Disability Pensions

Abuse Costs Us Millions
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Factoids

Social Security differs in Mass.

Massachusetts is one of the 15 states in which public employees don’t pay into Social Security and don’t collect it. People who contributed to Social Security while working in the private sector then went into the public sector, lose as much as 55 percent of their Social Security benefit if they are also collecting a public pension.

$13,500 on Social Security

The average annual benefit to people collecting disability through Social Security was about $13,500 in 2008.

Numbers flip-flop

In 1983, 62 percent of  American workers were  covered by a defined benefit retirement plan and 12 percent  had defined contribution plans.  By 2007, the numbers had flip- flopped, with 17 percent covered by defined benefit and 63 percent by defined contribution plans.

State Police: 27%

From June 2003 through  June 2008, the rate of accidental disability retirements among State Police was 27  percent, or 90 out of 335 retirements.

319 teachers

As of May, 319 of the 52,508 retired teachers statewide were on accidental disability, or 0.6 percent.
 

6.9 percent

Statewide in 2008, 12,933 of the 186,700 retired public employees, including city, town and state workers and  teachers, received accidental disability benefits. That’s 6.9 percent.

Pensions rise $360 per year

Public employee pensions in Massachusetts increase by a maximum of 3 percent on the first $12,000 of a retirement allowance each year. That’s $360 per year.

Private sector funds Social Security

Most private sector employees – about 55 million nationwide – rely on defined contribution retirement plans, in which they are responsible for managing their money and there is no guaranteed benefit, to supplement Social Security.

401(k) matching drops

The number of private employers who match their employees’ contributions to 401(k) plans is shrinking. Those that still do typically contribute 50 cents for each dollar contributed up to the first 6 percent of an employee’s pay.

Workers pay 9% on average

The average state worker pays 9 percent of his or her salary and the state kicks in more than $1 billion per year to pay for about 12 percent of public employee retirement benefits. The remainder is paid for with pension fund returns.
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