Post Retirement Earnings Limit Increased to $25,000

On July 9, 2026, Governor Healey signed the Massachusetts FY2027 state budget into law. The budget includes a change to how the post-retirement earnings limit is calculated for public retirees.

Under the new law, retirees can now add an additional $25,000 to their post-retirement earnings calculation, an increase from the previous $15,000 allowance. This means many retirees can earn up to $10,000 more in post-retirement public employment while continuing to receive their pension. Effective on July 9, 2026. For more information, please review the supporting documents PERAC memo 21.