The law has recently changed regarding the limits that a disability retiree can earn after retirement. With the passage of Chapter 492 of the Acts of 2014, the state legislature amended MGL Chapter 32, §91A which allows public employees receiving a disability pension to earn an additional $15,000 during a calendar year. This calculation will be based on total earnings without regard to the source of the earnings, public or private.
The additional earnings will be allowable for the calendar year that began on January 1, 2015 and will be reported on the member’s Annual Statement of Earned Income for 2015 (to be filed in the Spring of 2016). Therefore, beginning in calendar year 2015, a disabled retiree will be allowed earnings of up to $15,000 above the difference in the salary currently being paid for the position from which he/she retired and the member’s retirement allowance.
It is important to note that this new law did not increase the number of hours that public retirees are allowed to work in the “public” sector. The annual limit remains at 960 hours. The private sector has no hourly limits.