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.
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.
For almost twenty years, HR Knowledge has made it our mission to demystify the complex and daunting process of HR management. We do more than just provide the level of service and technology you’d expect from an industry leader. We combine an unparalleled passion for service with our decades of HR, payroll, and benefits experience to provide our clients with personalized and actionable advice that is second–to–none. From managed payroll to employee benefits to HR support, we can help your organization thrive, grow, and reduce operating costs—no matter what industry you serve. Whether you’re interested in our Full-Service solution or just need your employee handbook written, HR Knowledge can help you minimize risk while staying on top of compliance regulations. The bottom line? We’re not just another cloud-based technology company that also does HR, #WeAreHR. Get the scoop on how we can help you simplify HR.
This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.