Disability Pensions

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Factoids

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.

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.

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.

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.

Paying into the system

Depending on when they were hired, public sector employees in Massachusetts contribute between 5 and 12 percent of their pay into the local or state retirement system. Since 1979, public employees have contributed at least 7 percent plus 2 percent on any earnings over $30,000. Since 1996, they’ve contributed at least 9 percent plus 2 percent on any earnings over $30,000.

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.

319 teachers

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

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.

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.

Payments for Medicare

Both public and private sector employees in Massachusetts have 1.45% of their pay deducted for the Medicare portion of Social Security.
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