Possible to receive Massachusetts Retirement System Pension AND Social security

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bigguy8437
Posts: 275
Joined: Tue May 26, 2015 12:02 am

Possible to receive Massachusetts Retirement System Pension AND Social security

Post by bigguy8437 » Sat May 11, 2019 11:50 pm

So this post if for my mom who’s a teacher in Massachusetts. She wanted to know if she’s able to receive social security AND her Massachusetts Retirment System Pension. I’ve googled it and can’t find out. It looks like there are “double-dipping” laws that give some more explanation on this. Can anyone help?

fposte
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Joined: Mon Sep 02, 2013 1:32 pm

Re: Possible to receive Massachusetts Retirement System Pension AND Social security

Post by fposte » Sun May 12, 2019 12:38 am

As a Massachusetts teacher she hasn’t been paying in to Social Security (she’s been paying into the pension instead); if she hasn’t been paying in for at least 40 quarters she’s not eligible for Social Security based on her own earnings. If she contributed sufficiently through other jobs she may be eligible for Social Security but subject to the Windfall Elimination Provision, which reduces the Social Security benefits of people who are also receiving pensions. That PDF has a chart that should allow you to calculate how much her Sodial Security would be reduced if it applies to her.

Kayakr
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Joined: Fri May 03, 2019 11:49 am

Re: Possible to receive Massachusetts Retirement System Pension AND Social security

Post by Kayakr » Sun May 12, 2019 7:17 am

MA teachers don't pay in to social security, so this is unlikely unless he/she has worked for 10 years in an early or later job. SS also pays out almost nothing compared to MTRS, so be glad those contributions actually go into an asset backed plan. Additionally, people with a good pension also get a deduction in any spousal benefits by 2/3rds of their pension, so it's unlikely my wife would receive any survivors SS benefit from me. And social security benefits when combined with a good pension will almost surely be fully taxed.

The great news is, If you calculate the present value of such a pension plan, you might well find it could be worth 1-2 million dollars. Be careful about dropping out early as many do. I've run the numbers and my wife (principal) will be earning 450k and 250k in increased PV of retirement+ pension in the years her pension steps up to the max 80%. Plus we'll be able to save almost her entire income and let our assets grow. If he/she is so luck as to live 30 years, best case, the pension will pay 40% of it's initial value in real terms, because the COLA is trivial.

https://mtrs.state.ma.us/service/social-security/

https://mtrs.state.ma.us/wp-content/upl ... -tier1.pdf

Topic Author
bigguy8437
Posts: 275
Joined: Tue May 26, 2015 12:02 am

Re: Possible to receive Massachusetts Retirement System Pension AND Social security

Post by bigguy8437 » Sun May 12, 2019 12:02 pm

Does anyone know if Massachusetts teachers count just for public school? Or does private school teacher count too? She’s been a public school teacher for the last ten years, and was working in private for 15+ before that

michaeljc70
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Re: Possible to receive Massachusetts Retirement System Pension AND Social security

Post by michaeljc70 » Sun May 12, 2019 12:28 pm

She (or you) can log in to the SS site and it will tell you what benefits you will get, if any.

https://www.ssa.gov/site/signin/en/

Kayakr
Posts: 31
Joined: Fri May 03, 2019 11:49 am

Re: Possible to receive Massachusetts Retirement System Pension AND Social security

Post by Kayakr » Sun May 12, 2019 4:27 pm

private school count too?
Mtrs allows you to buy credits, but only if ALL the students were paid for by the state. Unfortunately my wife lost 4 years service to this.

Ask mtrs for an estimate of service,, check whether you selected retirement plus payments and review the schedule of percentages in their website so you know where you stand.

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