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Factoids

Average pensions

The average state retiree’s annual pension was $23,014 in January 2008.

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.

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.

Private sector numbers

Private sector employees contribute 6.2 percent of their gross pay to Social Security and their employers contribute another 6.2 percent. Self-employed workers contribute 12.4 percent.

S. Shore numbers

The average municipal retiree on the South Shore’s annual pension in 2008 was between $19,000 and $21,500. The average accidental disability retiree on the South Shore’s annual pension in 2009 was about $31,500.

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.

10-year guarantee

Massachusetts has a defined benefit retirement program for its municipal, county and state workers. Public employees who work 10 years or more are guaranteed a retirement allowance consisting of a pension and at least a portion of what they paid into the system over the years plus interest, the annuity. They also get lifetime health benefits.

Disability Pensions