Question 1

How is my Massachusetts state pension calculated?

Accepted Answer

Your pension is based on your age at retirement, your years of creditable service, and the average of your highest 3 consecutive years of salary (or highest 5 years if hired after April 2, 2012). The formula is: Age Factor × Years of Service × Average Salary.

Question 2

What is the COLA cap for 2026?

Accepted Answer

For 2026, the Massachusetts state COLA base remains at $13,000. With a 3% adjustment, the maximum increase is $390 per year. Some local systems have adopted higher bases (up to $18,000 or higher), but the state system remains capped.

Question 3

What is the difference between Option A, B, and C?

Accepted Answer

Option A provides the maximum monthly benefit but leaves nothing to a beneficiary. Option B provides a slightly reduced benefit and returns any remaining annuity balance to beneficiaries. Option C provides the lowest monthly benefit but guarantees a lifetime survivor allowance (66%) for your spouse or beneficiary.

Question 4

Does my pension affect my Social Security?

Accepted Answer

Yes. Massachusetts public employees do not pay into Social Security for their government earnings. This triggers the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which can reduce your own or your spousal Social Security benefits.

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