Background
The Massachusetts Teachers’ Retirement System was established in 1914 and is the largest of the Commonwealth’s 104 contributory retirement systems. Recently there have been two major changes that are effective as of 1/1/2023.
Summary
1. An employee moving from an MTRS position to a Non-MTRS position will NO LONGER remain on MTRS!MTRS eligibility guidelines now state that a change in position is considered a “separation from service”. The eligibility guidelines state:
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:
- Their resignation from that employer;
- Their failure to be re-elected or re-appointed in a *teacher position by that employer;
- Their removal or discharge from their position;
- Their commencement of service in a position other than a *teacher position;
- Their commencement of day-to-day or short-term employment;
*A “teacher position” means regular employment, on at least a half-time basis, in a position that satisfies the MTRS’ eligibility criteria. “Teacher” is used in the definitions but represents any position that has been determined to be MTRS eligible.
As of today, we have not been given any information from MTRS regarding changes to employees that were previously kept on MTRS when they moved to a Non-MTRS position. At this time, we will be applying this rule from 1/1/23 forward.
2. Rehiring a retired member: hours and wage limits are reinstated
As of December 31, 2022, the suspension of the post-retirement hours and earnings limits has expired. As such, for the calendar year 2023 forward, the standard hours and earnings limitations are back in effect for retired members of the MTRS who are employed in any Massachusetts public position.
If your district employs retired members of the MTRS or another Massachusetts contributory retirement system, the standard hours and earnings limitations are back in effect for 2023. Please remember, it is the shared responsibility of your employee and you to ensure that the hours and earnings do not exceed the limitations for post-retirement public employment.
For detailed information about these limitations, please visit the MTRS webpage on rehiring a MA public retiree. Additionally, you can use the Retiree Earnings Limit Calculator available in MyTRS to ensure these limitations are not exceeded.
Employer Next Steps
If you have had any new hires or employee changes that are impacted by these changes, please send the employees’ names and details to your HR Knowledge client account manager.
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