity”)
  • Educational step increases according to salary schedule set forth in collective bargaining agreement which become part of base pay

What is generally EXCLUDED as regular compensation:

  • Retirement incentives
  • Temporary salary augmentations (i.e., “ELBO” payments)
  • Amounts paid for unused sick leave
  • Payment for unused vacation
  • Overtime
  • Bonuses
  • Special projects
  • Summer school
  • Reimbursement for travel or other expenses
  • Travel or housing allowances
  • Amounts paid on an hourly basis for additional services
  • Amounts paid in addition to salary for professional development or education assistance (e.g., recertification workshops) that do not become part of annual base pay
  • Any payment made as a result of the employer’s knowledge of the member’s retirement
  • Workers’ compensation wages
  • Effective July 1, 2012, all fringe benefits, including employer paid individual life and disability insurance premiums, annuities, and housing allowances. [Note: fringe benefits that were in the member’s contract in effect on May 1, 2009 may be grandfathered as regular compensation through the expiration of the term of that contract, or June 30, 2012, whichever occurs first.]

Note: Employees with membership dates after 12/31/1995 are subject to pensionable earnings limits

There are federal and state limits on the amount of pensionable earnings (“regular compensation”) that can be used in computing benefits for active members of public retirement systems with effective membership dates after 12/31/1995. Specifically, for members with effective membership dates:

  • After 12/31/1995, the pensionable earnings limit for calendar year 2024 is $345,000* (pursuant to Internal Revenue Code § 401(a)(17); see 2024 PERAC Memo 4).
  • After 1/1/2011, the pensionable earnings limit for calendar year 2024 is $220,800* (pursuant to Section 23 of Chapter 131 of the Acts of 2010; see 2024 PERAC Memo 5). For the purposes of imposing a pension “cap,” the maximum amount of regular compensation that may be used in the determination of the final average salary was set at 64% of the annual limit pursuant to the Internal Revenue Code, 26 U.S.C. 401(a)(17). In 2024, the 401(a)(17) limit is $345,000. Accordingly, the maximum amount of regular compensation for a member whose most recent date of membership is after 1/1/2011 is $220,800 in 2024 (64% of $345,000). *The limit applies only to pensionable earnings, and is based on calendar year compensation, not school year compensation or school year contractual rate. Additionally, unlike the 2% deduction exception, the eligible earnings amount is not apportioned throughout the year; employers are to deduct contributions on all eligible earnings as they are paid, up to the limit.

To ensure that deductions are not submitted on pensionable earnings above the annual limit, each year after all of the prior year’s deduction reports are fully processed, we review the regular compensation amounts reported by employers for the prior year. If any members are found to have exceeded the limit for the calendar year, we will reach out to their employer to make arrangements to return the excess contributions to the member.

Salary augmentation “ELBO” plans

Employers

August 15, 2006
This information is intended to provide clarification of which payments made to your employees pursuant to current, as well as future, salary augmentation plans or salary enhancement programs (also known as “enhanced longevity buy-out” provisions, or “ELBOs”) are pensionable, and which are not.


Background

In April 2006, the Public Employee Retirement Administration Commission (PERAC) amended its regular compensation regulation (840 CMR 15.00) to exclude any “extraordinary, ad hoc, or non-recurring payments,” such as ELBOs. The regulation includes grandfathering language allowing certain current and future ELBO payments to be pensionable.


Criteria for determining whether current and future payments are pensionable

Pursuant to the “grandfathering” provision, in order for a member’s ELBO payments to be pensionable:

  • The member must be covered by a collective bargaining agreement (CBA) or an individual contract that includes an ELBO plan and was in effect on or before January 25, 2006.
  • The member must begin to receive the ELBO payments, and make retirement contributions thereon, during the term of the CBA or individual employment contract that was in effect on or before January 25, 2006.
  • The ELBO plan must not be one that would be excluded from regular compensation under the prior regulation (e.g. those that are directly linked to retirement, or that involve a trade of sick leave).

If the above criteria are met, the member may complete the plan or program under that CBA or individual employment contract, or under a successor CBA or individual employment contract, and have such payments be pensionable, provided that said successor agreement or contract continues to have an ELBO plan that does not exceed the amount of the plan that was in effect on or before January 25, 2006.


Sample scenarios

Pursuant to the “grandfathering” provision, in order for a member’s ELBO payments to be pensionable:

  • The member must be covered by a collective bargaining agreement (CBA) or an individual contract that includes an ELBO plan and was in effect on or before January 25, 2006.
  • The member must begin to receive the ELBO payments, and make retirement contributions thereon, during the term of the CBA or individual employment contract that was in effect on or before January 25, 2006.
  • The ELBO plan must not be one that would be excluded from regular compensation under the prior regulation (e.g. those that are directly linked to retirement, or that involve a trade of sick leave).

If the above criteria are met, the member may complete the plan or program under that CBA or individual employment contract, or under a successor CBA or individual employment contract, and have such payments be pensionable, provided that said successor agreement or contract continues to have an ELBO plan that does not exceed the amount of the plan that was in effect on or before January 25, 2006.


Sample scenarios

  1. Mary Educator’s CBA, which was in effect on 1/25/2006, covers the term of 2005–2008. As required in that CBA, Mary gives notice to her superintendent that she plans to collect her ELBO payments beginning with the 2006-2007 school year. The plan provides for a $4,000 payment for three consecutive years. Is Mary’s ELBO grandfathered under PERAC’s regulation?Yes. Mary’s ELBO payments will commence during the term (2005-2008) of the CBA that was in effect on January 25, 2006. Thus, the payments she receives in the 2006-07 and 2007-08 school years are grandfathered. The payment she receives in the 2008-09 school year will also be grandfathered, but only if the successor CBA (covering 2008-2011) contains the $4,000 ELBO provision.
  2. Tom Teacher’s district has a new CBA commencing on July 1, 2006. There was a $4,000 ELBO plan in the 2003-2006 CBA that expired on June 30, 2006. The exact same ELBO plan is contained in the new 2006-2009 CBA. In November 2005, Tom notified his superintendent that he plans to collect his first ELBO payment in the 2006–07 school year. Can Tom’s ELBO payments be included in his regular compensation?No. The term of the CBA that was in effect on or before January 25, 2006 was 2003-2006 and that CBA expired on June 30, 2006. Although Tom gave notice of his intention to collect the ELBO payments within the term of that CBA, he did not start to receive payments for the ELBO plan and make retirement contributions thereon before that contract expired.
  3. The same contract scenario as 2, above, only Tom notified his superintendent in November 2004 and received his first ELBO payment during the 2005–2006 school year. Tom is scheduled to receive two more payments of $4,000 under the new contract in effect July 1, 2006. Can Tom’s next two ELBO payments be included in his regular compensation?Yes. Tom’s ELBO payments commenced during the term of the contract in effect on January 25, 2006. His first payment is grandfathered as it was made in the 2005-06 school year (the final year of the 2003-2006 CBA). The second and third payments will also be grandfathered because the successor CBA (2006-2009) contains the same ELBO plan provision.

There are, of course, numerous other scenarios and this information is meant to act as a guide. If you have questions, we strongly encourage you to contact our office for clarification.

Military leave

Employers

Reporting contributions for MTRS members called to active military duty

Military Service Leave Reporting Form


Background

When members of the teachers’ retirement system who are serving in the National Guard or active reserves are mobilized in a time of national emergency they continue to accrue retirement service credit for as long as they remain on active duty. During that period, the member’s employer (the school district, region, city or town) is responsible for paying an amount to the retirement system equal to what the member would have contributed through payroll deductions.

See also:

  • PERAC Memo #39 of 2001: Military Service Credit Provisions for Members Called to Active Military Duty
  • PERAC Memo #15 of 2006: Military Pay Act (Chapter 77 of the Acts of 2005)

How to report and submit contributions for military service

Teachers serving in the military may receive no pay, full pay or partial pay from the school district where they are employed. Some towns elect to pay the member the difference between his or her military pay and what would have been earned teaching. In instances where the member receives pay from the district, retirement contributions must be deducted from that pay and reported to the MTRS. The employer is only responsible for making up the remainder. If the member is being paid a full salary, then regular contributions are deducted and reported and the employer is not required to make any additional payment.

We have designed a simple form for districts to use when submitting contributions on behalf of members serving in the military. This enables us to identify the member and the amount of creditable service to assign to the period of military absence. We require that all funds for members’ military service be submitted separately from the district’s regular retirement deductions. The law requires that these sums be accounted for separately and deposited in a special account that is independent of members’ annuity savings accounts.

In order for a member to be eligible to receive retirement credit for time served in the military, after his or her discharge or release, he or she had to return to membership service within the applicable time period based on the length of his or her military service. In the event that the member quits teaching and withdraws from the retirement system without receiving a pension benefit, all funds submitted on his or her behalf will be returned to the employer.

For more information

In all instances, it is advisable to call your assigned MTRS Employer Services Representative for assistance when a teacher is ordered to active military duty. If you do not know who your employer’s assigned representative is, please contact us at EMPSUP@trb.state.ma.us.

Part-time “membership” service

Employers

How part-time “membership” service is credited

If you have rendered any “membership” service on a part-time basis, it will be credited as follows:

For part-time membership service rendered… You will receive…
On or before 11/9/1990 Full-time credit
Between 11/9/1990 and 7/9/2010 If your employment status during this period:

  • did not change (i.e., you did not go from part-time to full-time, or vice versa), full-time credit
  • changed (i.e., you went from part-time to full-time, or vice versa, excepting pre-kindergarten or kindergarten service), prorated credit based on the percentage of full-time service it represents (e.g., if you worked for one year on a half-time basis, you will receive 0.50 year of service credit for that year).
On or after 7/9/2010 Prorated credit based on the percentage of full-time service it represents, regardless of any change in your employment status (e.g., if you worked for one year on a half-time basis, you will receive 0.50 year of service credit for that year).

Overview of the changes effective July 9, 2010

On December 18, 2009, the Board amended the MTRS’s creditable service regulation (807 CMR 3.04). Effective July 9, 2010, this amendment:

  • mandated that the credit for all part-time service rendered after July 9, 2010, including kindergarten service, be prorated based on the percentage of full-time service it represents;
  • removed the effect of a change in an employee’s employment status (i.e., from part-time to full-time, or vice versa) on the crediting of his or her part-time service after July 9, 2010;
  • provided a two-year “grandfather” period for members who elected to participate in RetirementPlus and who retire on or before July 1, 2012.

What this means for members who have worked—or are working—on a part-time basis

Your part-time service rendered:

  • before November 9, 1990 will continue to be credited as before: as full-time service.
  • between November 9, 1990 and July 9, 2010 will continue to be credited as before: either as full-time service (if you did not undergo a status change during that period), or prorated based on the percentage of full-time service that it represents, if you went from part-time to full-time, or vice versa, during that period. In other words, the new regulation does not affect credit accrued prior to July 9, 2010.
  • on or after July 9, 2010 will be prorated based on the percentage of full-time service it represents, regardless of any changes in your employment status after that date. For example, if you render service on a half-time basis for the 2010–11 school year, you will receive 0.50 year of service credit for that year.

If you have always worked part-time, including as a kindergarten teacher, be aware that, while you previously earned full-time credit for your part-time service, after July 9, 2010 your part time service credit will be prorated.

Full-time salary equivalent
Whenever prorated part-time service is used in the calculation of a retiring member’s benefit allowance, the MTRS will use the member’s full-time equivalent salary to determine his or her final salary average. In other words, your service credit will be prorated, but your salary equivalent will not—you will not be “double-prorated” in the calculation of your retirement benefit.

Why the regulation was amended
The regulation was changed to address a number of longstanding problems presented by the previous regulation for members and employers alike. In prorating all part-time service rendered after July 9, 2010, the regulation resolves the inconsistencies associated with the status change rule.

For example, under the previous regulation, a member who worked half-time for ten years would receive ten years of creditable service. However, if that same member had a status change from part-time to full-time in her eleventh year of service, her ten years of half-time service would no longer count as ten years, but would be prorated and only count as five years. Thus, a member could be vested in the retirement system at the end of one school year, and then not vested at the start of the next school year due to a status change. Under the amended regulation, status change is no longer relevant. Members who qualify for full-time credit for their part-time work rendered prior to the effective date of the new regulation, will retain that credit regardless of future status changes.

The bottom line: The amendment may result in increased benefits for certain members with part-time service
Before adopting this regulation, the Board carefully analyzed the effect that the change would have on members with part-time service, especially those who might be retiring in the next few years. In reviewing numerous scenarios, the Board found that, because a retiring employee’s part-time service is prorated, but his or her full-time salary equivalent is used in the calculation of the final salary average, most members with part-time service would not be financially harmed by this amendment—in fact, they may even see their benefit increase.

If you have any questions about how your part-time service is credited, or how it affects the calculation of your retirement benefit, please contact us for assistance.


Example of how part-time service is credited

To estimate your retirement benefits, please use our online estimator.


Mary Music

For illustration purposes only; results may not be typical

A part-time music teacher her entire career and a member of the MTRS prior to April 2, 2012, Mary has always worked on a 50%-of-full-time basis. She is retiring at age 60 on June 30, 2019. She did not elect to participate in RetirementPlus.

Creditable Service

All on a 50% basis Pursuant to 807 CMR 3.04
9/1/1994–6/30/2010 Full-time equivalent
16 yrs
9/1/2010–6/30/2019 Prorated
4.5 yrs
Total 20.5 yrs

Salary average

9/1/2016–6/30/2017 Actual earnings
$35,000
Full-time equivalent
$70,000
9/1/2017–6/30/2018 Actual earnings
$36,000
Full-time equivalent
$72,000
9/1/2018–6/30/2019 Actual earnings
$37,000
Full-time equivalent
$74,000
Total
÷ 3 years
$108,000
÷ 3
$216,000
÷ 3
Salary average $36,000 $72,000

 Benefit calculations

Age factor (age 60)
x Years of creditable service
0.020
x 20.5
% of salary average
+ RetirementPlus percentage
41%
+ n/a
Allowable % of salary average
x 3-year salary average
41%
x $72,000
Option A annual allowance $29,250

Additional notes

Part-time nonmembership service
All part-time nonmembership service, both before and after July 9, 2010, is prorated based on the percentage of full-time service that it represents. Additionally, all part-time service in the Boston Retirement System will be prorated.

Membership service and RetirementPlus
Membership service is service you acquire while working in a position eligible for membership in the MTRS during which you contribute directly to the MTRS via a payroll deduction by your school district. If you are participating in RetirementPlus, you must have 30 years of creditable service—at least 20 of which must be “membership” service with the MTRS or the Boston Retirement System as a teacher—in order to receive the enhanced benefit.

An exception: Part-time service and eligibility for ordinary disability retirement
For the purpose of determining your eligibility for ordinary disability benefits, part-time service will count as full-time service for purposes of meeting the ten-year minimum service requirement, but not for purposes of determining your benefit amount.

Disability retirement processing guidelines

Employers

Am I allowed to provide personal information to the MTRS related to a disability retirement application?

Massachusetts General Laws chapter 32, section 20(5)(b) states: “The head of any department upon request from the Board shall promptly furnish it with such information as shall be required to effectuate the provisions of sections one to twenty-eight inclusive.” This language allows the MTRS as part of the disability retirement application process to ask the employer to complete an extensive Employer’s Statement form.

What is the criteria for eligibility when applying for an ordinary or accidental disability retirement benefit?

To be eligible to apply for an ordinary disability benefit, a member must have a minimum of at least 10 years of creditable service; there is no age requirement. However, if the member is:

  • a nonveteran whose Membership Tier is:
    • Tier 1 (established membership BEFORE April 2, 2012) and who is:
      • under age 55, the benefit will be calculated as if he or she had retired at age 55 under the superannuation retirement formula (in other words, under the basic service retirement formula, but with the age factor increased to age 55);
      • age 55 or over, the benefit will be calculated under the superannuation retirement formula (the basic service retirement formula), with no adjustment to the age factor. In other words, if the member is already age 55 or over, the ordinary disability retirement benefit formula will not result in a higher benefit than what he or she would receive under the basic service retirement formula.
    • Tier 2 (established membership ON OR AFTER April 2, 2012) and who is:
      • under age 60, the benefit will be calculated as if he or she had retired at age 60 under the superannuation retirement formula (in other words, under the basic service retirement formula, but with the age factor increased to age 60);
      • age 60 or over, the benefit will be calculated under the superannuation retirement formula (the basic service retirement formula), with no adjustment to the age factor. In other words, if the member is already age 60 or over, the ordinary disability retirement benefit formula will not result in a higher benefit than what he or she would receive under the basic service retirement formula.
  • a veteran, the allowance is equal to a yearly annuity amount plus one-half of the member’s salary for the last twelve months during which he or she was actually employed OR the superannuation allowance to which he or she is entitled, whichever is greater.

There are no service or age requirements for applying for an accidental disability retirement benefit.

What is the length of time for a disability retirement application to be processed?

An ordinary disability retirement takes approximately six to nine months. An accidental disability retirement takes approximately 12 to 14 months.

What is the difference between ordinary and accidental disability retirement?

An ordinary disability retirement is a medical condition which is unrelated to the job. A medical panel of three physicians must determine (1) that the member is unable to perform the essential duties of the job, and (2) that the disability is permanent.

An accidental disability retirement is a medical condition which is caused by the job. A medical panel of three physicians must determine (1) that the member is unable to perform the essential duties of the job, (2) that the disability is permanent, and (3) that the medical condition is a result of an incident, a series of incidents or a hazard undergone on the job.

As an employer, do I have any input into the disability process?

Yes. As the employer, you will be required to complete the Disability Applicant’s Employer Statement. Along with that statement, you will be required to submit attendance records and teacher evaluations from the past five years. Also, you or someone on your staff familiar with the circumstances surrounding the incident will, in all likelihood, be called before the Board to testify.

If a member incurs a work-related injury but does not lose any time from school, is it necessary to have him or her contact the MTRS?

Yes. The member should submit any and all information regarding the injury within 90 days of that injury. This will provide protection for the member if that injury were to develop into something more serious some years later.

Should I encourage the injured member to apply for Workers’ Compensation with our local carrier?

Yes. If the member incurs a work-related injury and is expected to be out of work for a period of time, he or she should be encouraged to apply for Workers’ Compensation. Again, this will protect the teacher if he or she applies for an accidental disability retirement some years later related to that particular injury.

When the MTRS requests a formal job description and none exists, what should the school send?

The medical panel must review an official school document which describes the requirements of the particular job. Therefore, the administration should report in writing exactly what those requirements are.

When does the member officially become retired on a disability?

The member is officially retired on the day that the Board votes to approve the disability. If the member is receiving paid sick leave, it should be stopped on that day. The Board vote, along with supporting documents, will be reviewed by the Public Administration Retirement Commission, which is a regulatory agency for all Massachusetts retirement systems. Once that process is completed, the member will receive an estimated check; within 60 days of receiving the first check, the member will receive a finalized check.

Retiree insurance

Employers

How to handle health insurance deductions for employees who are retiring at the end of the school year

Is your school district one of the districts that participate in the Group Insurance Commission’s RMT program? If:

  • YES, then you should withhold premiums for any partial month and two full months following the employee’s retirement date, because the GIC begins coverage on the first day of the third full month of retirement.For example, if the employee is retiring on 6/30/13, then you should withhold premiums through August 30, 2013. The employee would then stay with your district’s group insurance program for July and August, and the GIC will pick up coverage as of September 1st. Likewise, if the employee is retiring on 7/15/13, then you should withhold premiums through September 30, 2013; in this case, the employee would stay with your district’s group insurance program through July, August and September, and the GIC will pick up coverage as of October 1st.
  • NO, then you should treat the employee as if he or she would be returning to school the next year, and withhold his or her premiums as you would normally do from the employee’s (school) year-end payday or summer pays, so that his or her insurance is paid up through the month of September.Then, in September, the insurance coordinator for your city/town/regional district can instruct us to begin insurance premium withholdings for the new retiree’s October premium; the retiree’s October insurance premium will be withheld from the retiree’s MTRS retirement payment that is processed at the end of September.

Financial reports

About Us, Employers

GASB reporting: FY2024

  • Cover Memo, dated July 30, 2024
  • FY2024 GASB 68 Report, dated July 15, 2024

The MTRS has been working with representatives from the State Comptroller’s Office, the Public Employee Retirement Administration Commission (PERAC), and CliftonLarsonAllen (CLA) to issue the GASB Statement No. 68 schedules for the fiscal year ended June 30, 2023 to be used by our employer units in their FY2024 financial statements. GASB Statement No. 68 requires the Commonwealth to provide certain “on behalf” pension information to Massachusetts cities and towns whose teachers’ pensions the Commonwealth is responsible for funding.

Above is a link to the GASB Statement No. 68 Report which includes attestations from the Commonwealth’s independent auditor.

If you have any questions about the GASB Statement No. 68 Report or the individual schedules, please contact Pauline Lieu of the State Comptroller’s Office, at pauline.lieu@state.ma.us, or Sean Neilon, Assistant Executive Director & Chief Financial Officer of the MTRS, at sean.neilon@trb.state.ma.us.

Historical Reference:

  • FY2023 GASB 68 Report, dated July 24, 2023
  • FY2022 GASB 68 Report, dated July 28, 2022
  • FY2021 GASB 68 Report, dated April  9, 2021
  • FY2020 GASB 68 Report, dated April  17, 2020
  • FY2019 GASB 68 Report, dated March 7, 2019
  • FY2018 GASB 68 Report, dated March 16, 2018
  • FY2017 GASB 68 Report, dated May 2, 2017
  • FY2016 GASB 68 Report, dated September 12, 2016
  • FY2015 GASB 68 Report, dated September 25, 2015
  • FY2014 GASB 24 Agency Totals

2023 Annual Statement of the Financial Condition of the MTRS

To the Public Employee Retirement Administration Commission for the year ended June 30, 2023.

MTRS monthly report layout

Employers

In 1996, the MTRS standardized earnings and retirement contribution reporting. The original file specifications have since been modified to simplify payroll deduction reporting for employers and remove most of the originally required data that is otherwise non-existent in payroll systems. While updating the report validations and file field definitions, the MTRS has retained the fundamental structure of the original 309 character per record layout in order to avoid requiring software revisions by employers.

Field definitions


Field name Record Type
Status Required
Length 1 character
Valid entries are Payroll records are identified by “C” (letters are all caps)
Description This is the first field in the report. It identifies the type of record being read by the system. Record types A, B and D have been eliminated.

Field name Trans-Type
Status Required
Length 1 character
Valid entries are N – Normal, R – Retroactive, A – Adjustment (letters are all caps)
Description The Transaction Type field identifies the pay type of each individual record.
• Normal Record: Record reporting regular payroll data
• Adjustment Record: Record used to correct an error or omission that occurred in a prior reporting period
• Retroactive Record: Record generated to report retroactive pensionable pay for an employee who would not have a normal record for that period (such as terminated employee or a retiree); this is the sole function of this transaction type

Field name Trans-Date
Status Required
Length 8 characters
Valid entries are yyyymmdd
Description Also known as the Pay Date or Check Date, the Transaction Date identifies the date of the pay transaction that pertains to this specific record. In a normal payroll record the transaction date(s) are always the same month as the Period. Please report each pay date with a separate record. Adjustments should also be a separate record from the normal record.

Field name Agency
Status Required
Length 6 characters
Valid entries are #### (space) (space) – # = 0-9
Description The school district’s four-digit agency code assigned by the MTRS. This field is left justified and should be space-filled.

Field name School Code
Status Eliminated
Length 3 characters
Valid entries are (space) (space) (space)
Description Formerly the school building location code; no longer used. Please insert three spaces. This field can remain populated if being populated today.

Field name SSN
Status Required
Length 9 characters
Valid entries are ######### – # = 0-9
Description The member’s Social Security number is the primary key in the MTRS database. No hyphens.

Field name Name
Status Required
Length 30 characters
Valid entries are Alpha-numeric (letters are all caps), left justified + space filled
Description Full name of the member whose data is being reported. Format is last name first, separated by a comma from the first name and middle initial. Modifiers (Sr., Jr., II, III, etc.) are part of the last name, separated from the last name by a space then followed by a comma. Hyphenated last names are valid. There should only be one comma in the name field because there is no comma between the first name and middle initial (e.g., “HIDALGO-SMITH III, JANET R”).

Field name Rate-Code
Status Required
Length 2 characters
Valid entries are 05, 07, 08, 09, 11
Description Identifies the contribution rate in the record being reported.

Field name Contract-Term
Status Required
Length 2 characters
Valid entries are 01, 02, 03, 09, 10, 11, 12, HR
Description The term (length of time expressed in months) associated with the contract covering the member whose deductions are being reported; the length of time the member is contracted to work. Contract terms of “01”, “02” and “03” should only be used for an athletic coach who is a teacher in another school district. New: The MTRS now offers a contract term of ‘HR’ for MTRS eligible hourly employees who have fluctuating base earnings because they are not eligible for vacation or sick leave benefits.

Field name Pay-Duration
Status Required
Length 2 characters
Valid entries are 01, 02, 03, 09, 10, 11, 12, LS
Description Duration of the pay schedule for the member being reported, expressed in months. The “LS” value is entered for members on a 12-month pay cycle who collect their summer pay as a lump sum in month 10. Pay durations of “01”, “02” and “03” should only be used for a coach who teaches in another school district.

Field name Base-Earnings
Status Required
Length 8 characters
Valid entries are ########, # = 0-9, zero filled
Description The portion of contractual base earnings actually paid to the member during the reporting period; equals the contracted annual salary divided by the annual pay frequency, multiplied by the number of pay periods being reported in the record.

$1234.64 = 00123464 and $-1234.64 = 0012346M

All earnings and deductions fields can have alpha-numeric last characters based on COBOL standards.


Field name Coaching-Earnings
Status Required
Length 8 characters
Valid entries are ########, # = 0-9, zero filled
Description Earnings paid for athletic coaching at such times as they occur.

$1234.64 = 00123464 and $-1234.64 = 0012346M

All earnings and deductions fields can have alpha-numeric last characters based on COBOL standards.


Field name Retroactive-Earnings
Status Required
Length 8 characters
Valid entries are ########, # = 0-9, zero filled
Description Earnings being reported in a current period that are retroactive to a prior period.

$1234.64 = 00123464 and $-1234.64 = 0012346M

All earnings and deductions fields can have alpha-numeric last characters based on COBOL standards.


Field name Longevity-Earnings
Status Required
Length 8 characters
Valid entries are ########, # = 0-9, zero filled
Description Earnings paid for a contractual longevity bonus that is not incorporated into the base salary.

$1234.64 = 00123464 and $-1234.64 = 0012346M

All earnings and deductions fields can have alpha-numeric last characters based on COBOL standards.


Field name Stipend-Earnings
Status Required
Length 8 characters
Valid entries are ########, # = 0-9, zero filled
Description Additional eligible earnings paid as contractual stipends and reported when they occur; e.g., pay received for Choral Director, Department Head, Lead Teacher, etc.

$1234.64 = 00123464 and $-1234.64 = 0012346M

All earnings and deductions fields can have alpha-numeric last characters based on COBOL standards.


Field name Premium-Earnings
Status Required
Length 8 characters
Valid entries are ########, # = 0-9, zero filled
Description Premiums paid by the employer for individual life or disability insurance or annuity contracts. Frequently found in administrator’s contracts.

$1234.64 = 00123464 and $-1234.64 = 0012346M

All earnings and deductions fields can have alpha-numeric last characters based on COBOL standards.


Field name Ineligible-Earnings
Status Required
Length 8 characters
Valid entries are ########, # = 0-9, zero filled
Description Nonpensionable (ineligible) earnings paid to the members in the reporting period; no deductions are taken from these earnings and they are not added to the total. Please default all undefined codes to this field.

$1234.64 = 00123464 and $-1234.64 = 0012346M

All earnings and deductions fields can have alpha-numeric last characters based on COBOL standards.


Field name Pay-Frequency
Status Required
Length 2 characters
Valid entries are 01, 02, 03, 06, 10, 12, 20, 21, 22, 23, 24, 25, 26, 27, 37, 38, 40, 41, 42, 43, 44, 52, 53
Description The annual pay date schedule expressed as a two-digit number. For a member who receives pay weekly over all 12 months in the year, the pay frequency would be reported as 52. Teachers who receive pay on a bi-weekly schedule, 12 months a year would have a pay frequency of 26. Pay frequency of “01”, “02”, “03” and “06” should only be used for a coach who teaches in another school district.

Field name Retirement-Deduction
Status Required
Length 6 characters
Valid entries are ######, # = 0-9, zero filled, right justified
Description The retirement contribution actually deducted for the member reported in this record. This is calculated as a percentage of the sum of all eligible earnings reported in the previous earnings fields.

$234.64 = 023464 and $-234.64 = 02346M

All earnings and deductions fields can have alpha-numeric last characters based on COBOL standards.


Field name 2% Retirement-Deduction
Status Required
Length 6 characters
Valid entries are ######, # = 0-9, zero filled, right justified
Description The “30-plus” contribution deducted for the member reported in this record. The “30-plus” deduction should be calculated on a pay period basis on all earnings over that which would equal the earnings of someone being paid $30,000/year. A 30-plus deduction should be taken on all of the earnings for coaches who teach in another district, for any payment to an employee outside of his or her normal pay schedule or any retroactive payment.

$234.64 = 023464 and $-234.64 = 02346M

All earnings and deductions fields can have alpha-numeric last characters based on COBOL standards.


Field name Repay
Status Required
Length 6 characters
Valid entries are ######, # = 0-9, zero filled, right justified
Description Reserved for reporting pre-tax installment payments. Use of this field is currently suspended but eventually it will be used to report installment payments to the MTRS through payroll deduction (for refund buy-backs, service purchases, etc.). Installment payments must be authorized by the MTRS before being submitted. This field should not be used for error correction.

$234.64 = 023464 and $-234.64 = 02346M

All earnings and deductions fields can have alpha-numeric last characters based on COBOL standards.


Field name Period Date
Status Required
Length 6 characters
Valid entries are yyyymm
Description Also known as the reporting period or payroll period. The payroll year/month to which the transaction reported in the record applies; format is a 4-digit year followed by a 2-digit month (01 through 12): yyyymm. The month and year of the period date must match the month and year of the transaction date on all normal records.

Field name Full-time Status
Status Required
Length 3 characters
Valid entries are ###, zero filled, no decimals!
Description Full-time/part-time status. The percentage of full-time the member being reported is working; field is 3-digit numeric; full-time is entered as “100”; eligible part-time entries are “001” through “099”. While employees who are working less than half-time (“050”) are ineligible for MTRS membership, it is sometimes necessary to report less than half-time values in this field when a member is working in more than one school district and the combination of the multiple district employment is equal to or greater than 50% full-time.

Field name Gender Code
Status Eliminated
Length 1 character
Valid entries are (space)
Description Please insert one space. This data is now collected through the enrollment application. If currently being populated, no change is required.

Field name Birth-Date
Status Eliminated
Length 8 characters
Valid entries are (space) X 8 or 19500101
Description Please insert 19500101 or eight spaces. This data is now collected through the enrollment application. If currently being populated, no change is required.

Field name Street1 – Attn: Line
Status Required
Length 30 characters
Valid entries are Alpha-numeric (letters are all caps), left justified + space filled
Description This field is used for additional address mailing information such as an apartment or suite number, “c/o”, etc. Please avoid commas or other punctuation marks.

Field name Street2 – Street Address Line
Status Required
Length 30 characters
Valid entries are Alpha-numeric (letters are all caps), left justified + space filled
Description This field is used for the member’s primary street address or PO Box number. Please avoid commas or other punctuation marks.

Field name City
Status Required
Length 16 characters
Valid entries are Alpha-numeric (letters are all caps), left justified + space filled
Description The city or town portion of the member’s mailing address.

Field name State
Status Required
Length 2 characters
Valid entries are Any standard two-character abbreviation for a US state or PR for Puerto Rico
Description The two-character state abbreviation. Letters are all caps

Field name Zip Code
Status Required
Length 10 characters
Valid entries are #####, #####-#### or #####(space)#### – (# = 0-9)
Description The postal ZIP code that pertains to the member’s address. This field is sized to accommodate ZIP+4 and should be fully populated whenever this data is available. The format is base ZIP followed by four digits and may be input without a hyphen.

Field name Salary
Status Required
Length 6 characters
Valid entries are ###### # = 0-9
Description The current annual contractual salary for the member being reported. The annual contractual salary should be the full-time equivalent for part-time members not the pro-rated actual salary being paid. This field should be stated in whole dollars and updated whenever a member’s salary changes.

$54,124 = 054124 and $54,124 = 05412D

All earnings and deductions fields can have alpha-numeric last characters based on COBOL standards.


Field name Position
Status Required
Length 6 characters
Valid entries are SUPT = Superintendent
LEADER = Charter School Leader
COLDIR = Collaborative School Director
TEACH = Teacher
KINDER = Kindergarten Teacher
COACH = Coach (as primary title)
ADMIN = Administrator
PRIN = Principal
NURSE = School Nurse
OTHER = Other
PSYCH = Psychologist or psychiatrist
LIBRA = Librarian
ASPRIN = Assistant Principal
ASUPT = Assistant Superintendent
GUIDE = Guidance Counselor
SOCIAL = School Social Worker
ADJUST = School Adjustment Counselor
SPEECH = Speech and Language Therapist
OT = Occupational Therapist
PT = Physical Therapist
Description The member’s generic position code derived from an MTRS-defined table. Please use uppercase letters.

Field name Employer Paid Code
Status Eliminated
Length 1 character
Valid entries are (space)
Description Please insert one space

Field name Employer Paid Amount
Status Eliminated
Length 8 characters
Valid entries are 00000000 or (space) x 8
Description Please insert eight zeroes (00000000) or eight spaces

Field name Grant Percentage
Status Eliminated
Length 3 characters
Valid entries are 000 or (space) x 3
Description Please insert three zeroes (000) or three spaces

Field name Time
Status Eliminated
Length 3 characters
Valid entries are 000 or (space) x 3
Description Please insert three zeroes (000) or three spaces

Field name Certification Number
Status Eliminated
Length 8 characters
Valid entries are eight spaces
Description Please insert eight spaces. This data is now collected through the enrollment application. If currently being populated with a valid certification number, no change is required.

Field name Certification Issuer
Status Eliminated
Length 4 characters
Valid entries are four spaces
Description Please insert four spaces. This data is now collected through the enrollment application. If currently being populated with a valid certification source, no change is required.

Field name Certification Date
Status Eliminated
Length 8 characters
Valid entries are 00000000 or (space) x 8
Description Please insert eight zeroes 00000000 or eight spaces. This data is now collected through the enrollment application. If currently being populated with a valid certification number, no change is required.

Field name Filler
Status Eliminated
Length 8 characters
Valid entries are 8 spaces
Description Please insert eight spaces

Field name Deduction Start Date
Status Eliminated
Length 8 characters
Valid entries are 00000000 or (space) x 8
Description Please insert eight zeroes 00000000 or eight spaces. This data is now collected through the enrollment application.

End of record Please end each record with a carriage return
  • Home
  • Forms
  • News
  • Educational videos
  • Unclaimed Funds
  • MTRS Site Policies
  • Public Records Requests

MAIN OFFICE

500 Rutherford Avenue, Suite 210

Charlestown, MA 02129

Phone: 617-679-6877

Fax: 617-679-1661


SPRINGFIELD OFFICE

One Monarch Place, Suite 510

Springfield, MA 01144

Phone: 413-784-1711

Fax: 413-784-1707

Call us 617-679-6877
Send us an email Use our GenInfo contact form
© 2025 Massachusetts Teachers' Retirement System. All Rights Reserved
Back to top