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Massachusetts

Overview

Major public retirement systems in Massachusetts include the Massachusetts State Employees Retirement System (SERS) and the Massachusetts Teachers Retirement Board (TRB). The Massachusetts SERS administers pension and other benefits to nearly all state employees excluding Boston, which maintains its system. The Massachusetts TRB administers pension benefits to public school teachers and other certified employees in the state (excluding Boston).

The Public Employee Retirement Administration Commission (PERAC) oversees SERS and the other public retirement systems in the state. Assets are managed by the Pension Investment Reserves Management Board (PRIM) whose nine members include the state treasurer, the governor or his or her designee, elected representatives of the state employees and teachers retirement systems, and elected board members from the SERS and TRS.

Plan Design

Defined benefit plans serve as the primary retirement benefit for substantially all public employees in Massachusetts.

According to the US Government Accountability Office, three percent of employees of state and local government in Massachusetts participate in Social Security.

Access plan design detail

Authorizing Statutes and Board Structure

MA Gen L ch 32 § 2 establishes state and local retirement systems. 

MA Gen L ch 10 § 18 establishes the Massachusetts State Employees’ Retirement System board, which consists of five trustees.

MA Gen L ch 15 § 16 establishes the Massachusetts Teachers’ Retirement System board, which consists of seven trustees. 

Details regarding the composition of these and other retirement boards is accessible via the Retirement and Investment Board Characteristics search tool located at the bottom of this page.

Fiduciary Duty/Prudence Standard

MA Gen L ch 32 § 23(3) states

A fiduciary as defined in section one shall discharge his duties for the exclusive purpose of providing benefits to members and their beneficiaries with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims and by diversifying the investments of the system so as to minimize the risk of large losses unless under the circumstances it is clearly prudent not to do so. Each member of a retirement board established under this chapter shall upon the commencement of the member's term file with the commission a statement acknowledging the member is aware of and will comply with the standards set forth in chapter 268A, this chapter and rules and regulations promulgated under this chapter.

MA Gen L ch 32 § 23 also provides a list of restrictions on investment activities. 

Legal Protections of Retirement Benefits

No explicit constitutional protection for public pension benefits, but courts recognize statutory protection for contractual pension rights. See Opinion of the Justices, 303 N.E.2d 320 (1973)(the government may not deprive members of the "core of reasonable expectations" that they had when they entered the retirement system); Madden v. Contributory Retirement Appeal Bd., 729 N.E.2d 1095 (Mass. 2000)(state may not deprive members of the core of reasonable expectations that they had when they entered the retirement system; this does not preclude modifications to the retirement scheme, but such modifications must be reasonable and bear some material relationship to the theory of a pension system and its successful operation). (MAST 32 §25) Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits

See also the following search tools:

Retirement System Account Interest Policies Economic Actuarial Assumptions Retirement and Investment Board Characteristics
Information about interest rates applied to account balances of inactive plan participants Assumed rates of investment return and inflation Composition and characteristics of public retirement and investment oversight boards
Mortality Assumptions Plan Design Features Post-retirement Employment Policies
Public retirement system actuarial assumptions for mortality Numerous elements of retirement plan design Policies governing return-to-work for retirement system annuitants

More Data

Flag of Massachusetts (March 21, 1971)

Population (2025) 7,154,084

Massachusetts public pension statistics,
per U.S. Census Bureau as of FY 2025

Assets

$127.9 billion

Active Members

340,578

Annuitants

244,567

Benefits Paid

$10.9 billion

Employee Contributions

$3.1 billion

Employer Contributions

$6.8 billion

Systems

Two state systems that together account for 73 percent of assets and 69 percent of public pension plan participants in the state. The Census Bureau also reports 90 local systems.

More Data


Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.

What's New at NASRA: Government Spending Issue Brief

NASRA’s March 2026 update on government spending makes a basic but important point: public pension benefits are not paid out of a government’s day-to-day operating budget. They are paid from trust funds that employees and employers contribute to during an employee’s working years. Those trusts distribute more than $400 billion each year to retirees and beneficiaries in communities across the country. On a national basis, employer contributions to pension trusts in FY 2023 equaled 5.16 percent of direct general spending by state and local governments, which shows that pension contributions remain a limited share of overall public spending even though the level varies from one state to another. 
The brief also shows that pension costs should be viewed in the context of the changes governments have made over the past 15 years to strengthen plan funding. Following the 2008–09 market decline, nearly every state and many local governments adjusted contributions, benefits, or both to improve pension sustainability. More recent data show that employer contributions increased from FY 2022 to FY 2023, but pension spending as a share of total government spending remained broadly stable. The updated brief provides FY 2023 figures and also projects the aggregate pension spending rate for FY 2024, offering a useful snapshot of both current costs and the longer funding trend.